Interesting news from Fujifilm

Henning Serger · Aug 6, 2015

Hello friends,

just short, but interesting news from Fujifilm:

http://photoscala.de/Artikel/Neue-Q...ient-viel-Geld-mit-analogen-Sofortbildkameras

Short summary in English:
The photographic part of Fujifilm, "Imaging Solutions", has published the economic data of the last quarter.
- Sales of digital compact cameras are significantly decreasing.
- Turnover of optical devices for smartphones are decreasing.
- Sales of X-Series cameras are robust.
- Sales and income from Instax instant cameras and film remain in a very strong boom: Fujifilm is selling more Instax instant cameras than digital cameras. They are expecting sales of 5 million (!) Instax cameras in 2015 (3,87 million last year).
- Increasing sales of photobooks.

The positive turnover of the "Imaging Solutions" has been mainly due to the very strong and continuing boom of the Instax system.

Probably even more interesting: The mid-term strategy of the Imaging Solutions (text in English):
http://www.fujifilmholdings.com/en/pdf/investors/other/ff_presentation_20150520_001.pdf

There will be further investments in silver-halide technology, with a focus on Instax and colour photo paper.

If the Fujifilm people were clever (sadly currently they are not) they would use their success with Instax to promote also their standard photo film portfolio:
Their Instax marketing is very good and very successful.
They have contact to millions of Instax film shooters.
From a marketing perspective that is a dream situation, a "goldilocks" scenario, which could be easily used (with very low costs) to significantly improve the sales situation of their standard film portfolio, too.
Fujifilm, wake up!

Best regards,
Henning

darkosaric · Aug 6, 2015

And still no Instax B&W film ...

Sirius Glass · Aug 6, 2015

Thank you for posting the information.

cmacd123 · Aug 6, 2015

Henning Serger said:
If the Fujifilm people were clever (sadly currently they are not) they would use their success with Instax to promote also their standard photo film portfolio:
Their Instax marketing is very good and very successful.
They have contact to millions of Instax film shooters.
From a marketing perspective that is a dream situation, a "goldilocks" scenario, which could be easily used (with very low costs) to significantly improve the sales situation of their standard film portfolio, too.

If you read their presentation, they are leveraging the "young women" demographic, with a distinct emphasis on "fashion" with things like "Hello Kitty" and or PINK camera bodies. They are positioning the Instax as a non-technical easy to use item, much like George Eastman with you push the button but here the Camera itself does the rest. The last thing they want with that approach is any notion that their is actually "Film" inside or especially GASP "Chemicals".

The initial target market was users too young to remember the Polaroid SX-70. !!!

The rest of the business that they figue it is worth emphasis on is getting folks to make prints, and they DO see the need to have infrastructure on the ground so that folks will have easy access to a a way to get their photos printed.

APUG users will note the concept of using a computer program to select "good" smartphone Pictures and AUTOMATICALLY make them into photo books. Presumably by using facial recognoition to select LOTS of shot of your kids. No human judgement needed.

From the presentation, I expect that they have already given up on conventional film. The graph on slide 13 shows film getting ever smaller. Slide 7 shows very little flattening of the demand curve. Note that the plans for expansion are totally in the printing (photofinishing) business (Hello Alaris) and with the Instax Cameras. NOTHING is said about even Potential for Film. The only good news for us seems to be that they see Silver Halide prints as being of potentially higher quality to be labeled as "premium" (slide 19)

RattyMouse · Aug 7, 2015

I agree....Fujifilm has given up on regular still film. It's only a matter of time until the next shoe drops and we lose another few emulsions.

RattyMouse · Aug 7, 2015

Henning Serger said:
Hello friends,

just short, but interesting news from Fujifilm:

http://photoscala.de/Artikel/Neue-Q...ient-viel-Geld-mit-analogen-Sofortbildkameras

Short summary in English:
The photographic part of Fujifilm, "Imaging Solutions", has published the economic data of the last quarter.
- Sales of digital compact cameras are significantly decreasing.
- Turnover of optical devices for smartphones are decreasing.
- Sales of X-Series cameras are robust.
- Sales and income from Instax instant cameras and film remain in a very strong boom: Fujifilm is selling more Instax instant cameras than digital cameras. They are expecting sales of 5 million (!) Instax cameras in 2015 (3,87 million last year).
- Increasing sales of photobooks.

The positive turnover of the "Imaging Solutions" has been mainly due to the very strong and continuing boom of the Instax system.

