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The buzz at this year's PMA? Football, including allegiances and “where are you watching the game,” was a major topic of conversation. With the double whammy of being held just three weeks after CES and on Super Bowl week-end, can you blame anyone? Even PMA was running the football (no pun intended) theme with Kick-off and Ultimate Tailgate Parties.
As usual, PMA revolved around cameras, with printing as a sidebar – and I'm not certain that any one printing device item caused a stir. In recent years, photo kiosks and photo books have been the showcase items; and this year there was refinement and expansion of digital photo printing options. Booths still showcased the kiosks and photo books, but with the added emphasis of increased usability – allowing the consumer simple, straightforward printing of photos and related photo products (and easier and less labor-intensive for the retailer as well.)
Booth tours demonstrated photo book creation that was easy and fast (complete with some really neat and creatively styled templates). The user just chooses the photos they wish to have automatically inserted into book format and voilá! Hopefully, this intuitiveness and convenience will encourage harried and hurried consumers to print their photos.
Just a day prior to PMA, I spoke at the Lyra Symposium on the topic of Digital Photography Milestones and Challenges and reiterated the need for the printer manufacturers to diversify, offering consumers printing options in each of the photo printing markets – home/office, retail, and on-line – and how these three markets had become intertwined. With its increased collaboration with Fujifilm, Xerox joined HP and Kodak in doing a good job of demon-strating their comprehensive offerings.
Seeing these options addressed by an increasing number of vendors is encouraging; it is a confirmation and acknowledgment that future of photo printing depends upon continuing to offer the consumer more reasons to print with improved usability, including intuitive interfaces, increased speeds, and convenient printing sites (all without a loss of image quality, of course). Looking ahead, vendors will need to address the cost of photo printing, and long-term storage, along with the conveyance of available printing options and, surely, brand differentiation.
Catherine Fiasconaro
Vice President, Operations
Director, SpencerLab Digital Color Laboratory
Every year, the PMA Trade Show seems to have a certain “unofficial” theme - a hot new technology or product that gets all the attention. Back when the digital photography market was still young, there were always new camera technologies that stood out, ranging from powerful optical zoom lenses to image stabilization and, more recently, face recognition. Most of what was shown in new camera introductions at PMA 2008 were evolutions of existing technologies or features, with no real surprises. We’re also used to seeing lower prices on cameras, so the introduction of new, fully featured models with powerful lenses and high-resolution sensors at incredibly low prices is not big news anymore.
On the output side of the market, 2008 was the year of the second-generation dry minilab lab, which use inkjet or thermal printing systems instead of traditional chemical-based silver halide photo processing. Every vendor that showed a dry lab in 2007 (or earlier) offered a new version this year, with a couple of new players also entering the market. Most of the improvements had to do with additional output options and improved management and sorting of finished orders. While dry labs offer numerous capital cost and operational advantages, the running costs per print for both inkjet and thermal printing remain higher than for silver halide printing. That gap is narrowing, and as the existing installed base of silver-halide minilabs is amortized or reaches mechanical end-of-life, we’ll see more and more of them exchanged for dry labs.
Photo merchandise continues to grow in popularity, and more vendors at PMA 2008 were showing their latest products and designs in photo books, greeting cards, posters, calendars and various other items in all shapes and sizes. Photo books will continue to grow in popularity, as more options become available at more places and consumers become more comfortable with the process of creating and producing them, aided by improved online, desktop and kiosk software that makes the process easier than ever. Photo books are here to stay, and we may see them start replacing traditional print albums on consumers’ shelves over the next year. They’re great for retailers too, as they have higher margins than the print side of the business. While the majority of photo books, calendars and greeting cards are printed in central production facilities using digital presses, vendors continue to offer a variety of inkjet and electrophotographic systems that allow retailers to produce those items in their stores.
Even with all the advancements we’ve seen in digital photography over the last few years, there are still some areas of the market that are the industry’s “elephants in the closet” and are not being adequately addressed. The storage and archiving of digital images is going to be a big problem for many consumers over the next couple of years as digital photo collections grow at a rapid rate. Much confusion still exists over the best and easiest way to organize photos and keep them for the long term. Most consumers don’t want to put much thought into managing their photos, so it’s up to the industry to find ways to make it easy for them.
