Report: Digital Camera Industry Must Accessorize for Success
Dec 29, 2008
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Manufacturers and retailers in Canada’s maturing digital camera industry are missing a significant sales opportunity by allowing new camera customers to leave their outlets without purchasing photo accessories such as lenses, camera bags, batteries, and memory cards. These high margin add-ons are often purchased subsequently and from other retailers, says a report by market research company, The NPD Group.
The NPD Group report, What’s in the Digital Camera Shopping Basket, shows the overall Canadian digital camera market surged 26% in unit sales for the year ending December 2007. Over that same period, the dollar value of sales increased only 3%, reflecting the strong downward pressure on prices. To help manufacturers and retailers increase overall sales, the report identifies significant accessory opportunities.
According to the report, few accessories are bought at the time of initial camera purchase, illustrating that retailers should pursue more opportunities to sell additional products. More than 70% of Point-and-Shoot buyers and more than 50% of DSLR buyers left the store without purchasing anything beyond what was included in the initial purchase price of their new camera.
The report also reveals that only 17% of those who have purchased point-and-shoot cameras and 27% of those who bought digital single-lens reflex (DSLR) cameras from a retailer returned to the same store for aftermarket accessories. Yet, 50% of both point and shoot and DSLR buyers indicate they have made a camera accessory purchase in the months following their initial camera purchase.
According to the report, 56% of Point and Shoot buyers admitted they have already purchased a second or third digital camera while 80% of DSLR customers are repeat digital camera buyers.
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