Merchandising-Digital Camera

-DSLR

- Akash Singh Thakur9871305556

Content

Camera Category Market Overview Market Research – Camera Buying Behavior

Pre Buying & Post Buying Behaviors Yebhi.com (July 2012 – July 2013) Analysis Brand Wise Assortment Benchmarking (Snapdeal / Flipkart / Amazon)

Suggestions

Camera Category

• The Camera Category is categorized majorly into following sub categories:

• Digital Cameras/ Point & Shoot Cameras• SLR/ DSLR cameras• Semi SLR/ Mirrorless/ Compact System/ Interchangeable Lens• Camcorders• Professional Video Cameras• Camera Accessories

• The compact point & shoot cameras hold the largest share in the digital camera market and contribute 80.3% in the total unit sales of the digital cameras

Industry Overview

• The global digital camera industry experienced moderate growth during 2006-2011 and is expected to retain the same growth propulsion over 2012-2017.

• Asia Pacific emerged as the fastest growing region during 2006-2011 and dominated the industry with the highest contribution in 2011.

• Mirrorless hybrid cameras, DSLRs, and compact interchangeable-lens cameras drive the market.

• Newly introduced mirrorless interchangeable lens cameras have taken the place of the compact point and shoot cameras to a sizeable extent in recent years.

• The combination of the traits of these cameras such as compact size, use of interchangeable lenses and relatively affordable pricing has the key factors responsible for the growth in the sales of these cameras.

• The digital camera market has also seen the emergence of products with attractive features such as swivel LCD screens, direct image sharing over the internet, HD video recording and 3D imaging amongst other.

Source: reserchandmarkets.com

Industry Overview• Asian countries have a large population size but the ownership level of the digital

cameras among the consumers is relatively very low as compared to the other developed markets. As a result the demand from the first time buyers has increased significantly in recent years in these countries.

• The market in the Asian countries is driven by the price sensitive middle income group consumers. These consumers prefer buying an affordable compact camera instead of high end DSLRs.

• However, the rising consumer interest for interchangeable lens cameras is the latest trend in the region. Within the interchangeable lens camera category, the mirrorless cameras are rapidly gaining consumer attention and sales growth in countries like China and Japan.

• The interchangeable lens market in Asia has also grown significantly in recent years owing to the growing consumer demand for the interchangeable lens cameras. The shipments of the interchangeable lenses to the region have grown at a CAGR of 31.8% during 2006-2012. 

• China is the largest contributor in terms of shipments in 2012. This followed by Japan which accounted for 27.8% of the shipments made to the region in the same year. India is the third largest contributor. 

• The interchangeable lens market of Asia is projected to grow strongly at a CAGR of 37.9% during 2012-2017. 

Source: reserchandmarkets.com

Indian Camera Market

• The Indian digital camera market has experienced a strong growth over the last six years.

• Some of the drivers for growing camera market in India are low penetration, increasing disposable income, increasing social media, increasing tourism, and increasing advertising.

• On the other side, grey market & substitute products like mobile cameras are acting as restraint to growth of the camera market in India.

• Technological advancements like mirror-less camera, 3D camera and increased functionality like GPS, Bluetooth, Wi-Fi etc. in the camera is expected to reduce the substitution effect in the coming times

• High inflation, World economic crisis leads to increased prices and a steep depreciation of the rupee against the US dollar has made consumer more price sensitive.

• Increase in DSLR segment of cameras and consequent decrease in the shipments of Compact Digital Cameras can be well explained by the increased usage of cameras in smart phones.

• Out of total Digital Cameras shipped 88% are Compact Digital Camera whereas 12% belong to the DSLR segment.

• Indian camera market will witness phenomenal compounded annual growth rate (CAGR) of 27% for next five years.

Source: reserchandmarkets.com

Market Analysis

• The Category is expected to see a volume CAGR of minimum 19%.

• DSLR cameras are expected to completely take over, thereby making Digital cameras a very small category catering to demand in tier-1 and tier-2 cities with lower disposable incomes.

• The Camcorders category is expected to grow, with HD units driving sales, along with launches of new models with higher storage capacity.

