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European digital photo giant advances to UK shores

International photofinisher CeWe Color, the leading provider of photo services in Europe, is targeting UK retailers to increase its stronghold in the rapidly growing digital photo sector in the wake of declining analogue sales across Europe. Digital cameras first outsold traditional cameras a few years ago and memory cards exceeded film sales soon afterwards. At the same time, CeWe Color reached mass market proportions for its digital photography products and services, with digital photos accounting for over 30% of sales in December 2004. Following Kodak’s decision to exit the photofinishing market last year, CeWe Color was able to increase its market share yet further on the European continent to more than 40%, generating an annual turnover of Euro 428.5 million in 2004. This was the result of more than 3.5 billion prints being developed at its European production plants, with over 500 million of these from digital sources. The company is confident that prints from digital sources will increase to one billion in 2005. Attention to Retail CeWe Color is the market-leading industrial photofinisher in Europe with over 43,000 strategic trade partners across every possible sales channel. Its partners include high profile grocery and drugstore chains, consumer electronic retailers, photo stores and online traders. And, with weak competitors withdrawing from the market altogether, CeWe Color is confident of success with the UK retail market. Speaking of the company’s plans to target UK retailers, UK General Manager Oliver Carey says: "CeWe Color’s strength was anticipating the growth and profit potential of digital long before it transcended conventional photo sales, including recognition of the growth opportunities in the lucrative photo gift sector. The company has invested over 80 million Euros in the last two years to handle the shift from conventional to digital production technology, with all 22 production sites in Europe offering digital capabilities. With such a solid platform in place we are very confident of mirroring our European success in the UK." With consumers in the UK embracing digital technology more than ever before, there are now three photo print systems competing for a slice of this increasingly lucrative cake; industrial photofinshers such as CeWe Color, instore printing and home printers. With 22 photo production plants across 14 European countries, the company is the only genuine Pan-European player, offering a huge range of digital and analogue photographic products and services, including online and off-site photo-processing plus a huge range of photo gift products, and a flexible business model for retailers. CeWe Color provides the technology and service for its partners, supplying photos and related products with the corporate identity of its trade partners. Films, smart media cards and CD roms can all be processed by CeWe Color, whether it is via a retailer or an internet webshop. Images are then posted directly to the consumer or can be collected at the consumer’s local retail branch. Importantly for the changing nature of the photo industry, CeWe Color has the competence to convert analogue consumers to digital, having worked with some of the biggest retailers in Europe to implement an effective strategy to do this. The company is keen to replicate such strategies in the UK. Carey concludes: "The transfer from conventional to digital photography will continue to characterise the photo business for some years yet, and thanks to a gain in market share and a significant investment in its digital capabilities, CeWe Color is well equipped to cope with continued digital growth across Europe and in the UK." www.cewecolor.de