The NPD Group Inc.

The NPD Group Inc.

July 15, 2008 08:00 ET

Digital Camera Industry Must Accessorize for Success

The NPD Group report provides insight on up-selling camera purchases with accessories

TORONTO, ONTARIO--(Marketwire - July 15, 2008) - Manufacturers and retailers in Canada's maturing digital camera industry are missing a significant sales opportunity by allowing new camera customers to leave their outlets without purchasing photo accessories such as lenses, camera bags, batteries, and memory cards. These high margin add-ons are often purchased subsequently and from other retailers, says a recent report by The NPD Group.

The NPD Group report - What's in the Digital Camera Shopping Basket - shows the overall Canadian digital camera market surged 26 per cent in unit sales for the year ending December 2007. Over that same period, the dollar value of sales increased only three per cent reflecting the strong downward pressure on prices. To help manufacturers and retailers increase overall sales, the report identifies significant accessory opportunities.

According to the report, few accessories are bought at the time of initial camera purchase, illustrating that retailers should pursue more opportunities to sell additional products. More than 70 per cent of Point-and-Shoot buyers and more than 50 per cent of DSLR buyers left the store without purchasing anything beyond what was included in the initial purchase price of their new camera.

The report also reveals that only 17 per cent of those who have purchased point-and-shoot cameras and 27 per cent of those who bought digital single-lens reflex (DSLR) cameras from a retailer returned to the same store for aftermarket accessories. Yet, 50 per cent of both point and shoot and DSLR buyers indicate they have made a camera accessory purchase in the months following their initial camera purchase.

"Every time a customer leaves a retailer, having purchased a new digital camera and nothing else, it signifies a lost opportunity to earn additional revenue," says Mark Haar, Senior Manager, Consumer Electronics. "As customer loyalty continues to dissipate, those who will benefit the most are manufacturers and retailers that develop marketing strategies to address the accessory needs of camera customers."

According to the report, 56 per cent of Point and Shoot buyers admitted they have already purchased a second or third digital camera while 80 per cent of DSLR customers are repeat digital camera buyers.

"Consumers have become more confident and are willing to spend more money to add a wider variety of camera accessories to their equipment. As the average price of digital cameras continues to decline, there is a significant opportunity to increase profit margin with the sale of camera accessories," says Haar.

About The NPD Group, Inc.

The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,600 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information visit

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