Cameras attract mass US audience

Digital cameras are winning over customers in the US as manufacturers widen their appeal to general consumers

Digital cameras are winning over customers in the US as manufacturers widen their appeal to general consumers

Photo Marketing Association International (PMA) said 31 per cent of US households had a digital camera last year. The figure is expected to climb to 42 per cent this year.

Most importantly, the demographic for the US digital-camera user crossed over from the realm of advanced photographers and gadget geeks to mass consumers.

"The growth area for the market is the young mom kind of consumer," said Gary Pageau, head of market research at PMA. "That's changed from a year-and-a-half ago when the market for digital cameras was the specialist or advanced amateur photographer."

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Digital camera makers are jockeying for leadership in the burgeoning mass market. But analysts said there is no clear winner yet.

IDC, the technology consultancy, said first-quarter data showed Sony with 20.8 per cent of US market share for point-and-shoot digital cameras. Kodak, Canon and Olympus followed with 18.3, 14.1 and 11.7 per cent, respectively. Canon led in terms of growth in the US market, with units shipped jumping 135 per cent compared with the same period last year. Kodak, Olympus and Sony followed with shipment growth of 77.8, 60.3 and 47.5 per cent respectively.

Analysts say ease of use and marketing are decisive factors in gaining ground in a category where no one yet dominates.

"There's no inherent competitive advantage that will give companies an outpacing edge. It comes down to look, feel and marketing," said Chris Chute, IDC analyst.

"Kodak has attractively priced cameras sold in mass market channels like Wal-Mart. It's a viable strategy," said Mr Chute.

However, he noted that Kodak had a different reputation than a premium camera maker such as Canon. "Kodak commands a discount. But Canon commands quality. A picture of opposites is emerging," he said.

Leveraging brand recognition is key in the digital camera market. Mr Pageau noted Sony was not known as a camera company, yet consumers trusted the brand. The same went for Hewlett-Packard, the printer maker, which ranks sixth in US market share. - (Financial Times Service)