Camera Stores in the US
Over the past decade, camera stores have faced declining revenue amid the proliferation of smartphone ownership and strong price-based competition posed by large consumer electronic stores and e-commerce sites. These other retailers have been better able to capture what demand for cameras remains as...
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| Format: | Market Research |
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| Language: | eng |
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| Online Access: | Request full text |
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| Summary: | Over the past decade, camera stores have faced declining revenue amid the proliferation of smartphone ownership and strong price-based competition posed by large consumer electronic stores and e-commerce sites. These other retailers have been better able to capture what demand for cameras remains as smartphones continue to siphon away demand for digital cameras. The COVID-19 pandemic accelerated the industry's decline as foot traffic at bricks-and-mortar stores dropped off, and the revenue growth in 2021 brought by pent-up demand wasn't enough to offset previous losses. Industry-wide revenue has been growing at a CAGR of 4.7% over the past five years and is expected to total $3.2 billion in 2023 when revenue will drop by an estimated 2.6%.
As camera phone technology has improved, consumers have increasingly opted for a single device with a built-in camera. Smartphone technology is continually improving, and the gap between the quality of an image taken with an iPhone or Google Pixel and one taken with a digital camera is shrinking. Smartphones also give consumers the ability to share photos on social media in mere seconds. Falling revenue spurned by this competition is making the industry's fixed costs less manageable, stifling profit. Many stores have been unable to turn a profit at all and have been forced to permanently close up shop.
Going forward, the advancement of smartphones and shift in consumer preference towards online retailers will fuel the industry's continued decline. Camera stores will need to cater to the most resilient source of demand, professional photographers, by stocking their shelves with high-quality digital interchangeable lens cameras. Mass merchandisers and other retailers will continue to undercut the industry's prices and force many camera stores out of business. While rising disposable income will slow revenue loss, the industry will continue on its downward trajectory. Over the five years to 2028, industry revenue is forecast to sink at a CAGR of 1.7% to total $2.9 billion. |
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