Record year for Camera House and there's more to come

Special Feature: The Annual

Mark Alderson, chairman of Camera House and managing director of Foto Riesel, says the company's record results in 2009 reflect the strength of well-organised specialist photo marketing and buying groups.

PIN editor Barrie Parsons: From all reports, Camera House has had a very strong year to date. How did the group perform compared to the previous year?

Camera House had an excellent 2009. Our positioning as specialists allowed us to take maximum benefit from the interest in the digital SLR growth. The company's sales grew by 24% across the whole network. We had a record profit and a record distribution back to members.

The performance of the warehouse was outstanding. We generated a large number of opportunities for the members to make additional profits and increased sales. The warehouse operation is the jewel in the crown for Camera House as it enables us to do large bulk deals very quickly.

What main factors do you attribute to the group?s increase in sales?

The key to Camera House's success is our marketing and buying operations. Our award-winning catalogues have driven our business up and our brand awareness is stronger than ever.

Did the Federal Government's stimulus packages have any impact on sales at your business earlier this year?

I would say yes - we cannot prove this but it seems to have had a definite effect on sales and confidence.

How many members are now part of Camera House - and what potential is there for expanding the number of members, both geographically and by type of retailer?

We have approximately 100 branded stores. We also have a strong associate program that features the Paxton's group. In the future, we are expanding the associate membership with particular attention to setting up a pro group in this area. Our key focus remains branded stores and with a number of new shopping centres opening up, we are looking to position new and exciting members in these centres.

What impact is the strong Australian dollar having on prices of imported stock?

We are very concerned at the speed in which local suppliers react to the dollar movements. We are a world business and need to measure our pricing against that. The increase in grey and low-cost internet providers is affecting the whole industry.

What is the group's business outlook for Christmas 2009 and the year ahead?

The first three months have been stronger than last year, so we see no reason not to believe this will be a strong Christmas. Our success in 2010 will depend on the position of the dollar and how suppliers react to pricing and marketing. We have a number of plans that will help Camera House members grow their business.

How do you see 2010 compared to 2009 -  in terms of consumer confidence?

I believe Australian consumers will remain confident going into 2010. Employment, the economy and low interest rates will determine their attitude. However, interest rates will rise as they are coming from such a low base but they will have little impact on us in 2010.

Which imaging product categories do you think will perform best in 2010?

DSLR will remain strong. The opportunity is to grow this category by engaging more with the consumer. Compacts and video will be harder work.

Thinking about your job and your business goals, do you have any 'New Year resolutions' for the year ahead? If so, what are they?

From Foto Riesel's point of view, we want to enjoy the customers' fun with imaging. This means getting them back into the store a lot more times. Our goal is to get them printing at least one A3 or bigger image from there camera within six months of purchase. We are committed to quality 'Fine Art Printing' to show the customers how good the cameras we sell really are.

Which products proved most popular with customers this year?

All SLR?s were strong across all brands. For us, the quality compacts were also strong. The G11 and strong zoom-type of cameras suit our customers very well.

Which new product (in any category) do you consider to be the most successful in 2009?

The most exciting thing to happen is the DSLR with video/audio capability. This opens up a whole new opportunity to grow this business area. I am very excited about this space.

Our Fine Art Print Shop has changed the way we deal with customers. It has been a fun learning experience. I am looking forward to 2010 to build on this opportunity.

Best supplier in 2009 in terms of service and marketing support?

I would have to say Canon has done some great things to engage with the consumer this year. The Photo Chains is the best thing this industry has done in many years. I just wish we had thought of it.

The worst thing that can happen to specialist photo retailers in 2010?

That we as an industry stop engaging with the consumers. We need to understand their needs and desires and respond to them. It is not just about price. Being the cheapest allows no room to add value for the consumer. The more the product becomes a commodity the more our relevance reduces. Australia has a unique, strong specialist industry that should be selling imaging and memories above market share.

In conclusion, I believe no business can do it on your own anymore. I would urge any independent to contact each of the groups and see what they have to offer.

Do it again even if you were not happy with the answers last time you asked.

The whole world of buying, distribution, and marketing has changed over the last two years, and it will keep changing even faster.

We all need to bargain from a position of strength and strong groups like Camera House and Ted's will be vital in the years ahead as the supply chain changes to meet the new challenges in the world market.

No one group is perfect but no groups will mean no industry as we know it today.

Camera House now has the structure to add value to any good business that wants to be successful.

A 'brilliant' year

Camera House had a 'brilliant' year, capped by a 60% increase in sales and a 40% lift in net profit, prior to the distribution of around $2 million in warehouse rebates.

The group?s recent AGM was told that nearly three-quarters of Camera House members increased their business during the year. Total purchases from Camera House-preferred suppliers grew by 24%.

Camera House also announced plans to revamp its website in 2010 with a view to generating in excess of $40 million in sales via a 'shop online' 'collect in-store' concept.