HDMI GETTING CLOSER

Youve read about it in our pages before and now its about ready to fly. High-Definition Multimedia InterfaceTM (HDMI) founders Hitachi, Matsushita Electric (Panasonic), Royal Philips Electronics, Silicon Image, Sony Corporation, Thomson, and Toshiba Corporation have announced that the draft v 0.9 HDMI Compliance Test Specification is now available. Testing will be conducted in the four HDMI categories: source (e.g. DVD, set-top box), sink (e.g. digital TV), repeater (e.g. A/V receiver) and cable. Silicon Image will operate an HDMI ATC in Sunnyvale, California, while Matsushita will operate an ATC in Osaka, Japan.
NEW HITACHI PLASMA DISPLAYS
Hitachi is moving into plasma in a big way by introducing four models from 32 to 50 inches. Native resolution varies from 852x1024 to 1024x1024 and they all feature New 5th generation Virtual HD for playback in 1080i or 540p, 3-2 pull down detection auto/off, dark tint filter and 6 fill modes including one new mode. Strong entries.
KONICA & MINOLTA MERGER COMPLETED
Konica and Minolta have completed their previously agreed upon stock swap. The strategy reads like this: "Preparing for the age of indispensable strategic alliances." Konica Minolta views alliances as critical because of complex technology and market demands, and intense competition. Office equipment will be the core business, Optics will be a strategic sector, and they will look for "synergy" in Consumer Imaging and Cameras.

PIONEER ELITE VSX-55TX

If one finds anything missing after going through the specs, it wont be because Pioneer didnt try to pack all they could into it: THX Select Certification, Dual Motorola DSP Engine, DTS-ES Discrete 6.1, DTS NEO 6: Music & Movie, DTS 96/24, Dolby Digital-EX, Dolby Pro Logic II Music & Movie, Hi-Bit Audio Scaler converts digital sources to 96kHz/24-Bit, Resolution 96kHz/24-Bit A/D Conversion (2 Ch.) 192kHz/24-Bit DAC, Auto MCACC (Multi-Channel Acoustic Calibration) / with microphone, Manual EQ Adjust (5-band x 7), 7D Theatre / 7 Channel Stereo, 6 Cinema Modes / 6 Concert Modes, Multi-Room / Multi-Source, 12 Volt Trigger.

8 C.E.BIZ September 2003

By Mitch Solomon
Research Lab in Tempe, Arizona. To describe it simply, carbon atoms are formed into tubes less than one billionth of a meter in diameter. These tubes are quite remarkable in their capabilities, being extremely good conductors of electricity while being highly temperature resilient. Theyre also incredibly strong and light, enough so as to be used in spacecraft design. The challenge has been how to turn these tubes into a display screen. Well, the trick is now a technology. The hard part about making a Carbon Nanotube screen lies in forming the display surface itself. The previous attempts used a method whereby the tubes were grown at a temperature of 800 degrees Fahrenheit and then added to a paste that was then applied to a screen. This was required as without the paste the heat from the process would melt or damage glass or other electronic components. Unfortunately, the process did not allow sufficient control on how the tubes aligned themselves on the screen material, thus generating an unreliable manufacturing method. What Motorola has accomplished of late is the ability to grow the nanotubes at less than 500 degrees Fahrenheit, permitting them to be placed directly on the screen surface without the use of the paste. Once there they can be aligned with the utmost precision and grown to whatever length is correct for the product in question. The result is a screen with quality comparable to current Plasma and LCD technologies, but, and heres the kicker, at a price comparable to todays standard CRTs. This technology is, and this is important, not simply hiding in lab somewhere awaiting years of further research. Motorola claims to have an industrial manufacturing process developed and are aggressively licensing the technology to electronics manufacturers. They claim the technology can be readily adapted for use in factories currently producing other big screen technologies, with product roll out in the two to four-year range if

