The emergence of action cameras, such as the GoPro, has supported the industry over the past five years
Melbourne, Australia (PRWEB) September 11, 2014
Over the past five years, the Online Camera and Camcorder Sales industry in Australia has been buoyed by enhanced online connectivity. Consumers have increasingly moved online to search for a range of cameras at more competitive prices than those offered by traditional bricks-and-mortar retailers. Furthermore, steady growth in real household discretionary income for much of the past five years has supported demand for photographic equipment. Industry revenue is forecast to rise by 9.4% in the five years through 2014-15. This includes estimated growth of 6.3% in 2014-15, to reach $223.7 million. The rapid proliferation of smartphones has supported online connectivity, as consumers increasingly access digital content through mobile devices. However, according to IBISWorld industry analyst Nick Flores, “hardware improvements in smartphones with built-in cameras have reduced demand for point-and-shoot cameras, as consumers have been able to capture quality photographs via their mobile devices.” This has been further exacerbated by the ability of smartphones to seamlessly share photographs and video footage via online networks, representing a key threat to the industry.
The emergence of action cameras, such as the GoPro, has supported the industry over the past five years, as this product has differentiated itself as a ‘pocket camera', capturing a niche market. The decline in prices for digital single-lens reflex (DSLR) cameras has encouraged the emergence of amateur photographers, which has been aided by the multitude of online tutorials and short photography courses. These factors have supported demand for DSLR cameras over the past five years, which has benefited industry growth. The popularity of smartphone cameras will continue to threaten the industry over the next five years. In response to this, photographic equipment manufacturers are likely to increasingly offer camera products that enable immediate online sharing. “Camera manufacturers are also projected to increasingly provide smartphone accessories, such as detachable zoom lenses, to further boost the photo-taking capabilities of smartphones,” says Flores.
The Online Camera and Camcorder Sales industry is characterised by a low level of market share concentration. The top four players are Kogan.com Pty Ltd, JB Hi-Fi Limited, Raleru Limited and Ted’s Camera Stores (Vic) Pty Limited. Over the past five years, concentration within the industry has changed dramatically, with many of the major industry players only having a minimal online presence early in the period. The increase in overall online retailing has provided a boost for the industry, with retailers rushing to embrace this new sales avenue. Medium barriers to entry ensure that industry fragmentation is high, with operators able to establish minor operations with relative ease, although the establishment of large operations is more difficult. As more bricks-and-mortar operators move towards online sales, concentration is expected to increase.
For more information, visit IBISWorld’s Online Camera and Camcorder Sales industry in Australia report page.
This industry is composed of online retailers that sell cameras, video cameras and associated accessories. The online sales generated by bricks-and-mortar retailers are included in the industry. The industry excludes non-consumer camera equipment such as closed-circuit TV devices.
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IBISWorld Industry Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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