‘Good demand for high-quality photos’

Digital camera major Canon has seen fairly consistent growth over the years, despite stiff competition from other big names. But the company has not neglected the potential of the professional photo printing business in India. Just over a year ago, Canon launched its first DreamLabo 5000 here, installing the machine with its key partner GK Vale in Bengaluru. On the occasion of installing the third machine in this market, Kazutada Kobayashi, President and CEO, Canon India, in an interview with BusinessLine spoke of the company’s plans to strategically increase its footprint in the commercial printing space while capitalising on the preference for digital photography and photo products. Edited excerpts:

Has there been significant traction for Canon in the professional printing market since the first DreamLabo 5000?

After we launched the first DreamLabo 5000 in India starting with the Bengaluru market, our observation is that the volume of prints is rapidly growing and this is obviously because of an interest from consumers for high-quality photographs and albums. We took the DreamLabo 5000 to Kochi next and this is now the third commercial machine in India, which is the second one in Bangalore.

Where is much of this business coming from?

The main subject of prints and albums is focused on weddings in India. It is very clearly a segment where people are looking for quality and are prepared to pay for it. After three machines installed in India, I’m optimistic about this market growing in the future.

How many more DreamLabo 5000 units will you install this year?

No number target for the shorter term but we know we want to capture 15 per cent of the total professional album printing market.

How has Canon set up a challenge for new entrants or others operating in this space?

This is really like an inaugural period for high-quality, high-definition digital photography and printing in India. And this can be anybody’s game. We have many ways of printing photos and the traditional silver halide way is one of them, and there is inkjet technology for commercial printing. We have to see how the market grows and how it will orient itself. There is also likely to be a price-cost evolution and I want to watch it carefully for the next one to two years.

Are consumers really catching on to the difference between silver halide technology and new technology in the photo printing space?

One of the key factors is that the DreamLabo 5000 is not chemical-centred and hence does not affect the environment with emissions. Nothing is managed 100 per cent in a day. But obviously GK Vale has had print volume growing. They are a B2C business with consumers already connected to the brand, and hence consumers are watching and making a move towards the digital photo print.

A specialised machine means you have to train partners and vendors and their staff.

The machine costs about ₹3 crore, so obviously the investment to train people is proportionate; at least 10-15 per cent of the machine cost. We want our clients to be able to use the DreamLabo 5000 well and it has to be in good technical condition. Where else will the DreamLabo 5000 make a difference?

With GK Vale and ARD FOTO, the focus is on the photo album and its printing. But we intend to play a big way in the commercial printing segment. So think of brochures, posters and promotional items of that sort in a range of sizes.

You hope for more traction with the corporate segment...

We’ve had other kinds of machines serving the corporate segment, so we have been lucky with commercial printing. The market is already growing at 15 per cent YoY and that is a good number for us to pursue.