David Haueter
Associate Director, InfoTrends
At this years PMA show, our goal was to show our customers how they can grow their photo specialty printing business. The booming growth in digital photo books and specialty products is all the more impressive in the context of the difficult challenges in today’s traditional film and commercial printing markets.
Photo specialty products include photo books, calendars, greeting cards, trading cards, posters, refrigerator magnets and just about any alternative to a standard, one-sided print on photographic paper. These alternatives are well on their way to becoming the standard for photographic output.
While film processing revenues peaked in 2005 and are expected to drop by about 5 percent annually through 2011, specialty photo products are projected for 24.5 percent compound annual growth, according to market research firm InfoTrends. And while traditional offset printing — and even some digital printing — has increasingly become a price-driven, commodity in recent years, photo products can cost pennies per page to produce, yet sell at dollars per page, with margins ranging to 80 percent and more.
Clearly, the photo books and specialty market is a huge opportunity. But keep in mind that some big players already have staked out some very lucrative positions. Trying to take on the likes of Snapfish and Kodak Gallery — large, highly automated operations that have scaled to offer competitive pricing for the consumer market — is a bit like a mom-and-pop department store trying to compete with Wal-Mart. And by the way, Wal-Mart is busily carving out its own share of the general consumer market for photo books and specialty products.
The opportunity remains huge for many film processors and digital printers! However, the opportunity is not so much to compete directly with these players but to target niches that are under-served in today’s market. And there are many.
InfoTrends projects that the market for photo specialty products will grow by 5X from 2006 to 2010, with sales growing from about $200 million to $1 billion, as the early adopter phase gives way to a mass market. The most popular items today are photo cards and specialty prints such as posters, collages and large prints. But, photo books and calendars are projected for the greatest growth by a 45 percent compound annual growth rate from 2006 to 2010. Whatever the purchase, the average consumer spend on specialty products is a healthy $51.50.
Looking ahead, one thing is for sure – the photo specialty business is a great way to grow your business.
Brian Segnit
Photo and Book Marketing Manager
Xerox Corporation
What’s Xerox doing at a photo show and sitting on a panel with companies like Olympus? The answer is discussing and debating the future of the imaging market with some heavy-hitters in the industry.
Last week I sat on the PMA Visionaries Panel with folks from Eastman Kodak, Fujifilm, HP and Olympus and covered the state of the imaging market today and how we can expect to capture, preserve and share our memories in the future.
The panel was hosted by Stuart Varney from Fox Business News and was a hot ticket among attendees. And the discussion didn’t disappoint – we didn’t necessarily agree on every point, but we certainly all acknowledge that as imaging technology improves, so does our ability to turn simple photographs into cool photo books, calendars and greeting cards that we’ll treasure for years.
Quincy Allen
President, Production Systems Group
Xerox Corporation
P.S. Check out new product highlights from the show or go to our newsroom for more information and, of course, continue the discussion here on the blog.
As imagers continue to file out of Las Vegas from this year’s PMA – at least those that stayed to witness the Upset Bowl – I’m wondering if most of them are thinking what I’m thinking….what was the buzz at the show this year (other than the Giants beating the Pats)?
Past PMA’s have always featured that one product or category that had attendees buzzing about its impact and/or profit potential. In recent years we’ve been treated to the dry minilab, the affordable DSLR, the digital frame and the emerging photobook product to name but a few. This year’s gathering certainly had all that but I’d be hard pressed to come up with one topic that had everyone chirping as they exited the Las Vegas Convention Center.
Well, despite that one major headline item, PMA 2008 certainly had its share of subplots and I’ll take a brief look at a few here…
• The DSLR category continues to dazzle as the technology now present in under $1,000 models is bringing Ansel Adams potential to all. With features like image stabilization, Live View LCDs and Dust Reduction now just about standard fare and shutter speeds so fast capturing that perfect shot requires little more than lifting the camera to one’s face - this category is poised for an explosive 2008.
