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Digital cameras, film cameras, interchangeable lenses, speedlights, film scanners, accessories, software
Net Sales
Operating Income
The market of digital SLR cameras is expected to continue to expand, focused on Asia. Compact digital cameras have become widespread in developed countries, and the market is expected to grow only slightly on a unit basis. We anticipate risks in the digital camera market stemming from ever more intense competition, and appreciation of the yen.
Shipment Units
Shipment Amounts
| * | Shipment units=domestic shipment units+export units (member manufacturers only) Shipment amounts=domestic shipment amounts+export amounts (member manufacturers only) |
Shipment Units
Shipment Amounts
| * | Shipment units=domestic shipment units+export units (member manufacturers only) Shipment amounts=domestic shipment amounts+export amounts (member manufacturers only) |
Shipment units of Nikon imaging products (Sales & Forecast)
| Q1: | What were the business results and principal activities in the Imaging Company during the fiscal year ended March 2010? |
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| A1: | The digital camera market showed signs of recovery from the second half of the fiscal year ended March 2010. Because of the appreciation of the yen, however, the Imaging Company's segment sales declined 4.5% from the previous fiscal year to ¥569,465 million. Operating income, on the other hand, improved significantly, jumping 30.2% to¥52,117 million, due to the scaling back of expenses, streamlining of procurement and other cost reduction measures. The market for digital SLR cameras was flat during the first half as in the corresponding period of the previous year, but began rising during the second half. The compact digital camera market, which had been on the decline, also recovered during the second half. Amid such market conditions, unit sales of digital SLR cameras expanded 7% from the previous fiscal year, as sales recovered in the second half of the year. Growth stemmed mainly from the popularity of new models such as D3S, our new flagship model launched in November 2009 that offers ISO 12800 as standard, together with popular models such as D3000 and D5000. The rise in unit sales of compact digital cameras was centered on the COOLPIX S220 model, which combines exceptional performance with sleek design. We also provided a new way to enjoy images with the launch of COOLPIX S1000pj, a compact digital camera with the world's first* ultra-small built-in projector. While the compact digital camera market overall recorded a year-on-year decline on a shipment basis, Nikon achieved an 11% increase in unit sales with the introduction of attractive new products, and healthy sales in the United States and China. In interchangeable lenses, sales were steady for both camera kits and high-priced lenses, and the cumulative production of the NIKKOR lens for SLR cameras reached 50 million units in August 2009. Total production volume had hit 45 million units in August 2008, showing a total of five million units manufactured in just one year. Concurrently, Nikon moved forward with efforts to establish a production system able to withstand further appreciation of the yen. We acquired a capital stake in the Malaysian precision component manufacturer Notion VTec Berhad, and took other steps to expand overseas manufacturing and procurement in foreign currency. We also continued to bolster manufacturing capabilities, cut costs and enhance asset efficiency. Note: * Among digital cameras as of August 4, 2009 (according to research conducted by Nikon Corporation). |
Yasuyuki Okamoto
Director, Member of the Board & Executive Officer,President of Imaging Company
| Q2: | What is your forecast for the digital camera market, and what measures are you implementing? |
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| A2: | The scale of the digital SLR camera market exceeded 10 million units in the fiscal year ended March 2010, and is expected to increase further during the next fiscal year. Nikon will continue to respond to the wide range of consumer needs by introducing products that exceed customer expectations, and pursuing a "full lineup" product strategy incorporating models for everyone from beginners to professionals. We are forecasting a steady expansion in unit sales of digital SLR cameras in the fiscal year ending March 2011.
Compact digital cameras have become widespread in developed countries, and the market is expected to grow only slightly during the fiscal year ending March 2011. Nikon offers a broad lineup of products for everyone from beginners to camera enthusiasts, and will introduce distinctive products that accentuate the quality of a camera's basic functions. We are forecasting mild growth in unit sales of compact digital cameras in the fiscal year ending March 2011. |
| Q3: | What issues do you anticipate in the promising markets of newly emerging nations? |
| A3: | Newly emerging countries exhibiting remarkable economic growth remain promising markets for both digital SLR cameras and compact digital cameras. However, we need to properly grasp the market needs in each country, and establish the Nikon brand image beyond what we already have achieved in those areas. Our strength in newly emerging countries will lie with the brand appeal developed up to now, together with an enhanced corporate structure that includes management of local subsidiaries.
Nikon has put considerable effort into establishing direct sales structures in newly emerging markets, setting up local subsidiaries in India in 2007, Russia in 2008, and Mexico in 2009. Particularly in China and India, we have focused on steadily expanding our sales networks and establishing our brand image, and sales have grown accordingly. In China, Nikon is in a position to contend for the leading market share for digital SLR cameras, while in compact digital cameras we have maintained a greater than 10% share of the market and enhanced it. We have also placed priority on establishing the Nikon brand in other newly emerging countries, and are working hard to ensure success. |
| Q4: | What strategies are you adopting for new growth? |
| A4: | The Imaging Company is currently considering a number of measures for new growth. Throughout this process, we must first assess whether the expectations placed on Nikon by "Nikon fans" are reflected properly in our growth strategies, and develop those strategies accordingly. We will shore up regions and sales locations where Nikon's sales strength is weak and develop marketing strategies targeting new customer segments such as young people and women. We will improve cost-competitiveness and earnings capacity through efforts including bolstering of overseas production and procurement, and secure the personnel able to cultivate new markets and develop cutting-edge technologies. We will also continue to focus on developing new generation digital cameras based on fresh ideas and concepts.
The Nikon brand image has won high regard around the world as a symbol of advanced Japanese technology. We take pride in the fact that it is one of the leading Japanese brands. We need to further enhance the value of this brand in developed countries, and establish it firmly in newly emerging countries. To accomplish this, we will introduce products that consistently meet customer expectations, and undertake aggressive marketing efforts to secure Nikon's strength. |
