Published by Computachem Services

P.O Box 297.
Alstonville. 2477
NSW Australia

Phone:
61 2 66285138

Editor's Note: Les Brener is an ex-pharmacist who is heavily involved in the promotion of digital imaging.
The umbrella organisation looking after this area of the photographic market is the Photo Marketing Association's Pharmacy Group.
Community pharmacists interested in developing this fascinating lifestyle market, should consider attending the PMA Annual Convention in Darling Harbour, on the afternoon of Sunday 23rd May.
For details, contact PMA Consultant Les Brener, who is assisting the group
(lesbrener@ozemail.com.au or phone (02) 9360-6504 or alternatively the PMA Australian Office on (02)9663-5880).
The PMA will hold its annual convention at Darling Harbour from May 20th to 23rd, and includes a Digital Imaging Day conference.
Les Brenner has agreed to write for i2P e-magazine, from the perspective of a pharmacy positioning in the rapidly emerging digital imaging market, as well as comment on the industry at large, its trends and the type of competition faced by participants.

Attached comments made by Terry Rimmer, Director of Australian Activities for the Photo Marketing Association International, in Inside Retailing Magazine
(Reproduced with permission).

Photo Marketing Association director, Terry Rimmer, is surprisingly blunt about how retailers were caught out by the sudden consumer acceptance of digital photography formats: "The retail channel wasn't ready."

But Rimmer says a terrific effort by retailers to understand the technology and the opportunities to generate revenue from it is now beginning to pay dividends for savvy operators.

"We're now seeing the results of those efforts and for the first time we are starting to see acceptance by the consumer."

The penetration of digital cameras at consumer level is now approaching 40% of households.
However, according to figures provided by Kodak, 90% of households still use film cameras and around 70% of people who have bought digital cameras still have a film camera in the house in regular use.

Rimmer said one of the larger issues the photographic trade was dealing with was educating the consumer about printing of digital media - whether it be at home or in a mini-lab or photo store or pharmacy.

"There's plenty of evidence to show that once a customer understands this, and provided you have the advantage of convenience, ease of use and acceptable pricing, they will switch to printing - and at a much higher rate than they did when they were 35mm film users."

Film sales have fallen 8% in supermarkets over the last 12 months, and Rimmer estimates a decline of 8% to 10% in processing rates.

He said many competitors within the retail market had already made investments in their business to keep up with the digital trend, but others would be left behind.

"There are lots of trends, but the overriding one is the relentless march of digital imaging in all its forms. Its results are dramatic and it is having a challenging effect on all those involved with it.

"The ones that have anticipated the changes, who were prepared and invested in new technology, will be able to keep up and grow. Those who haven't will find it difficult.

"There has already been a consolidation, and it is continuing as we speak.
To properly set up a store to cater for digital imaging or services is extremely expensive and in the early days the increase in business that one could expect from this new market, may not justify the investment," Rimmer said.

The key to getting users of digital photography equipment to print their images is quality, convenience, ease and the right price, according to Rimmer.

"If the things are right, then the consumer with a digital camera will print in a digital store the same way as they used to bring along their 35mm film.

"This is significant, because the early user of digital cameras did not have a high printing result and part of that reason was because they needed to be educated."