As anyone in the photofinishing business knows the shift from analog to digital technology and resulting changes in consumer behavior led to significant market decline. However, a recent Fuji-conducted review of market trends provides an optimistic view of the emerging photofinishing landscape. Two important trends that initially hurt the business of photography are now shaping a positive future: demographics and technology.
During the past 7 years while consumers adapted to digital technology by changing their picture-taking and picture-making behavior, we also experienced a significant decline in the number of new mothers - historically, a proven core market for high volume printing. GenXers, currently ages 31 – 43, became our target market, a group much smaller than the Boomers we marketed to in the 1980’s and 1990‘s by more than 18 million people. This drop in population was coincident with the shift from analog to digital technology. So the industry was hit with a double whammy: declining new users, and changing behavior as consumers adapted to digital photography.
While this period of consolidation has been bad news for many, it is now showing good news for the future of the industry. Why? Digital technology has been adopted by the mass market, consumers have settled on print-at-retail as their preferred photo printing method, and the population is about to shift again – this time, favorably.
Moms on the rise
A study of Census data tells us that by 2013 there will be a 29 percent increase in the number of new mothers, the Millennial Mom. These moms share the same core values as all mothers: feeling responsible for her child, balancing her needs and her child's needs, sharing by building a relationship between parent/grandparent and child, ensuring her child’s safety, focusing on wellness for her child and her family, and preserving her identity in the demands of mommydom. Importantly, two of these values – sharing and identity – support the culture of photography.
There is even more good news when we study the characteristics of this future customer. Raised and praised by Boomer parents, Millennials are generally happy, confident, secure…and memories are important to them. Millennials are also Tech Natives. Being connected online is intrinsic to their lifestyle – it provides them information and ideas, facilitates communication, and is how they like to spend their "me time."
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