Having begun revamping of its distribution strategy across the country, Nikon India is now aiming to capture 50 per cent of the Indian market for D-SLR cameras. In Ahmedabad to launch the city's first exclusive 'Nikon D-SLR Zone' and 'Nikon COOLPIX Zone', Hidehiko Tanaka, managing director, Nikon India Private Limited talks to Vinay Umarji on how the company intends to do so:
You are revamping your distribution strategy for your cameras, D-SLR as well as compact, across the country. Why?
We saw that usually consumers had to depend on their judgement while buying cameras. In the sense, they couldn't touch and feel the cameras at a store and also lacked awareness. In order to make further inroads among consumers, we thought of opening D-SLR and COOLPIX Zones where consumers can try their hands at cameras and gain as much knowledge as possible. Moreover, we are also training demonstrators and dealers to provide as much information to consumers.
How much is the penetration of D-SLR and compact cameras among consumers in India? Are consumer preferences changing?
It is growing. Currently, below Rs 10,000 price point is the strongest among consumers but the penetration is moving gradually to other points. We offer compact cameras in the range of Rs 6,950 to Rs 26,950, and D-SLR between Rs 30,950 and Rs 5.25 lakhs.
How big is the market for cameras in India? How much would be your share in it?
In 2008, while 110 million cameras were sold globally, only one million of that were sold in India. In 2009, that number rose to 1.5 million for compact cameras and over 20,000 for D-SLRs. But our market share, which was seven per cent for compact cameras and 29 per cent for D-SLR in 2008 in India, almost doubled to 13 per cent and 45 per cent, respectively. We aim to take to our share in D-SLR to more than 50 per cent in next one year.
Do you plan to eventually assemble or manufacture cameras in India?
We don't see any reason to assemble or manufacture cameras in India. Nokia India contributes hardly one per cent or even less than that to its headquarters. And as I said, as compared to global sales, India does only 1.5 million. As of now, it would not be feasible for us to assemble or manufacture cameras here.
Which are your other product lines in India? Any new plans in those areas?
Apart from cameras, we are into after sales services of measuring instruments and microscopes. However, in near future we see a possibility of assembling them in India. Also, we had studied India for manufacturing semi-conductor and we see a possibility there. However, we have not taken any concrete decisions on it.
Any tie-ups that you are looking at in the country?
We tie up with several institutions to conduct seminars and workshops on photography. While we have not thought about a complete programme on it yet, we will continue to hold such workshops across the country.