Specialist dealers stare down 2010 with the help of economy

Special Feature: The Annual

For many regional and suburban specialist photo outlets, 2010 may turn out to be 2009 revisited, albeit with some distinctions.

Several regional operators contacted by Photo & Imaging News (many of whom preferred to stay anonymous) said they expected trading conditions in 2010 to be similar to 2009.

With a few exceptions, most owners felt the Federal Government?s stimulus packages - primarily the cash handouts - had created a slight spike in sales.

"It was very minimal at best," commented one dealer. "I believe most people kept the funds and used it to pay off bills and credit card debt which accumulates with day-to-day living. I really don?t believe people went out and spent it on something specific to make them feel good in the economic crisis".

While the handouts have long gone, there's a feeling that a steady rise inconsumer confidence will make up the difference, despite the threat of higher interest rates.

As with their big city counterparts, DSLR camera sales were solid this year but for some, digital compacts were still the 'bread and butter' sellers.

Looking ahead, regional operators are generally optimistic, with comments such as:

- Depending on the unemployment rate, I feel it could be worse if unemployment rises. If we see a return to lower unemployment it will instill greater consumer confidence and result in better retailing.

"I think Christmas will be OK but I'm not certain about next year."

"We've had a great year and we hope to do even better next year - even without the Rudd dollars."

"Very similar, although rising interest rates may make things even tighter."

Not surprisingly, there were quite a few concerns with the predictable issue of discount prints via discount department stores and consumer electronics retailers at the top of the list.

Also mentioned were the 'long hours', 'cheap imports' and 'lower margins'.

Commented one dealer from Queensland: "I can't compete with the Harvey Normans on price so I've concentrated on promoting our quality and service."

As for which product categories will perform best in 2010, the economy again came into play for one dealer: "Depending on how the economy tracks next year, if the majors don't resort to cut-throat retailing, we will see all categories return to more robust figures. This year we have seen a decline in all categories."

As for the "worst thing to impact on the specialist channel", one respondent said: "More CE channels entering the printing industry, to escalate the continuing downward trend in printing. Obviously the purchasing of cameras over the internet is also a huge concern."

However, there were more issues at stake according to one 'mum and dad' retailer via this lengthy response:

"Continued favouritism of the majors by our larger suppliers. If this goes on the way it specifically has over the last 12 to 18 months then it will mean a more rapid demise of specialist photo retailers and 'mum and dad' stores like ours.

"Unfortunately, infiltration of what was a happy photographic industry by CE-minded individuals has caused a very rapid decline in what were nicely profitable businesses and livelihoods, with a care factor of zero.

"Do the consumers know what's going on? I doubt it, because all that's pushed in front of them has been continually price-bastardized products with no margins for small businesses to make any form of reasonable living from.

"We were informed by a former employee who went and worked for a 'big chain store' and were told their sole objective was to make no or very minimal profits across our range and close every 'mum and dad' photo store. Very disturbing information and where is the fairness of this sort of competition, where is the protection? Where is the ACCC?

"What about our own our own marketing organisations? No. They're too busy kowtowing to these groups just like the major suppliers.

"One major supplier's recent decision to not participate in PMA LA 2010 is a direct consequence here.

We do not and will not - unless a customer demands it - sell this company's products purely because of their attitude to our type of business. We have done since day one when we took over our business over seven years ago. We use our sales skills and supply better alternate products to our customers."

In respect of business goals for next year, it's pretty much business as usual with comments such as:

"To stop worrying about the economic climate, and concentrate on my business."

"Our main goals are the same, i.e. achieve as much as we can across the board. Try new avenues of income, maintain a close eye on expenditures, keep as many staff as we can afford and be the best we can for our customers."

Our retail sample nominated the following as among their best sellers this year:

Compact digital camera: Canon sx200is, Canon sx10is, Olympus MJU 7000, Olympus MJU 9000, Ricoh R8.

DSLR camera: Olympus E520, Canon 450D, Nikon D60, Olympus E510 twin kit.

Camcorder: JVC MG630 60Gb HD.

Photo frame: Digiframe, Profile 4x6 008 black.

Camera bag or case: Lowepro, Optex snoot compact.

Camera accessory: Tamron 18-200mm lens, Inca deluxe lens cleaning kit.

Photo gift: Mugs, Profile Snow Domes.

"We had not previously sold Ricoh DC's and since they introduced two-year warranty and a 30-day trial, we have been confident in them and sold through the product successfully," said one dealer.

Asked to nominate the best supplier in 2009 in terms of service and marketing support, only a few retailers stepped up with Olympus getting the nod:

"Although we don't buy much from them, we consistently receive brochures, POS and calls from Shane Luder of Olympus Australia,' said one.