‘Nikon wants to step up India’s turnover share to 5% in 3 years’

With the beginning of the new fiscal year, imaging company Nikon India has already come out with a broad range of cameras, both for professionals and first-time buyers. A strong demand for cameras in the country means the Indian unit of Japanese major Nikon Corporation is racing up high growth figures. Hiroshi Takashina, managing director, Nikon India, predicts that nearly 2.5 lakh D-LSR and 4 lakh compact cameras are expected to be sold in India this year, of which Nikon wants to secure 55% and 30% market share, respectively. Excerpts from the interview with
Shailaja Sharma:

Q: Can you share your performance in the compact camera segment that is getting highly competitive?
A: When we established Nikon India in 2007, our market share in compact camera segment was just 5%. Last fiscal, we almost reached 25% of market share and became one of the major players (Sony is the market leader in compact cameras in India).

The market is expanding rapidly. In the previous fiscal, total compact camera demand was 3.2 million or 32 lakh units. We believe that may increase further. In 2012-13, we expect that demand to reach 40 million or 4 lakh units, and our own target is to increase our market share to 30%.

Q: In D-SLR division, you had a 55% market share last year. What awaits there?
A: We have retained 55% of the market share. The market for digital SLR cameras is smaller than compact cameras, but is expanding faster.  Last year the total industry demand in India in this segment was 1.7 lakh and this year, we expect it to grow to a total of 2.5 lakh. We will maintain our market share. Last month, we launched D4, D800 and D800E, this is mainly for professionals. Last year, we faced a lot of issues from Thailand flood and the earthquake in Japan. Everything now is normalised and we can look at growing again from here.

Q: How does demand for cameras worldwide appear?
A: Last fiscal, the total market size for compact camera worldwide was 120 crore units. For inter-changeable cameras it was 1.5 crore units. As far as compact cameras are concerned, because of slowdown in the US or Europe, the total demand may remain the same. But for inter-changeable cameras, it will expand further and may increase 20% this year. Asian countries are seeing growth in demand. For inter-changeable cameras, even major countries like Japan or the US are seeing an uptick in demand.
Nikon was expecting Indian unit to double turnover every year.

Q: How do you expect China and India to contribute to global turnover over the next decade?
A: As for the total demand in India, we are expecting more than 30% growth in the compact camera segment, but more growth in inter-changeable camera space. India is already contributing 1.5% to Nikon’s global turnover. We would like this to increase to 5% in three years. China is now contributing almost 10% to global turnover.

Q: What turnover are you expecting in India this year?
A: For fiscal 2012-13, we are looking at Rs1,200 crore turnover. Last fiscal, our turnover was Rs750 crore.

Q: What is your view on competition and heavy marketing investments all brands are doing?
A: I may not be in a position to comment on others. We believe we need to have more appeal in the market. That is why we are spending Rs150 crore on marketing and advertisement this year to achieve Rs1,200-crore turnover. This is much higher than what we used to spend earlier. Competition may be severe, but we will win.

Q: What products can we expect from Nikon, going forward? Can entry-level cameras get cheaper?
A: We recently launched the Nikon 1 Series - a new category - as consumers are demanding compact yet high picture quality cameras. D800 is the first commercial camera with 36 megapixel.

D4 provides high speed shooting as well as low-lighting capability. This camera can shoot movements even in dark lighting and is good for sports and wild photography. Now, even the NASA is buying D4 from us. We are now launching the spring summer collection of Coolpix series in India. Our most reasonably priced camera is the L25 at Rs4,990. We did not have the below Rs5,000 range three years ago, but today it is very successful.

India is a price-conscious market and 70% of the demand is for below Rs10,000 range, and it will remain that way. But we do not expect cameras to get cheaper than that. Our entry level D-SLR is starting from Rs32,950, which is reasonable enough for beginners.