• Indian consumers are increasingly driven towards higher quality imaging devices.

Pre Buying Behavior

• Pre Buying Behavior also referred to as Pre-Commerce takes a good look at consumer behavior

• Information Seeking Stage- Involves Browsing or Directed Search

1. Goal Directed Behavior: Knows there product or need2. Experiential Behavior: Building knowledge or

Recreational Purpose

• Action• Recognizing the Need & Exploring consumer preferences.• Improving Side Navigation and Filters

(Brand/Budget/Features/Color/Availability etc.)

Breakdown of Information

Goal Directed Behavior

Experiential BehaviorSource: Journal of Electronic Commerce Research, 2010

Buying Behavior

• Customers probably follow their own unique path to purchase.

• A path that looks something like this:Browse – Abandon – Consider – Research – Consult Friends –

Browse – Purchase

• Analyzing it using software's like Google Analytics , Clicktale or Payment Gateway reports.

• Calculate: the time from first visit to first purchase, the average number of visits, and cart abandons per purchase.

• This data helps to consider what changes need to be made on your site to accommodate the unique buying patterns of your customers.

Buying Behavior

• Average repeat purchase for ecommerce is 7%

• The Top Sale converting factors• Business model• Loyalty of Customers, and• Focus on driving repeat purchases.

* Amazon.com has revealed that 66 percent of its sales are repeat purchases and Amazon does not optimize for the first-time visitor, but rather for the returning customer.

Post Buying Behavior

• Utilizing Related Products for Post-Purchase Recommendation

• Customers usually come back for repeat purchase of Accessories

• Reason: a) Most Cameras include basic Accessories as Freebieb) Low Budget Cameras are usually purchased for

Gifting purposec) 70% DSLR buyers are amateur level users, 5%

Professional Buyers and about 25% are intermediate level users

• Lenses are top-most purchased Accessories with Attach-Ratio of 2:1 in Ecommerce

Why Customers Don’t Buy

Source: Forrester Research, May 2010; "Understanding Shopping Cart Abandonment"Note: Respondents were able to give multiple answers

1. Price2. Not Ready to Buy

Camera (By Type) Accessories (By Category)

Yebhi.com (July 2012- July 2013)

Yebhi.com (July 2012- July 2013)

CIPA (Camera & Imaging Products Association)

CAMERA & ACCESSORIES Comparison over the same

period a year ago

DIGITAL STILL CAMERAS Point & Shoot Cameras 55.1%

DSLR Cameras 74.0%

Mirrorless Cameras 101.9%

INTERCHANGEABLE LENSES Lenses for 35mm format Cameras

123.7%

Lenses for smaller than 35mm format Cameras

86.5%

Shipment of Digital Cameras and Interchangeable Lens for January-September in 2013 (ASIA)

Brand-wise Assortment

• Total 664 Brands in Camera categories/sub-categories in Flipkart, Snapdeal and Flipkart

• Digital Camera• DSLR’s• Camera Lens• Tripods and Monopods• Camcorder• Accessories• Binoculars & Telescope• Memory Cards• Digital Photo Frames

Suggestions

Increasing catalogue and marketing efforts for Categories: DSLR’s and Camcorders

New Category – Mirrorless Cameras or Compact System Cameras (CSC) to increase visibility.

Interchangeable lens category to be promoted through Bundling and Cross-Selling

Rs. 9000- Rs. 10000 range Point and shoot cameras to be promoted through freebies and bundling.

Under Rs.5000 range cameras to be sold in special bundle of 2-3 cameras for couples and families specially targeting festive occasions, kids and couples.

Freebies can include 4-8 Gb Memory Cards, Camera Pouches, Screen Protectors, Lens Cleaners and AV Cables.

Suggestions

SEO Optimization of Category Products to improve SERP (Search Engine Result Page) ranking Improving Product Names Meta-Description Content/Specs Title Tags Using Keywords Analysis Tools (Like Google Analytics/Adwords/Trends)

and Competitor Study

Brand Support for providing free demo to customers buying DSLR’s on weekends To Improve customer loyalty To improve attach ratio of Camera Lens Category

Thank You

- Akash Singh Thakur9871305556