Business

Saturday May 9, 2009

Still clicking away in a downturn

By EILEEN HEE


THE camera market is unlikely to contract this year even though sluggish economic conditions threaten to dampen consumer demand.

Industry players say that while many signs indicate a challenging year ahead, the notion that the camera market is losing ground isn’t accurate.

Most say the overall short-term outlook is positive. Though the outlook may turn increasingly murky, sales are still holding up for now, as consumers would still need some form of entertainment.

Yong Kee Nyap

Olympus Malaysia assistant manager (digital imaging division) Yong Kee Nyap says cameras can be positioned as leisure products.

However, he adds its latest forecast indicates that the company will not be able to repeat its FY07/08 results, which marked an all-time record since it started operations in Malaysia in 2001.

“Olympus Malaysia is still doing relatively well, especially in our TOUGH camera series (previously known as SW series),” he tells StarBizWeek.

He says three years ago, Olympus created a new category of cameras, which enable consumers to capture moments in extreme conditions.

“We were the pioneers in this category and it was exclusively from Olympus. As our technology improved, besides the shock-proof and waterproof features, we have also incorporated even more new ones like freeze-proof, crush-proof and shake-proof,” he says.

Yong says the TOUGH category had done so well that, in 2009, it foresees more players entering this category. He adds that competition bodes well for the industry.

According to him, the trend today is undoubtedly digital.

“Amongst the Internet generation, the digital camera has become a priceless and personal product, almost a necessity,” he says.

“This is where our business opportunity lies,” he says, adding that Olympus sees the trend moving from “reproduction” to “creative expression”.

He says based on market research, there is a growing trend that photos are not only captured to reproduce what they see, but are able to express creatively how one feels.

“Just look at the vast number of photos being posted on blogs, forums and social network sites,” he says.

At present, the company has a market share of 18%. “Our short-term target is to improve it to 20% and long term target to achieve 25%,” Yong says.

“This year, we foresee that the foreign tourist arrivals will be reduced but this will be compensated by an increase in domestic travel. Professionals, however, will most likely delay upgrading their camera systems,” he says.

Meanwhile, Nikon (M) Sdn Bhd marketing manager David Ng says that Nikon sales have not been affected by the slowing economy.

“We are confident on the strong movement of DSLR (digital single-lens reflex) camera sales despite a slowdown in digital compact camera growth,” he says.

However, he says that according to an independent research agency, digital still cameras may experience a nominal sales growth of 2% to 3% this year.

“So far, most of Nikon’s products are still growing steadily and some are performing above our estimations,” he says.

Ng says response to Nikon’s events and festive sales has been good and up to its expec tations but he foresees challenging months ahead as the global downturn has yet to improve.

However, he says, the company is still aggressively expanding its distribution network.

“The independent research data indicated that there is encouraging increase in the sales of DSLR year after year.

“As for the compact segment, the prevailing better technology and affordable prices will continue to dominate the mass consumer market,” he adds.

Canon Malaysia is also optimistic about its sales performance this year.

“We have weathered at least three downturns since our inception and we have planned out our strategies clearly to achieve a 10% growth,” says assistant director of Canon’s image communication product division, Simon Wong.

“Canon’s camera division is setting itself a target to contribute 33% to Canon’s overall earnings this year. We are expecting a 10% growth for Canon overall with an increase in revenue to RM750mil,” he says.

He says the company is confident of this growth as cameras are a necessity for businesses and individuals.

“Also, with the strategy to look at new market segments, we will be expanding our reach geographically and demographically. Most importantly, we are injecting larger range of products like the recent launch of 9 IXUS and PowerShot models,” he says.

He says the camera market is shifting towards a much younger age bracket when it comes to digital compacts while the more “mature” group has already shifted to pro cameras.

“If you notice, there are more people taking up photography as a hobby or career,” Wong says.

He says photography has become a lifestyle and cameras are a crucial tool.

“The market is still booming and will continue to do for years to come,” he says.

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