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PROFILE

Vancouvers Hi-Fi Centre

An old fashioned success

In the 80s, Vancouvers Seymour Street was the place of stereo shops, with most of the dealers located there. Hi-Fi Centre opened their doors at 578 Seymour in 1984. Their philosophy was simple: give the customer the best sound for the buck. The 1,700 square foot space became a second home to Alex Kivritsky, the owner of Hi-Fi Centre. By 1994, the opportunity to expand the store came as a result of the neighboring tenant moving, creating a 4,700 square foot retail environment. Alex can intimidate most anyone with his size, but his soft spoken, relaxing demeanor immediately take holds of the conversation, and soon youre speaking about his world, his thoughts, and business style. Alex views this business differently than most. His views of the industry, competition, demographic environment and how to retail dont fit the usual mold that one envisions of a small footprint store such as this one. As you enter the store, you are deceived about its size. It seems narrow, but as you wander around, you realize it is almost than the usual posters. There are no boxes of inventory cluttering the aisles or hallways, just clean bright walls with vignettes placed strategically for customers to see, look at, and enjoy. Alex readily admits his model isnt sophisticated, they dont use any real POS system, so they cant really track customer activity. Hes an oldfashioned merchant, and knows every face that has ever been in the store. He caters to a different kind of customer, not classified as a niche, but rather those customers who value sound and who have little time to spend shopping around. His clientele ranges from high-profile professors to down-and-dirty adrenalin junkies. It isnt uncommon for his staff to suggest to their customer to shop around for the product they think they need, and then drop by after they have had their fill of the traditional shops around town. Let me be clear here, Alex and his staff never slam the competition ever! What they do is encourage the customer to have a look at whats out there, and if they have time, drop by and have a look at Hi-Fi Centres offerings. Over the years, as most entrepreneurs do, Alex tried expansion by franchising and adding locations, but without success. Time and wisdom helped him to stay with his winning model, staying put, and working on core competencies. His business flourishes because his philosophy is clear. Our customers come here because we sell emotions, not technical specs. Because the emotions generated are a result of great sound, timber, clarity and richness, the way an opera can bring people to weep. Our customers come in to get the best sound for their environment, whether a small apartment downtown, or a mansion on the water. Another part of the philosophy is the

THE TOUGHER THE BETTER.

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TRAINING

Obedience.Not all its cracked up to be
Do you promise to love, honour and obey? I promise to obey the Girl (Boy) Scout laws. Obey your parents. Obey your teachers. Do what youre told. Weve had a strong background in obedience. Its not a bad thing, for it has shaped our growth. It has helped us become social beings. However, bringing the mantras from the past into our working life as sales or service providers isnt necessarily the answer. This article is not a cry for anarchy, either, but rather an examination of what obedience causes us to miss. I believe there are myths abounding about customers. For example, the customer is always right. Anyone who has ever dealt with customers knows that to be a falsehood. The reality is the customer is always the customer. Another myth: the customer knows what he wants. The reality: when the customer asks for something, he doesnt always ask for what would be the best solution. His request comes out of a void. Something is missing for him. A request is a cry for help. If we gave the customer exactly what he asked for (obedience), we might not be doing him a favour. Lets look at an example of this. A friend of mine wanted a digital camera. Not being a photography bug, she asked for the same model that I have. Mine was a year old, which in the land of technology was eons ago. The retail salesperson, an obedient provider, brought out the camera and rang it up. Did he do his job? Well, it depends what we mean by doing your job. He got a sale. He operated from the premises (which were challenging) that the customer was right and she knew what she wanted, so he gave her what she asked for. Its hard to be faulted for that unless we set a context for what sales is. Lets modify the role of a salesperson from one of obedience to one of helping customers be more successful. Lets switch the focus of the job to one where salespeople are allies and consultants rather than order-takers. In this framework, a skilled salesperson upon hearing Ms. Customers request for X brand/model would clarify with questions such as: What is most important to you in a camera? Help me understand the circumstances in which youre most likely going to use the

