Photography faces a mirrorless future

While 77 per cent of cameras shipped globally are point-and-shoot, mirrorless interchangeable-lens cameras (MILC) garnered 4 per cent volume share from January to June 2012, according to Euromonitor International.

These two segments, especially MILC, have gained popularity for their simpler functions, lighter weight, stylish look, high quality and more affordable price range than for digital single-lens reflex cameras (DSLRs). For consumers who want to capture great photos, these cameras become a fuss-free solution.

“Most cameras struggle under low-light conditions or [when shooting] fast-moving scenes, with only DSLRs having the functionality to allow users to adjust the various settings to adapt to surrounding conditions,” says Loo Wee Teck, head of consumer electronics at Euromonitor. “The crux of the problem is that most point-and-shoot consumers are not keen to play around with the settings.”
This insight was the crux of Havas Sydney’s recent ‘DSLR gear no idea’ campaign to promote the MILC Sony Nex- 5 in Australia.

The campaign gently mocked clueless DSLR users who had their powerful cameras continually set to auto and presented Sony’s MILC offering as a less cumbersome  and easier to use alternative.

There were about three major players in the MILC segment in 2011, but now up to seven manufacturers are focusing on it, according to GfK Asia. “Consumers who already own a DSLR, or are looking to upgrade from traditional point-and-shoot cameras might consider pur­chasing a mirrorless camera with a larger sensor that allows them to enjoy better mobility,” says Gerard Tan, account director for digital technology at GfK Asia.

The high penetration of social networks in Asia, especially in countries such as Singapore and Indonesia, is another reason for the increased demand for fuss-free cameras. “The reality is that there is growing interest in photography, partially fuelled by the growth of social media sites like Facebook and Twitter,” says Loo.

He says that while most photos are taken with smartphones, an increasingly large number are now being shot with high quality SLR cameras, but not all consumers are keen to fiddle with ISO and aperture settings or to carry an array of lenses.

Overall, MILC is taking a seven per cent share in terms of units in Asia-Pacific. Hong Kong, South Korea and Taiwan are key growth markets in the region, reaching 16 per cent in volume share in 2012, growing by almost five per cent over 2011, according to GFK Asia.

Tan says Southeast Asia has high growth potential, with sales volume share of mirrorless cameras reaching 10 per cent there in December.

Despite the launch of new models with an innovative twist, such as touchscreens, Wi-Fi connectivity, GPS, social media buttons and 3D lenses, volume market share is expected to decline to 46 per cent as manufacturers start to focus on high-margin products rather than volume-driven entry level point-and-shoot models.

“The attraction of new [mirrorless] technology and the narrowing price gap with high-end point-and-shoot cameras will see MILCs capture one third of the digital camera market in 2016,” says Loo.

EXPERT OPINION The death of the compact? By Hari Ramanathan, regional head of planning, Y&R Asia With the rise of social media, photography has seen a huge increase in popularity. Sharing one’s talent or being inspired by those of others has been a big factor. There’s also what I call the American Idol syndrome that comes with social media—users feel they are being judged on the things they post and the amount of ‘likes’, ‘shares’, and positive comments they garner. This simple human motivation of sharing and wanting to be appreciated, in combination with the ever-miniaturising of technology, has given mirrorless interchangeable lens cameras (MILCs) a shot in the arm. People with an interest in photography no longer need to make a big investment in a digital single-lens reflex camera (DSLR), nor must they invest in a myriad of accessories. A more subtle but no less powerful contribution of MILCs has been to aid the democratisation of creativity. This is most evident in Getty Images, which now has results from Flickr.com in its search. This has led to many ‘pro-sumer’ images being picked up for professional use. This has meant a rise in the number of enthusiasts who are now able to monetise their hobbies. It’s not yet a steady stream of income, but it’s definitely a fringe benefit on top of having DSLR quality pictures without all the accompanying luggage. I predict that with improving sensor sizes and lens ranges, MILCs will replace entry level DSLRs, resulting in a camera category that is more streamlined and with clear product differentiation between ‘enthusiasts’ and ‘professionals’.