Nikon to Set Sights on DSLR Cameras
By Cho Jin-seo
Staff Reporter
The growing popularity of digital single-reflex lens (DSLR) cameras boosted Nikon's sales in Korea by around 50 percent this year and the momentum will continue over the next three to four years, the firm's president Noriaki Yamaguchi said Friday.
The Japanese camera maker said that while the market for point-and-shoot compact cameras is already saturated at around 2.2 million units sold in Korea annually, the market of more professional DSLR cameras has grown by around 20 percent to 250,000 units this year.
DSLR is the type of camera used by professional photographers and photo journalists for studio and field shoot. They are bulkier and trickier to handle than compact cameras, but are becoming increasingly popular among non-professional photographers, too.
``The DSLR sector will continue to expand for the next three to four years,'' Yamaguchi said in a press conference held in Yeouido, Seoul, Friday. ``Our strategy is to specialize in this sector, where we have an edge.''
This month, the firm is launching two top-end flagship models ― D300 (1.5 million won) and D3 (3 million won) ― to catch up with the market leader Canon. Only 4,000 luxury cameras are sold a year here for all brands, but they have a big impact on the firms' sales because consumers view these super cameras as a barometer of a firm's technological prowess.
DSLR also generates additional revenue for firms by selling lenses and accessories, which are sometimes more expensive than the camera itself. About a quarter of Nikon's revenue comes from accessories, an official said.
Nikon established its Korean operation in April 2006. Its annual revenue was 90 billion won for its first financial year that ended in March 2007. The company's sales are expected to grow by 50 percent this year and by around 25 to 30 percent next year, Yamaguchi predicted.
Fashionable consumer electronics brands such as Sony, Olympus and Samsung are doing well in the Korean digital camera market. But as for the DSLR market, the two traditional powerhouses Canon and Nikon have enjoyed an unmatched power.
To take a share of the pie, Samsung Electronics, the Korean electronics giant, recently forged a close partnership with Samsung Techwin to develop its own DSLR model. Samsung Techwin is the market leader in the compact camera sector. Yamaguchi, however, sounded as if his firm is not seriously concerned about Samsung's initiative in the local market.
``I don't want to comment on other companies' strategies… but the market cannot be monopolized anyway. A healthy competition can shed more light on the market,'' Yamaguchi said.
Canon still rules the DSLR sector with its popular EOS series. But the firm has recently been hit by some bad publicity in Korea, mostly due to complaints from consumers about product defects and poor repaire services.