HP Increases Focus on Consumer Marketplace
Announcing a dazzling new array of quality digital photography solutions
While these products meet a variety of needs, they share a common set of principles: they were developed to put the consumer squarely at the center of the digital experience, they are based on groundbreaking technology and they were created with the idea that products must be easy-to-use, useful, and well-priced. It takes a lot of time, money and complex thinking to simplify technology. HP has invested over $2 billion (US) in revolutionizing the consumer digital marketplace, making simplicity-of-use its key market differentiator for end-to-end digital imaging offerings. Lets take a look at some of the truly innovative, breakthrough product groups that will be on retailers shelves well in advance of the Holiday buying season. Digital Cameras - Satisfying Beginners and Expert Shutterbugs Alike HP is rounding out its award-winning line-up of digital cameras to compliment every level of consumer confidence and ability. A centerpiece is the introduction of Adaptive Lighting, an astonishing industry first that automatically reproduces what the human eye sees through the viewfinder, regardless of light conditions. This feature is central to the Photosmart 945 digital camera. Scanners- Capturing Everything Easily New this year are the see-thru Scanjet 4600 and 4670 scanners, both vertical and flatbed, for digitizing everything from slides and negatives to hard-to-copy documents like maps and book pages. Photo Printers - The Latest Hard Copy Technology Long the industry standard for quality printers, HP has extended its line to include the widest range and very best photo printers available. In yet another case of technology leadership, the Photosmart 7960 is the first printer to offer 8-ink colour printing ensuring that colour and black and white shots are of the absolute highest standard. Supplies - Finishing the Job We engineer all of our digital photography products cameras, scanners, PCs, software, printer, inks and papers to work better together to help consumers do more with their photos, more easily. HP has worked hard to ensure that the final output from its digital cameras are printed using superior supplies, because the proof is in the print. HP now has the industrys lowest cost photo paper for everyday and high volume printing and the company has also added to its Premium Plus Photo Paper line with thicker, glossier, heavier paper that will hold a studio-quality look for generations. Expanding the Digital Experience We could and probably will go on, because were excited at the companys commitment to outstanding digital product development, by the promise of more in the pipeline and by the lucrative opportunities now available to retailers as we make the consumer the center of our digital imaging universe.

Lori Abbott

Category Business Manager HP Canada
On August 11th, via a worldwide web cast, the company announced more than 100 new digital photography and entertainment products designed to raise the bar of what consumers want, expect and deserve for their foray into digital imaging.
The HP Photosmart 7960 printer combined with the new HP 59 gray photo inkjet cartridge is the world's first eight-ink consumer photo printer that delivers professional-quality photo printing for stunning colour and black & white prints.
The HP Scanjet 4670 see-through vertical scanner features a first-tomarket ultra-thin design.
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ADVERTISING

The Truth, the Whole Truth, or Consequences!
Retailing was rocked recently or at least it should have been - with the news that one of its more prominent fashion purveyors had been socked with a $1 million fine for some of its advertising practices. It seems they offered a sale price on some items, quoting normal prices that the items had never actually sold for. Hmm, so? Well, aside from the million dollars, which even to a large chain is not something to sneeze at, they have yet to fully appreciate the longer term impact that both the bad publicity, and the underlying message the story left with their current, and future, customers. It could take several years, yep, years, to assess that damage. Weve discussed a bit about ethics in past columns, but it may be time to take a bigger look. It may seem elemental, but telling the truth in all of your marketing programs, including what your sales staff says to customers is absolutely vital. No pushing the envelope. No embellishment. No forgetting details that impact either way on a customers purchase decision. And DO NOT EVER make false statements in your ads. It will cost you. And it will cost much more than money. Increasingly, and I happen to believe happily, we are faced with potential customers who are better educated about the products and services we offer, and overtly aware of the techniques that we use to gain their attention. By gaining that attention, we also solicit their trust in securing that trust, we become bound to honour it. Abuse the trust, you will blow away a potential customer for many years remember that forgiveness of an abused trust does not come easily to anyone not to you when youve been abused and not for you should you (foolishly) abuse someone elses trust.

