This mature industry is highly competitive, with intense internal competition and competition from warehouse clubs and superstores, department stores and online retailing. Combined with increasing industry concentration, smaller players are getting moved out of the picture as they struggle to compete against large retail chains. Digital technology has had a massive impact on the industry, and industry participants will have to adjust their product lines in order to generate revenue lost from the collapse of film sales and photofinishing services. For these reasons, industry research firm IBISWorld has added a report on the Camera Stores industry to its growing industry report collection.
Los Angeles, CA (PRWEB) May 06, 2012
The Camera Stores industry struggling to compete with e-tailers, many of which offer a more convenient shopping experience at a lower cost. Additionally, says IBISWorld industry analyst Agata Kaczanowska, “A sharp drop in consumer spending and protracted high unemployment since 2008 led to fewer purchases from industry retailers.” Businesses that invest in camera equipment, such as professional photographers, also stopped spending as demand for their services dried up as well. As a result of low demand for industry products during the past five years, revenue declined at an estimated average rate of 8.5% per year to $2.8 billion in 2012.
An increasing proliferation of smartphones and other devices with advanced camera features are diverting more demand away from the industry. Consumers increasingly use their smartphones or tablets as cameras, which can be more convenient because using one multipurpose device can be more comfortable than carrying a separate camera. Moreover, smartphones and tablets make uploading and sharing photos or videos easier. “Although consumer and business spending is beginning to pick up in 2012,” says Kaczanowska, “Online camera sales and alternative devices are expected to dominate such purchases.” Not only are e-tailers undercutting industry prices – thereby diverting sales revenue away from the Camera Stores industry – but big-box stores are also vying to attract consumers. Retailers like Best Buy or Walmart are also more convenient for consumers who can purchase other items while shopping at such stores. Consequently, revenue in 2012 is expected to slide 2.4%. The industry remains very fragmented, with most firms employing fewer then five workers. The only major player, Ritz Camera & Image, is one of few companies in the Camera Stores industry able to operate nationwide.
The shift toward new technologies and retailers is projected to continue, impairing industry potential. As a result, revenue is forecast to fall over the five years to 2017. Nonetheless, the industry may benefit from a sales tax on online purchases if it were widely implemented. Such a tax would pressure the pricing competitiveness of e-tailers and push some customers back to camera stores. For more information, visit IBISWorld’s Camera Stores report in the US industry page.
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IBISWorld industry Report Key Topics
This industry includes brick-and-mortar camera stores. These retailers sell photographic equipment and supplies including cameras, lighting equipment, film, tripods and other accessories. Online 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
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.