Canon expands into new segments, still bullish on India

“As people are now interested in taking higher quality pictures they move from the bottom to the mid-range,” he said, adding how most of the mid-range camera owners are also people who have a high-end smartphone. “I think this demand will rise.”

Kobayashi is also optimistic about the economy as well as the outlook for his company in India. “The economy is sometimes shaky in the short term, but I still believe in the strong growth chance of this country in the mid-term,” he said. With the festival season still not in full swing, he is optimistic about achieving double digit growth and exposing the business across verticals this year.

Underlining his belief that the market will only rise in the long run, he added that consumer sentiment during festival season ultimately depends on their mood at the time depending on the currency and interest rates. However, he added: “Sales was more than what we expected on Onam. I will have a better picture in a couple of days.”

On growth, he said that photography is a segment where the consumer can constantly expand on his purchase by spending on accessories and Canon has noticed that their customers always come back for more. On the advent of more competition in the segment, where it used to be just Canon and Nikon before, Kobayashi said he welcomed more players as it is always a good challenge and the market is “stimulated and expanding”. “India still has just three brands, in Japan we are used to up to six.”

“As the India economy becomes more mature, the number of middle-income people is also rising. They are looking for a charm on their life and this is the area where I think photography will play a great role… Yeah, I want to see more good pictures in the living rooms of Indians,” said Kobayashi who has now spent over eight years in India. He has spent 33 years of his career with Canon in foreign countries.

“The culture here is different. The method of doing business here is different. So it took me time to adjust,” said Kobayashi, adding that once he became friends with Indians, it really fit comfortably to his business sense. In fact, Canon Image Squares, a concept started by him in India, has now been exported to other markets in Asia. “Approximately 20 such shops are open now in various countries including Hong Kong, Malaysia, Philippines and Singapore.”

“The other export I made is Indian staff. Many of them are working in the Philippines, Singapore and USA. You guys have been such a global talent.”