problem was that during the very first over the counter sale the salesman noticed the reduction in price and gave it to the customer. From what Ive been able to gather the customer didnt even ask for the reduction. Herein lies the problem; just because you can sell a piece for 20% less should you? The answer is NO, NOT EVER. To keep your margins up properly trained sales staff are irreplaceable. Unfortunately many of the eager folks on the sales floor are order takers not sales professionals. Price is usually the first thing to go when faced with an uncooperative customer. Instead of selling the customer a product they buy the sale. With proper training and a separation between custom and retail we will be able to maintain margin on specialty items. We have since had a sales meeting to ensure that the separation was in place and maintained. Bottom line on the bottom line is: dont give stuff away. Especially if you know that the customer cant or isnt about to go arround
volume controls at 50 points. They are sold from the estimates and arent subject to much price shopping as they tend to be under $100.00. Recently we set up a distribution agreement for large purchases of basic impedance matching VCs. A 20% drop in price. Our intention was to continue selling them at the regular price and boost our bottom line with the increased margin, and to see better commissions for the sales staff. The
looking for a better price. Custom is just that. Each system is custom tailored and installed to the customers needs. Dont go and pull a stupid retail move by giving away the farm and subsequently crying about the lack of profit. As retailers we have found a new, fast growing, lucrative revenue stream and a way to stay out of the silly pool with the big boxers. Keep your margin and enjoy some old fashioned profits.

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to service remote locations. In the past, the cost of equipment has slowed down the rate of deployment of such technology. Sometimes all that is required in these remote locations is medical assistance from a doctor. The trained medical personnel in-place will be able to benefit from such technology and have a doctors assistance at any time since the price and reliability of satellite videoconferencing has been coming down steadily. A portable videophone costs less than $12,000 and is highly reliable in most indoor and outdoor conditions. An immediate application will likely be seen in future cars. When using your "OnStar" like system in case of an emergency or for information, not only a voice but the video feed of the operator at the other end can be available for instant videoconference This would raise the bar one notch and increase the quality of the customer/service representative interaction. The next generation of satellite phones will include features similar to those of wireless phones, like integrated cameras offering still picture or streaming video transfer possibilities. For carriers, this means more broadband usage and therefore more revenues. There is no question that the future and profitability of carriers will result in their ability to bring to market, supply and invoice such services. On the other end, retailers should benefit from selling these data transmitting devices by enjoying better margins on the hardware and most definitively by complementing customer selection with appropriate accessories, like an add-on camera, memory card, multimedia complementary software, protective gear and many other enhancements to facilitate the use of the mobile device. Videophone technology is now making news as well as covering it. The word videophone is now part of our vocabulary, and that is a tremendous kickstart for any emerging technology. Next step, they will be entering our homes, and our everyday lives.
The Evolution of Evolution
After 30 years in the biz, Evolution continues to provide the upscale home theatre and custom home entertainment industry with profitable alternatives to the run-of-the-mill. Our higher performance, category-leading brands have been selected to offer added performance to the enthusiast, and added opportunity to our dealers. Our goal is to facilitate your business with Canadian service and warehousing, strong training programs, one-stop supplier convenience, applications expertise, and capable rep support.
Three-time Emmy Award winner Faroudja Laboratories is the renowned supplier of the worlds best digital video processors, plasma display, DLP and DILA projection packages, and of course the new Digital Cinema Source, a brilliant integration of digital video processor and DVD drive.
Loewe (pronounced Loo-Va), is Europes largest manufacturer of TVs, yet only recently introduced to this continent. With its 80-year foundation of innovation, Loewe has evolved to become the worlds technological leader in digital TV combined with stunning industrial design. Loewes new Systems are the perfect integration of technology and lifestyle.

