SmartMarketing Press Release

Russian digital photo (DP) market amount of 530,000 units in Q1 2005 say SmartMarketing

Moscow, Russia, - According to SmartMarketing Research Group (www.smartmarketing.ru) analysis the total sales volume of digital cameras of all types and categories on Russian market in the first quarter of 2005 amounted to 530.000 units. The investigation covered the main fractions of digital cameras for the mentioned period. The main information source is the in-house data of monitoring of digital cameras market for the considered time term and a range of detailed interviews with market participants.

“The results of the first quarter of 2005 can be formulated by the following phrase “middle class chooses supercompact cameras”. In spite of certaine negative trends on European market of digital cameras, Russian market continues to grow. The market is still a long way from saturation and even estimating analysis allows forecasting of a considerable positive trend - mentioned I Ignatyi Kippelman, lead analyst of SmartMarketing Group - The growth can not be determined as explosive, but market increase is measured in tens and, in specific fractions, even in hundreds of percents. Also worth of mentioning is the fact, that intensive development of Russian market, started later than those of European, can cause the omission of some evolutional stages, concerned with technical perfection of devices (for example, from 3 MegaPixels cameras turn to 5 MegaPixels ones massively). That fact also influences positively the market dynamics, while inert mass of old devices does not accumulate and thus the customers’ intentions are not suppressed. Also interesting is the fact, established by SmartMarketing analysts: the cameras of supercompact devices fraction take the position of “enticing purchase”, attracting the attention of the auditory though the less expensive devices are purchased as the result.

In the first quarter of 2005 supercompact models had the key role on digital cameras market, though there is а considerable amount of “amateur” devices in the structure of the market. About 50% of the market divided among “big five”: Canon (15.84%), Nikon (9.49%), Konica Minolta (8.25%), Olympus (7.12%) and Sony (7.12%). The share of leading suppliers is 47,82%of the market.
Compared by the matrix resolution the 3 fractions are dominating - 3 (18.61%), 4 (33.58%) and 5 (32.62%) MegaPixels. In the “less than 3 MegaPixels” fraction there are quite a few models presented for the moment, and for the most part the speech goes about various accessories with embedded camera (except phones, this fraction was not considered in present investigation). The stability of sales structure by resolution confirms the existing opinion concerning the “spreading” of choice criterions and reduction of resolution role as a the basic criterion in a mass fraction.

Relatively considerable share of 3 MegaPixels cameras’ sales is caused by the price gap in this segment and also by positioning of these cameras as junior (and thus cheapest) in model lines of some vendors (and that is important for regional customers). Nevertheless, the trend is negative in this fraction and the market share of cameras with higher resolution will continue the stable growth.
The stake on budget models by some manufacturers is unwarranted with exception of cyeap devices with 5 MegaPixels matrixes, demanded due to “cheap MegaPixels” factor. But in general the budget fraction suffers negative trend caused by camerophones pressing. That fact gives grounds to forecast the collapse of 3 MegaPixels cameras segment (the trend was was observed earlier and for the moment the dynamics grow).

Nevertheless according to investigation results the appearances of the plateau in the trend of resolution growth on 5 MegaPixels value and the considerable growth of the fraction in general. The positive trend that gives ground for this forecast the is determined by technical difficulties of development of 5 MegaPixels phones and impossibility of prompt price reduction for such devices, resulting in decreasing of this segment’s pressure on digital cameras market.

Also worth of mentioning is the fact, that market develops in non-computer direction in general and there is no pronounced correlation between possession of a PC and digital camera in a family. Also interesting is the trend that penetrating of digital photo in electrical retail stimulates the sales of printing equipment (in particular, specificс printers for 10 by 15 format).
In sales stuscure estimated by the types “amateur” cameras dominated (37.17%),  the share of “budget” devises was 24.53%, the cameras of “compact” class took 17.55% of the market, рынка, professional and semi-professional models took about 20 % (13.77% and 6.98% accordingly).

In the full version of the report ($ 3,395) the qualitative indices, describing the structure of the market, the separate brands positions, the market shares of the key participants are presented. The subscribers annual subscription (four reports of quarter market monitoring) are granted with 12% discount.

About SmartMarketing
SmartMarketing investigation group was founded in 2001 by a group of graduates of Moscow State University of Economics, Statistics and Informatics (MSUESI) and Higher School of Economics headed by leading analyst Kippelman I. The group is engaged in investigation of behavior of high-tech household appliances, mobile communications, laptops etc. The additional information can be found on www.smartmarketing.ru.