Canon takes aim at 30% annual sales growth By Li Weitao (China Daily) Updated: 2005-09-01 09:24
Japan's Canon Inc aims to grow its sales in China by more than 30 per cent
annually in the coming years, a company executive said.
"Canon China has rapidly grown in the past few years, and the momentum is
even stronger these days," said Hideki Ozawa, president and chief executive
officer of Canon China Co Ltd.
China contributes a quarter of Canon's sales in Asia excluding Japan and
North Korea with last year's figure being US$460 million.
However, "I expect to see Canon China top the sales list of all Asian
countries in the near future," said Ozawa, who is also president of Canon Asia
Marketing Group.
Ozawa aims to more than double Canon's annual sales in China to US$1 billion
by 2007.
The bullish target is mainly based on China's robust economic growth and the
ever-expanding consumer electronics market, noted Ozawa.
US research firm IDC has forecast that China's consumer electronics market
would grow at a CAGR (compounded annual growth rate) of 20.9 per cent from 2005
to 2009.
Last year, sales of consumer electronics products in China hit 61.69 billion
yuan (US$7.62 billion), IDC's statistics showed.
In 2009, annual sales are forecast to hit 159.64 billion yuan (US$19.7
billion).
Chinese consumers, whose purchasing power is rising sharply, are increasingly
turning to big-ticket items like digital cameras which are becoming increasingly
affordable.
According to Beijing-based research firm Analysys International, 2.602
million digital cameras were sold in China last year, up 85.3 per cent
year-on-year.
Sony and Canon are the top players in the digital-camera market in China with
traditional cameras being replaced.
A rapidly-growing "digital culture" in China is producing a sizable market,
said Ozawa.
Canon last year secured government approval to sell its products directly in
China, which has given a big boost to its sales growth. Previously, all Canon
products were imported while its manufacturing facilities in China targeted only
exports.
Compared to its major rivals, Canon boasts a complete portfolio of
digital-imaging products ranging from cameras, printers and copiers to scanners.
"I hope Canon becomes the top seller in each product category in China," said
Ozawa.
Canon has developed strong brand awareness among Chinese consumers,
especially professionals, but Ozawa said the company needs to further improve
customer satisfaction by turning all products into "delightful tools."
Competition in China's digital-camera market is so intense that players such
as Hewlett-Packard and TCL have been forced to pull out of the market.
"The key to survive competition is making sure we win the trust and support
of our customers," he said.
"Canon continuously strives to understand the market and customers well, and
introduce powerful products timely," he said.
Canon last week released a total of 20 new products, which Ozawa said "are
all more stylish and functional than ever."
Establishing shops in downtown or busy shopping malls to display glitzy
digital products and woo customers has become a common tactic for
digital-product makers.
"We believe providing an enjoyable shopping environment helps differentiating
yourself, and inviting more customers to our shops," Ozawa
said.
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