After recessionary declines, rising replacement camera sales will drive industry demand
Los Angeles, CA (PRWEB) December 17, 2012
Since their emergence in 2002, digital cameras have driven an increasingly significant portion of the Camera and Film Wholesaling industry. The novelty of being able to preview pictures at the moment they are captured and personally save and print photographs caused sales of digital cameras to rise at a rapid rate. The overwhelming success of digital cameras, however, was not enough to significantly boost industry revenue over the past five years, with the recession further dragging down the industry's prospects. Revenue declined 2.7% and 7.9% in 2008 and 2009; and over the five years to 2012, industry revenue is expected to decline at an average annual rate of 2.3% to an estimated $18.4 billion. Revenue is expected to fall an additional 0.5% in 2012.
This decline was the result of a number of factors; chief among them was the recession. Falling employment and household disposable incomes caused consumers to scale back their discretionary spending, including camera and camera equipment purchases. Fewer people also took vacations; vacation picture-taking is a key driver for spending on cameras. Demand for photography services (e.g. wedding, school and family portraits) also declined, consequently lowering demand for photography supplies. Though digital cameras have become the key revenue source for the industry, their success has also hurt the industry in several ways. Analog camera sales (and film sales) have suffered at the expense of rising digital camera sales. “The increasing penetration of digital cameras into US households indicates that their sales will eventually slow; IBISWorld research reveals that digital camera sales peaked in 2007,” says IBISWorld industry analyst Nima Samadi. The industry has also been hurt by cell phones' progressively higher-quality cameras, which have encouraged many consumers to abandon digital camera purchases in favor of their phone's built-in camera.
The industry is due for a rebound, however. Demand for photography services will pick up, as will demand for cameras and camera equipment. Consumers who put off buying cameras during the recession will make their purchases as the economy continues to recover. Additionally, a growing portion of the revenue derived from digital cameras will come from replacement sales, driven by continued price drops and product innovation. The Camera and Film Wholesaling industry is highly fragmented, with a large number of small and independent players that supply their goods locally. According to Samadi to this end, the top four players are expected to account for less than 5.0% of the market share in 2012, indicating low industry concentration. Nonetheless, industry concentration has been rising in the five years to 2012. In the face of falling demand and profitability, industry players have been increasingly consolidating to pool their resources and gain access to a larger customer base. Firms with a global footprint and broad customer and supplier bases are expected to do relatively well, and these firms are expected to grow both organically and through acquisitions. Over the five years 2017, additional merger and acquisition activity is expected to cause further industry concentration over this period. For more information, visit IBISWorld’s Camera and Film Wholesaling in the US industry report page.
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IBISWorld industry Report Key Topics
This industry wholesales photographic equipment and supplies (except office equipment), including digital cameras, photofinishing equipment, photographic film, television cameras and projection equipment. This industry does not wholesale photocopying equipment, microfilm equipment or household video cameras.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.