Canon Inc., which is one of the world’s leading camera makers, is thinking beyond the present turbulent period it is going through as its operating profit did not only go slightly down in March quarter, but the last year’s performance was also not quite satisfactory. The reasons were very simple. Firstly, last year earthquake sent a shockwave through the economy. Secondly, the appreciating value of Yen is upsetting the exporting sector. These two factors dented the sale of Canon offers considerably.
The company’s net sales decreased four per cent year on year to $45.6 billion while gross profit came down 2.6 per cent to $22 billion and operating profit slid 2.4 per cent to $4.8 billion. For the ongoing year, the company’s strategies focus on to enhance the sales of its popular offers—products that were well received by the customers in 2011, according to the company’s annual report 2011.
Expansion is planned in the commercial sector owing to growing
demand of imaging solutions in the motion industry. It has been found that digital camcorders with superior image resolution are very popular in Hollywood and other showbiz industries.
Last year the company rolled out Cinema EOS System that includes cameras and lenses for movie production.
Understandably, it wants to cash in on the growing popularity of the system for a longer period.
In the same way, healthcare solutions and medical equipments that are the important business segments of veteran Canon will continue to be the main Canon offers. Especially, digital radiography system will stay on the frontline of sale in the healthcare marketplace.
As far as consumer unit is concerned, Canon deals of this year happen to elate the mood of photography enthusiasts who seek out desperately high resolution picture quality.
The company will leverage its specialties of high resolution and high definition technologies to enhance sales this year.
DreamLabo 5000, the commercial photo printer, has proved a spectacular addition in the product line in the retail photo finishing service market. Along with other components, photo albums and photo prints will continue to be some of the sale driving forces.
Growing demand of compact digital cameras
In 2011, demand for digital SLR cameras depicted robust growth across the globe. Single-Lens-Reflex (SLR) cameras are famous for their distinctions in capturing. It is worthwhile to mention that sale of digital cameras registered marginal growth worldwide.
Canon is confronted with the cut-throat competition in this particular segment.
It was marginal in a sense that demand for compact digital cameras rose significantly in the emerging economies, but it remained sluggish in developed economies. However, sale is expected to grow this year.
Canon’s major sale takes place in Europe, Middle East, and Africa (31.3 per cent of consolidated net sales). Americas is the second region in this regard with share of 27 per cent. Asia and Oceania generates 19.5 per cent of consolidated net sales.
The challenges to sale are multiple and emanating from different areas: competition, strong Yen, and Europe crisis that impacts consumer confidence and buying power. The company realizes that it has to build up optimum cost structure to curb yen’s pressure.
Special prices can reignite buying. A canon discount is always inviting after all.
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Tariq Saeedi is a couponing industry’s analyst holding journalism and marketing degrees and contributing articles to digital and print media. Visit Dealaboo.com for Buy Canon Offers.
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