We can all recall a time when the SLR category was the sole domain of the truly serious photographer. Only the true “photo geek” was carrying around these bulky, complicated and intimidating (to the rest of us) models and often times rushing back to the “home darkroom” to do their own developing. Nice folks, mind you, we just all quietly wondered what effect all those fumes were actually having on that crowd.
Flash forward to today and it’s not unusual to see Mrs. Soccer Mom on the sideline at the big game, comfortably wielding a lightweight, compact DSLR, nailing that shot of her little darling as he/she moves in for the winning goal. Or maybe it’s Dad at the 10th birthday party handling that tricky lighting situation of the candle blowout and doing so deftly with yet another lightweight, “budget” DSLR.
The DSLR category is undergoing a sea change of design and innovation and as a result, the demographic of the customer buying product within this category is changing radically as well.
We are seeing feature sets in today’s consumer-level DSLRs that only a year ago weren’t expected in a camera body that would sell for much less than $1500. There is product in this market today, selling for significantly less than $600, that places professional-level imaging capabilities in the hands of mainstream picture-takers.
Add to this madness the fact that scores of casual snap-shooters are becoming increasingly frustrated with the shutter-lag problems that persist in the point-and-shoot world and are beginning to take a more serious look at the budget DSLR category. As you can see, a category that was once dominated by 30-something males is now making room for a much broader audience. The aforementioned Soccer Moms and NASCAR Dads are looking to upgrade and take their picture-taking experiences to another level. The spin-off effect this will undoubtedly have on the retail print market should be dramatic.
From the Field
So then, with this white-hot spotlight fixed firmly on the DSLR category, we have asked the manufacturers of said models to give us their perspective on where this category is headed as we move toward the end of 2007 and on into 2008. We have also highlighted each manufacturer’s latest product offering in this space – a brief rundown of the latest DSLRs stealing headlines in digital imaging circles.
You can view a gallery of these products here.
We thank those companies that participated in our DSLR Tech Watch and look forward to even more dazzling product from each in the future.
Canon
Cultivating Relationships With DSLR Customers
The unprecedented popularity of digital SLRs in 2007 can be analyzed from a number of different perspectives, but one thing is perfectly clear from all vantage points – this product category is hotter than ever, and it’s only going to continue to grow as the holiday selling season approaches. First, let’s look at some sales forecasts: Analysts from major market research firms such as NPD and IDC indicate that DSLR unit sales in the US market will increase by approximately 35% this year, to approximately 2.2 million units. That’s a very healthy growth rate by any standard. Lower average selling prices are driving the market, but so are exciting new products like the EOS 40D and EOS Digital Rebel XTi, which offer high image quality and incredibly responsive performance at affordable prices. Every new DSLR purchase represents an opportunity for add-on sales of profitable accessories including interchangeable lenses, flash units, gadget bags, batteries, and memory cards, not only when the camera is purchased but also for months and years afterwards.
So much for the obvious – what does this trend really mean for photo specialty dealers? For starters, it means intense competition from mass-market chains and e-commerce outlets. To get their share of the business, specialty dealers must provide incentives for customers to choose them over their rivals, and price-cutting is not the best solution. Instead, they can and should offer added-value perks, such as personal service before, during and after the sale. Specialty dealers can also take advantage of promotions such as seasonal rebate programs and exclusive kits in order to differentiate themselves from their competitors. They can generate repeat business by offering photo seminars and classes to educate their customers and stimulate their photographic interests. Through these and other proactive practices, specialty dealers can cultivate stronger relationships with their customers – creating a win/win situation for everyone involved.
Last but by no means least, photo specialty dealers should consider offering their DSLR customers a full solution from input to output, by carrying and promoting high-quality photo printers with dedicated inks and paper. After all, cameras and lenses are the means to an end, and for most photo enthusiasts, the desired end result is a high quality print. Research has shown that DSLR customers who own printers use plenty of ink and paper, providing yet another opportunity for photo specialty dealers to generate sales and profits. In short, the popularity of digital SLRs represents a virtual goldmine for dealers who are willing to put in a reasonable effort to capitalize on it.
— Chuck Westfall, Director/Media & Customer Relationship, Camera Marketing Group/Canon U.S.A., Inc.
