The North American photo kiosks market is poised to continue its growth streak, thanks largely to the emergence of the diverse gifting and creative product mix, reports Frost & Sullivan.
With an anticipated compound annual growth rate (CAGR) of 57 percent through 2013, the gifting and creative mix could well increase its share of all transactions to 20 percent by 2013.
For these levels of growth to be achieved, industry leaders in both the vendor and retail markets must work toward increasing customer awareness of the photo kiosks and their growing product mixes.
New analysis from Frost & Sullivan, U.S. Photo Kiosk Markets, reveals that this market earned revenues of USD 2.15 billion in 2006 and estimates this to reach USD 13.0 billion in 2013.
"The future of the U.S. photo kiosk industry lies in the gifting and creative product mix," reiterates Frost & Sullivan's Information & Communications Technologies Vice President Rufus Connell. "Retailers no longer battle for the meager profits earned from the traditional 4x6 prints, but focus their efforts on encouraging customers to create lasting souvenirs in the form of photo-books, calendars and other image enhanced keepsakes."
Besides offering consumers an additional means to print and share their images, the gifting and creative product mix provides retailers a significantly better ROI than the 4x6 prints. Vendors too have taken note, and innovative software and improved workflow are now helping consumers to take advantage of the ever-growing possibilities that exist beyond traditional photo kiosk use.
However, the industry is not without its challenges, the biggest of which is how to get the consumers to print a greater percentage of the images captured on digital cameras and also camera phones. According to the PhotoImaging Manufacturers and Distributors Association (PMDA), less than 20 percent of images captured on these devices are printed. Frost & Sullivan is of the opinion that this is the single biggest restraint to the photo kiosk industry and expects this to be a formidable obstacle over the next few years.
"Having said that, the emerging gifting and creative market could gradually change this trend," explains Connell. "Since the trend today is to not share our photos by print, but to share them through e-mail or on computer screens, photo merchandise will be seen as an attractive and effective way to both share and preserve our images."
Going forward, vendors and retailers must work together to aggressively promote the various products available from photo kiosks. Without a photo kiosk-specific marketing campaign, customer awareness will lag and growth over the next several years will stagnate.
U.S. Photo Kiosk Markets is part of the Retail Systems Growth Partnership Service, which also includes research in the following: World Interactive Kiosk Markets, World Digital Signage Markets and World Electronic Funds Transfer Terminals Markets.
((Comments on this story may be sent to email@example.com))
((Distributed on behalf of 10Meters via M2 Communications Ltd - http://www.m2.com)) ((10Meters - http://www.10meters.com))
<<Wireless News -- 10/01/07>>