The market for photo merchandise continues to have significant, untapped potential. As more consumers become aware of the appealing products they can create, and as the processes for producing and delivering these products becomes more efficient, the stage is set for photo merchandise to grow at rates that far outpace those of digital cameras or digital photo prints.
In addition to enabling consumers to express themselves through creative photo projects, photo merchandise provides a valuable source of revenue for vendors that have seen their photo print volumes declining in recent years.
InfoTrends’ research indicates that the print-based segments of the photo merchandise market will experience a revenue growth rate of 63 percent between 2008 and 2010, and healthy growth will continue through 2013. Thanks to their higher prices per unit, photo books have displaced photo cards as the prime revenue generator within the photo merchandise market, but the entire industry represents a huge potential.
The Facts
In the recent study, “Photo Merchandise Products for the U.S. Market,” InfoTrends surveyed 6,321 U.S. residents over age 18. It should be noted that this study focused on print-based products such as books, calendars, cards and specialty prints. Among the qualifying survey respondents, only 21 percent had purchased photo merchandise in the previous 12 months.
Females were slightly more likely to have purchased photo merchandise items than males, and consumers between the ages of 18 and 44 were more likely to buy them as well. As illustrated in the chart, over half of the respondents under age 25 had purchased photo merchandise in the past year. InfoTrends attributes this to younger adults being more likely to experiment with new ways to get their photos printed.
InfoTrends’ research showed that households with higher incomes are more likely to purchase photo merchandise, likely because they have more disposable income. Photo merchandise buyers reported a considerably higher mean annual household income than non-buyers. Although the photo merchandise market is still in the early development stages, this may point to a need for increased market education. Perhaps consumers consider photo merchandise items to be expensive, and this belief has kept some of them from purchasing these items. The reality is that most of today’s photo merchandise products are very reasonably priced. Photo merchandise sellers should work to promote the affordability of their products to appeal to a wider audience.
InfoTrends’ research has consistently shown that children tend to be drivers for increased digital photography activities, including photo capture, photo sharing and photo printing. This trend extends to photo merchandise purchasing, as well. Nearly twice as many photo merchandise buyers had children under 21 at home vs. non-buyers.
Although InfoTrends’ research suggests that industry vendors may experience greater success with females, parents and those under age 44, all demographics should be considered, and increased market education will be paramount for future market growth.
Close to 86 percent of the consumers who had purchased photo merchandise in the past said that they would “definitely” or “probably” buy it again.
Emotional Purchases
In today’s difficult economy, many consumers are looking to curb their spending. Less expensive “gifts from the heart,” like photo merchandise items, can hold a greater sentimental value than pricier, traditional gifts. Perhaps more importantly, consumers who receive photo gifts may be prompted to create some of these products themselves, and this can provide a boost to the entire industry. To encourage spending, vendors may want to consider offering special marketing programs, pricing and promotions. These messages are likely to carry increased importance in the current economic climate.
Photo merchandise buyers tend to capture and print more photos than general digital camera owners. Growth in the photo merchandise market is occurring at a pivotal moment in the history of the photography market, as print and digital camera sales are flat or declining and market stakeholders are seeking new revenue streams to keep their businesses profitable. The photo merchandise market offers a great deal of potential, but future success will depend on targeting the unique needs of specific demographics, including parents, corporate customers or professional photographers.
Based on InfoTrends’ recent study, “Photo Merchandise Products for the U.S. Market.” InfoTrends has published several additional studies on the photo merchandise market, including a study on Western Europe. InfoTrends now offers a year-round vendor advisory service called “Photo Merchandise Trends,” which provides a continuous information on this category, including forecasts, end-user studies, related research/analysis, and ongoing access to industry analysts. For more information, contact Matt O’Keefe at matt_okeefe@infotrends.com or (781) 616-2100, ext. 115.
