Retailers forced to confront new world of photo imaging

The 2010 PMA Digital Imaging Expo, which concluded in Melbourne yesterday, highlighted several major shifts in the fortunes of the photo imaging industry.

While the show floor was awash with a vast array of new and no-so-new photo-related merchandise, printing solutions and cameras and accessories, delegates to the conference were given several stark reminders that the industry is being re-shaped by forces largely beyond its control.

For retailers, the big challenges relate to the growing popularity of social network sites and the increasing use of online by consumers for creating and ordering photo products and researching and ordering cameras and accessories.

According to yet-to-be published research commissioned by the PMA and PICA, the average young Australian family takes more than 800 photos a year and nearly half the population choose to share their images with families and friends via online social networking sites such as Facebook.

Robert Beerworth, head of web design company Wiliam, told the conference that young people are now spending around 60% of their leisure time on social media.

The PMA/PICA research found that while more images are being captured now compared to the “film days”, 85% of families are using a computer hard drive for long-term storage with only 55% of people ever printing their images.

The opportunity for retailers rests with capitalising on the new technologies driving advances in photo books, photo cards and other products that preserve images for “generations to come.”

Photo Create managing director Rob Tolmie said that while the 6 by 4 print is “dead”, there are “wonderful opportunities” for retailers because “there is nothing we can’t put an image on.”

He said canvas products were still evolving and photo books were now into their second and third generation with high-end presentation boxes and lay-flat formats offering new revenue opportunities.

“The growth in photo greeting cards is incredible,” he said, adding that a substantial increase in the garment sector was also indicative of the changes affecting his business. 

Tony Borg, owner of three Imagexpress stores, said 85% of his business was made up of photo gifting and merchandise and 6 by 4 prints were “not even a drawcard.”

FUJIFILM managing director Dave Marshall said the gifting market in Australia this year will be worth $160 million.

“The sleeping giant of gifting is stationery and gifts cards,” he said. “Online printing will grow by 15% this year and if you (retailers) don’t do it you’re giving away money.”

Marshall said poster prints will also be a big growth area.