Canon India is targeting leadership positions in the digital camera and digital copier categories by the end of 2006. It launched 36 new products across categories on April 26, and also announced its entry into the high-volume print and publishing market.
Speaking to reporters at Chennai, Alan Grant, President and CEO, Canon India, indicated that the current growth figures had given the company the confidence to achieve its targets, and explained that the growth would be further fueled by the company’s entry into the print and publishing market.
“It is estimated that 65 per cent of all publishing worldwide will be digital by 2010, as against offset. Printers will have to invest in digital technology products, and more and more corporates will also be investing in digital printing as it won’t involve so much of skill anymore. The market is estimated to be worth at Rs 250 crore in India and is expected to go up to Rs 1,000 crore in four years, maybe more,” said Grant.
Canon India had a 2 per cent share of the digicam and camcorder market in the first quarter of 2004, in the same quarter of 2006, the share had gone up to 25 per cent, the company’s spokespeople said.
Outlining the reasons for Canon India’s growth in the digicam category in 2005, Alok Bharadwaj, VP, Canon India, said, “We increased the number of product offerings from six models to 16 models and tracked each model in the market. We found that the mid and high-end models had contributed substantially. We also embarked on retail expansion and touched 1,000 outlets and 31 DigiClick zones. Canon Care centres were established across the country – we have 17 of these as of now. Consumer promotions, too, made a substantial difference, and we spent a large part of the Rs 20 crore ad budget on digicams.”
While the industry (digicams) grew by 80 per cent over 2005, Bharadwaj claimed a growth of 267 per cent for Canon India in Q1 2006 in this consumer category.
Another strategy adopted by Canon India is an enhanced focus on the South market. A new Canon exclusive showroom in Chennai, the first in South India, reflected this. An ad campaign featuring tennis star Maria Sharapova would be adapted to South Indian channels from May 1, 2006.
The company is also working on expanding its network to have a total reach of 4,000 outlets from the present 2,500, and the focus will in due course also shift to Tier-2 towns. A portal for all dealers is on the cards, which will go live from May 8, 2006. The company would work on tie-ups with retail chains, and was in talks to have in place arrangements with 13 such chains across the country by December 2006, said Bharadwaj. Vivek’s and Spencers are already on board from South India.