The Hindu Business Line : Yashica to focus on digital camera market

In the last two months, the Indian market has witnessed a sudden boom in new models of low-priced digital cameras. The technology savvy middle class has given an impetus to the product, which otherwise is dominated by conventional cameras, said Mr Morihiro Akasaki, Managing Director of Yashica, Hong Kong Co Ltd.

With dynamic changes in technology and prices of digital cameras touching almost Rs 15,000 in the last two months, Yashica is mulling the right price points for its latest products.

"India is a price-sensitive market. With competition stiffening, right pricing is imperative to penetrate the market," Mr Akasaki said.

At present, Yashica has only a nominal presence in the digital camera market, he added.

The market for conventional cameras in India is stable at 7.5 lakh, and digital camera sales are increasing fast.

This year, all brands sold about 1.5 lakh digital cameras. It is estimated to double every year to reach six lakh in 2007. The number can touch even one million, if only the duty and tax structures were rationalised, Mr Akasaki said

A digital camera attracts a compounded duty structure of 35 per cent. A 12.5 per cent VAT has also pushed up its cost.

Yashica markets its products through Harmony, part of the Dubai-based Jashanmal Group, which had a turnover of Rs 5 crore last year.

Yashica introduced a few digital models in June at Rs 15,000 plus.

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