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Technology Special: Canon's focus firmly on top of printer market
By Xiao Wang (China Daily)
Updated: 2009-05-15 08:04 The H1N1 virus may scare many, but definitely not Katsuichi Shimizu. As the chief executive of Canon's Inkjet Products Operations, the 62-year-old flew to Chengdu on May 9, the same day as the mainland's first confirmed H1N1 patient arrived in the western Chinese city. Three days later, when the second H1N1 flu case was confirmed in Shandong province, Shimizu continued his trip to Xi'an to meet local partners, with no thought of retreat. "China is the market that everybody is hoping for amid the current economic downturn, so we will not cancel my schedule," said Shimizu. Hit by the global economic downturn, Canon's net profit dropped 37 percent last year. Shrinking profit margins, a stronger yen and plunging demand in mature markets have certainly not helped Canon, which is renowned as one of the world's largest printer makers.
However, Shimizu said his company plans to greatly expand its business in China this year as China's economy and the government's 4 trillion yuan stimulus plan will continue to create demand. "We are expecting at least 18 percent growth this year in China with our printer business," he said. As the third player after HP and Epson in China, Canon's performance in the country's printer market has long lagged behind its dominant position in the nation's digital camera sales, which give the company about 30 percent market share. But Shimizu said his company is now planning to significantly boost its printer business in the country. "The Chinese government's efforts to stimulate economic development in the western regions are expected to create huge opportunities for us," said Shimizu. "We plan to aggressively boost our presence in the government sector and large corporations in the next few years." According to the figures from The CCID Consulting, a domestic research firm, printer shipments to China declined 3.4 percent to 7.7 million units last year. But it estimated that demand for printers in the transportation, education and healthcare sectors will continue to see a 5 percent growth in the next couple of years. Shimizu said Canon will focus on valuable consumers that bring continuing revenue to the company. "If a customer only buys our printer but doesn't use our consumables, it might make little contribution to our business," he said, noting that the company plans to strengthen its partnerships with local distributors to identify its most beneficial customers. Shimizu said urban residents are among Canon's prime target consumers, although some of its competitors including HP are starting to tap into the rural market. "Because we are still a smaller player, our strategy is to target the most valuable customers," Shimizu said. He said Canon plans to enlarge its market share by releasing products that meet demands of different consumer groups. (China Daily 05/15/2009 page14) |
