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In 1992, UK sales of photographic hardware,
services and software reached £1.31bn. Included in the sector are
cameras, camcorders and films. The largest single market is camcorders
accounting for 31 percent of all sales. In value terms, the camcorder market has more
than doubled in size between 1988 and 1992 and has been the one bright spot in
an otherwise depressed market.
In 1992, 2.5 million cameras were sold
with a retail value of £220m. This represents 17 percent of total value sales in
the sector however, both value and volume sales have fallen in recent years, as
the recession has hit discretionary spending hard and tourist spending has
fallen. Within the camera sector, 35mm models have increased their share of the
market to 83 percent, largely as a result of the growing popularity of compact
cameras. In the camcorder market, 620,000 models were sold in 1992 and 57 percent of
these were based on the 8mm format with VHS-based camcorders losing market
share. Hi-band camcorders, offering better picture and sound quality, and the
new generation of palmcorders are also becoming increasingly important in the
market.
In the film sector, purchases came to £210m in 1992
dominated by colour film sales and 35mm film. The film processing sector was
worth £375m, including High Street processing outlets and mail order
services.
Hardware markets are dominated by Japanese companies, with
Canon and Olympus heading the camera market and Sony and Panasonic the leading
suppliers in the camcorder sector. Kodak is the clear leader in the
photographic film market. Own-label products are also important while Kodak and
Colourcare are the key companies in the processing market. Individual
retailers, for example Boots and Dixons are significant distributors of
hardware and films while Boots also plays a leading role in film
processing.
Camera penetration is high with around 76 percent of households
owning some form of model. In contrast, camcorder ownership is still only
around 6 percent. Given these contrasting circumstances, the camera market will find
it hard to increase value sales in the next few years, while the camcorder
sector is set to grow steadily throughout the 1990s. Camcorder manufacturers
believe that penetration levels could reach 20 percent of households by the second
half of the 1990s. Camera manufacturers will concentrate on improving the
specifications of cameras in the medium- and lower-price bands to boost sales.
Key Note is forecasting overall growth in the market of almost 22 percent, in
current prices, between 1992 and 1996, with a forecasted market value of
£1.6bn in 1996.
Text © 1993 Key Note
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Last updated by Duncan Nottage 5th March 1999