Konica Minolta 2001 Annual Report Download - page 10

Konica Corporation/ Annual Report 200 1
8
REVIEW OF OPERATIONS & OUTLOOK
For the fisc al year ended Marc h 31 ,
2 0 0 1 , overall sales in this segment
totaled ¥ 1 66 .1 billion, a decrease of
1 0 .1 % from the previous year, and
operating income fell to ¥6 .9 billion, a
drop of 2 2 .5%.
In Asia, where we have undertaken
aggressive marketing ahead of
competitors to keep a tight grip on our
large share of the market, we saw
steady sales growth owing to our strong
brand name, reputation for quality and
extensive network of Konica Photo
Express minilab shops. Sales in Japan
and Western countries, on the other
hand, declined due to the rapid growth
of competitively priced digital cameras
and to the falling prices of film paper.
In Japan, we fought to maintain market
prices in the fac e of strong downward
pressure by introducing new products
such as the Konica Color New Centuria
8 0 0 Super Zoom. Despite these efforts,
however, the growing momentum
toward lower prices had an adverse
effect on sales performanc e. On a
positive note, we succeeded with our
planned efforts to reduce production
costs and fixed sales costs. Prices
dropped and sales fell in Western
countries as well, though not on the
same sc ale as in Japan.
In terms of future business
development, as the trend toward
digitization increases around the globe,
we will seek to boost sales with a two-
pronged approach that matches
conditions in different markets. First, in
Asia, where we have already established
a relatively high market share of around
3 0 % and where growth potential is
high, we will c oncentrate on selling film
papers, using our powerful brand name
and reputation for reliability to boost
sales. Second, in Japan and Western
countries, we will reinforce our efforts
to reduce costs and respond to digital
demand. Factors such as the Internet’s
growing popularity, the improved
communication infrastruc ture, and the
rapid penetration of digital cameras
have given rise to expectations that
online photo servic es will be
established, particularly in Western
countries. In North America, we have
already begun laying the groundwork
for digital photo-net print services, in
alliance with several major Internet
service providers. In Japan, we will
restruc ture our labs and reinforce our
service systems, centered on our Konica
Photo Express and Konica Digital Photo
Express minilab shops, of which there
are already more than 1,0 0 0 ac ross the
nation. We will also work to improve
our digital photo-net printing bases,
starting with expanding and refining the
digital services we offer at storefronts.
Konica has taken up the challenge to explore new business opportunities and develop
completely new products. Over the years, our pioneering spirit has yielded many
innovations, including the first brand name camera and first color film in Japan.
Consumer Imaging Company
30.5%
Net Sales
Working to Expand Asian Markets and Boost Demand for Digital Products
0
50
97 98 99 00 01
209.1 197.5 196.0 184.8 166.1
100
150
200
250
Net Sales ( ¥ billions)
Konica Color Centuria 400
To rikkiri Ko nica Mini Goody Super
Konica Digital Minila b QD-21 Super Syste m