Abstract

China, where the digital camera market developed relatively late, has been achieving relatively high growth despite the global financial situation. It is anticipated that the market will still reach double-digit growth amid the global economic slowdown in 2009. 

After China's government cancelled customs duty on digital cameras, international digital camera brands have been aggressively making forays into the Chinese market. Product lines cover mid-range and high-end models, expanding further to low-price, entry-level models, in order to lure new users in China's third- and fourth-tier cities.

In anticipation of the post-Olympic effect and growth potential of digital cameras in the Chinese market, Chinese black market makers have shifted their focus to manufacturing black market digital cameras, with relatively low manufacturing costs. However, manufacturing digital cameras differs from mobile phones in terms of production processes, quality requirements, user behavior, and distribution channels. As a result, Chinese makers are expected to encounter difficulties when trying to duplicate the experience of black market mobile phones in the digital camera segment.

Black market camera phones are not only pressured by international and Chinese brand-name products, but also face the threat of substitute products such as camera phones. As a result, black market camera phone makers have begun to target new market segments, including the DSLR and ultra low-price segments.

Due to the fact that Chinese consumers tend to have relatively high brand loyalty when buying DSLR models and the higher technological barriers for digital camera makers, black market companies have little opportunity for growth in this segment. New opportunities may lie in the low-price, single-use cameras preloaded with film. Whether or not there is still market demand for single-use cameras in the era of digital cameras remains to be seen. If market demand for single-use cameras still exists, there is still an opportunity for black market digital cameras. One worry for companies preparing to sell black market digital camera is that demand for single-use cameras may have been fulfilled by camera phones already.

Appendix

Research Scope

This report analyzes the black digital camera market in China, mainly counterfeit models, which are often made to resemble brand-name products in terms of industrial design or functions with relatively low manufacturing costs and prices. Also Includes the overall environment for this particular market and outlook for companies operating in this market.

Glossary of Terms

List of Companies