HP Photokiosk Strategy

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We spoke to HP about their latest photokiosk projects and strategies at photokina 2010.
 
We spoke to Kalle Marsal, Director of Product Management, RPS WW, HP & Graeme Williams, Sales & Marketing Director, Absolute Computing
 
KE: What new innovations do you have on show today for the photokiosk market?
 
HP: We are showing the next generation of our Photo Center solution with several hardware and software innovations. Our main focus here is on our new dry minilab the ML2000D. What’s unique about this is that from one piece of equipment you can get a very broad range of different products, including all the main photo print sizes in both matte and glossy, photobooks, greetings cards and even double-sided photo products. This minilab can be integrated into retailers’ existing photo infrastructure and fed orders from HP photokiosk ordering stations.
 
KE: Are environmental concerns becoming a more important driver for technological innovations?
 
HP: At HP we are very committed to help the industry move away from silver halide towards dry inkjet technology. One of the things that we’re proud to be talking about at this year’s Photokina is the research we’ve done into the environmental impact of silver halide versus dry inkjet. The carbon footprint of our new dry minilab is up to 33% smaller than equivalent silver halide solutions and it also consumes 26% less energy over a typical operating period. The magnitude of the carbon footprint difference between these two technologies is similar to that between gasoline and hybrid cars.
Of course these environmental benefits also translate to cost savings for the customer. If all silver halide printers worldwide were switched to this technology, the impact on the environment would be the equivalent of savings the CO2 emissions of up to 65,000 passenger vehicles per year. Retailers working with HP solutions are able to communicate these positive messages to their customers.
 
KE: Do environmental factors override the ever-important cost for your customers?
 
HP: It depends. What is clear is that environmental friendliness is no longer a “nice to have”. It does not yet always taken ultimate precedence over cost and performance, but it does play an important part in the purchasing decision.
 
KE: What kind of business model do you offer to your customers to help them achieve a ROI through photokiosk projects?
 
HP: We have a number of business models that we would sit down with our customers to discuss and ensure that all the relevant factors are taken into consideration. While printing 6 x 4 prints today still is the most frequently used service through a photokiosk and while it does bring in an additional revenue stream to retailers, the higher value products like photobooks and posters help to bring in more substantial revenue, so we encourage retailers to install flexible minilab solutions.
 
KE: Two years ago, there was a lot of talk about photobooks. Is this trend set to continue or do you see new trends emerging since then?
 
HP: The industry is still talking about photobooks. We are seeing this area really starting to grow in a way that it hadn’t yet back in 2008. In many installations, we have also seen a strong demand for poster printing, such as canvas prints and also for calendars. There is still a lot of potential for these solutions.
 
KE: At the last photokina, there was also a lot of talk about digitisation and that people would no longer want to print photos or, if they do, they do this at their home computer. What do you think about this?
 
HP:  Eight years ago 90% of digital photos were printed at home because there weren’t other options available, but printing photos at home is actually declining now.  Retailers have embraced digital options at photokiosks so a large proportion has shifted to printing with retailers. Depending on the country, only 20-30% of digital prints are done at home. One of the key reasons for this shift is that it is much quicker to print a large number of photos at a photokiosk and to do it in retail locations where consumers already are for other shopping.
 
KE: How do you drive customers into the store for retailers?
 
HP: We work closely with the retailers to develop awareness through targeted marketing. In-store, it is important to present the kiosks well and train staff. With new technology and more automation in printing, staff is freed up to be customer-facing rather than machine-facing, which should lead to an increase in customer satisfaction and sales.

We have also launched software, HP Photo Creations, for photo editing and creation which now comes as standard on most new HP computers. In this way we can increase awareness and encourage customers to print their photos at HP photokiosks. This software can also be downloaded online.
 
We do offer a comprehensive set of  editing functions in photokiosks, but what we tend to see is that people often  rather edit their photos at home than in a shop environment. There is also an increase in ordering from home and collection in-store.
 
 
KE: What have been your biggest roll-outs since last photokina?
 
HP: We’re working with Tesco in the UK who are switching completely from silver halide to dry minilab solutions. We have also converted all of Walmart’s instant printing solution to ours; this project covers close to 4,000 stores in the US with approximately three kiosks in each store.
 
KE: Have you seen a particular demand for this from any particular country in Europe?
 
HP: Absolutely. We’re seeing significant growth and demand in the UK, Germany, France, and several other Western European countries, as well as encouraging growth in CEE countries such as Slovakia, Poland, and Hungary.
 
KE: Photokiosks have always been popular in retailers: are you seeing increasing adoption in other markets such as hospitality?
 
HP: Retail counts for around 60% of the photo market. The challenge in targeting photokiosks in other markets like hospitality is that it requires significant change to established customer behaviour. People are used to printing in retail. In addition, retail is the main market simply because it has high footfall and return visits. There is, however, definite opportunity to expand the reach of where photo product ordering is possible.
 
Note: Absolute Computing are responsible for selling HP’s photokiosk range in the UK and also provide maintenance services.