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The Inkjet Photo Supplies Opportunity in the Home: A European Perspective

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This groundbreaking study will outline the key opportunities and threats for companies that are involved in the digital photography industry, namely:

Home Printer Manufacturers

Digital Camera Makers

Consumables and Media Suppliers

Photo Software and Service Providers

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Strategic Consultants to the Digital Imaging and Document Solutions Industries www.infotrends.com


IntroductionOne of the fastest-growing and dynamic areas of the digital printing market is digital photo printing. Photo printing is already moving beyond the pure transfer of images from the PC to the printer, and it can now be done directly from the camera or from mobile phones. Users have a number of choices about what to do with the images that they capture on their cameras and mobile phones. Consumers that do not want to print their photos may store them electronically or share them on photo hosting sites for others to download. The way that photos are printed, as well as the location of where they are printed, is evolving.

This study will specifi cally consider what consumers are printing on their inkjet devices and what industry players can do to encourage more photo printing. Additional insight will be gained about the factors that drive users to print photos on their inkjet printers. This study will also assess consumers’ attitudes about alternative forms of outputting photos (such as online or retail photo printing).

InfoTrends’ analysis indicates that inkjet printer supplies volumes in Western Europe will continue to grow over the coming years. Vendors need to stimulate usage levels and generate revenue growth in the home to offset competition from alternative photo output methods.

Figure: The Total Inkjet Photo Supplies Opportunity in Western Europe – 2004-2009

Critical Questions Answered as Part of This StudyThis study will answer many of the critical questions that are currently facing organizations from equipment and supplies perspectives.

Equipment• What devices are being used to print out photos at home?• What proportion of home devices are dedicated photo printers vs. multi-purpose devices?• What printing technologies are consumers using at home – inkjet or dye sublimation?• Are they printing from the PC or printing directly from a digital camera or a camera phone?• What other sources are they printing from (i.e. mobile phones, memory cards, Internet, scanner, e-mail)?• What percentage of their photos do consumers print out at home, at retail, and online?• How popular are portable viewing devices? • Do consumers use photo sharing Web sites such as Kodak Gallery or Flickr?

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2004 2005 2006 2007 2008 2009

Inst

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€ 10,000

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Supp

lies

Rev

enue

(mill

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Inkjet printer devicesInkjet printer supplies

Note: Includes devices & supplies in home and office

’04 to ’09CAGR

Inkjet printer devices 3.2%

3.2%Inkjet printer supplies



Supplies

• What volumes are users printing out on their inkjet printers at home?

• How much of this is photo output?

• What sort of substrates are they using?

• What sizes are they using?

• How many photos do consumers print at one time?

• For which applications are they most likely to print out their photos?

• Which brands of photo papers do they primarily use?

• Which brands of inkjet paper or ink do consumers primarily use?

• Have they used a non-OEM inkjet cartridge? What are the reasons for their choice?

• What affects ink brand selection (i.e. price, availability)?

• Where do they buy their inkjet cartridges and photo paper?

• What package sizes do consumers typically buy? What infl uences this decision?

• What weight of substrate do users typically buy? What infl uences this decision?

Other Sources of Photo Printing

• What other sources do consumers use to output their digital photos (i.e. online photos, retail, photo kiosks)? Which do they use most often? What share of their total photo output do these sources account for?

• How has this share changed over the last year? How do consumers expect it to change over the next year?

• What is the average order size when using the various sources?

• What size of print do they typically opt for?

• What is the reason for using an external source for digital photo output rather than home printing?

• What do consumers view as the advantages and disadvantages of these methods over home printing?

