Nikon 2009 Annual Report Download - page 15

Review of the Year Ended March 2009
In digital SLR cameras, in September 2008 Nikon
launched its mid-range model D90, the world’s first*1
digital SLR camera with the “D-Movie” movie function.
We further enhanced the product lineup in December
with the flagship model D3X, which offers high-definition,
superior-quality images with 24.5 effective megapixels.
In compact digital cameras, sales were positive, mainly
in the North America region. Sales volume exceeded
10 million units for the period, following the launch in
March 2009 of COOLPIX P90, offering a 24x opti-
cal zoom function, and the new S series products that
combine functionality with stylish design, such as the
COOLPIX S620 featuring the fastest start-up time in its
class.*2 These new products helped to bolster Nikon’s
brand appeal in the compact digital camera market.
Interchangeable lens sales rose as the NIKKOR lens
celebrated its 75th anniversary. Lenses sold in kit with
digital SLR cameras performed strongly, with solid sales
of high-value-added, high-priced lenses following
enhancement to the lineup of digital SLR cameras for
professionals and advanced amateurs.
Notes:
1. As of August 27, 2008, according to research conducted by Nikon Corporation.
2. Among compact cameras equipped with 28 mm (35 mm format equivalent)
zoom lens and optical vibration reduction; as of February 3, 2009 (according
to research conducted by Nikon Corporation).
Speed and Strategy behind Strong Sales
of Digital Cameras
Nikon’s quick response to user needs was one of the
reasons that sales of compact digital cameras grew signifi-
cantly faster than the market during the subject fiscal year.
Specifically, we were quick to detect shifts in the market
and changing lifestyles, and were able to plan and develop
products to meet the needs of customers, then produce
and market them in an extremely short period of time.
Nikon is working consistently to shorten the period from
planning to product launch, and this speed that allows us
to offer in a timely manner the products customers seek is
what led to the jump in sales for compact digital cameras.
Nikon has also consistently been one of the leaders in
market share for digital SLR cameras. We had a scenario
in which we create a market where there was none before,
expand that market, and ensure that Nikon digital SLR
cameras have a commanding presence. Put another way,
“speed” and “strategy” have been the keywords that
underpin our growth.
Expanding into Overseas Markets and Dealing
with the Strong Yen
More than 80% of the Imaging Company’s sales are in
overseas markets, a natural proportion that reflects the
relative scale of markets around the world. Expansion
into newly emerging markets is extremely important for
Nikon’s continued growth, and we focus particularly on
those markets with significant growth potential. These
include China, which we expect will be on a par with
the Japanese market in terms of sales volume, and Russia
and India, where we have established a sales and service
subsidiary, as well as the countries of Central and
South America.
MARKET ENVIRONMENT AND BUSINESS TRENDS
Over the medium term, we expect sales of digital SLR cameras to continue to grow on both a volume and value basis,
on the back of functional enhancement, diversification in product concepts, and expansion in newly emerging markets.
For compact digital cameras, sales in developed countries are centered on replacement demand, while we anticipate that
sales volume will increase as newly emerging markets expand, but that sales will remain flat on a value basis.
Net Sales
(Millions of yen)
Years ended March 31
596,468
586,147
448,825
200920082007
Operating Income
(Millions of yen)
Years ended March 31
40,039
83,974
45,678
200920082007
Nikon Annual Report 2009 13