Digital imaging products company Canon India ()
is soon to ink a deal with a personal computer manufacturer
and a software company to increase the sales of its digital
camera and printers.
company hopes to capitalise on this tie-up as it is eyeing
India's metro and major city markets. Company officials,
however, are not willing to disclose more details about
the proposed alliance.
it is image-building time at Canon India. After making
couple of wrong moves, which includes going back on promises
made to the channel partners earlier, Canon India is toning
up its image to capture a decent market share for its
products. While the brand occupies the top slot in many
Asian markets, in India it is not the case.
won't be any going back on promises, company officials
assure the channel partners. Last year Canon India appointed
300 channel partners and 1,800 resellers to cover small
towns and now the company is in the process of selecting
new partners to target specialised market segments.
Canon India president and CEO Allan Grant: "It is
now kyocei at Canon India. Kyocei [it's
Japanese] means living and working together for the common
that point is Alok Bharadwaj, director and general manager,
who says the company will be launching a media blitzkrieg
highlighting the importance of using original consumables
like inks, cartridges and toners to provide regular income
for the channel partners.
year Canon India added around 1.05 lakh customers who
might require various refills. Presently consumables
inks, toners, media is contributing around one-third
of the total revenue.
company has registered tremendous increase in the sales
of inkjet printers, scanners, digital copiers and multifunctional
devices (MFD). It has moved to the No 2 slot in the inkjet
printer and scanner segments. Grant says the last quarter
of 2002 saw Canon India's market share in MFDs and inkjet
printers going up to 22 per cent and 18 per cent, respectively.
into numbers, the company increased its turnover by Rs
51 crore to Rs 202 crore last year and is now termed as
a serious player after HP, Epson (in inkjet printers)
and Xerox (copier) markets. "Our goal is to become
a Rs 500-crore turnover company and we are working towards
that," says Grant.
the company unveiled 21 new products (printers, scanners,
MFDs, digital cameras, fax machines, multimedia projectors
and consumables) for the Indian market, thereby taking
its total product offerings to 100. "The strategy
is concurrent introduction of all products in the Indian
market when the same are launched elsewhere in the world,"
is interesting to note is that the company's confidence
is derived from its growth success in the B and C towns
and not in the metros. Says Bharadwaj: "The digital
camera market is growing fast and along with it, the demand
for printers is expected to grow."
the digital imaging market into three home, corporate
and commercial Bharadwaj says the last category
holds great opportunity and is followed by the corporate
sector. The company feels the home segment is in a nascent
stage and would take time to grow.
commercial photo industry market is estimated to be around
Rs 3,000 crore and there are 1 lakh studios in the country.
Of that only 3,000 are into digital," says Bharadwaj.
To target this market Canon India is in the process of
appointing specialised dealers.
second thrust area is penetrating the corporate segment
(consisting of small office, home office, government and
corporates) and where the brand awareness is high for
the high-end digital networked products. To target this
market the company will establish a separate channel designated
as Canon corporate partners numbering around 50 to sell
laser and inkjet printers and the all-in-one MFD that
does copying, scanning and printing functions.
modest beginning has been made in the laser multifunctional
devices and digital copier space," Bharadwaj says.
According to him technological convergence will result
a boom in digital copier market where Canon India is behind
Xerox. In addition to having specialised distribution
channels for different market segments, Canon India will
also expand its retail outlets to 300.
the sales support and service side, the company has set
up a call centre. To iron out the logistical problems
it is moving towards third-party logistics. "We will
also enable channel partners to place order for consumables
online," says Grant. Speaking about its brand perception,
Bharadwaj says the products will not be cheap but will
be now competitively priced.
India, meanwhile, is also planning to increase its software
exports. Last year the 50-member division contributed
Rs 24 crore to
the total turnover, exporting digital imaging and document
management software. The codes are used in the products
manufactured by Canon, Japan. Canon India has plans to
double the head count by this yearend.
also see : www.canon.co.in