Redwoods versus Banyans: CE Companies Thrive in the Digital Imaging Ecosystem

Two types of giants dominate the digital imaging ecosystem. Nikon, Canon and Fujifilm are like towering redwoods, growing straight toward the sky from deep roots in imaging and optics. Sony, Samsung and Panasonic are more like spreading banyan trees, complex growths with vast root systems that draw nutrients from all over the map, that are constantly branching out in unexpected directions.

As digital imaging enters a new era of connectivity, ubiquity and market saturation, the banyan trees may well enjoy evolutionary advantages over the stately redwoods.

“The camera industry is still growing outside the U.S. and Western Europe,” says Ed Lee, Consumer Imaging director at InfoTrends, “but in North America, we’ve reached saturation. It’s a replacement scenario now. And it’s hard to get people to go out and replace that old camera because new models are more evolutionary than revolutionary. The Canons and Nikons are perceived as technology leaders, but Sony is actually more innovative in coming out with different feature sets. The same for Panasonic and Samsung; they’re out there trying different things.”

A Generational Change Is Coming
Lee believes connectivity is the industry’s future. “Our message to camera makers is they’ve got to get their products connected or they’ll lose the overall battle to smartphones and cameraphones. In our 2011 survey, 36% said they use their cameraphone more often than their traditional camera. That’s a 300% increase since 2008, and it’s even higher among younger consumers 18–29. A generational change is coming through the pipeline.”

Part of that change is a shift in how younger consumers define a good image. “We’ve talked about image quality, preservation and management,” says Lee. “But today’s consumer is really most interested in retrieval: ‘I just want my photo when I want it, whatever device I’m using and wherever I happen to be.’ They’ll settle for good enough quality if it comes with lots of convenience, including sharing. With smartphones or connected devices, they can instantly send pictures or videos to friends and family, making them part of the moment. They don’t care what happens in the background. The challenge is putting together the right ecosystem for that connected experience.”

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