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Canon to shore up distribution channels

20-August-2005
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Canon to shore up distribution channels

Canon India has firmed up plans to strengthen its distribution channels in its efforts to emerge as a market leader in the copier, printer and digital camera businesses. The company, which has distributors in 80 towns in the country, aims at doubling it in a year.

“A strong distribution channel is crucial for success. We have created a channel-oriented sales organisation and have separate channels for IT, office automation, photo and consumer electronics. We need at least 300 distribution points in the coming years,” vice president of Canon India, Alok Bharadwaj said.

Bharadwaj, who inaugurated the first home cinema centre in the city, said the company is adopting a “channel specialisation” policy wherein each business will get specialised attention.

Canon, a world leader in copiers, hopes to emerge as the market leader in India before the end of the year. The company is also “seriously evaluating” introducing a buyback arrangement for printers to increase its market share in the highly competitive printer business.

Through aggressive marketing and channel focus, Canon that has a more than 20% market share in each of these businesses aims to become the market leader by '07. It also hopes to cash in on the booming digital camera sales in which it has a 20% market share.

The Rs. 200 crore digital camera market is growing at a scorching 100% and is expected to touch Rs. 1000 crore in 2008.

“The digital camera business will contribute about a third of our revenues in India. The market is evolving and the photo culture is fast catching up thanks to the advent of mobile phone cameras,” Bharadwaj said.

Canon is also gearing itself to expand its presence in the consumer electronics business. It plans to have 30 home cinema centres and 50 “digi-click” zones in the country by December.

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