• 10.1-megapixel CMOS imaging sensor
• DIGIC III image processor
• Redesigned autofocus sensor and 6.5 fps continuous shooting capability (for bursts of up to 75 Large/Fine JPEGs or 17 RAW images)
• Live View capability
• Self-Cleaning Sensor
Panasonic
Embracing Point-and-Shoot Users with D-SLRs that Encourage Growth
To no surprise, market research continues to report that digital camera household penetration maintains its growth. In fact, many purchasers are repeat buyers who are quite familiar with features on compact digital cameras, thus seek large LCD screens, image stabilization and live view. As a major factor in this increased penetration, CIPA reports an estimated 13.1 percent growth in the D-SLR market in 2008 and 2009, versus only a 1.0 percent growth in the entire digital camera market during the same period. Meaning, as consumers continue to master their compact models, naturally they will want to evolve their digital photography skills to the next level with a D-SLR.
Further validating D-SLR growth, we found that only 11 percent of intended D-SLR buyers have had previous experiences with an analog SLR. Instead, the majority of intended D-SLR buyers, 78 percent, are compact digital camera owners. This reveals that many intended buyers will feel more confident when buying a D-SLR with features they recognize from their compact models, thus easing their transition.
We have found that many D-SLR customers are looking for three things: durable and high-performing equipment, versatility and quality images. In addition, consumers are willing to pay a premium for a durable camera body and high-quality lenses made by a world premiere manufacturer. For instance, buying a D-SLR that comes with a Leica kit lens, complete with a metal mount, is an attractive package for consumers who demand quality. For versatility, the Four Thirds platform continues to expand its offerings and now makes more than 30 lenses available and we foresee this number growing rapidly. And image quality is a combination of factors, including: quality lenses, image stabilization and intuitive features that automatically engage the camera’s optimal settings.
As mentioned, new D-SLR models should provide features that compact digital camera users understand, know, and appreciate, such as a full-time live view. Without live view, the user must envision the resulting image after setting the white balance and light metering, which can be difficult for those new to D-SLRs. Thus, new D-SLR users will benefit from the full-time live view, where they see how the changes in settings will affect the image and they can begin to learn these settings when taking future images.
Quite simply, the industry can maintain its growth by embracing point-and-shoot users into the D-SLR category, and easing a transition, which many find intimidating. It is increasingly important to offer features that will help teach new D-SLR users the benefits of this category.
Whether the consumer owns a point-and-shoot or D-SLR, in the end, they want high-quality images worthy of displaying and sharing. Gone are the days of projector slideshows, and the modern-day version has consumers displaying digital images on flat-panel displays, such as a high definition Plasma. For optimal viewing that excels on a Plasma HDTV, digital cameras should offer 16:9 ratio shooting. All LUMIX digital cameras use SD cards, and when combining that with a Plasma that has an SD card slot, such as Panasonic’s line, viewing digital images is easy and intuitive. Digital imaging products are an important member in this High Definition world, as they provide the content consumers are anxious to view, share, record, print and archive – meaning this industry’s growth has a lot to be excited about in the coming months and years.
— By Richard E. Campbell, Vice President, Imaging, Panasonic Consumer Electronics Company
• 10.1 megapixel Live MOS sensor
• Face Detection
• Rotating LCD
• Supersonic Wave Filter system – dust prevention
• Live View LCD
• Film Mode – mimics effect of analog film
Pentax
Flexibility & Control Driving New Users
Many compact digital camera users are making the leap to digital SLRs. Let me give you an example. Julie Quarry of Portland, OR, is a cruise ship marketing executive who picked up her first digital SLR two years ago and now freelances on the side as a photographer. Her latest camera is a Pentax K10D and with it Julie snapped an image in San Blas Islands, Panama of a little Kuna girl with a lizard on her head. The image Julie took is absolutely stunning, and she considers the moment so spiritual it was if she was seeing the world for the first time.
There are many more Julies (and Johns) poised for the creative flexibility and image quality of an SLR. As these consumers prepare to step into the world of Digital SLR photography, or move up in this category, they will consider a number of factors in their purchase decision including features, price, and brand. When it comes to brand choice, many will seek one that speaks to their core identity because consumers have their own sense of self, based on their background (e.g. ethnicity, social class, subculture, nationality, etc.). The brand that embodies their values and aspirations will be the one they choose and the club that they join. Pentaxians have formed such a group or culture. The club was formed long before the Internet age, but forums such as www.dpreview.com and the blogosphere allow members to identify and communicate with each other from around the world.
