Digital Camera Vendors Need To Change Their Strategy Says Expert

Paul Shearer, General Manager of Camera House, said that demand for SLR type cameras is growing as demand for sub $299 digital camera's slump. He forecasts a move back to the specialist retailers as consumers move to more complex cameras. "Mass retailers don't want to spend too much time selling a sub $299 camera – they want this category to be cash and carry. There are also issues with margin in this category". He said.

"Right now the mass retailers want to play in all parts of the market, this won't work. The new generation of digital cameras needs to be sold; they need to be explained, especially as the market and profitability move to SLR type cameras with separate lenses".

"Vendor's needs to work closer with retailers to identify the market they reach. Brands like Nikon are doing this and as a result they have seen market share gains. They are spending time identifying retailer's needs".

"We need to work closer with vendors to marry market research on a given target audience or demographic to determine which are the best models to stock. Some vendors are still taking the "one brand one policy approach" with retailers and this will not work going forward", he said.

Shearer said that that several vendors like Panasonic with their Lumix brand, and Samsung with their new NX10, are introducing a new class of camera with mirrorless interchangeable lens cameras. Some experts say that this will be make up 75% of the market in three years time.

John Swainston, Managing Director of Maxwell International, the former distributor of Nikon Cameras, said that the market is changing "The new generation of mirrorless cameras are growing and could well make up three quarters of the market over the next three years".