Canon 2004 Annual Report Download - page 16

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14
Sales by Region (2004)
Europe
31%
Other
areas
13% Japan
25%
The Americas
31%
Canon is nearing the completion of structural reforms in its sales companies
around the world. Going forward, we believe we will reap the full benefits
of these reforms through enhanced sales power and efficiency.
Fujio Mitarai
Canon is actively developing business activities in Russia
.
A Canon Corner at a Staples office supply store in the United States
CORPORATE FUNCTIONS
SALES & MARKETING
Canon’s Global Sales Structure
for the New Era
In 1955, Canon’s international deployment
began with the establishment of a branch
in New York, which was followed in 1957
with a sales branch in Europe.
We now have 98 consolidated
marketing subsidiaries worldwide.
Canon sells its products mainly through
these
subsidiaries, each of which takes
responsibility
for serving a defined
geographic territory. Each also undertakes
its own market research, and determines
its sales channels and advertising and
promotional activities.
Canon is presently implementing a
global sales headquarters system divided
into five regions. Under this system, the
head office provides general supervision
to reinforce the operations of marketing
companies in the Americas, Europe, Asia
outside Japan, Oceania and Japan.
The Americas
Consolidated sales in the Americas amounted
to ¥1,059 billion (US$10,187 million).
Headquartered in New York, Canon
U.S.A., Inc. markets an extensive product
line and digital solutions that enable
businesses and consumers in the
Americas to capture, store, and distribute
information. In 2004, initiatives to
strengthen marketing capabilities included
further enhancing relationships with
leading dealers and retailers.
In the office imaging products field,
sales of color machines doubled over
the previous year, and monochrome
copying machines maintained the No.1
brand position in all subsegments for the
third consecutive year. Among consumer
products, sales of digital cameras contin-
ued to record rapid growth. Looking
forward, in 2005 and subsequent years,
we expect to draw on our human and
capital resources to acquire promising
technologies and products in the region.
Europe
Canon Europe’s 2004 consolidated net
sales were ¥1,093 billion (US$10,512
million). By geographic area, sales in
Europe exceeded those in the Americas
and became our largest market. At
present, Canon Europe employs more
than 12,000 people across 19 countries.
In 2004, 10 countries were newly
admitted to the EU, bringing the total
membership to 25. The market growth
in Eastern Europe and Russia contributed
to the European market’s expansion.
In November 2004, following approximately
two years of development work, we
began the operation of our pan-European
integrated information system. The
capabilities of this system are extensive
and include not only accounting and
personnel matters, but also logistics, sales,
and our copying machine service
business. We anticipate this system will
contribute to consistency, uniformity,
and transparency as well as faster decision
making. Over the next two years, we plan
to introduce this system in all our sales
companies in Europe.
Moreover, we moved forward with
the consolidation of our logistics activities
with the goal of implementing a pan-
European distribution structure.
Japan and Asia, Oceania
By geographic segment, sales in Japan
amounted to ¥850 billion (US$8,171
million) and Other areas reported sales
of ¥465 billion (US$4,475 million).