Understanding this, Pentax Imaging Company launched two ground-breaking initiatives this year that allow individuals to publicly associate themselves with our brand. First, Pentax opened the doors of www.pentaxphotogallery.com to give Pentax shooters around the world the opportunity to be represented in the gallery and share their most defining moments of photography. The gallery offers space for passionate Pentax photographers to exhibit their work, share and gain resources within an artistic community, create an online portfolio, and more. The gallery is an original site that was designed exclusively for Pentaxians, and biographies of each photographer help reveal the personalities behind each lens.
Since opening in July, the gallery has grown to now feature more than 3,000 images submitted by more than 1,000 artists. Photographers range from 16 to 80 years of age and hail from more than 40 countries throughout Europe; Asia; the Middle East; North, South and Central Americas; Africa; and the Pacific Rim. The gallery offers site navigation in six languages: English, Spanish, German, French, Japanese, and Italian. Featuring a search engine that locates images according to camera bodies and individual lenses (as well as photographer and subject category), the gallery educates budding photographers about the creative capabilities offered by the vast array of Pentax digital SLR lenses. Pentax photographers interested in more information regarding submitting work to the gallery may e-mail: photogallery@pentax.com.
In addition to the gallery, Pentax launched a companion site, www.pentaxian.com, for enthusiasts and new consumers to learn more about the brand, the products and the photographers. This web site also welcomes visitors from around the world and features inspiring videos of four Pentax photographers including Mark Dimalanta, Godfrey DiGiorgi, Kerrick James, and, of course, Julie Quarry. As companion sites, pentaxphotogallery.com offers Pentax photographers a place to display their work, while pentaxian.com offers an environment for Pentax enthusiasts and new consumers to participate in and learn more about the brand, the products and the photographers.
— Ned Bunnell, VP Marketing, Pentax Imaging Company
• 6.1 megapixel APS-C size CCD
• Pentax Shake Reduction (SR) system
• Dust Removal (DR) system
• Full compatibility with all Pentax SDM lenses
• 11-point autofocus mechanism
• Penta mirror viewfinder that features a 96% field of view and 0.85X magnification
Samsung
Entry-Level Shooters Ready for Next Step
A few years ago, when shopping for a digital camera, the average entry-level photographer wouldn’t dare consider a DSLR. They were too advanced and way out of their price range. Today, however, that mindset has changed thanks to lower price points, more user-friendly products, and an increased interest in photography. This is most definitely an exciting time for the digital imaging industry that presents countless opportunities for manufacturers and retailers.
First-time buyers and early adopters, who fueled the record-breaking growth of digital camera sales with purchases of entry-level point-and-shoot cameras, are now ready for the next step. They’re in search of higher resolutions, more manual controls, longer zooms, and a camera that provides them with the quality and versatility needed to help enhance their photographic capabilities. These consumers are now more comfortable with digital imaging technology, and many former snap-shooters have evolved into pseudo photo enthusiasts who wish to break out of the point-and-shoot mold and make the transition to a DSLR. With the entrance of major CE manufacturers, including Samsung, Sony and Panasonic, to the DSLR market, with them has come a greater selection of DSLRs that are more affordable, accessible and user-friendly than ever.
For the point-and-shoot photographer considering making the jump to a DSLR, price is a key factor and has historically been one of the most significant barriers to entry. Manufacturers have addressed this issue by delivering entry-level DSLRs that strike a balance between price and functionality. Additionally, many have also offered beginners a turn-key solution by selling DSLRs as a kit, including the camera body and a lens.
In today’s high-tech world, sacrificing performance and functionality in order to meet a lower price point is simply not an option, especially if a manufacturer wishes to engender the kind of brand loyalty that enables it to grow with consumers over an extended period of time. At Samsung, we want budding DSLR enthusiasts to have the most rewarding experience and achieve the best possible results with our products. In order to do that, we’ve worked diligently to deliver affordable DSLRs that are easy to use, produce phenomenal results and encourage consumers to continue to expand their photographic skill sets.
