Digital Still Cameras and Videocameras - US - March 2008

Published by: Mintel International Group Ltd.

Published: Mar. 1, 2008 - 73 Pages

Table of Contents

SCOPE AND THEMES

What you need to know

Definition

Data sources

Sales data

Consumer survey data

Abbreviations and terms

Abbreviations

Terms

EXECUTIVE SUMMARY

Overview

Still cameras enter commodity stage

Videocamera market picking up steam

One part of a digital universe

The power of print

Three surprisingly different supply branding positions

All in the family

Young pioneers

The role of retail

MARKET SIZE AND FORECAST

Key points

A new digital world

A maturing sector

An opportunity in accessories and related products

Figure 1: Total U.S. sales and forecast of digital cameras at current prices, 2003-10

Figure 2: Total U.S. sales and forecast of digital cameras at inflation adjusted prices, 2003-10

COMPETITIVE CONTEXT: WHAT HAPPENS WHEN CELL PHONES OFFER 5-8 MP RESOLUTION?

Introduction

Are we there yet?

The camera is the most popular convergence feature on cell phones

Consumers may stop trading up at the 6-8 MP mark

Figure 3: Attitudes to megapixel capacity, January 2008

Attitudes toward and use of cell phones as cameras

Figure 4: Attitudes and usage regarding cellphone camera use, January 2008

Competition from multifunction convergence products

Figure 5: Camera-equipped mobile phone ownership/feature usage, May 2006-June 2007

Convergence within the market a potential response

Figure 6: Interest in advanced digital camera features, by age, January 2008

Videocamera still photo usage

Figure 7: Camcorder usage for taking still photos, by age and gender, January 2008

SEGMENT PERFORMANCE

Key points

Concerns about complexity and value limit videocamera growth

One camera that can do it all

Figure 8: U.S. sales and forecast of digital cameras at current prices, by segment, 2003-10

Figure 9: U.S. sales of digital cameras, by segment, 2005 and 2007

SEGMENT PERFORMANCE—DIGITAL STILL CAMERAS

Key points

Cameras grow up

Target for success

Figure 10: U.S. sales and forecast of digital still cameras, at current prices, 2003-10

Figure 11: U.S. sales and forecast of digital still cameras, at inflation adjusted prices, 2003-10

How low can prices go?

Figure 12: Total U.S. unit sales and average prices of digital still cameras, 2003-07

SEGMENT PERFORMANCE—VIDEOCAMERAS

Key points

Slow but steady

Importance of ease of use and quality

Figure 13: U.S. sales and forecast of videocameras, at current prices, 2003-10

Figure 14: U.S. sales and forecast of videocameras, at inflation adjusted prices, 2003-10

Finding the “sweet spot” in pricing

Figure 15: Total U.S. unit sales and average prices of videocameras, 2003-2007

RETAIL CHANNELS

Key points

Available everywhere

Wal-Mart and club stores

Online-only vendors

Poor economic outlook likely to disproportionately impact CE specialists

It’s all about service

Added value services

Web marketing crucial

Figure 16: Methods used for researching digital camera and videocamera purchases, January 2008

MARKET DRIVERS

Film retains substantial disposable camera sales—an opportunity for low-end DSCs

A new digital world

Figure 17: U.S. household penetration of leading media technologies, 2005 and 2007

From consuming to creating content

Figure 18: Online teen participation in selected content creation, 2004 and 2007

The rise of HDTV

Figure 19: Penetration of HDTV, 2004-07

Rapid price declines continue

Figure 20: Average PC per-unit prices, 2002-07

The importance of prints

Figure 21: Digital camera prints made, by method, 2002-07

Printing services and kiosks—clearing PCs from the picture

Focus on design

Figure 22: Crayola Camera

Figure 23: Spiderman Camera

Customization: flexible forms and appearance

A souring economy

Figure 24: Consumer sentiment index, 2001-07

LEADING COMPANIES

Key points

Vendors jostle for position

Just one part of the picture

Figure 25: Unit sales of leading digital camera companies, 2005 and 2006

Popularity of still camera brands

Figure 26: Brands of still camera brands owned, May 2006-June 2007

Figure 27: Brands of still camera brands owned, by age, May 2006-June 2007

Figure 28: Still camera brands owned, by household income, May 2006-June 2007

Popularity of videocamera brands

Figure 29: Videocamera brands owned, May 2006-June 2007

Figure 30: Videocamera brands owned, by age, May 2006-June 2007

BRAND QUALITIES

Canon

Sony

Eastman Kodak

INNOVATION AND INNOVATORS

Leica

Sakar International

Sigma

ADVERTISING AND PROMOTION

OVERVIEW

Traditional advertising

Figure 31: Advertising spending by leading camera brands, 2005 and 2006

In-store promotions

Online marketing

Sponsorships

Contests

TELEVISION ADVERTISING

Canon

Figure 32: Canon PowerShot television ad, 2007

Kodak Picture Kiosks

Figure 33: Kodak Picture Kiosk television ad, 2007

Nikon

Figure 34: Nikon DSLR D40 television ad, 2007

Sony Cyber-shot

Figure 35: Sony Cyber-Shot television ad, 2007

TRENDS IN ANALOG AND DIGITAL CAMERA OWNERSHIP

Figure 36: Ownership of cameras, by type, 2003-07

AVERAGE SPEND ON CAMERAS

Figure 37: Mean spending on still and videocameras, May 2006-June 2007

DIGITAL CAMERA OWNERSHIP

Figure 38: Ownership of cameras, by type of camera, by key demographics, May 2006-June 2007