Probably even more interesting: The mid-term strategy of the Imaging Solutions (text in English):
http://www.fujifilmholdings.com/en/pdf/investors/other/ff_presentation_20150520_001.pdf

That's a very detailed presentation. I can't find it over at Fujifilm Holdings web site. Do you know if there is a similar report that deals with their digital cameras? I'd like to see their future plans on that end. Normally their quarterly reports contain a slide for each division. This is much more information.

dreamingartemis · Aug 7, 2015

darkosaric said:
And still no Instax B&W film ...

still no b&w instax.......sigh........

Henning Serger · Aug 7, 2015

Hello,

cmacd123 said:
If you read their presentation, they are leveraging the "young women" demographic, with a distinct emphasis on "fashion" with things like "Hello Kitty" and or PINK camera bodies.

If you read the full text you will see that they are now going far beyond that. The focus on young women was the success factor of the first years. Now they are expanding the market also to families and adults. I've seen their presentations and Instax booths on the last Photokina fairs in 2012 and 2014. They adressed a broad range of photographers there.

cmacd123 said:
From the presentation, I expect that they have already given up on conventional film.

That would be very counterproductive, because
- Instant film has a color negative film base, which is produced on the same machines as conventional film: They need the standard film production to keep the line running at sustainable capacity. It is very very unlikely that they could run their big film plant with Instax film production only.
- Their standard film production is dozen of millions units. And concerning to the Fujifilm CEO it is profitable. Why giving up a three digit million dollar business with high synergy effects? And why doing it now, when we are seeing stabilisation effects in some areas of conventional film demand.

cmacd123 said:
The graph on slide 13 shows film getting ever smaller. Slide 7 shows very little flattening of the demand curve.

Slide 7 is outdated, five years old. We currently see indeed flattening of the demand curve and more stabilisation in some parts of the market. Especially with professional color and BW film. Kodak, Ilford, Foma, Adox, Maco have all reported that. The demand situation has improved in the last 6-12 months.
Therefore it is important now, for all manufacturers, distributors, labs etc. to start or to strengthen / increase their marketing efforts for conventional film.
I've said it several times here, and I repeat it: If a turnaround is possible with instant film, it is also possible with conventional film.
Probably the conventional film turnaround will not be as strong (in %) as the instant film turnaround (with a 40x increase since 2004), but so what? Do we need 30x or 40x higher sales? No. Any increase is welcome, and a 1,5x - 2x increase in the next 10 years would be sufficient for a sustainable film market in the future.

Best regards,
Henning

darkosaric · Aug 7, 2015

Henning Serger said:
- Instant film has a color negative film base, which is produced on the same machines as conventional film

So they can produce Instax B&W is they want it: they just need something like B&W C41 film, like XP2 from Ilford.

Roger Cole · Aug 7, 2015

I'm sure they could produce B&W Instax but I doubt there is much, maybe ANY, interest in that among their target market.

I want Fuji to keep making color film. While Acros is a fine film, I have plenty of choices in B&W other than Fuji and Kodak. Not so in color.

Rudeofus · Aug 7, 2015

When the decline of traditional analog photographic products is discussed, I frequently get the impression that film sales dropped from gazillions per year to a few rolls per year, and the Fuji slides seem to contradict this notion. While I agree that a 95% drop in sales is quite unpleasant for any vendor, the remaining 5% are still a sizable market, especially in light of the fact that little to no new product development needs to be paid for.

I would wonder how current film sales split into "too old to switch to digital amateur" and "pro, semipro, serious amateur" film sales, and how stable/unstable both segments are.

Roger Cole · Aug 7, 2015

I'm certainly not too old to switch. I just don't WANT to, for several reasons, none of which really have anything to do with the relative results. But you're right, that would be interesting to know.

Xmas · Aug 7, 2015

Neither Fuji nor Kodak seem to have any commitment to conventional film.

Eg marketing in mono

Fuji Acros

Kodak Tx, TMAX 100, 400 & 5222

Increasing retail $ on a discretionary will reduce volume I'd expect Kodak and Fuji volume to drop on that alone.

Running a coating line needs staff ie $/month that is what stops a line.
When Kodak shut down the film line at UK Harrow, London they had to let 400 employees go.

My uncle 85 switched from film to digital 2009...

I only am aware of three pros still using digital

Bruce Guilden
Jack Good https://en.m.wikipedia.org/wiki/Jack_Good_(producer) &
A Bollywood director (only got photos off)

Only one chum is exclusively film...

