Latest €851 Million Snapshot of the Western European Consumer Photo-Merchandise Market

Photo-Merchandise Market Analysis and Commentary




26 Feb 2016 - According to the latest consumer photo-merchandise tracker report by Futuresource Consulting, the Western European consumer photo-merchandise market has witnessed continued growth over the past two years, reaching €851 million retail value at the end of CY2015. This growth will continue in 2016 with a forecast increase of 8% to reach €920 million.

"Covering Austria, Benelux, Denmark, Finland, France, Germany, Italy, Norway, Sweden, Switzerland, Spain and the UK, the research highlights the year-on-year growth which is being fuelled mainly by wall décor, consisting of posters and canvases, acrylic, alu-dibond and wood," commented Jeremy Wills, Senior Market Analyst at Futuresource Consulting. "Wall décor is the single largest category of photo-merchandise, accounting for 36% of 2015 revenues; forecast to increase its share of revenues marginally in CY2016."

Futuresource Consulting expects wall décor's share of the market to increase a little through to CY2019, driven by sales volume more than price. Although the industry is promoting larger SKUs and new substrates, the average price for a canvas is continuing to fall due to major promotional activity directly by resellers and via Groupon and other discount aggregation websites.

Calendars, photo cards and photo gifts accounted for the rest of the photo-merchandise market in 2015, with 28%, 24% and 12% of sales respectively. Calendar prices rose a little during the year although a small reduction in average prices is expected in 2016. It is expected that prices will remain relatively static through to 2019. Calendars remain a seasonal product with over 90% of sales occurring during Q4 and early Q1.

The average price for posters is rising, as this is a less competitive market, and volumes continue to decline year-on-year overall. Photo card ASPs are also on the up, again driven by a greater range of SKUs. Online ordering continued to be the dominant channel in 2015, representing 91% of orders with a value of €774 million.

Futuresource expects growth will come from ongoing industry promotion of new product SKUs and the offering of attractively priced products. Ordering via mobile device apps and HTML-5-based ordering will assist demand growth. The latter, in particular, could generate incremental sales volumes beyond our existing expectations but a market saturated with new app and mobile platform sellers could also create additional price pressure and erosion and commoditise some photo-merchandise products.
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Notes
Futuresource Consulting is a specialist research and knowledge-based consulting company, providing organisations with insight into consumer electronics, digital imaging, entertainment media, broadcast, storage media, education technology and IT. With a heritage stretching back to the 1980s, the company delivers in-depth analysis and forecasts on a global scale, advising on strategic positioning, market trends, competitive forces and technological developments. www.futuresource-consulting.com

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