By Kim Tong-hyung
HONG KONG ― Japan dominates the photographic industry like it does the world of sushi. But that hasn’t kept Korea’s Samsung Electronics from attempting to put itself in the frame for camera making, and now the company claims it finally has the products to tweak the industry’s hierarchy.
Digital cameras are one of the rare areas where the Korean technology giant admits it has been underachieving and strengthening its market position will be crucial for the company, which hopes cameras will bridge an entry in the markets for medical devices and other businesses based on optical technology.
In April, Samsung emerged with Samsung Digital Imaging, an affiliated company that had been producing digital cameras and imaging technologies, to enhance the competitiveness of its digital camera business and maximize operational and technological synergies with the company’s other consumer electronics units.
Samsung admits that a technology gap still exists between itself and established names like Canon, Nikon and Sony, and any disparity in skills would loom large in the precision world of cameras.
However, the Koreans have managed to dramatically enhance their reputation in the compact point-and-shoot cameras recently, thanks to the popularity of its ``dual-view’’ cameras like the ST600, whose sales are expected to reach 5 million by the end of the year.
These models, which account as Samsungs’ first true global hit in cameras, are distinguished by the liquid crystal display (LCD) screens both on the back and front, and appear to have struck a chord with the Facebook generation. Samsung’s share in the compact digital camera market currently stands just below 12 percent, which is good for third in the segment behind Canon and Sony.
But can Samsung make a similar buzz in the more lucrative market for lens-swappers, which is ruled by the Japanese duo of Canon and Nikon and flanked by other proud brands like Sony, Olympus and Panasonic?
Samsung officials say the company can’t afford not to and is betting heavily in the quickly-rising market of interchangeable lens, mirrorless cameras that seek to blend the image quality and speed of a digital single-lens reflex (DSLR) camera with the smaller body of a point-and-shooter.
In a lavish launch event in Hong Kong recently, Samsung revealed the NX100, the latest model in the company’s NX series of mirrorless cameras and the successor to the well-reviewed NX10 that debuted in March.
The NX100 is the latest addition to the increasingly crowded market for compacts with switchable lenses, including the ``Micro Four Thirds’’ format cameras pushed by Panasonic and Olympus and Sony’s NEX range of cameras. Samsung believes that its newest camera could become a standout product for its easy-to-use controls and friendly interface that reflects the company’s prowess in other consumer electronics products like mobile phones.
Mirrorless cameras refer to the high-quality compact shooters, which have interchangeable lenses, just like DSLRs, but without the bulky mirror and prism system used to look through the lens. Framing is done with an electronic viewfinder or a liquid crystal display (LCD) screen on the back of the camera.
A bright start in Asia will be crucial for Samsung, and this is why it chose Hong Kong as the launch site for the NX100. While there obviously are bigger markets in the region, the reaction from tech-savvy Hong Kong consumers may prove to be an indicator of what the company could expect as it penetrates China and other Southeast Asian markets.
Alex Chung, a director of consumer electronics at Samsung Electronics Hong Kong, says that the company is inspired by the better-than-expected sales of the NX10 released in Hong Kong earlier this year, which he says appears to have upped the expectations among locals for the NX100.
According to Chung, the NX10 is currently the fourth or fifth-best selling mirrorless camera in Hong Kong among the dozen or more models available on shelves, which also include products from Sony, Panasonic and Olympus.
This is only enough to account for a presence in the low single-digits in Hong Kong’s interchangeable lens camera market, but Chung could see the NX100 and other upcoming mirrorless models ``double or even triple’’ Samsung’s share by the end of next year.
It remains to be seen whether mirrorless cameras will become a mainstream product in the market for interchangeable lens cameras, where DSLRs reign supreme, but the consumer response in Hong Kong at least has been inspiring.
About 10,000 mirrorless cameras were sold in Hong Kong last year, but the size of the market is expected to grow to 80,000 this year and over 200,000 by the end of next year, Chung said.
``Considering that we didn’t have a presence in the interchangeable lens camera market last year, our start with the NX10 has been satisfying. This has also resulted in an anticipation for the NX100 among Hong Kong’s `mania’ users,’’ said Chung as he led Korean journalists on a tour of electronics shops at the Times Square department store in Causeway Bay.
``The dual view cameras have been selling particularly well here ― our market share in compact cameras are now around 15 percent, which is double our market share at this time last year and third behind Canon and Sony.
``You can see the NX10 and other Samsung cameras at any camera store in Hong Kong and this wasn’t the case just two years ago. The success of the dual-view cameras have allowed Samsung to build a reputation for premium products and consumers here have expectations of innovation, quality and fashionable designs for Samsung cameras. We believe the NX100 will be seen as a desirable product as well.’’
Although Samsung’s camera business has a lot of room left for growth, the company is enjoying stronger positions in the markets for mobile phones and flat-screen televisions. Samsung controls more than 30 percent of Hong Kong’s television market and is the second-most popular handset brand behind Nokia, and Chung says that the company’s reputation in these markets is helping it in the camera business.