New York, NY (PRWEB) April 20, 2014 -- The Camera Stores industry contracted significantly over the past decade. This is because intensified competition from online retailers and consumer electronic stores reduced the number of consumers that purchase items from camera stores, forcing several companies to exit the industry. “Furthermore, per capita camera consumption has declined during the period as consumers increasingly opt to take pictures with smartphones,” according to IBISWorld Industry Analyst Brittany Carter. As a result of low demand during the five years to 2014, revenue is forecast to decline at an average rate of 2.1% per year, totaling $2.9 billion.
While consumer spending improved over the period, online camera sales and alternative devices have continued to dominate the market. Several companies have shut down operations in response, reducing the number of industry establishments at an annualized rate of 3.3% over the five years to 2014. Not only are e-tailers undercutting industry prices, diverting revenue and putting pressure on profit for industry players, large-format stores such as Best Buy or Wal-mart are also more convenient for consumers that want to purchase other items while shopping. Industry revenue is consequently anticipated to fall 2.2% over 2014, despite improving economic conditions.
The proliferation of smartphones and other devices with advanced camera features has reduced total camera sales over the five years to 2014. Consequently, complementary high-margin products such as film have declined, cutting into profit margins. “Many consumers now use smartphones or tablets as cameras, given that such multipurpose devices are often more convenient and less expensive than purchasing and carrying separate devices for different tasks,” says Carter. Moreover, smartphones and tablets streamline the process of uploading and sharing photos or videos. Accelerated by an annualized 36.8% increase in mobile internet connections during the period, consumers can now upload pictures directly from mobile devices to a variety of web platforms and cloud storage systems.
This shift toward new technologies and large-scale retailers is projected to continue, restricting industry growth and cutting into revenue. To remain competitive amid heavy competition, industry operators will likely specialize in niche products with a heavy emphasis on customer service and technical expertise.
For more information, visit IBISWorld’s Camera Stores in the US industry report page.
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IBISWorld industry Report Key Topics
The Camera Stores industry comprises brick-and-mortar camera stores that sell photographic equipment and supplies such as cameras, lighting equipment, film, tripods and other accessories. E-commerce, consumer electronic store and catalog sales are not included in this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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Gavin Smith, IBISWorld 2, +1 (310) 866-5042, [email protected]