What will be critical for its success however, is the fact that dealers have some serious selling to do. This category has gotten so competitive that manufacturers are packing in the features so tight (and lowering the prices so dramatically) the average consumer is beginning to suffer from techno-fatigue. Figuring out what features your customers can actually wrap their brains around is key, especially when you consider many of your new DSRL customers will now be soccer moms and NASCAR dads looking to take that long-anticipated step up from their point-and-shoot models. Mistakes made here will be costly down the road. Selling the right camera to the right customer will be more important than ever.
• On the memory front, are we creating a media card monster? While this is certainly not intended as a knock on the technology, does anyone really need a 32GB memory card? While there will certainly be some pros out there that take to this mega memory, the typical consumer is probably overdoing it at 2GBs. I also think the dramatic increase in capacity, coupled with its equally dramatic drop in price is actually hurting the retail print market. How? Well, when consumers were shooting with a 128 or 256MB card they were filling the cards up much more quickly and thus, were more apt to consider getting some prints made. With a 2GB card, consumers are shooting hundreds of images before filling the card and when it comes time to upload to the PC, it is becoming far to daunting a task to go through all these images and organize what might be worthy of prints and/or photo gifts. Let’s not forget, a roll of film was done with 34-37 images on it and it was off to retail for developing…remember?
• Lastly – the photo book market seemingly gets more incredible by the day. This easy to create, elegant and truly vital photo gift item simply needs a more robust promotional effort and its future has no bounds. Lyra recently told us that less than 10% of the U.S. population has made a photo book so the lid has barely been lifted on this category. The other exciting aspect to this product is the fact very few folks will make just one. A photo book of the 50th anniversary will surely lead to one of baby’s first year, or that Disney vacation or simply some kind of “year in the life” effort. The “Wow” factor here is palpable.
So, while this year’s PMA may have been void of the big bang, there were still plenty of smaller explosions that should have dealers looking forward to the year ahead.
Mike McEnaney
Editor-in-Chief, Picture Business
As the Photo Marketing Association’s (PMA) annual event kicks-off today in Las Vegas, I expect to see photo books as the big buzz item at the show along with a range of software solutions for designing photo books - making them easier for customers to create and for labs and retailers to sell.
Recently, I attended a conference targeted at small independent photo labs and photo retailers. For many of the attendees, it was the first time they had witnessed how simple creating photo-specialty applications could be, and it was refreshing to see this audience get excited about the possibilities and revenue opportunities beyond the standard 4x6 photo print. This excitement is definitely supported by market indicators as well. A recent study by InfoTrends predicts the specialty photo printing market will grow at a compound rate of 24.5 percent per year through 2010, reaching $800 million in revenues. The PMA estimates that sales of photo books alone will grow 42 percent in 2008 to $359M up from $253M in 2007.
For the retailer, there is huge profit opportunity. People are willing to pay more to see their memories preserved in the unique ways that photo specialty products offer. These new digital applications provide new revenue streams – ones that offer greater margins than what can be recognized from 4x6 prints. In fact, Don Franz from Photofinishing News points out that one photo book can offer as much profit as 500 4x6 prints. Case in point is Harold’s Photo Centers where demand for holiday gifts created with personal photos is expected to drive a 50 percent increase in photo specialty products. In the last few years, the company's film processing business has fallen by approximately 20 percent annually, but the firm's digital printing business has doubled, helping them to achieve new revenue growth.
For the consumer, this is an excellent way to capture the essence and context of the actual memory in a unique, tangible way. You’ll see more and more people start to create these applications as it becomes easier and as they gain greater awareness of the options. It’s the “ME generation” – and everyone wants everything personalized. From personalized M&Ms … to personalized Kleenex boxes. 4x6 prints or images held in computers or on cell phones are not able to be personalized. But, with digital printing, the possibilities are endless.
Personally, I’m no different. I recently reached a milestone birthday and my 3 year old daughter (with the help of her dad) gave me a photo book with captioned pictures since her birth. It was the best gift I’ve ever received, and I’ve already looked at it more times than all our old photo albums combined. I’m looking forward to watching the photo specialty market grow – and the incredible possibilities that will become realities as consumers and retailers unleash their creativity!
Tracy Yelencsics
Vice President, Marketing Communications
Xerox Production Systems Group
Xerox at PMA '08
News from PMA '08
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