HP Revolutionizes the digital photography market in India for consumers

Company Brief

New Delhi, October 10, 2007

Hewlett-Packard, today unveiled its strategy to revolutionize the digital photography market by announcing its entry into the retail photo printing market with the launch of HP Retail Photo Solutions. The company has also announced the much awaited launch of the world’s No.1 consumer online photo service – HP Snapfish customized specially for the Indian market (www.snapfish.co.in).

Speaking on the occasion, V. Krishnan, GM – Consumer Sales, Imaging & Printing Group (IPG), HP India Sales Pvt. Ltd. said, “Today’s announcement brings HP closer to realizing our vision for creating an all-digital photography marketplace. We are very excited about the HP Revolution unveiled today that will take digital photography to the next level. By establishing a footprint of 3000 Retail Photo outlets with HP Retail Photo Solutions by 2010 and photo delivery through Snapfish across India we hope to change the dynamics of the Photo printing market. We are positive that consumers will enjoy the new photo printing experience introduced by HP. “

Snapfish will offer consumers free online photo sharing, unlimited online photo storage and professionally developed digital camera prints for as low as Rs.2.95 only (4x6 size). Additionally, new customers will receive 20 free prints when they become a Snapfish member with no obligations.

The HP Retail Photo Solutions will offer end-to-end digital photography printing services with high quality HP photos that will last 5 times longer than traditional photosi. Consumers can also enjoy printing photo based gifts with their favourite photos on key chains, mugs, T-shirts, mouse pads, photo greeting cards, posters, calendars and coasters at the HP Retail Photo Outlet or can place an order on the HP Snapfish website. The HP Retail Photo Solution will allow consumers to print on various substrates such as art paper, canvas and can also print instant photo albums.

HP will be working with retail partners to roll out HP Retail Photo Solutions in a wide variety of locations such as supermarkets, photo specialty stores, electronics stores, office product stores and traditional photo service stores. The brand identity of the HP Retail Solution will be a Multi-Colour Swirl with the punch line ‘Celebrate Life with HP Photos’.

Elaborating on HP’s entry in the retail photo printing market, V Narayanan, Director –Retail Photo Solutions, IPG, Hewlett Packard APJ, said, “With the announcement of HP Retail Photo Solutions in India, we hope to provide a profitable business proposition for the retailers by driving down costs and offering their customers more choice, improved flexibility, better quality and price”.

The HP Retail Photo Solutions will comprise of the HP Photosmart Studio and HP Photosmart pm1000 Microlab Printer. The HP Photosmart Studio is for high-volume printing of photos and creative projects such as posters, albums, calendars, and greeting cards in as little as an hour. The HP Photosmart pm1000 Microlab is for high-speed 4 x 6-inch printing.

Speaking on the launch of Snapfish in India, Bala Parthasarthy, VP - Online Imaging, IPG, HP APJ said, “Snapfish has gained popularity globally and we expect to do the same in India. It will change the way consumers ‘click-print-share’ photos in India. We have customized Snapfish to the needs of the Indian consumers with breakthrough pricing of Rs.2.95/- per print in the photo printing domain.”

Snapfish by HP, is the leading online photo service in the world with over 40 million members in 15 countries, and is adding a quarter billion new pictures per month. Initially launched in the United States in April 2000 with a vision of helping people preserve, enjoy and share their most valuable memories, HP acquired Snapfish in April 2005 to provide customers with a comprehensive solution which will allow them to share, preserve and share their most valuable memories in an easy-to-use and convenient way.

Market opportunity in India

The rise in the use of image – capturing devices translates into huge opportunities for photo printing market in India, largely fuelled by the growth in digital and mobile cameras in the country. According to Gartner, the market size of digital camera in India was $110 million in 2006 and is expected to grow 20-22% CAGR through 2011. The number of mobile users in India will be more than double in the next five years, growing from 185 million to 462 million in 2011.