Digital Camera Market – Closing in on £1 billion!

28.10.2005

The Digital Camera market is getting closer to an annual value of £1 billion within Great Britain. Annual value growth for the period October 2004 – September 2005 continues at a rate of over 20% and volume is even higher surpassing 30%, against the same period for 2004. It would appear we are far from the point of sales saturation within this market, and it seems as long as the manufacturers continue to produce technology stretching products the consumers will keep buying.

The anticipation of another record breaking December period is just around the corner, with expectations of sales ahead of last December’s 1.1 million units. GfK have the ability to track sales performance by week for this category. The analysis for December 2004 revealed some very different trends by week. The questions is, what week will the consumers be making their gifting purchases this year?

Both Digital Compacts and Digital SLR cameras continue to strive forward, however within the compact market sales value growth has fallen to under 15%. Much of this is linked in with the sharp price reductions on the high street and Internet. Internet sales for September 2005 accounted for nearly 14% of the overall market. In unit terms this represented sales close to 55,000. As well as tough economic conditions and a recent rise in inflation due to increased oil prices, high street retailers now have to compete against the strong presence of on-line players. 2005 has shown how competitive the market is within the retailing sector, and Digital Cameras as a product are no exception.

The star performing area within the Digital Camera market continues to surround the sales of Digital SLR products. This sector of the market in terms of both volume and value is achieving annual growth rates of over 100%. It has become apparent that consumers are enjoying the opportunity to trade up to a Digital SLR and gain the benefits from this type of product. It is expected however that the value growth within this category will not last, only recently we have recorded sales of a Digital SLR product with a retail price of under £450.00.

Due to the expanding peripherals market GfK have widened their reporting to focus on other areas including:

• Camera Bags
• Interchangeable Lenses
• Underwater Housing
• Tripods
The peripherals sector is becoming increasingly important, especially as prices of actual Digital Cameras are being forced down through competition. Within the peripherals market there is a way to gain further margin.

For further information, please contact:

Anthony Norman, Account Director 0870 6038111
Susie Whales, Account Manager 0870 6038120

GfK Marketing Services Ltd., Sheer House, Station Approach, West Byfleet, Surrey, KT14 6NL

For more information please contact: gfkms_uk_pho@gfkms.com