Nikon India, subsidiary of the Japanese imaging technology major Nikon Corporation, is eyeing smalltown India for growth.

To this end, its retail expansion will be largely focused on tier-2 and tier-3 towns, said the company's Managing Director, Mr Hiroshi Takashina, in conversation with Business Line.

Nikon India is looking to expand its presence to 2,400 channel partners by March 2012, up from 2,000 currently.

The company will also expand its shop-in-shops or ‘Zones' from 81 at present to 110 in the same period.

Mr Takashina explained that Nikon, a late entrant to the market in 2007, was focused on setting up the service network in year one.

It started with its distribution network in 2008, and moved from a national to a regional distribution model in 2009.

He added, “We have 70 per cent of our sales from the metros and large cities. But there is a huge opportunity in the smaller towns. Now, we have a strong presence in large cities and we see most of the retail expansion in tier-2 and tier-3 cities.”

Upgrading on Value

The company has also been engaging photography enthusiasts with short-term courses in digital SLR photography at the Nikon School. Courses started off in Delhi in 2009, and were extended to Mumbai and Bangalore. The initiative will move to Kolkata soon.

Besides basics, wildlife, nature and fashion photography are being taught. Outdoor workshops at the Jim Corbett Park and in Kerala have been held so far.

Admittedly, the engagement aids the upgrade of users from compact cameras to the digital SLRs.

“Business is important, but the workshops also reflect the Nikon philosophy — we want to be part of the Indian photography culture,” said the Nikon India MD.

The company is set to achieve a turnover of Rs 900 crore in the year ending March 2012, according to its MD, up from Rs 450 crore the previous year.

Nikon claims to have 55 per cent volume share of the digital SLR (DSLR) market, which saw one lakh units sold last financial year, and is expected to register 60 per cent growth, said Mr Takashina. DSLR cameras from Nikon are priced between Rs 25,450 and Rs 5.25 lakh.

In the lower value compact cameras segment, Nikon expects to have a 25 per cent volume share in 2011-12, up from 20 per cent a year ago.

The compact segment in India is expected to grow from 24 lakh units in FY '11 to 32 lakh units this financial year, estimates Nikon.

Rs 20-cr festival push

The festival season around Ganesh Chaturthi and Diwali accounts for close to 30 per cent of Nikon's annual sales, and is one of the two peak seasons for the category (the other being summer), said Mr Takashina.

To cash in, the company is embarking on a marketing push involving an integrated campaign.

The print campaign has been launched, and the television commercial also featuring ambassador Priyanka Chopra will break on September 23.

Nikon, which doubled its marketing budget to Rs 120 crore for 2011-12, has allocated Rs 20 crore for this festival period.

comment COMMENT NOW