How the digital camera industry can survive the smartphone juggernaut

DIG ITAL CAMERAS The nex t genera5on o f d i g i t a l s e rv i ce

de l i ve ry

Crea%ng a digital service provision in the camera space

A NUMBER OF RELATED TRENDS SIGNAL AN OPPORTUNITY IN THE DIGITAL CAMERA SPACE

1.  Trends 2.  Implica5ons

1 Industry and consumer trends

2 Compe%tor response

3 Opportuni%es in digital service delivery

Industry and Consumer Trends

GLOBAL SHIFT TOWARD SMARTPHONES

Increasing capabili%es

•  Over %me, smartphones have increased capability enough to meet most customers’ picture-‐taking needs

•  High-‐end digital cameras con%nue to improve, but features have outpaced customer needs

•  Far from being viewed as an added benefit, the increased complexity is puRng customers off

•  All while being slow to deliver an important new requirement – social sharing


AND AWAY FROM LOW-‐END DIGITAL CAMERAS

Rise of the smartphone

•  This has led to a sharp decrease in overall digital camera sales since 2011 while smartphone sales con%nue to accelerate


THE RESPONSE: WIFI ENABLED CAMERAS

Instant sharing required

•  The ability to share photos instantly via smartphone means customers now demand this as a hygiene factor


THE RESPONSE: WIFI ENABLED CAMERAS

Responding to demand

•  Most major camera-‐makers are trying to catch up either by bringing wifi to their cameras or their cameras to wifi

•  But quality has been mixed and reac%ons have varied


THE UPSIDE: MILLIONS OF NEW PHOTOGRAPHERS ASPIRE TO GREATNESS

Up the value chain

•  PuRng a camera in everyone’s hands has introduced hundreds of millions of people to photography as a hobby

•  Many then decide to upgrade to a medium to high-‐end digital camera skipping over compact digital cameras in the process

•  Overall camera volumes are decreasing 30% yoy but revenue just about stays flat


BUT: CUSTOMERS ARE LOST AT SEA ONCE THEY UPGRADE

Now what?

•  Customers upgrade to a medium to high-‐end digital camera but don’t know what to do it with

•  Over 2/3 never take it off the auto-‐shoot func%on

Industry and Consumer Trends: Implica%ons

IMPLICATIONS TO DIGITAL SERVICE OFFERINGS FOR CAMERA MAKERS

1.  Customers need help choosing the right camera for them 2.  Then they need help learning how to use it beyond point and shoot

1 Customers want to make the leap to mid and high-‐end cameras but need help

2 Once they’ve moved up the value chain they need help unleashing the hidden ar%st within

3 Customers want to share their crea%ons with whomever they want, however they want, right now

1.  They need access to a wide variety of tools to transform their photos into art 2.  And they want to pass their newly honed exper5se on

1.  Customers want to seamlessly share their art with the world 2.  And they want to do it using whatever plaHorms and tools they’re already comfortable with





3 Opportuni%es in digital service delivery

1.  Making the leap 2.  Unleashing the ar5st 3.  Sharing crea5ons

Compe%tor Response

HELP CUSTOMERS MOVE UP THE VALUE CHAIN: HELP ME CHOOSE

Limited Customer Op%ons

•  Very lible done in this space despite a clear need for it

•  Flickr takes a bobom up approach while Fujifilm starts from the top

•  No website incorporates unbiased customer reviews or other legi%mate social proof

Industry Score 3/10

Compe%tor Response

HELP CUSTOMERS MOVE UP THE VALUE CHAIN: TEACH ME TO USE IT

The opposite of fun

•  Mixed results across camera-‐makers, but customer educa%on is an acerthought for most

•  One or two offer peer-‐led %ps and tutorials, but the communi%es are underdeveloped

•  Most customer support focuses on repairs, warran%es, and similar

Industry Score 5/10

Compe%tor Response

UNLEASH THE INNER ARTIST/GURU : PROVIDE THE TOOLS I NEED & LET ME SHARE MY KNOWLEDGE Adding Value: Sort Of

•  One company allowed customers to upload photos to an online porfolio and none linked out to third-‐party tools

•  Two companies allow for brand ambassadors to share their knowledge and recommenda%ons, but both feel inorganic and underu%lised

Industry Score 4/10

Compe%tor Response

SHARING: WHENEVER, WHEREVER, HOWEVER

Sharing, just

•  Most camera makers have started offering wifi-‐enabled cameras, but quality is mixed

•  One company lets customers share photos on its owned assets but none offer tools, portals, or other methods for external sharing

Industry Score 4/10





3 Opportuni%es in digital service delivery 1.  Redefining the customer journey 2.  And crea5ng opportuni5es therein

Opportuni%es in digital service delivery

CUSTOMER NEEDS AND EXPECTATIONS HAVE CHANGED; SO TOO SHOULD THE CUSTOMER JOURNEY

1 Aspirant

2 Member

3 Novice

4 Pro 5

Show Off

6 Evan-‐gelist

7 Enthu-‐siast

Wants a camera but needs help

Bought a camera, now part of the club

Learn how to use the camera to create beau%ful

photos

Edit and beau%fy those photos to

create stunning art

Create online (or print) galleries and porfolios or share individual shots

Pass along knowledge to new members of the

club

Decide to buy a new, beber, camera

Opportuni%es in digital service delivery

CREATING DIGITAL SERVICE DELIVERY OPPORTUNITIES AROUND CUSTOMER NEEDS

1 Aspirant

2 Member

3 Novice

4 Pro 5

Show Off

6 Evan-‐gelist

7 Enthu-‐siast

•  Unbiased reviews •  Camera selector •  Through our lens

•  Personalised welcome campaign

•  Where to begin

•  Omnichannel training programme focussed on outcome not specs

•  Primarily UGC

•  Onsite edi%ng tools •  Partner with third

par%es – desktop and mobile

•  Specialised forums

•  Cloud storage op%ons •  Partner with third-‐party

porfolio sites •  Frequent community-‐

driven contests

•  Contribute to user-‐led forums and tutorials

•  Unbiased reviews •  Strong gamifica%on

elements

•  Track customer product use

•  Suggest accessories and upgrades

Opportuni%es in digital service delivery: Concepts

HELP THE CUSTOMER DECIDE WHICH CAMERA IS BEST FOR HER

Opportuni%es in digital service delivery: Concepts

HELP THE CUSTOMER MAXIMISE HER EXPERIENCE

How the digital camera industry can survive the smartphone juggernaut

Technology

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