Moving forward, and as the entry-level DSLR market expands, Samsung will continue to introduce new models that meet consumers’ demands. As the industry evolves, the opportunities for specialty photo retailers continue to grow as well. In addition to increasing sales of DSLR accessories, including additional lenses, flashes, camera cases and tripods, specialty photo retailers can also leverage the primary advantage they hold over mass merchants. By demonstrating their expertise and helping guide DSLR users through the intimidating landscape of shutter speeds, f stops, ISOs, white balancing, and more, specialty photo retailers can firmly establish their position as the go-to resource for all things photographic, to a huge number of consumers. The relationship between retailers and manufacturers is an equal partnership and it’s essential that we maintain open lines of communication to ensure that we are providing consumers with the products, solutions and expertise they need to help us grow all our businesses. Ultimately, this will give manufacturers and retailers the ability to instill brand loyalty and develop relationships with consumers that will last for many years to come.
— Stewart Henderson, Vice President of Marketing, Samsung Opto-Electronic America
• 10.2 megapixel CCD Sensor
• Optical Picture Stabilization (OPS)
• Vibrating dust removal system
• Body design features special weather resistant silicone seals around all vulnerable areas
• 3 fps Continuous Shooting Mode
Sony
Expanding Customer Base Presents New Opportunities
How is the DSLR category changing? What technologies are making DSLRs lighter, more compact models with reasonable price tags in the $500 range possible? What technologies are making DSLRs easier to use?
How is the DSLR customer base changing? It used to be predominantly males over 30, but now it’s kind of all over the map with a heavy female percentage increasing. How is the industry targeting these new demographics?
It’s an exciting time to be in the DSLR business. The industry is rife with change and unparalleled growth. Perhaps never before have we seen so many technological innovations take place in one category at such a rapid pace. Thanks to achievements in materials engineering, semiconductors and electronics, customers can now enjoy different classes of cameras and broader camera systems. Products are higher performing, easier to use, and more affordable. All of these factors have led to growth.
We’re also witnessing an expanding base of customers and potential buyers. Traditionally, the typical DSLR buyer was a professional or serious hobbyist and many were men. Now soccer moms and dads are driving growth in the category, because they need high-performance cameras to capture their kids in action. Consequently, we have new opportunities to reach out to women and younger people, because they understand that DSLR cameras will help them get the shots they want.
To reach these customers, we’ve been investing in ways to enrich the customer experience. In addition to traditional advertising and marketing promotional tools, we see the importance of providing hands-on opportunities to stimulate customer interest and potential sales. We’ve been setting up interactive, educational kiosks at youth soccer events across the Midwest and Southeast to explain the benefits of our Sony Alpha system. For moms and dads, they’re getting helpful information at the right place and the right time.
At Sony we’re committed to creating innovative products and services that will appeal to this new base of customers as well as traditional buyers. In addition to advanced sensor and imaging technologies, we’ve incorporated features in our products to make them easier-to-use such as Super Steady Shot inside the camera body, which helps beginners capture sport scenes and helps anyone use telephoto lenses more easily and with minimal image blur.
As we look forward, our goal is to make systems even more accurate and intelligent by having them act like the human eye. Taking a picture will be as easy as taking a look and just as accurate. We want to make cameras in such a way that they can “think” intelligently as well as intuit the world they’re capturing.
• 12.2 megapixel CMOS sensor
• Super Steady Shot
• 5 fps Continuous Mode
• Improved BIONZ Processor
• All-new shutter, vertical traverse, 1/8,000 max speed, 1/250 or 1/200 x-sync
• Dual CompactFlash (type I/II) and Memory Stick Pro Duo card slots
Olympus
DSLRs Becoming “Everyday” Camera
Photographers traditionally chose digital single lens reflex cameras for special occasions and situations where creative control was a necessity. Today, thanks to portable designs with lightweight, compact lenses and easy-to-use features, digital SLRs can become the “everyday” camera for users of all skill levels.
Consumers with active lifestyles are grabbing their portable digital SLR for outings to the park, a child’s soccer game or on any adventure. New lightweight lenses provide the super zoom capabilities needed for sports and wildlife without the heft.
New easy-to-use technologies have made digital SLRs the perfect solution for households with multiple skill levels – simple enough for a beginner and yet plenty of creative control to satisfy the most artistic photographer. Scene modes automatically set the camera for various shooting situations, including low light, fireworks and underwater macro, to name a few. Traditionally associated with their compact counterparts, scene modes enable users to easily capture brilliant images with a digital SLR in any environment.
