Swiss photographic trade must reinvent itself once again
In the age of cell phone selfies and Internet sales, the photo trade is once again having to reinvent itself. The industry, which by its own admission does not have a sales problem, but a major margin problem, has suffered badly in recent years.
Technological and social changes have been taking a heavy toll on the Swiss photographic trade for years. In the last 15 years, a number of independent photo stores have had to close. According to an industry insider, only about a third of the stores that still existed at the beginning of the millennium still exist today. Gian Giordano, head of FotoPro Ganz in Zurich, speaks of a real "specialist store death" in recent years. The membership figures of the ImagingSwiss industry association confirm the large bloodletting among independent businesses. According to ImagingSwiss President Alex Mächler, the number of members has halved in the past ten years. However, the loss of members has become even more pronounced in the last five years. Currently, 140 companies still belong to the association. The association does not communicate turnover figures.
Duel of the greats
Competition from the Internet is now threatening the very existence of the entire retail sector. With an online share of around 50 percent, the photo market is one of the most online-savvy product groups in home electronics. It is therefore not unproblematic that the photo industry is still heavily dependent on hardware. Contrary to expectations, however, the competition from ever better image quality from smartphones is not displacing traditional cameras on a large scale among hobbyists. Sales of cameras, lenses, tripods and other accessories are good, but cost recovery is poor, according to a consensus among several specialty stores.
A Zurich-based photo retailer, who does not wish to be named, describes the two major distributors Migros and Coop as the "biggest problem facing the Swiss photo trade". These "duel" with their subsidiaries Digitec (Migros) and Microspot (Coop) on the Internet by selling "equipment below the purchase price". In view of these prices, the photo trade could not survive. In the last five years, its profits have more than halved as a result, the retailer complains.
Markus Säuberli, managing director of the Bernese company Foto Video Zumstein, confirms the "Zurich diagnosis" when he states: "We are in a very difficult situation at the moment, as an extremely large amount of goods from parallel imports are flowing into the country. Migros and Coop are greedy and often sell below cost price." Säuberli also complains that consumer organizations and the Competition Commission are demanding that retailers charge prices like those in the EU and wages like those in Switzerland. FotoPro Ganz also says: "Microspot and Digitec press on the price, but offer no services." However, a specialist retailer simply cannot afford to sell at any price, as the wholesalers do. Specialty retailers try to make up for the surcharge with more advice and additional warranty services, and to keep the price differences to Internet retailers at around 10 percent.
Confronted with the accusations of the photo retailers, Digitec Galaxus and Microspot are at a loss for words. No profit and sales figures for the photo business are disclosed. Market share is also a closely guarded secret. According to Digitec Galaxus, it has been able to further increase its market share in the rapidly declining overall photo market in recent years. Microspot describes itself as one of the most important suppliers. Digitec Galaxus says it works "directly with official importers whenever possible." Parallel imports are only examined if the goods are otherwise unavailable or "competitive pricing" is no longer possible.
Search for ways out
The specialty stores are reacting differently to the dwindling profits and have been relying less and less exclusively on the classic photo business for years. Some retailers have given up their lab business altogether and are diversifying more or less successfully with rentals, second-hand equipment, repairs, accessories, but also courses and photo trips. The FotoPro network wants to come up trumps with more market power. In order to achieve better purchase prices and a stronger market presence, eleven specialist stores have joined forces here since 1996. The stores continue to operate under their own names. (Alexa Clemenz / SDA)
