III. Industry Analysis
[Company Name]directly or indirectly competes with all photography services in a 15 mile radius. Competition will come from professional photographers and studios, as well as amateur photographers. Direct competition will come from upscale portrait photographersthat offer high-quality portrait and still shots similar to [Company Name].
Industry Statistics & Trends
According to IBISWorld, the American photography industry had revenues of $10 billion last year spread over 92,000 businesses. This averages to $109,000 in revenue per business per year. The industry employed 167,000 people, earning $4 billion in wages, roughly $24,000 per person. Many of these workers are part-time, contributing to this low wage.
A more focused report from the U.S. Census Bureau, looking just at the United States portrait photography industry, finds that there are approximately 13,000 retail portrait studios (including still, video, and digital portrait photography) employing 65,000 workers and bringing in $4 billion in sales. This represents approximately 40% of the overall photography industry.
IBISWorld goes on to write that:
This industry has been adapting to the revolution of digital imaging, which has dramatically changed the way in which this industry operates. A mature industry, growth looks set to continue, as digital imaging will continue to shape the industry to the benefit of the average consumer.
The major segments of the industry include wedding photography, portrait photography, commercial photography, and merchandise sales (prints, albums, etc.)
Important trends and facts about the industry include:
- Demand for portrait photography is related to population growth and economic trends. Larger families and higher incomes lead to greater demand.
- Photographers who wish to achieve success in the substantial wedding market increasingly focus their services entirely on weddings to build a reputation in this area. Those who include weddings as only part of their services find it more difficult to compete against wedding-only photographers.
- Although most photographers prefer to engage in a variety of types of photography, customers and businesses increasingly seek out specialization and look for photographers who have shown repeated success in the specific type of photography they desire.