Nikon 2014 Annual Report Download - page 26

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Could you give us an overview of the fi scal
year that ended in March 2014?
In the fi scal year ended March 2014, the market for digital
cameras was sluggish and diffi cult, particularly in China
and Europe.
With economic recovery still lagging, the market for
interchangeable lens-type digital cameras struggled to gain
a foothold, and as a result sales of cameras were lower than
in the previous year.
Sales of compact digital cameras were down as well, but
since the decrease was less than that of the market as a whole,
our market share actually increased. I believe this was thanks
to our strategy of rolling out a full line of cameras, from entry
models to high-end products, which set the Nikon brand apart
from other brands, and to retailers that wanted to stock their
shelves with our brand of attractive products.
BUSINESS STRATEGY
During the fi scal year, we placed more emphasis on revenue
than on volume sold and thus, centering on the digital SLR
camera, we took a fresh approach regarding sales channels.
We also managed to aggressively slash expenses, streamline
development, design, and manufacturing, and lower supply
costs so that in spite of the sluggish market, profi ts increased.
What do you predict for the future market
environment?
As technology has matured, our products themselves can no
longer be as distinct. Consequently, price wars are becoming
fi ercer, making it essential to continuously and thoroughly
reduce costs to maintain a profi t.
Looking at different regions, Europe, particularly Russia,
has demonstrated a slow fi nancial recovery. North America is
bullish, whereas South America is struggling. In Asia, developing
countries, notably China, still have promising growth prospects,
so a gradual recovery has been made from the slump in the
fi scal year ended March 2013.
What initiatives lie ahead for the Imaging
Business Unit?
We are working on three strategies to boost profi ts in the
medium-to-long term.
The fi rst strategy is to generate market activity by introduc-
ing innovative products. This may involve working with other
companies. The second strategy is to exploit new marketing
techniques to stimulate demand. One such technique is
Interviews with Key People on the Strategy Going Forward
In this challenging market environment, we fi nd it is important
to use fl exible judgment and quick action to build up a string of
successes. We will add new value by merging user enjoyment
with the reliability of our technology and quality.
Nobuyoshi Gokyu
Senior Vice President
General Manager of Imaging Business Unit
Imaging Business Unit
Unit Sales of Interchangeable
Lens-Type Digital Cameras
(Years ended March 31)
Thousands of units
Unit Sales of Compact Digital
Cameras
(Years ended March 31)
Thousands of units
2012 2013 2014
8,000
6,000
4,000
2,000
0
4,740
6,980
5,750
2012 2013 2014
20,000
15,000
10,000
5,000
0
17,370 17,140
11,160
Imaging Products Business Refer to “Management’s Discussion and Analysis”
for details on performance. P. 48–51
24 NIKON REPORT 2014