Digital Cameras - UK

Published by: Mintel International Group Ltd.

Published: May. 1, 2008 - 71 Pages

Table of Contents

Issues in the Market

Main issues

Definition

Abbreviations

Market in Brief

Growth continues although market shows signs of a slowdown

Consumers benefit from innovation and lower prices and trade up

Tightly contested market

Promotional efforts move towards more focused strategies

Consumers represent a complex market

Internal Market Environment

Key points

Digital cameras continue to prove popular although there is evidence that the market is becoming saturated

Figure 1: Percentage of adults who own a digital camera, 2003-07

Slowdown in male and youth market is of particular concern

Figure 2: Digital camera owners, by gender, age and socio-economic group, 2003-07

Impact of smartphones

Camera phones and younger consumers

Mobile phone photography continues to evolve

Falling digital prices stimulate sales...

Figure 3: Average prices (Compact and SLR), 2003-07

...although single-use cameras (SUCs) remain a cheap and cheerful rival

Seasonality continues as a factor in the market

SUCs lose out to ever cheaper digital devices

Figure 4: Segmentation of the camera market, by value, 2003-07

Figure 5: Segmentation of the camera market, by volume, 2003-07

Broader Market Environment

Key points

PDI growth is helpful although relationship may be weakening

Figure 6: PDI, consumer expenditure and savings, 2003-13

Middle-aged bulge should bring market opportunities

Figure 7: Trends in the age structure of the UK population, by gender, 2003-13

Increased penetration of PCs will help market

Figure 8: Household ownership of PCs, 2002-07

Growing penetration of broadband also presents opportunities

Figure 9: Percentage of adults with access to broadband and dial-up Internet at home, 2003-07

Growth in one-person households could stimulate sales

Figure 10: UK household sizes, 2003-13

Competitive Context

Key points

Digital cameras - potential to complement from the wider increase in leisure expenditure

Figure 11: Consumer expenditure on selected leisure goods and activities, 2002-07

Spending priorities favour leisure

Figure 12: Expenditure priorities, 2007 and 2008

Competition from mobile is more of a threat

Figure 13: Percentages of mobile phone owners that have, and use, their built-in camera function, 2005-07

Figure 14: Types of cameras used, June 2007

Single-use cameras remain a significant feature of the market

Strengths and Weaknesses in the Market

Strengths

Increasing adoption of digital technology

Trading up by consumers within camera sector

Innovation by manufacturers

Demand for more advanced features

Retailer efforts to stimulate sales

Weaknesses

Impact of falling prices

Competition from both manufacturers and retailers

Increasing saturation of camera market

Competition from other portable devices

Changes in consumer preferences

Market Size and Forecast

Key points

Price erosion hits the digital market

Figure 15: Forecast of UK retail sales of digital cameras, by value, at current and constant 2008 prices, 2003-13

Average prices continue to fall

Figure 16: Average price of digital cameras in the UK, 2003-07

Segment Performance

Key points

Megapixel mania moves market upward

Figure 17: Volume sales of digital cameras, by image capability, 2003-07

Compact digital units dominate although digital SLRs show the strongest advance

Figure 18: Volume sales of digital cameras, by type, 2003-07

Market Share

Key points

Manufacturers fight for business…

Figure 19: Estimated volume sales of digital cameras, by manufacturer, 2007

...with some choosing to exit

Compact segment is the most contested...

...while digital SLR remains focused on optical specialists

All change in the retail sector

Figure 20: UK retail value sales of digital cameras, by outlet type, 2003-07

Trade views

Brand Communication and Promotion

Key points

Fall in promotional expenditure hints at signs of market maturity

Figure 21: Main monitored media advertising expenditure on digital cameras*, 2003-07

Manufacturers dominate although degree of interest varies

Figure 22: Main monitored media advertising expenditure on digital photographic equipment, by top ten advertisers, 2003-07

Some manufacturers move towards promoting individual models

Press advertising dominates while television is on the wane

Figure 23: Main monitored media expenditure on digital photographic equipment, by media type, 2003-07

Companies and Brands

Canon (UK) Ltd

Fuji Photo UK Ltd

Kodak Ltd

Sony UK Ltd

Nikon UK Ltd

Panasonic

Olympus Optical Co (UK) Ltd

Casio Electronics Co. Ltd

Ownership of Digital Cameras

Around of half of all adults now own a digital camera

Figure 39: Digital camera ownership, 2006 and 2008

Laggards holding onto film are typified by women and older adults

Digital Camera Usage

Figure 40: Digital camera usage, February 2008

Getting consumers snapping

A nation of amateur photographers

Occasional amateurs and professionals both retain preference for film

Figure 41: Ownership versus skills in digital camera usage, February 2008

Appendix - Digital Camera Ownership

Figure 50: Digital camera ownership, by gender, age, socio-economic group, marital status, presence of children, working status, household income, tenure, region, ACORN category, media usage, supermarket usage, household size, car ownership, detailed lifestage groups and terminal education level, February 2008

Appendix - Who Uses Digital Cameras

Figure 51: Digital cameras users, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, household income, tenure, region, ACORN category, media usage, supermarket usage, household size, car ownership, detailed lifestage groups, age/socio-economic group and terminal education level, February 2008

Abstract

This report presents a review of the UK digital camera market and analyses the two key types of camera that can be found in the market, compact and SLR, as well as other digital camera units.

It can be considered as a revision to a previous report on this market produced in May 2006, although it differs in that this report excludes photographic accessories - the exception being lenses purchased as part of a package when buying a digital single lens reflex (SLR) camera.

Accessories are excluded unless they are provided as part of a package when purchasing an SLR camera, many of which are commonly sold without a lens. Accessories and services related to the sector, such as processing, are excluded.

Key themes of the report:

• Can digital cameras continue to increase in popularity?
• Is there a slowdown in the market?
• What remains the priority for manufacturers and consumers?
• Do lower prices encourage trading up?
• Who is more likely to buy a digital camera?

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