Nikon 2013 Annual Report Download - page 19

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REVIEW OF OPERATIONS: IMAGING COMPANY
17
NIKON CORPORATION A N N U A L R E P O R T 2 0 13
Interchangeable Lens-type
Advanced Digital Camera
Nikon 1 J3
Compact Digital Camera
COOLPIX A
Compact Digital Cameras: Enhance Brand
Power, Maintain Full Lineup Strategy
We anticipate negative growth in the fiscal year
ending March 2014, due to the growing use of
smartphones with camera functions. Over the long
term, we see the smartphone market expansion
as an opportunity: many people become more
interested in photography once they start taking
pictures with smartphones.
Nikon plans to secure continued profitability by
pursuing earnings-oriented strategies for compact
digital cameras. We will implement a flexible
product lineup strategy to match market scale and
characteristics, and strengthen our position as a
major player in the market. Under our Medium Term
Management Plan, we aim to achieve a 25% to 30%
share of the market by the fiscal year ending March
2016. We believe that compact digital cameras play
an important role in enhancing the value of the Nikon
brand and, during the fiscal year ended March 2013,
made great strides in expanding the Nikon brand.
We focused particularly on those markets for compact
digital cameras in which our position had been
considered weak, such as Central and South America,
the Middle East, and certain countries in Asia. This
helped to expand our overall market share. Since
emerging countries are also potential markets, we will
continue to take steps to expand our brand there.
Nikon offers compact digital cameras that
are distinct from the lineups of competitors. We
offer models that parents and children can enjoy
together, waterproof outdoor models, ultra-high
ratio zoom models, and high-end models that
incorporate a DX format CMOS sensor. While
formulating product development plans from a
profitability perspective, we will continue to bring
attractive new products to market as part of our
full lineup strategy.
Fiscal Year Ending March 2016:
Enhanced Market Position, Operating Profit
Margin of 15%
For its new Medium Term Management Plan goal,
the Imaging Company is aiming for an operating
profit margin of 15% by the fiscal year ending
March 2016. As the first step, we are determined
to achieve a double-digit operating profit margin
for the fiscal year ending March 2014. To this end,
the Company will make every effort to implement
reforms from the upstream design process, expand
the adoption of platforms, enhance the level of
manufacturing capability, and further strengthen
our marketing structure.
Nikon’s position in the camera market, its brand
image, as well as its product development and
sales capabilities have unquestionably reached
record high levels. We will continue to focus on
market trends and to function as a team, faithfully
implementing initiatives to achieve our goals.