With digital cameras cheaper and better, many people are on their second, A&B Sound says
Marke Andrews
Sun
CREDIT: Mark van Manen, Vancouver Sun Scott Chalmers (left) gets advice from Laura Barzelai on the digital cameras sold at A&B Sound.
Digital cameras and DVD players were the hottest sales items in 2003, although one of those commodities has hit a plateau in the past year.
“DVD players have flattened out in 2004, but digital cameras continue to grow,” said Lane Orr, vice-president of merchandising for A&B Sound.
“I haven’t seen any recent numbers, but some market surveys show 11/2 DVD players per household, so it’s reached epic proportions,” Orr said. “I would say 2004 would be in the status-quo category.”
Michael Nedelec, vice-president of advertising for Best Buy Canada Ltd., which owns Future Shop, said the DVD-player market has divided, with some areas doing better than others.
“There has been a shift in 2004,” said Nedelec. “People are starting to buy DVD recorders and PVRs [personal video recorders]. The other area that’s really hot is the portable DVD player, which parents can put in the back seat of their SUV or car.”
Statistics Canada released its survey of household spending for 2003 on Monday, which showed that 51.5 per cent of Canadian households have at least one DVD player, up from 36 per cent in 2002.
British Columbia had the fourth highest DVD ownership of any province or territory, with 55.4 per cent of households having one. First was the Northwest Territories, with 69.4 per cent. Nunavut was last, at 43.6 per cent.
Cameras showed an even larger increase, growing 22 per cent in one year. The reporting households spent an average of $340 on cameras, with national spending at $880 million. This is 60 per cent higher than in 2001, and almost double the figure for 2000.
Although Statistics Canada did not break down sales in terms of digital and conventional cameras, film sales and film processing fell 12 per cent in 2003, meaning that fewer people are using conventional cameras.
“With digital cameras, there’s been a whole lot of technology changes. You’ve got pixel count way up, prices dropping, better zoom capacities and people are on to their second cameras,” said Orr of A&B Sound. “The digital camera area is an explosive [sales] category.”
Mike Hinkins, manager of Lens & Shutter’s West Broadway store, said that not only have digital camera and memory card sales continued to grow in 2004, he expects a spinoff industry in 2005.
“Traditionally, digital cameras were compact, all-in-one cameras, but now there are far more SLR [digital] cameras available, with interchangeable lenses,” said Hinkins.
“That area has grown dramatically, and that will bring back the standard camera accessory market — things like lenses and filters and flashes,” said Hinkins, whose store sells 70 different kinds of digital cameras. “That will be a big growth market for us next year.”
More than 54 per cent of survey recipients reported at least one cell phone in their household, up just two per cent from 2002.
The survey, conducted from January to March of this year and based on information supplied by more than 24,000 private households, showed that household spending on transportation averaged $8,350, down one per cent from 2002. This includes an eight per cent decline in purchases of new and used cars and trucks and, despite rising fuel costs, little change in gasoline spending.
Retail analyst Blake Hudema was not surprised by the transportation figures.
“We had a little hangover in 2003 from the previous three years, when there was a huge number of vehicles being sold,” said Blake Hudema, president of Hudema Consulting Group Ltd. “In the past 18 months, we’ve sort of taken a breather. Most of us got our new cars in 2000-2002.”
Hudema expects vehicle sales will increase in 2005, along with other consumer goods.
“Housing expenditures in 2005 will probably not be as great an increase as we saw in 2004 over 2003,” said Hudema, saying that low mortgage interest rates have attracted renters to buy housing.
“We’ll probably see more disposable income in people’s hands not going to housing and being available for other things.”
Hudema expects the extra cash consumers have will be spent on electronics, recreation goods and apparel.
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BIG-TICKET ITEMS:
British Columbians spent more on shelter last year than on any other category. Here’s where the major money went for an average B.C. household:
Food: $6,780
Shelter: $12,310
Clothing: $2,260
Transportation: $8,250
Personal taxes: $10,490
Total: $60,090
HERE’S WHERE AVERAGE CANADIAN HOUSEHOLDS SPEND THEIR CASH:
Personal taxes: $12,370
Shelter: $11,580
Transportation: $8,350
Food: $6,790
Recreation: $3,590
Insurance/pensions: $3,510
Household operation: $2,870
Clothing: $2,440
Household furnishings, equipment: $1,750
Health care: $1,590
Gifts of money, contributions: $1,520
Tobacco, alcohol: $1,490
Education: $1,010
Misc: $900
Personal care: $830
Reading materials: $280
Games of chance (net): $270
© The Vancouver Sun 2004