Whilst the photo merchandise market is showing good growth, there remains a great deal of opportunity to be seized. InfoTrends’ research shows that the percentage of respondents that have purchased photo merchandise, over the period of a year, has remained stable since 2011.
Illustrated in the chart below are respondents who have purchased photo merchandise in the past year (buyers) and those who have not purchased any photo merchandise in the past year (non-buyers).
Growth opportunities in the photo merchandise market are represented largely by the great percentage of Western Europeans who have yet to purchase photo merchandise and also by repeat photo merchandise buyers. There are clear characteristics that define these two target markets. In order to successfully drive growth in the photo merchandise market, it is important for vendors to fully understand these two different categories of consumers and implement business strategies that target these segments individually.
Vendors continue to struggle with raising interest levels among non-buyers. Too often we see price driven marketing campaigns. Whilst price incentives are a great method for drawing in some first time buyers and price conscious consumers, it does not always work effectively at keeping consumers loyal and returning for more. Without generating a natural desire for photo merchandise, price incentives are often ineffective. Appropriate marketing messages are needed to communicate the benefits of photo merchandise to supplement the initial incentives.
Repeat buyers of photo merchandise are a lucrative segment of the market. Purchasing behaviours of repeat buyers are typically superior to that of first time buyers of photo merchandise. Repeat buyers are likely to increase their product purchases and are likely to spend more money and time creating premium products. It is important that vendors continue to introduce innovative and exciting photo merchandise products and offer personalized incentives in order to tempt repeat buyers back for more.
Furthermore, multinational industry players need to address country specific trends. The Western European photo merchandise market is extremely localized and consumers in each country have their own unique purchasing behaviours. Each market behaves differently and encounters dissimilar stages of development. Vendors should be vigilant and consider the unique purchasing habits of consumers within each country and adapt business strategies accordingly.
Although the photo merchandise market is growing, its growth could be greater if factors inhibiting growth are overcome. Unless vendors make a greater investment to drive further growth there is a risk that the European photo merchandise market will plateau sooner than anticipated.
For further information regarding consumers’ photo merchandise purchasing behaviours or for more information on the InfoTrends’ Digital Photography Consumer Survey please contact our European Sales Manager Jennie Lewis