talk about? the price is cheap and everything you need is in the box. Sold as an add-onsure, and just as quickly as possible. As for re-establishing audio as a profit category again. Well, for starters, there must be a will to do so. It amazes me that the consumer will spend thousands of dollars to buy that new big screen and then be told that this $500 HTB is all he needs to go with it. Although, Ive seen a number of dealers who may be close to the solution they dont display, or demonstrate their big screen without an accompanying step-up audio package displayed and demonstrated with it. I have one other observation. Almost without exception, every retailer has every TV in his store turned on during business hours; yet the audio department is dead quiet. It just doesnt make sense to me. HTB is easy; putting together a good quality component surround system is quite a bit more difficult and time consuming. The good news is that the retailer who invests the time will be paid for the time and effort he put into the component system. I guess we just need to keep reminding and encouraging.
C.E.BIZ: What do you see with DVD Audio, SACD, and the other higher-end technologies? JIM: I think the potential for these and any other new audio technology is great as long as the consumer is enthusiastically shown them. Products with these advanced playback capabilities are hardly ever given special merchandising attention on retail floors. The DVD player with these features takes its place in line on the shelf with the $79 player. But if we could showcase these products better, and tell the story better, Im convinced we could improve the sales and profit potential, and restore some sensibility to the category. C.E.BIZ: Custom install is becoming much more important now, with some leading retailers adding staff to support consumer demand. How do you see this category evolving? JIM: While it appears we are lagging behind the US for custom, we know that there
is tremendous upside. There are companies that do nothing else but custom home installation, and some top-notch retailers that are adding this service. My hat is off to these visionaries who know that there are consumers who want something better. They are not shy or ashamed to get paid handsomely for what they do, what they know, and the service they provide. Bravo!

C.E.BIZ: With the consolidation of the National chains, the growth of regional/franchise chains, and the decline in numbers of pure independents, what do you see on the horizon, both for retailers and suppliers? JIM: Its been interesting to watch. The prominence of the National chains and growth of the regional may simply represent the maturing of our business. The franchise chains expansion seems to be where the pure independent has gone and is going. In some ways its hard to blame them. They are assured that there is strength in numbers, and they may gain access to product lines that they might not be able to get on their own. They do however relinquish their independence to people they dont know, who dont possess true knowledge of their individual markets, and have to live with decisions made for them in marketing offices located at the other end of the country. Looking forward, if the process of assimilating all of the independents is completed, they may end up as a pseudo national chain, with the characteristics that they originally tried to avoid. I can tell you that good quality, astute independents have as much negotiating power on their own as they think they could gain as a member of a chain. C.E.BIZ: There are a number of issues to consider when bringing in new products to market. Product feature/position/target price, manufacturing timelines, cost of inventory, value of the dollar, and of course competition for shelf space. Kenwoods solid relationship with your dealers is also a factor. How much input do they have in the model decision process, and how do you weight that? JIM: For sure, we carefully consider market trends by category and we do have to be responsible regarding our inventory levels. We have tried segregating product lines based on distribution channels, introducing a brand within a brand, and even recently valueadded our products with longer warranties to demonstrate to the retailer that it is possible to get a little more for the product, if you focus on selling value instead of price. We see no
evidence that supports the need to constantly increase features and decrease price. Canadians are affluent. Unfortunately, in the end it seems that todays market cares less for quality, value, performance and dependability than for price. Still, the value proposition of CE products for consumers is outstanding, and we must collectively promote that fact.
C.E.BIZ: Over the years weve seen a transition on the supplier side, from distributors such as Trio-Kenwood, S.H. Parker, and Gendis to fully owned subsidiaries (Kenwood Canada, Pioneer Canada, Sony of Canada). With some of the disappointing financial results from the parent companies, will we see a shift back to a distributor model? JIM: You cant rule anything out, but one of the key motivators in transitioning away from the distributor model was the desire to control ones own brand. But the markets are changing. These days we see a shift to globalization, with the European market, the Asian market and the North American market, rather than a country-by-country approach. Its more likely that wed see that kind of evolution instead of reversion. When you think about it, weve seen manufacturing moved offshore in an attempt to get product costs down. Then, further offshore for the same reason. Now many products that appear in the market as different brands are coming out of the same factories in China and elsewhere. I dont think the product can be made at any lower price than it is now. We have seen industry wide cutbacks in engineering departments to try to reduce over-head. This leads to technological retardation. We have seen major restructuring in parent companies and here in Canada at the subsidiary level by many brands that even includes the reduction of sales forces. One has to wonder about the impact on product knowledge and training. We have seen parts and service departments farmed out to third parties and logistics as well. The jury is still out on whether the promised efficiencies of these actions will bear fruit. The drive to lower prices has ensured that we have removed all the fat from the supplier side operations, and still financial results are disappointing. A financially unhealthy supplier is not a good thing for the retailer. But you know, if retailers rationalize their decisions about brands and products only from the

