The maker of Cyber-shot cameras promises response very shortly to early initiatives by rivals Nikon and Canon for this summer
You will soon find Bollywood actor Deepika Padukone happily clicking away with a Sony Cyber-shot camera in a high-decibel campaign set to hit television screens the coming week.
Consumer electronics major Sony, also leader in the 3.2-million-unit compact camera market, with a share of 40 per cent, is ready with a new line of products for the summer, a period crucial for digital camera makers since it is the holiday season.
This year promises to be special for a number of reasons: Number two and three players Nikon (market share 25 per cent) and Canon (15 per cent) have already launched their new products for the season a month in advance, using Bollywood actors Priyanka Chopra and Anushka Sharma as brand ambassadors.
They have a clear advantage, therefore, say market experts, of having started early. "Just look at the aggressive advertising & marketing by the two players," says Harish Bijoor, chief executive officer, Harish Bijoor Consults, about Nikon and Canon's initiatives. "They have left no stone unturned in suggesting to consumers that they are the apt choice this summer."
Sony officials hardly appear thrilled at being checkmated in this manner but remain unfazed. "Just wait and watch," says Tadato Kimura, general manager, marketing, Sony India."You can expect us to take all possible measures to defend our leadership position."
Last year, Sony was the first to get started, with almost 30 new models on offer. This year, persons in the know say the Japanese giant is likely to launch a similar number, as it looks to dwarf competition with its new range. Nikon had launched 18 new models of its CoolPix brand of compact cameras last month, while Canon launched six to 10 new models of its Powershot brand of digital cameras in early April.
Pricing
So, while Sony may get a leg-up with the sheer choice it is likely to give consumers, market experts say pricing may do it in. Nikon has been most aggressive this summer, pegging its entry-level models at an affordable Rs 4,990. Canon's entry-level is Rs 5,995, while Sony is likely to start at Rs 5,490 for a basic model. Kimura says the company has had to start at the Rs 5,000 price point owing to currency fluctuations in recent months. In the past six to eight months, the rupee has seen wild fluctuations, depreciating by 20 per cent between August 2011 and January 2012 before going up and then slipping once again. It is currently at Rs 51 to a dollar.
Most compact camera makers import their products into India, owing to the absence of manufacturing facilities here. Thanks to currency fluctuations, product prices have shot up 15-20 per cent in the past six months.
Despite this, say experts, Nikon has managed to stay below Rs 5,000 at the entry-level, a crucial plus in a price-sensitive market. Canon's senior vice-president, Alok Bharadwaj, justifies his company's entry-level pricing by saying they have more specs or features on offer than others. "Our entry-level model comes with a 16 mega-pixel camera," he says.
But most players, say market experts, are beginning to pack more for less as consumers lap up these products. Cameras, for instance, are gradually becoming slimmer and sleeker and are now available in different colours, they say.
Nikon India's managing director, Hiroshi Takashina, says, "The point-of-shoot or compact camera market is designed primarily for simple operation. Most use autofocus and automatic systems for setting the exposure options and have flash units that are built in."
The category has also been growing at a clip of about 30 per cent per annum in the past few years, driven mainly by youth. Canon refurbished its advertising earlier this month, in an attempt to make its products exciting to the 18-25 years target group. Nikon has been using Priyanka Chopra since last year to drive home its message of being a cool and happening product, while Deepika Padukone came on board as brand ambassador of Cyber-shot in 2010.