Composing images with a Live View LCD is familiar to those users stepping up from point-and-shoot cameras. It is perfect for situations where interacting with a subject makes or breaks the shot. Additionally, consumers want to capture great images without sitting on the sidelines. They want to be a part of the action, which requires in-camera image stabilization to ensure beautiful pictures with any lens.
Easy-to-use technology at affordable prices is contributing to many new users entering the market. Today’s dollar buys more camera than it ever has, which is also driving the steady increase of digital SLRs being purchased as a gift. Father’s Day 2007 was a testament to this and is a trend expected to continue to grow throughout 2008 and beyond.
Manufacturers and retailers who succeed in the next 12 to 24 months will be the ones who best understand the ultimate customer – the consumer. This is why we are constantly using market research and consumer feedback to drive innovation. We do not innovate for the sake of innovating. We create pioneering products that enable consumers to capture amazing images while being a part of the action.
— John Knaur, Senior Product Manager, Digital SLR, Olympus Imaging America Inc.
• 10 megapixel Live MOS sensor
• Live View LCD
• Mechanical Image Stabilization
• Dust Reduction System
• Enhanced TruPic III Image Processor
• Shadow Adjustment technology
Nikon
Education in this Market Remains a Key
The digital SLR camera market is more exciting now than ever before. Technological innovations are being developed at a rapid pace and as a result, the latest generation of DSLR cameras offers remarkable capabilities at very affordable prices. These advances are accelerating consumer adoption and driving new customers to stores. Nikon believes that with this success comes a greater responsibility for manufacturers and retailers to collaborate on ways to educate consumers and help them make the right purchase decisions.
Nikon’s customer-centric orientation is driving the company’s efforts to attract new consumers to the DSLR market and strengthen its brand relevance. For example, Nikon’s recent Picturetown marketing campaign for the D40 DSLR camera was based on the perspectives of first-time SLR buyers and factors important to them. Focus groups reflected that DSLR cameras were appealing to customers because they eliminate the common frustration associated with shutter-lag and allow people to take beautiful pictures easily and effortlessly.
In an effort to demonstrate this, Nikon offered an entire town the opportunity to experience firsthand how easy and rewarding it is to capture amazing pictures with the D40. The Picturetown campaign found immediate relevance with thousands of consumers nationwide and helped propel the D40 into one of Nikon’s best selling cameras.
Retailers also have a similar opportunity to embrace a truly customer-centric mindset. In fact, many sophisticated retailers are already differentiating themselves by becoming a comprehensive resource for customers and offering a broad selection of lenses and system accessories that their competitors may not offer. These retailers are also ensuring their staff is well trained and knowledgeable so they can offer guidance and advice to their customers, whether they are first-time SLR buyers or avid photo hobbyists.
Manufacturers can play an important role in helping retailers embrace a customer-centric mindset and fully capitalize on the popularity of DSLR cameras. Nikon, for example, supports its retailers’ efforts through an active dealer training program as well as a number of consumer education programs ranging from in-store product demonstrations to Nikon School’s one-day photography seminars and on-line resources such as the Nikon Digital Learning Center on Flickr.
The collaboration manufacturers and retailers enjoy today is crucial to the growth and success of the digital SLR camera business. Through effective marketing campaigns from companies like Nikon, and strong retailer support, consumers who were once intimidated by DSLR cameras are today embracing the quality, simplicity and creativity these cameras offer.
As we move into 2008, the latest in DSLR technologies will become more prevalent and as a result, manufacturers and retailers must continue to play a leading role in educating consumers about these new technologies.
Nikon’s recently introduced D3 and D300 cameras offer a glimpse of some new features and capabilities customers can expect in future products. By offering customers help and guidance in understanding and accepting the benefits of these new features, manufacturers and retailers can ensure highly satisfied customers and greater interest in DSLR cameras. Nikon strongly believes that a well-informed and satisfied customer will ensure the growth and longevity of the digital SLR camera business. yy
• 12-megapixel CMOS Sensor
• Active “D-Lighting” ( applies the effect to photo before it is captured)
• Self-cleaning sensor technology (vibration)
• Burst capability of 6 fps
• Nikon’s new Expeed Image Processing Engine
• 3-inch, 920,000-pixel LCD screen with 170-degree viewing angle
