Subdued demand outlook and stiff price competition have led Canon India to reduce camera prices by 10 per cent beginning Wednesday. Price cuts have been initiated across 16 models that include 13 mid- and entry-level cameras and 3 digital SLRs (DSLR).
Canon India is a subsidiary of Canon Singapore Pte Ltd and had clocked revenues of nearly Rs 1,525 crore in 2011.
According to Alok Bharadwaj, Senior Vice-President, Canon India, prices have been cut between Rs 500 and Rs 11,000.
“Prices have gone down following depressed market conditions. Moreover, new models have been launched in the market leading to a reduction in price of some of existing ones,” he said. Canon today launched its new range of six cameras ahead of the festive season.
Following price cuts, the company’s entry-level cameras will now cost around Rs 4,000 while entry-level DSLRs will be priced Rs 25,000.
Bharadwaj maintained that in the last one year; growth in the compact camera segment has been six per cent and the DSLR segment has been good. Growth across the digital camera market stood at 30 per cent over the last four years.
The company was banking on increasing sales in the higher-end segments as well as on the increasing replacement sales market.
Currently, the DSLR range contributes 40 per cent towards Canon’s top line while the remaining 60 per cent from its compact camera range. A chunk is also from accessories that include lenses.
According to Bharadwaj, the company would re-position its entry level camera range following increasing competition from smart phone makers. The company would also shore up its advertisement spends to increase market penetration.
Ad-spends are expected to go up by nearly 28 per cent to Rs 102 crore compared with Rs 80 crore last year.