There are start ups and as well our arts uni's PDF's for undergrad entry insist on provision of a system film camera such that shop prices for cameras like K1000 and OM1 increase sept & oct then drop back.

Henning Serger · Aug 7, 2015

Hello Rudi,

Rudeofus said:
While I agree that a 95% drop in sales is quite unpleasant for any vendor, the remaining 5% are still a sizable market, especially in light of the fact that little to no new product development needs to be paid for.

+1.
And not to forget:
1. Lots of former competitors have left the market.
2. The market really has the potential to grow again in the coming years. We already see that in some market segments. But now this small beginning trend needs much more support by marketing from all market participants: Manufacturers, distributors, labs, and us photographers.

Rudeofus said:
I would wonder how current film sales split into "too old to switch to digital amateur" and "pro, semipro, serious amateur" film sales, and how stable/unstable both segments are.

Well, the main transition from film to digital is finished: Those who wanted to give up film completely, going fully digital, have done it.
Those who want doing both in parallel have made their decision, too.
Those older photographers (e.g. family snap shooters), who don't want to switch to digital, are passing away over the years. This situation is still hurting especially the demand for colour negative amateur film, which is currently still in decline.
Then there is a quite robust segment of enthusiast amateurs, semi- (and some full) professionals middle-aged and younger with a big love for film.
And we see an increasing interest and demand from (very) young photographers, often the so called "digital natives", for film.
This group is very "relaxed" and open minded: Film is new and "refreshing" for them. They were not involved in the "film vs. digital" war of the past.
Facebook is often a driving force here. And clever film companies are using / should use that for their marketing.
For Fujifilm a very big chance because they already have the marketing infrastructure with their Instax marketing.

Best regards,
Henning

Henning Serger · Aug 7, 2015

Xmas said:
I only am aware of three pros still using digital...

Well, you certainly mean film ;-). Fact is, there are thousands of them worldwide. In some segments like portrait- and wedding photography the number is even slightly increasing in some countries.

And some other examples:

http://istillshootfilm.org/post/110901745797/10-professional-photographers-who-still-shoot-film

http://istillshootfilm.org/post/114406745745/10-more-professional-photographers-who-still-shoot

http://istillshootfilm.org/post/125176724780/even-more-professional-photographers-who-still

I know lots of (semi)professional photographers in Germany shooting film (including myself ;-) ).

Best regards,
Henning

Ricardo Miranda · Aug 7, 2015

Xmas said:
Only one chum is exclusively film...

Henning Serger said:
Well, you certainly mean film ;-). Fact is, there are thousands of them worldwide. In some segments like portrait- and wedding photography the number is even slightly increasing in some countries.

And some other examples:

http://istillshootfilm.org/post/110901745797/10-professional-photographers-who-still-shoot-film

http://istillshootfilm.org/post/114406745745/10-more-professional-photographers-who-still-shoot

http://istillshootfilm.org/post/125176724780/even-more-professional-photographers-who-still

I know lots of (semi)professional photographers in Germany shooting film (including myself ;-) ).

Best regards,
Henning

Hi Henning

Exclusively film?

I think Noel was referring to me.

And now I'm adding movies as well (Double8).

Xmas · Aug 7, 2015

Yes I meant to fat finger 'film' embarrassing.

It is very rare to see any pros using film either stills or cine.

The only increase is in many more pro digital teams shooting than there were in the past (when there was only film) both cine and stills.

Pro wedding photography digital or film has all but disappeared the last wedding I attended there were only iPhones apart from my ContaxII.

The other increase is in the number of instax and recycled Polariods.

This is sampling in London's West end, ignoring iPhones and selfie sticks...

Rudeofus · Aug 7, 2015

Xmas said:
It is very rare to see any pros using film either stills or cine.

That was exactly my point: we keep hearing this "absolutely nobody uses film anymore" mantra, yet film still has 5% of its original sales volume. It looks like that those, who shoot film, shoot lots of it, and that the demographic group comprising today's smart phone happy snappers never shot much film even in its heyday.

TheFlyingCamera · Aug 7, 2015

Rudeofus said:
That was exactly my point: we keep hearing this "absolutely nobody uses film anymore" mantra, yet film still has 5% of its original sales volume. It looks like that those, who shoot film, shoot lots of it, and that the demographic group comprising today's smart phone happy snappers never shot much film even in its heyday.

