Digital imaging popularity clicking with female users - Photo - Photo Marketing Association research findings - Brief Article - Statistical Data Included

DSN Retailing Today, June 24, 2002 by Laura Heller

Digital sales are hot, that's common knowledge. But changes in purchasing patterns are increasingly pushing up adoption rates, not just among the mass market, but among a little-discussed demographic for this category: women. According to new research from the Photo Marketing Association, digital imaging is gaining popularity with female users.

Initially, the technology was considered to fall into the realm of a new consumer electronics category and, therefore, appealed largely to early adopters, the majority of which are male. But PMA has discovered that an often-neglected demographic in the CE category is not only buying and using digital cameras in greater numbers, but is doing so in a way that spells bigger profits for retailers in terms of photo-finishing dollars.

This flies in the face of conventional wisdom. One Wall Street analyst said during a presentation at this year's PMA meeting in Orlando that growth in the digital imaging category would not negatively impact traditional film sales to the extent the industry feared because of demographics. In short, said the analyst, because digital cameras are considered to be part of the CE category and CE attracts men (again conventional wisdom at work here), digital camera sales are incremental rather than cannibalistic.

"To me, consumer electronics means one thing--men," said UBS Warburg analyst Ben Reitzes. "That's right, digital brings men to photography. Digital is capturing that incremental man, expanding the market to some degree, in my point of view."

That may have been true three to five years ago when digital cameras were still in the realm of early technology adopters in the truest sense of the word, but with household penetration rates at about 15% by the end of 2001, the category has officially entered the mass market.

According to PMA's research, of the respondents who had owned a digital camera for three years or longer, 70% were male. Among those who owned a digital camera for one year or less, 57% were male and 43% female. This coincides with data from NPD Techworld, which tracked digital camera purchasers during the six-month period from November 2001 to March 2002, showing 42% of which were female, according to account manager Monica McKane. "Given that 51% of the adult population is female [according to U.S. Census data], we're getting pretty close to parity," she said.

But when you look at who is actually using the camera, the data takes an interesting twist. Among digital camera owners of less than one year, 57% of primary users are women--a trend that appears to be increasing as household penetration of digital cameras rises.

The newly attained popularity among female users is related not only to lower prices, but increased availability, as well, particularly in mass-market retailers and discount stores. "They're not just in guy-type stores anymore," said McKane.

Target and Wal-Mart have both increased the space devoted to digital cameras and give the category more attention in respective advertising. Target ran a recent spread focused on electronics (including digital cameras) in a recent issue of Entertainment Weekly magazine and regularly highlights the category in its Sunday circular. Wal-Mart got into the category earlier than most and maintains a strong selection in spite of its more low-key approach to promotion.

Manufacturers are actively seeking ways to make products more compelling to this demographic, as well. McKane cites Kodak's Easy Share system for some of digital imaging's increased popularity among a new demographic. With Easy Share, the camera needs only to be placed in a cradle and images are transferred to a computer with the press of a button. Others are developing units that connect directly to a printer, bypassing the need for a computer altogether, something kiosks and digital photofinishing solutions at retail also address.

Women are more interested than men in getting prints from digital images, however, printing at home is not high on their list. Instead, they prefer the process to mimic traditional film developing as they know it. PMA's study tracked married households and singles, both men and women. More than any other group, single women said the ability to get prints was very important, and that same demographic actually printed more images at a retail location than the others, even those with young children present.

"Single women have gone out on their own and purchased digital cameras," said Brian Longheier, marketing research analyst for PMA. "They use it more and make more prints."

This inclination also was tracked by InfoTrends Research Group, which found that on average, men print more photos at home per month than women. Of the 5% of digital camera users that print photos at retail locations, women print more digital photos per month at retail locations than men.

Yet there is still a lack of easy solutions and consumer awareness about on-site digital printing solutions. While manufacturers and retailers slowly implement solutions to these problems, the largest, and potentially most profitable, consumer group awaits.