perspective of brand x supplies my video, my camcorders, my audio, etc; kind of the one-stop-shopping concept, it isnt impossible to imagine video only brands partnering with audio only brands in some manner to maintain their dealer base. We have not entered into any discussions on the subject of joint ventures for sales and distribution, but its an interesting idea.
C.E.BIZ: Its our belief that there is a lack of pure salesmanship now as compared to the 80s and 90s in both retail and wholesale. Your thoughts? JIM: Sad to say, but generally I agree. Weve allowed price to become the main selling tool, almost the only tool. Its not surprising when you think about it that, over enough time selling price, product knowledge and selling skills start to slide. What is really sad is I see no evidence that the Canadian Consumer has no money. Think about that customer out there that is in the market for a new audio system. His kids are older, his house is paid off, he has worked hard and wants to treat himself. The last time he bought a system was 20 years ago and at that time it was his final act as a single man. He paid $2500 then. He walks into a retail store and is shown a $500 HTB and an attempt is made to convince him that this is what he needs and its his lucky day, its on sale. It may be hard for him to believe that he isnt stepping down. After all, he knows that every other consumable he has purchased in the last 20 years has increased in price. Maybe he decides that what he already has is good enough! I see a lack of qualifying as the prime culprit, followed by a decline in demonstration skills in both retail and wholesale. C.E.BIZ: In a nutshell, what do you see in the future for Canadian retailers, and why? JIM: When I think back over how Ive answered your questions I certainly sound preoccupied with profit the retailers and the suppliers. Id argue that year-by-year, the retail customer count is not increasing; in fact it is surely decreasing. If we all continue to put all of our effort into selling everyone of those fewer consumers goods at a lower and lower price, I see trouble on the horizon. However, if history teaches us anything, we should all learn to demonstrate the value in our products and services, and not be afraid to charge what theyre worth.

MARKET

Home Theatre Advertising By the Numbers
Retailers are responding to the consumer cocooning binge with an onslaught of ads for large screen televisions and home theatre systems. Home-theatre-in-a-box ad frequency was up 46.4% in Q1 of 2003 over the comparable period a year ago. HTIB system ads jumped another 63.8% in Q2. That kind of advertising acceleration suggests that HTIB will be a major battleground for retailers and manufacturers in Q4. Behind the increased ad volume is a growing number of category participants and declining average prices. Through June of 2003, 28 brands have been vying for consumer pocketbooks in the HTIB market compared to 20 brands in June 2002. During that time, some brands (Daewoo, Audiovox and Technics) have, for one reason or another, fallen by the wayside, which means that there were actually 11 new brands that leaped into the breach. The new brands in the HTIB space include Apex, Curtis, Electrohome, Emerson, Go Video, Koss, LG, Malata, Onkyo, Shinsonic and Vivid.

