Canon targets high growth in south India

Canon, which supplies a variety of products such as digital cameras, printers and scanners, is witnessing high growth in South India with consumer spending increasing in the region.

The company, which has lined up Rs 100 crore investment next year in the country, intends to spend 35 per cent on its consumer business in the southern states to further consolidate its position.

"The IT industry is fuelling growth of other sectors. Youngsters are spending more to buy quality consumer products. We expect this trend to continue for more years. We sell more consumer products in South when compared to other regions," Canon India vice-president Alok Bharadwaj said.

He pointed out that the brand loyalty was also more in the south. "Besides, all the southern cities are frequented by travellers and tourists. These factors are boosting our sales," he added.

The company specialises in enterprise as well as consumer products. The products for enterprises include digital copiers, printers, scanners, projects and facsimiles. The western region is the largest market for enterprise products. In the consumer category, the company supplies copiers, digital cameras, camcorders, printers and scanners. While the enterprise products generate 45 per cent of the sales, the consumer products contribute in excess of 50 per cent. This year, the company's turnover is expected to touch Rs 500 crore.

"Next year, we are aiming for Rs 800 crore. Our plan is to reach out to more customers, including the secondary and tertiary cities and launch more products," Bharadwaj pointed out. At present, Canon products are available in 1,200 outlets, including retail outlets, IT product retail stores and photo channel stores, across the country. The company has tied up with 13 retail chains. "In 2008, Canon products will be available in 2,000 outlets, including small towns and cities," he added.

The company is also setting up three exclusive large showrooms (4,000 square feet) in Delhi, Mumbai and Bangalore. "Customers can experience and feel Canon products in these showrooms. We will not retail any product from these showrooms," he said.