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In step with the digital revolution
The Swiss subsidiary's performance is not surprising when one considers that the country has among the highest per capita income in Europe. Being more affluent than their regional neighbors, the Swiss have developed a greater fondness for high-end goods. Company president Hideo Ebihara says Nikon has chosen to push its high-end cameras and products in the Swiss market, unlike the case in France, Spain, and Italy where consumers are either not as affluent or display distinct preferences. Although business among professional customers grows steadily, individual consumers continue to account for 90 percent of turnover. With general consumption heading towards digital cameras, Nikon has chosen to take the lead. But, it remains strong in the traditional SLR (single lens reflex) market. "In the past, film camera sales used to be number one but now, digital camera sales are overtaking them. Next year, digital camera sales will probably be higher than traditional film camera sales," says Ebihara. "Of course, the film camera will never die. It will survive but the digital camera is biting off an increasing portion of the market." Although it faces strong competition in the digital camera market from other Japanese makers such as Sony, Casio and JVC, Nikon has remained at the top of the Swiss market in terms of sales and market share. Within just one year, Nikon nearly tripled its market share in the digital camera market from 9 percent to 26 percent this year, edging out its main rival. Ebihra explains that this feat can be traced to the popularity of the digital model Nikon Coolpix990. Uncompromising on quality, Nikon chose to continue distributing its cameras through individual shops rather than chain stores or department stores, where profit margins are smaller because of the presence of low-end products. "We are more concerned about the high quality of our products, like 'ED advance' -- providing extra low distortion," he adds. Meanwhile, Ebihara has plans to double the company's growth within the next ten years without easing its hold on its 30 percent market share in the film camera market, nor letting its market share in the digital camera market slip.
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Adolf Ogi (left), former president of Switzerland, with Nikon AG president Hideo Ebihara (right) at the Nikon-sponsored World Cup ski races held in Wengen earlier this year.