Output Trends 2013

Okay, so the news is certainly encouraging on the photo merchandise front looking out over the next few years. The overall market in the U.S. is estimated to grow from around 113 million units reported in 2012 to nearly 158 million units by 2017, so says David Haueter, Associate Director for InfoTrends' Photo Merchandise Trends Service.

Where InfoTrends sees the real growth is with regard to the personalization of these products, as Haueter explains, "It should be remembered that many of the products in this category have been around for many years and reside in a relatively mature market. Personalization is breathing new life into many of these products, resulting in growth rather than flat or declining volume."

All well and good for sure, but we thought we'd take a look at a few emerging trends and technologies, that while not directly related to the output market per se, also bode well for continued growth in this category.

Mobile Matters

Several of the major kiosk manufacturers have recently reported strong growth with regard to mobile usage on their kiosks. Over the past couple of years the mobile ordering process has become an important part of the kiosk experience for consumers as well.

Lucidiom, as one example, recently reported that consumers are embracing the mobile ordering method, with iPhone/mobile adoption growing last year on the Lucidiom platform from 1.5% to 7.5% of total orders - a 366% increase. Lucidiom's mobile app is available in English, French, Spanish and Japanese and allows users to synchronize photos between their device and their online storage, and place orders using photos from either location. Each app is customized by the specific retailer with logo, branding, description, products and pricing.

Kodak, while currently working out the details on the sale of its kiosk business (over 106,000 units) remain excited about how the mobile imaging consumer is beginning to take to the kiosk as an output solution. At this year's CES Kodak's Larry Trevarthen, VP of marketing and retail system solutions, explained that the company is looking to expand the kiosk's output capability beyond just photos to now include any content the consumer may want to create - i.e. self-published books, recipe books, even genealogy books. An integration, he explained, of the On Demand book business with the photo kiosk.

With the mobile device market (smartphones, tables, phablets, etc.) expected to see astounding growth over the next several years, the mobile part of the photo merchandise equation will only grow in significance.

Fujitsu Image Sharing Tech

(Fujitsu)

The sharing part of the digital imaging equation may be more directly related to the output part than you think. The easier it is to share favorite image files, the more likely they will be chosen to do something more with later on.

While transferring image files from device to device has been made much simpler through the use of the cloud and cloud-based services like Dropbox or Google Drive, consumers have still been slow to adopt to and even trust this technology.

Fujitsu has created a piece of software that can be installed on a computer that allows a digital camera (or smartphone) owner to simply point the device at the computer to transfer selected image files. Thus, the next time you have an image of the kids your parents love, simply select the image, point it at their PC and the image is theirs. The software works in reverse as well so image files can be transferred from the computer to a mobile device as well in the same manner.

Fujitsu is working out the details and no release date has been set but late 2013 is currently being tossed around as a possible debut.

3D Printing Going Mainstream

(3D Figurines)

For the uninitiated, 3D printing is, as the name suggests, the creation of three-dimensional objects with a "printer." Obviously, we're not talking a paper and ink printer. Instead, 3D printers use materials like plastics and resins to build, layer upon layer, 3D objects fed it to by computer modeling software.

After seeing several demos at the 2013 CES Show, it looks like this could be a bellwether year for 3D printing as it continues to migrate from industry to consumers. Staples added in-store 3D printing for the 2012 holidays and more retailers are likely to follow suit. Companies like MakerBot are selling desktop 3D printers for the home starting at below $1,000.

We've seen several services such as Sculpteo (www.sculconsujmer pteo.com) that are allowing consumers to upload their images to be turned into a variety of unique 3D printed items. The potential of 3D printing is, if its boosters are to be believed, nothing short of revolutionary and goes far beyond the photo merchandise market but suffice it to say the future for this tech has arrived and the creative possibilities are limitless.

Polaroid Presents the FotoBar

(Store Image)

To say lots has gone on with Polaroid the last several years would be like saying Lindsay Lohan has been a bit distracted of late. Let's see, the company took a left turn on the digital imaging revolution, went bankrupt, came back from that and then went bankrupt again.

Things appear to be looking up of late as the company has come to market with several interesting new photo products (chief among those is their new interchangeable lens Android camphone) and now the recent announcement of the partnership with the creators of the Fotobar. This planned chain of retail stores centers on allowing (and more importantly encouraging) customers can come in and turn their favorite mobile pics into all manner of photo merchandise items. The first Fotobar was set to open last month in Delray Beach, Florida, with the goal to open at least 10 additional locations throughout the U.S. before year's end.

The main idea here is to open people's eyes to all the incredible things they can do with their images after they've captured them, with particular focus on their mobile images - something the imaging industry kind of lost touch with many years ago.

The idea of getting people excited about doing things with their images, other than posting them to Facebook, is certainly nothing new - but a chain of retail locations where the focus is solely on this endeavor is worth paying close attention to as the locations roll out in 2013.

Facebook Print Option Coming?

(dhsocialmemories copy.png)

And lastly, we're seeing several companies jump into output partnerships with Facebook, the most recent being Belgium-based Deutsche Post DHL and their new service for Facebook users dubbed the "Social Memories" app. It gives users a unique way to keep track of their otherwise fleeting Facebook data: a customized book that compiles their social network data and visualizes it with photos and infographics. The book transforms users' social network information into a lasting memory. Social Memories was developed together with the agency Cosalux and is offered to Facebook users globally. The app can be found on www.facebook.com/socialmemories or www.socialmemories.de.

The rumor mill of late seems to center around Facebook offering their own print service to users that would potentially include photobooks, greeting/holiday cards and the like, with some industry pundits claiming such a service could be released by the end of this year. Certainly worth keeping an eye on as the race for consumer's photo merchandise dollars appears to be ramping up.

(YOU CAN MAYBE TINT BOX THIS)

Photo Merch FACTOIDS:

• By 2015, more than 80% of total net-to-mail revenue growth in photofinishing will come from custom photo gifts and merchandise.
• New product categories will emerge in the photo merchandise market with various home décor items chief among those.

- InfoTrends