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Olympus India recently unveiled its new range of mirrorless cameras. Within just one year of entering the imaging business in India, the company has decided to exit from entry level compact cameras. This would make Olympus the first camera company in India to do so. Kenichiro Mori, managing director, Olympus Imaging India, tells Digbijay Mishra how its sole focus would be on mirrorless cameras and high end premium products. Edited Excerpts:
So far, you have not been able to make a mark in compact or DSLR segment in India. What are your plans now?
We started our operations in 2012, competitors begun their business more than 10 years ago. Despite the late entry, we have managed to capture ~3% of the market and we are witnessing a growth of 10% QoQ. We are currently in the process of consolidating our business structure in terms of distribution and sales. At this point of time, I would say we have made tremendous progress for a late entrant, by having become the 4th largest player in the market.
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Our primary focus is on mirrorless cameras and high-end compact cameras. We do not intend to launch anymore low-end compact cameras and our complete focus will be to offer premium technology to our consumer base. Mirrorless is the future of imaging. Globally, the mirrorless segment is decimating the DSLR segment, and in certain countries has already exceeded the demand for DSLRs. We are here for the long term and see the segment growing. We do not think short-term, and this reflects in our strategy.
Entry level compact cameras are not doing well while DSLRs are doing decent. Would you exit the compact segment?
No, we are only exiting from entry-level compact cameras. We will continue to launch new products in the premium category as we see India as a very strong market. The entry level camera market is getting replaced with smartphones. However, we see this as a huge opportunity as smartphones are creating a new market for us, and we see those who are using smartphones today, graduate to professional imaging tomorrow.
What is the current market share and how much do intend to enhance it in a couple of years?
Our current market share is ~3% in both the compact and mirrorless markets and we see our market share growing to up to 10% in a couple of years. But we plan to tap into the value market and not the quantity market. People in India today want value-for-money, and that is what we aim to provide, rather than focus on low-end mass. We will not increase prices, as we have always had the foresight to plan ahead.
What is your topline and what CAGR are you looking at this year?
We would be unable to disclose our topline figures as we are yet to tabulate the same, having just entered the country. However, we are looking at a CAGR of 10% this year.
So far mirrorless cameras have not made their presence felt in India. Why?
As you have correctly mentioned, the mirrorless segment is the dominant force in international imaging today, with a majority of new buyers internationally opting for mirrorless cameras, as they provide both path-breaking technology, as well as the relative ease of use and style that only a lighter camera such as a mirrorless can provide. However, the rate of adoption of technology in India takes time, and therefore we see the mirrorless segment growing in a slow and steady manner. To have gained ~3% of the market share after having entered the market in April 2012, with a 10% growth quarter-on-quarter, means we must be doing a lot of things right, including engaging with our customers better. We are very confident of the segment growing, and being pioneers of the segment, we are confident of market leadership in it.
Do you think mirrorless technology will survive in India?
Mirrorless technology will not only survive, but will grow with leaps and bounds. To prove that is the fact that our professional camera range consists only of the mirrorless range, and yet we have captured ~3% of the market share since coming onshore.
When do you see improvement in consumer sentiment?
Most global brands in India are awaiting a stabilization in the economy. We have just seen a major step forward in the breakthrough of the impasse in the United States, but economies around the globe are reeling from the slowdown. Late 2014-early 2015 is the earliest that we see the market stabilizing and consumer sentiment turning favourable again.