DIGITAL DEVICE OWNERSHIP AND PURCHASE INTENT

Figure 39: Ownership and purchase intent for digital devices, January 2008

FREQUENCY OF PICTURE TAKING

Figure 40: Mean number of digital pictures taken over last three months, May 2006-June 2007

HOW STILLS ARE USED IN DIGITAL APPLICATIONS

Figure 41: Usage of digital applications for photos, by age, January 2008

Figure 42: Usage of digital applications for photos, by age, January 2008

Figure 43: Usage of digital applications for photos, by household income, January 2008

Figure 44: Usage of digital applications for photos, by household size, January 2008

PRINTING PHOTOGRAPHS

Figure 45: Usage of printing applications for photos, by age, January 2008

Figure 46: Usage of printing applications for photos, by household size, January 2008

Figure 47: Usage of printing applications for photos, by household income, January 2008

FACTORS IMPACTING CAMERA PURCHASE

Figure 48: Factors impacting digital still and videocamera purchases, January 2008

INTEREST IN FEATURES

Figure 49: Interest in focus-related digital camera features, by age, January 2008

Figure 50: Interest in focus-related digital camera features, by household size, January 2008

INTEREST IN BASIC AND DESIGN-ORIENTED FEATURES

Figure 51: Interest in basic/design digital camera features, by age, January 2008

REASONS FOR NOT OWNING A DIGITAL STILL CAMERA

Figure 52: Reasons not to own a digital still camera, by age, January 2008

Figure 53: Reasons not to own a digital still camera, by gender, January 2008

Figure 54: Reasons not to own a digital still camera, by household income, January 2008

REASONS FOR NOT OWNING A CAMCORDER

Figure 55: Reasons not to own a videocamera, by gender, January 2008

Figure 56: Reasons not to own a videocamera, by age, January 2008

Figure 57: Reasons not to own a videocamera, by household income, January 2008

Figure 58: Reasons not to own a videocamera, by size of household, January 2008

PERSUADING OWNERS TO UPGRADE

Figure 59: Factors encouraging digital camera owners to upgrade, by age, january 2008

Figure 60: Factors encouraging digital camera owners to upgrade, by race/ethnicity, January 2008

Figure 61: Factors encouraging digital camera owners to upgrade, by household size, January 2008

GIFTING

Figure 62: Attitudes and behavior regarding gifting, by gender, January 2008

Figure 63: Giving and receiving digital cameras , by age, January 2008

Figure 64: Attitudes and behavior regarding gifting, by household size, January 2008

KIDS AND CAMERAS

Trended ownership

Figure 65: Camera ownership by teens and children, 2004-07

Camera ownership and digital camera ownership by age

Figure 66: Camera ownership by teens and children, by age, May 2006-June 2007

Number of photos taken

Figure 67: Mean number of pictures taken by teen respondents, May 2006-June 2007

ATTITUDES TO PHOTOGRAPHY AND VIDEO USAGE

Figure 68: Attitudes to photography and video, by age, January 2008

Figure 69: Attitudes to photography and video, by race/ethnicity, January 2008

Figure 70: Attitudes on photography and video, by household size, January 2008

RESULTS BY RACE/ETHNICITY

Introduction

How photos are used

Figure 71: Usage of digital applications for photos, by race/ethnicity, January 2008

Figure 72: Usage of printing applications for photos, by race/ethnicity, January 2008

Brand ownership

Figure 73: Brands of still camera brands owned, by race/ethnicity, May 2006-June 2007

Figure 74: Brands of videocamera brands owned, by race/ethnicity, May 2006-June 2007

Interest in features

Figure 75: Interest in advanced digital camera features, by race/ethnicity, January 2008

Figure 76: Interest in basic/design digital camera features, by race/ethnicity, January 2008

APPENDIX: ADDITIONAL RESULTS BY GENDER

How men and women differ in their use of photos

Figure 77: Usage of digital applications for photos, by gender, January 2008

Figure 78: Usage of printing applications for photos, by gender, January 2008

APPENDIX: TRADE ASSOCIATIONS

Abstract

• Growth trends. As penetration has increased and cameras have improved in quality, companies can no longer count on converting new users or enticing them with more megapixels. This report will forecast sales trends through 2012 and identify new growth opportunities in this competitive market.
• Future trends. Based on analysis of industry and consumer data, Mintel provides recommendations for industry players that will help maximize your growth and market share.
• Industry players. Although the technology sector is rife with commoditized products, companies have maintained distinct brands and positioning for digital cameras. In this report, individual strategies will be assessed to determine which vendors will be the strongest competitors.
• Consumer behavior and attitudes. Drawing on Mintel’s proprietary survey research, buying behavior and product preferences will be discussed, identifying key demographics to target.
• Usage models. Understanding how consumers use cameras and digital images is important to identifying opportunities for accessories, peripherals and add-on services. Mintel will provide in-depth analysis of these important issues based on its proprietary survey data.

• Film still and video cameras
• Camera phones
• Accessories such as memory cards, printers and software
• Photo printing services

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