Research ObjectivesThis study is designed to help all players in the digital photography industry understand what users are printing on their home inkjet devices and how to encourage more home photo printing. The results of this study will provide the necessary information to help you:

• Establish the patterns for transferal of images for outputting on inkjet and dye sublimation home printers

• Establish how users are dividing up digital photo output between home printing options and alternatives such as retail printing an online photo printing

• Establish the importance of capturing photos via digital cameras and/or camera phones

• Establish the barriers and enablers for home photo printing

• Examine the trends towards viewing and sharing photos compared to printing them out

• Establish supplies usage pattern for photo printing in the home

• Establish the types of printers people are using to output photos at home

• Establish key brands of papers and inks for photo printing and areas of brand sensitivity

• Determine how and where consumers will print digital photos over the next fi ve years

• Understand the reasons for not printing photos



Market Size and Forecast by Product SegmentThe inkjet photo equipment and supplies market sizing and forecast (2006 through 2010) will include:• Placements• Installed base• Page volume• Hardware revenue• Supplies revenue The forecast will be broken out by key market parameters:• By product category:

Inkjet photo printer and non-photo printerDye sublimation photo printer Inkjet cartridges and paper by segment and paper type, including photo papers

• By geographyTotal Western EuropeFranceGermanyItalySpain

U.K.

Application Requirements and AnalysisInfoTrends will develop profi les of the leading applications that account for the majority of photos printed in the home. These profi les will help companies understand the product requirements and key selling messages.• Applications

Photographic productsPostcardsGreetings cardsBusiness cardsProofi ngPresentation materialPromotional materialTransfers (i.e. t-shirts, mouse pads)CalendarsStandard documents (with graphics)BannersLetterhead

Posters

• Analysis Elements

Print quality

Paper requirements (i.e. grades, basis weights, sheet size)

Finishing (i.e. types of fi nishing)

Percentage of total photo print volume

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Market ResearchInfoTrends’ study will include an extensive review of existing research and end-users across a variety of market and company size segments. Ultimately, the research will identify market segments, critical success factors, customer requirements, usage patterns, purchase plans, and other items that will drive the vendors’ product, service, marketing, and sales activities.

Secondary Research

Relevant research reports that will be leveraged as part of this study include:

• Future of the Document Studies 2004 and 2005

• Digital Photography End-User Study 2004

• Photo Prints Forecast for 2004-2009

• Digital Peripherals and Communications Supplies Forecasts for 2004-2009

The study will also tap into outside resources, including industry associations and European country statistical offi ce data.

Primary Research

1,500 Western European consumers will be surveyed on their usage and perceptions regarding digital photo printing in the home. Study sponsors will have an opportunity to review the questionnaire and provide input to the focus of the study and key questions.

InfoTrends will conduct the interviews in the native language of each country. We anticipate that the distribution of interviews will include respondents from France, Germany, Italy, Spain, and the United Kingdom.

The end-user questionnaire will contain two sections. The fi rst section will capture information on equipment, the outputting of photos, and the impact of alternative output choices. The second section will focus on applications and supplies (ink and paper) used.

Analysis and Project DeliverablesInfoTrends will conduct in-depth analysis of the secondary and primary research to develop a comprehensive understanding of the opportunities and issues for inkjet equipment and supplies players. Clients will receive a combination of reports, presentation material, and research data for senior management personnel, product managers and planners, and sales and marketing executives. The material will include:• An Executive Summary that addresses key issues, fi ndings, and overall recommendations• A detailed written report (at least 150 pages) with text, charts, and graphs addressing the objectives of the study• A set of presentation-style overheads for internal communication of the research results• A data book of the survey tabulations for additional analysis of key questions and market segments• A 2-hour teleconference presentation of the general fi ndings and recommendations



Project ScheduleInfoTrends intends to begin this project in May 2006. Based on the following schedule, the project will be completed with materials distributed in the third quarter of 2006. Throughout the project, InfoTrends will issue regular updates on the project status.

Milestone Completion

Desk research May

1,500 interviews with end-users June

Data analysis and report development July

Report delivery August

Project Fees & AuthorisationFor clients that sign up before April 28th 2006, the participation fee is $7,995/€6740. Clients that sign up early can also provide input and review the interview guides.

After April 28th 2006, the price of the study is $10,995/€9270.

A personal presentation is available for $2,000 plus travel expenses. Clients may also receive bespoke deliverables such as a customer sales presentation for an additional fee.

Clients may have other major geographic-based business units co-fund and participate in the study, review the questionnaires, and receive a copy of the report.

The Inkjet Photo Supplies Opportunity in the Home: A European Perspective(Please print, or attach your business card)

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