By Roger Lanctt, Beyen

accounted for 8.1% of ads in the first half of 03, down from a hefty 37.0% of ad volume in the first half of 02. The $500-$750 segment has been transformed in 12 months time from the solid mid-range of the category to a large portion of the high end. HTIB systems priced

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Among these new players the most aggressive performer has been Malata, grabbing 3.9% of the categorys total advertising activity. This brand is widely promoted through national chains such as Radio Shack and Future Shop. Newcomer Shinsonic, with 1.9% of retail advertising volume and a $249 average price, has thus far only been advertised at Future Shop. In the first half of 2003, the average advertised price of a home theatre system dropped 8.3% to $740, a relatively modest decline considering a broader overall shift to lower price points. The majority of increased advertising activity for the HTIB segment is coming from the $250-$500 range, which accounted for 40.2% of all retail ads in the first half of 03 compared to 14.8% for the same period in 2002. The price segment seeing the greatest decline in ad share is the $750$1,000 range, which
between $500 and $750 accounted for 35.1% of ad volume in the first half of 03, down slightly from 39.6% of first half 02 ads. The most widely advertised brands have remained largely unchanged and include Sony, Panasonic, JVC, Pioneer, Yamaha and Kenwood. Sony and Panasonic not only sit at the top of the segment, accounting for 18.4% and 14.2% of all category advertising respectively, their systems have higher overall average advertised prices. Sonys average advertised price in the first half of 03 was $902, up 4.2% from the same period in 2002; and Panasonics average advertised price was $844, up 11.5% from a year ago. The average advertised prices for the other leading brands are all between $600 and $800. Yamaha was the only one of the top brands to make significant gains in advertising activity, more than tripling its ad volume from the year-ago period to capture 7.0% of retail advertising in the category. Samsung was the only other major brand to show a significant increase in ad volume, jumping from 0.3% ad share in 02 to 3.3% in 03. These numbers clearly indicate that the HTIB category is a key ingredient not only to the makeup of CE advertising, but also to the mix of products being featured on retail shelves. The all important 4th quarter will be the ultimate test as to whether or not this trend in advertising will prove successful and profitable.

At the North American level, this market " may sound like a niche, but if a retailer is able to grab a portion of this business, it's a significant growth opportunity." The potential for online photo processing is evident. The Online printing market has attracted dozens of Canadian retail players including Blacks Photo, Loblaws, IGA, Uniprix, Future Shop, MotoPhoto, Japan Camera, Dumoulin, and Wal*Mart. These accounts also compete with mail-order accounts like OFoto and Shutterfly, all of whom allow consumers to upload digital photos, store them and order prints. A large portion of the Internet population already has some sort of image capture capability, and now they want practical and economical printing. More than 85% of Digital Camera Users email and print some of their photos. According to recent consumer surveys, 85 percent of digital camera owners use e-mail to share digital photos and 88 percent print their photos, whether at home, online or through retailers. U.S. consumers spent $3.76 billion on digital cameras between June 02 and May 03 compared with $2.99 billion between June 01 and May 02. ( NPD Techworld ) It was extremely convenient said Christine. I am not nerdy, I went to the stores web site, followed the instructions and my prints were delivered in-store a few days later. The quality is the same as my regular photos. - I hated it, said David, I went Online, followed the instructions, it took about 20 minutes for the images to upload, and then my prints were awful. If Online Printing is really going to become mainstream, the technology has to be integrated and simplified for the average consumer. Teen and techies will put up with some aggravation to get it to work, Moms will not. Online Digital printing looks simple but the factors making the experience a delight are numerous. First, all digital printing quality whether online or at home depends on the quality of the file captured and received. If the digital user selects a low quality file size to capture the image (at 150 dpi a 4 x 5.33 image requires
DIGITAL CAMERA USERS BEHAVIOUR
27% of consumers post digital images onto personal web sites 17% use digital images to create greeting cards or invitations 18% use digital images to sell products online. 88% of digital camera users print out photos* 1. 90% print them at home 2. 18% bring them to a retailer ** 3. 10% use an online printing service.
* The results above may not add up to 100 percent because respondents were permitted to provide multiple responses to one multiple-choice question. **Ninety-two percent of consumers who use a retailer to print their digital photos are most satisfied with their image quality. Over 80 percent of digital camera owners own a 35mm film camera