Digital photography develops at retail in response to a 24/7 world

DSN Retailing Today, August 18, 2003 by Bernard K. Perrine

Around the clock. 24/7. Anytime, anywhere. These are terms that have become commonplace in today's lightning-fast world where consumers increasingly demand everything yesterday. Whether it is instant messaging, printable airline boarding passes, online movie tickets or Web grocers, consumers are constantly looking for the next product that will meet their needs better and faster.

New innovations are delivering upon this demand and, as a result, breathing new life into mature consumer product categories. Automatic teller machines did that to banking in the 1980s. The Internet did it for instant communication and shopping in the 1990s. Most importantly, these are solutions that answer strong consumer needs for convenience and speed.

The photography market offers the perfect illustration of how consumers' eagerness for immediacy is being met. One in five U.S. households already has a digital camera, and the typical digital photographer snaps 60% more images--equal to 144 more pictures--than the non-digital camera user each year. Considering that eight of 10 consumers say they would print their digital pictures at retail if it were easy and convenient, the retail opportunity is enormous.

How consumers capture, print and share their pictures is quickly changing. Traditionally it has required three trips to retail to complete the photography cycle--to buy the film, to drop it off for processing, to pick the pictures up and buy another film roll. For those consumers using digital photography today, printing their pictures is happening primarily at home and online.

The photography industry's challenge is make digital output of high-quality prints as simple and easy as possible at retail. Digital printing kiosks, where consumers can scan traditional prints or upload digital images and enhance and print them in less than five minutes is making an impact. In addition, new digital processing technologies and digital one-time-use cameras extend digital benefits for film users.

Retailers face the tough decision of how to ready their stores to meet the needs of consumers who may be digital neophytes or experienced pros. Will they be ready to provide easy entry into the benefits of digital with one-time-use digital cameras? Will they install a digital mini-lab to handle on-site processing from digital media? What about the attractive option of offering a self-service digital kiosk that lets consumers download and print images right in the store?

The challenge, of course, is to understand your customers' needs and then decide how you want to participate in the digital revolution. Determine your participation strategy, consistent with your brand, and remain loyal to it.

Consumers aren't likely to lessen their eagerness for anytime, anywhere solutions as today's innovations far too quickly become commonplace. As long as new solutions continue to be better and faster, innovation will revive mature categories and fuel new growth.

Bernard K. Perrine is gm of the Worldwide Retail Strategic Product Group and vp of Consumer Imaging, Eastman Kodak Company.