The Second Generation - Digital Cameras

"Total DSC market worth is $772m, based on MAT Jul06 data, with zero growth! Over 1.851 million units have been sold during this period which equates to only a 4.9% growth vs the previous year.

The latest quarter (Apr- Jul06 ) has the market declining in value by (- 8.7%) vs the same quarter last year and declining in volume by (-9.5%). This would suggest that for the first time, DSC will record a decline in both volume and value in 06 vs the previous year. It's estimated that the household penetration of DSC will be around 78% by the end of 2006.

As the market matures, consumers are steadily moving away from the entry level, point & shoot category (31% of the market) into other camera segments. The majority of DSC purchases are now being driven by consumers making their second generation camera purchase. Increased camera sophistication and not just more megapixels are important to consumers whilst making their second generation purchase.

Using GfK's consumer segmentation analysis, growth is coming from Lifestylers (42%), Enthusiasts (10%) and Advocates (5%). Advocates are essentially those consumers purchasing a DSLR camera. On a MATJUL06 basis, DSLR currently represents 5% (units) of the total market.

Despite the various retail offers, 78% of consumers are still preferring to print at home, mainly due to convenience"

For further information please contact:

Derek Nash                          GfK Australia                                      02 9900 2851