Canon India has plans to move up the value chain by focusing on high-end cameras and the digital SLR category due to flat growth rates in the Rs 2,000-crore compact camera segment.
Apart from poor consumer sentiment, the onslaught of smart phones (with in-built cameras) has been the primary reason for compact cameras facing stagnant sales. Canon’s strategy is now to go beyond the entry-level cameras and woo buyers with better picture technology through its high-end and professional cameras priced Rs 10,000 to Rs 25,000, going up Rs 4 lakh.
Alok Bharadwaj, Senior VP, Canon India said, “There is going to be a shift in our strategy. Today, nearly 30 per cent of our sales come from the entry-level segment, but going forward the contribution will go down to 10 per cent. There will be a shift in focus towards high-end cameras and the new brand ambassador Anushka Sharma will help in creating awareness about the quality of the pictures versus that on smart phones.”
Its growth in the compact camera segment has been at 45 per cent on the back of new products, its brand stores (Canon Image Square) and a new brand ambassador. “After Sachin’s contract expired this year, we got Anushka Sharma with a new youth positioning for the brand. Our digital camera sales have grown by 45 per cent with market share increasing from 15 per cent to 25 per cent this year,’’ added Bharadwaj.
While Sachin stood for the corporate brand, Anushka Sharma would endorse compact cameras targeting the youth. “Unlike Sachin, Anushka is not being portrayed as a celebrity but as a normal youngster in the ad. While most camera brands have celebrities, the youth segment had not been addressed and we have done that with the new baseline, ‘ What makes us click’ ,”says Soumitra Karnik, National Creative Director, Dentsu India.
Sony Cybershot is the market leader of the compact camera segment with a 33 per cent share, followed by Nikon and Canon (25 per cent share each).