Toronto, ON—Technavio’s report on the global photo printing and merchandise market provides an analysis of the important trends expected to impact the market from 2017–2021. According to Technavio research analysts, the top three emerging trends driving this market are: innovation in photo printing and merchandise; the rise in customer awareness about products and services; and the availability of photo printing merchandise in bundle packaging.
The research firm also believes the global photo printing and merchandise market is heavily influenced by the growth of the tourism and events sectors. These include hotels, airlines, holidays, parties and weddings. These businesses provide the ideal platform for global and local vendors to showcase their products through innovative photo merchandising.
“Photo printing is considered one of the best ways to preserve memories. Despite the advent of digital photos, photo printing continues to hold sway,” commented Ujjwal Doshi, a lead analyst at Technavio. “Digital photos cannot match the touch and feel of a printed photo. This is the major factor why printing for photos only is the highest segment in the global photo printing and merchandise market.”
In addition, the research report identifies American Greetings, HP, Shutterfly and Walmart as the key vendors in this market. It also presents analysis of the market by application (photos only, wall décor, photo cards, calendars and photo gifts); by device (desktop and mobile); by business (online, retail and kiosks); and by geography.
Global Photo Printing and Merchandise Market Overview
1. Photo Printing and Merchandise Innovations
Technavio identifies one of the primary growth factors of the photo printing and merchandise market as the rise in usage of mobile devices to take an increasing number of photos. Smartphones and tablets are continuing to replace desktops since they are more flexible and portable. And, of course, these mobile devices are equipped with high-resolution cameras as well as applications that enable users to enhance picture quality.
Moreover, consumers have access to a number of photo-editing social media apps for easy photo customization. According to Technavio’s research analysts, this market will grow steadily at a CAGR of more than 7% by 2021.
Furthermore, Technavio researchers assert that the latest trend in photo merchandise is the innovative development of 3D photo products. The growing demand for 3D images is influencing “vendors to integrate latest technological innovations into their products to provide customers with unique gifting products.” Additionally, Lenticular painting, for example, is gaining prominence in the gift segment as it depicts a 3D effect on a flat surface.
Another trend is that vendors are progressively integrating HD images into photo merchandising to improve the quality of pictures. Such innovations in photo printing and merchandise will gain traction in the market during the next few years.
“The quality of pictures is also increasing with HD pictures being used excessively in photo merchandising. The increased revenue through the enhanced quality of the photos is expected to drive revenue growth in the market during the forecast period,” added Doshi.
2. Rise in Customer Awareness
Technavio’s research indicates that consumers are becoming more aware of product quality. This is particularly seen with the availability of global vendors in regional markets through e-commerce.
“Customers today check the products they purchase by comparing on multiple websites, visiting blogs and review sites, enquiring in their social circles or peer groups, and evaluating the services based on price, quality, and efficiency.”
Therefore, they are becoming more aware of quality, look and style. The future of the photo printing and merchandise market from the vendor’s point of view will depend on the amount allocated to R&D and on how they intend to satisfy their quality of service and quality of experience, assert Technavio analysts.
3. Photo Printing Merchandise in Bundle Packaging
A growing number of photo merchandising vendors are offering bundled packages at discounted rates. This is predominantly common during off seasons when most of the vendors try to sell off their inventory.
The bundling is done in a way that different types of photo merchandise are sold together. These attract significant consumer interest especially in the online environment, where finding these deals has become extremely easy, Doshi added.
Bundling is also done by attaching the photo merchandise with gift items from the same brand. It is optimal for vendors to clear the inventory before the festive season so there is a high scope for customization and innovation.
Competitive Landscape & Key Vendors
The photo printing and merchandise market is highly competitive. And Technavio asserts that its players are increasingly focusing on differentiated and innovative products. “The vendors have the need to offer specialized products and services based on customer preferences. The increasing usage of smartphones and high Internet penetration greatly influences the marketing strategies of vendors in the photo printing market,” the report states.
As a result, the personalized photo gifts market will also witness the entry of new players. Their goal will be to cater to the demands from the local markets.
In addition to American Greetings, HP, Shutterfly and Walmart, the report identifies other prominent market vendors. They include CafePress, CVSpharmacy, Hallmark Cards, Rite Aid, Smilebox, Snapfish, Vistaprint and Walgreens.
Technavio also notes that despite the advent of digital photos, there is a consistent demand for digital photo printing. The rise in the number of digital photographs being clicked and the growing popularity of instant photo booths with a high level of customization are contributing to the growth of the personalized photo gifts market in the photos-only segment.
Furthermore, several large businesses use desktops for their printing services, as they can efficiently fulfill the demands of large commercial photo printing requirements. And businesses that are unable to afford the expensive mobile interface of innovative photo printing techniques also adopt desktops for mass production, according to the report. As a result, desktops will account for the major shares of this market throughout the next four years. technavio.com