The difference with the happy snappers then vs now is that when the only choice they had was shooting film, there were hundreds of millions of them. And for any one person who would come by the minilab where I worked in the 1990s with a single roll that had three years worth of holiday family pictures on a 24 exposure roll, we had three hundred who would shoot a dozen rolls a year, and ten or twenty who would bring us 30+ rolls per trip, at least once or twice a year. Now, most of that is gone.

Ai Print · Aug 7, 2015

Xmas said:
I only am aware of three pros still using digital

Bruce Guilden

Well Bruce *Gilden* is among my fiends and contacts that shoot film for sure, that list is at least 70 people long by the way including the likes of Danny Wilcox Frazier, David Burnett, etc. And none of them are in the heavily decimated by amateurs genre of mid low end to low end weddings and portraits.

I shoot a lot of film in my work as a full time photographer, I have been instrumental in getting more pros to use it, academia to re-embrace it and see a steady rise in the use of black and white overall.

Rudeofus · Aug 7, 2015

TheFlyingCamera said:
Now, most of that is gone.

If "most" means 95%, then yes, that's what Fuji's numbers tell. But based on Fuji's numbers at least we shouldn't assume 99% or 99.9% or whatever number is frequently thrown around.

wblynch · Aug 7, 2015

Just hoping that Fujifilm sees fit to continue offering FP-100C peel apart pack film.

Henning Serger · Aug 16, 2015

Rudeofus said:
If "most" means 95%, then yes, that's what Fuji's numbers tell. But based on Fuji's numbers at least we shouldn't assume 99% or 99.9% or whatever number is frequently thrown around.

Yes, exactly.
And don't forget:
The reference point was the year 2000. And that was the record year! The all-time-high in photo film sales with about 3 billion units worldwide.
But if you take the time 1987 - 1990 (also considered as the "golden time of film") as a reference with about 2 billion units p.a. (there was a big boom in film demand during the nineties), and put that in relation to the current demand, then the current level is about 7.5% of the demand 25 years ago.
And as explained above, there is a realistic chance for an increasing film demand in the future.

Best regards,
Henning

wblynch · Aug 16, 2015

In that 10-15 years, with the advent of one-hour mini lab processing on every corner and penetration of high quality point and shoot cameras, film use did explode.

I wonder how a more historic view of film sales over the decades before, when a typical family might use only two or three rolls a year might compare to today's demand?

Certainly motion picture demand was tremendously higher back then. How to count that out for a still photo comparison?

Henning Serger · Aug 16, 2015

wblynch said:
In that 10-15 years, with the advent of one-hour mini lab processing on every corner and penetration of high quality point and shoot cameras, film use did explode.

Well, Bill, there have been even more factors contributing to the increasing demand during the nineties. Two of them being the fall of the "Iron Curtain" and an increasing demand from eastern European countries and the increasing demand from newly industrialised countries like PR China.
After the policy changes by Deng Xiaoping in 1979 and the following economic reforms and developments China got through a phase of "filmelisation" , in the eighties and especially in the nineties. I've been there in 2002: All film there, almost no digital imaging, you could buy film at "every corner of the street" in the bigger cities (Fuji, Lucky, Kodak, sometimes Agfa). And the Chinese tourists e.g. all used film, often in Chinese film cameras ("Great Wall").

And the Chinese market has the potential to play a significant role in a film revival in the future.

Concerning mini labs: They did not play such an important role in all countries. For example here in Germany the lab structure is a bit different: Big mass volume labs which cooperate with all the drugstore chain shops has played and still play an important role. They are the basis for the situation that you can get films and processing nearly at "every corner of street" here in Germany if you need it.

wblynch said:
I wonder how a more historic view of film sales over the decades before, when a typical family might use only two or three rolls a year might compare to today's demand?

Certainly motion picture demand was tremendously higher back then. How to count that out for a still photo comparison?

We probably will never know, because of a lack of data. Especially data from Eastern Europe and Russia from the time before 1990. There has been a significant film production there.
ORWO in East Germany was one of the biggest film producers in the world, photo film and movie film. 15,000 employees worked there. And by far most of the prodction was for the export.
For example the big movie industries in Egypt and India used for a very long time ORWO film. With India ORWO had some very big compensation contracts: ORWO delivered movie film, and India delivered Knochenschrot (bones) from naturally died (holy) cows for film gelatin production.

Best regards,
Henning

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