LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global photo merchandising market to grow at a CAGR of almost 10% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global photo merchandising market for 2016-2020. To calculate the market size, the report considers the revenue generated from the sales of photo merchandise.
The global photo merchandising market is heavily influenced by the growth of the tourism and event sectors, with major businesses such as hotels, airlines, holidays, parties, weddings, and global events. These businesses provide an ideal platform for global and local vendors to showcase their products through innovative photo merchandising. As people spend a lot of free or waiting time there, vendors have a chance to advertise through photo merchandising.
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Technavio media and entertainment analysts highlight the following four factors that are contributing to the growth of the global photo merchandising market:
- Rising number of suppliers
- Increasing sales of smartphones and tablets
- Growing retail distribution channels
- High profit margins
Rising number of suppliers
The demand for photo merchandising is growing with the popularity of customized products. This has attracted an increasing number of vendors to the market. Traditional printing vendors are also extending their services to photo merchandising due to the growing demand. This has improved the reach of the service to various geographic regions, including Asia and South America. The photo merchandising market will grow at the fastest rate in these regions during the forecast period. The increased consumer base worldwide will foster the market's growth during 2016-2020.
Increasing sales of smartphones and tablets
The global photo merchandising market is influenced by the sales of smartphones and tablets. These devices are fast replacing desktops due to their portability. Desktop shipments have been declining since 2011 because of the shift in consumer preference from traditional devices to portable devices. Between 2011 and 2015, tablet and smartphone shipments grew at a CAGR of 33.9%, and smartphone shipments alone grew at a CAGR of 30.57%.
Ujjwal Doshi, a lead internet and e-commerce analyst at Technavio, says, “Smartphones and tablets are equipped with high-resolution cameras and various supporting applications that enhance the quality of captured images. They allow the users to share these images using the internet. The increased penetration of advanced mobile devices with high-resolution cameras is increasing the demand for photo merchandise.”
Growing retail distribution channels
Mass retail participation is an important factor behind the growth of the global photo merchandising market. Improvements in the supply chain network have enabled retail distributors to act as a catalyst. Even in the digital age, a high percentage of consumers prefer buying goods from stores. The growing retail participation in the photo merchandising market provides consumers with an option to customize and inspect products and make necessary changes immediately.
Mass merchandisers (such as Walmart and Target) and pharmacy chains (such as CVS Pharmacy and Rite Aid) have equipped their stores with dry minilabs. Others such as Walgreen have installed photo printers to print photo books and other photo merchandise. Retail stores play a very important role in product purchases as customers still consider the in-store buying experience as one of the key buying criteria when evaluating the exclusivity of photo merchandise.
High profit margins
Due to a limited number of vendors, photo merchandising is a niche market where vendors can charge a price premium. In addition, to extend its service to photo merchandising only, a vendor requires limited additional investment due to which ROI can be attained quickly. Profit margins can reach 200%, which is highly unlikely in the FMCG industry. For instance, Mattel Australia created customized set of UNO cards based on family pictures of a customer. The original cost of UNO cards is USD 4, but the customized set was sold for USD 10, with a profit margin of 150% in 2011.
Top vendors:
- American Greetings Corporation
- HP
- Shutterfly
- Walmart
Browse Related Reports:
- Global Non-photo Personalized Gifts Market 2016-2020
- Global Photo Kiosk Market - Market Analysis 2015-2019
- Global Mobile Wallet Market 2016-2020
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