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Photo Merchandise Products for the U.S. and European Markets: Adding Value to Consumer Generated Content

Publication Date: September 2008
Services: Digital Photography Trends
Digital Photography Trends Europe

Introduction

The emergence and growth of the photo merchandise market comes at a critical time for the photofinishing industry. Growth rates for traditional 4” x 6” prints, once the staple of the photofinishing market, continue to fall, forcing vendors to find new sources of imaging revenues and profits. Previous InfoTrends studies have shown that photo merchandise, ranging from calendars and photo books to greeting cards and novelty items, has significantly higher profit margins than prints and is one of the segments in the photo industry where there is significant growth potential.

This fast-growing market has been fueled by the explosion of digital photos, digital printing technologies, and e-commerce. The growth in social networking sites has also opened up new opportunities for people to share their digital photo content, further increasing the potential for photo merchandise creation beyond the user’s personal photos. Today, it is easier than ever for consumers to use content from a variety of sources to create photo products and gifts that express their personality and provide value beyond a 4” x 6” print. It has also become increasingly easy for individuals, organizations, businesses, and creative professionals alike to engage in short-run publishing of photo-centric content, thereby accelerating the pace of adoption in an already burgeoning market.

Currently, the vast majority of photo merchandise is created when consumers apply digital photos to product design templates. There’s a plethora of photo products available, with categories that include greeting cards, photo books, calendars, photo collages, and other specialty photo products. Each product has its own production methods, pricing, and purchase drivers.

Despite the rapid growth of the photo merchandise market, there are numerous challenges that industry players must better understand, including:

• A high degree of seasonality for many products
• Differing levels of price sensitivity / elasticity
• A variety of ordering, design, and production methods, including many manual-based processes
• Numerous industry suppliers with different resources and skills
• Numerous vendors that offer different products and have varying degrees of customer adoption and loyalty
• A short “window of uniqueness” for new photo products
• A significant overlap of industry alliances and competition

InfoTrends is conducting a detailed study of the U.S. and European photo merchandise markets to provide technology vendors, imaging service providers, and other industry players with the information and insights they need to capitalize on the potential of this growing market.

Project Objectives

This study is designed to provide companies that are interested in the U.S. and Western European photo merchandise markets with critical business planning information. It will:

• Segment and profile the customers for photo merchandise
• Examine differences in market size and structure by region (U.S. and Western Europe, with a focus on the U.K., France, and Germany)
• Identify key industry players (B2C and B2B)
• Forecast the market for photo merchandise by key product categories
• Identify opportunities and strategies for technology vendors and service
• providers

As part of its overall analysis of the market, InfoTrends will compare the results of its 2006 consumer survey on photo merchandise with the results of survey work conducted as part of this project. We will identify key differences in the purchase patterns of U.S. buyers, as well as any changes in customer demographics and awareness among U.S. consumers. Forecasts for the Western European market will be broken out in detail for France, Germany, and the U.K. An aggregate forecast will be provided for the total Western Europe market.

Analysis and Project Deliverables

InfoTrends will conduct extensive analysis of the desk research, in-depth interviews, and structured survey to develop a comprehensive understanding of the market’s opportunities and issues. The project deliverables will include:

• Report addressing key issues, findings, and overall recommendations
• Market forecast for the U.S. with supporting assumptions
• Market forecast for Western Europe with supporting assumptions
• Analysis of regionally specific survey data
• Presentation for internal communication of the research results (PowerPoint)
• Data book of the survey tabulations for additional analysis

Getting Started

For more information on the study or to sign up as a participant, contact Matt O’Keefe at +1 , ext. 115 or via e-mail at . Early subscriber discounts are available until May 16, 2008. Clients that sign up early can also provide input and review of the structured surveys.