The Japan Times WORLD EYE REPORTS FINLAND
©THE JAPAN TIMES	Sunday, March 10, 2002

Canon bets on the Baltic and beyond

In the high-stakes game of global business, Japanese giant Canon has just upped the ante by stepping up its European expansion across the ex-Soviet Commonwealth of Independent States, a massive market with great potential. From its base in Helsinki, Canon's Finnish subsidiary Canon North-East has been overseeing operations in what is becoming one of the company's most lucrative territories. "The key issue here is logistics," remarked Hans Wickström, president of Canon North-East. He expanded on the decision to make Finland the hub for the giant multinational's CIS and Baltic region operations. "With such a large area to cover, it is imperative that we rationalize our logistics chain with a focus on the adequate and profitable supply of operations. Thus, Finland became the logical choice for a base location." Sufficient supply and intensive marketing have served the company very well in its new territory. In the first half of 2001, same-period revenues surged 45 percent, catapulting the subsidiary to a leading position in terms of sales growth within the company's global operations.

Canon North-East President Hans Wickström displays marketing savvy to capture a new market that includes ex-Soviet states.

"The CIS market is second only to Japan in personal copier sales and the leader in replacement ink-cartridges -- an excellent indicator of our market penetration in this segment," Wickström commented.

For Canon North-East, the path to success in Russia and the eastern areas lies in partnerships and alliances with local firms. "Knowledge of the local market and customs is essential for the success of any company in any region of the world," he explained. "In this respect, Finland benefits the group because of the historical, social, and economic relations with the region."

As globalization continues to sweep the planet, Canon has readily adopted its principles. Until recently, most of Canon's regional operations were managed from Japan with the concept of localization remaining somehow far-fetched. But times have changed.

"First, it was Canon in Europe and then Canon in Finland. Now, now it is Canon in Russia from Finland," recalled the company chief, who has been with Canon for 16 years. "In practice, this means we are now a group of international companies working together, rather than a Japanese company with overseas branch offices."

Along with the modern outlook comes a fresh identity. With its slogan, "Imaging Across Networks," Canon shows its current focus on digital information networks and the people they connect. Breaking away from its prevailing image as a maker of copying machines, Canon has evolved into a full service solutions provider, having recognized the multifaceted nature of the global marketplace.

"As long as we have stable markets, we will see continued success and growth both regionally and globally," Wickström commented. "Today, Canon North-East's operations extend from the Finnish border to the Kamchatka Peninsula -- even further east than Japan. In the future, we will continue to develop this market and seek to expand both the range and availability of our products here."

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