Photo Market in Poland 2005

Digital Camera Market Is Booming

In the first half of 2005, there was a substantial 89% sales growth in the Polish digital camera market. Though the market grew at half the rate of the first half of 2004, it still shows a huge potential for development.

A compact digital camera segment, the biggest digital camera market segment with a 98% share in terms of sold units, saw a considerable shift in demand towards the categories offering higher-resolution images. Almost 40% of compact digital cameras sold in the first half of 2005 were equipped with a 4-megapixel matrix. More remarkably, the market share of 5-megapixel cameras doubled to 24%, while the share of 3-megapixel category – the largest segment in the first half of 2004 – slumped from 48% to 27%.

A reflex digital camera segment also grew robustly, nearly four times the rate of the previous year. The increased popularity of the category is to be attributed to the increasingly wider range of reflex digital camera models available in the market which therefore pushed prices down by 30%.

The surge in popularity of digital cameras with Poles is predominantly a result of huge price cutting (in average by 20%), but extended functionality and improved technical parameters like matrix and LCD display with higher resolution, menu in Polish and thematic exposure modes are also of great role. Another reason for the growing appeal of the product is that customers are able to process, store and transfer photos with increasing simplicity. Additionally, camera users have now much more opportunity to develop digital photos – at numerous photo service outlets, via the Internet or just print on paper by themselves.

As a result of growing competition and more demand digital camera products have become more available than ever, with a wide variety of models sold at increasingly greater number of photo and computer outlets, as well as household goods/electronics stores.

Considering the factors above and the fact that price wars between large retailers intensifies before Christmas there are reasonable grounds for expecting that the sales of digital cameras will reach at least one million units in Poland in 2005.

Analogue Camera Market Is Shrinking

The year 2005 is another consecutive year of a market decline for analogue photography. The sales of traditional film-based cameras plummeted 40% during the first half of 2005. The trend could not be even reversed with a strong 25% price decrease. Along with the shrinking sales of the film-based camera, the camera film market is also suffering a decline, with the sales figure down by 25% compared the first half of 2004, but, in this case, prices were reduced ‘only’ by 12%.

Parallel to the rapid development of the digital camera market and other related markets of digital devices, sales of traditional cameras and camera films will continue to fall. Like in other market segments of consumer electronics, a launch of new technology makes the old one obsolescent.

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