According to market research company GfK Marketing Services, Digital Camera manufacturers should be satisfied with a positive peak in sales over the Christmas trading period. Sales of Digital Cameras grew by 10% to nearly 480,000 units in November 2005 indicating that the market would again achieve a positive growth throughout December, and this prediction appears to have been confirmed. With an annual volume forecast of 5.5 million units for 2005, December sales would need to be close to 1.5 million units for this to be achieved, a growth of 36% on December 2004. As many analysts believed, sales peaked in the six-day trading week ahead of Christmas Day. Sales of Digital Cameras grew by over 70% against the same week in the previous year, and this represented over 315,000 individual units. This weekly figure can be put into context when GfK Marketing Services reveal that this total was higher than the sales in three out of the twelve months of 2005. Much of this increase in sales has been driven on through attractive promotions and pricing by retailers. The average price of a compact digital camera in week ending 24th December was £113.00, a 9% reduction against 2004. Even Digital SLR prices have been on a downward trend, which has clearly convinced the consumer that this was a good time to purchase. As sales of Digital Cameras surged, the value of the market also grew, overall standing at £38 million for week ending 24th December. Value growth was less at 43% due to heavy price erosion against the previous year, as retailers fought to win over the consumer. Looking ahead to 2006, GfK Marketing Services predicts that the Digital Camera market will continue to perform strongly, however with competition from mobile camera phones and other complementary devices, manufacturers and retailers will need to develop unique selling points to continue to achieve the success of 2005. 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 GfK Marketing Services monitors the Digital Camera market on a weekly and monthly frequency. Coverage rates are detailed below (total market defined as Great Britain) 1) Weekly data represents 65%-70% of the total market. 2) Monthly data represents 95% of the total market.
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