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Imaging Products Business

As of September 10, 2015


Main Products

Digital cameras, film cameras, interchangeable lenses, speedlights, accessories, software, sport optics

Consolidated Financial Results

Net Sales

Net Sales for the year ended March, 2015 were 586.0 billion Yen.

Operating Income

Operating Income for the year ended March, 2015 was 56.6 billion Yen.

Market Conditions and Business Trends

In the Imaging Products Business, although the compact digital camera market continues to shrink, a decline of the Digital Camera—Interchangeable Lens Type market is predicted to slow down.

Shipments of Digital Cameras

Shipment Units

Shipment Units in 2014 were 43.43 million units.

Shipment Amounts

Shipment Amounts in 2014 were 964.5 billon Yen.

  • Source: Camera & Imaging Products Association
  • *Shipment units=domestic shipment units+export units (member manufacturers only)
    Shipment amounts=domestic shipment amounts+export amounts (member manufacturers only)

Shipments of Digital Camera with Interchangeable Lens

Shipment Units

Shipment Units in 2014 were 13.83 million units.

Shipment Amounts

Shipment Amounts in 2014 were 605.3 billon Yen.

  • Source: Camera & Imaging Products Association
  • *Shipment units=domestic shipment units+export units (member manufacturers only)
    Shipment amounts=domestic shipment amounts+export amounts (member manufacturers only)

See Financial and Business Data for the Year ended March 31, 2015 (May 14, 2015)

Sales volume of Nikon Digital imaging products (Sales & Forecast)

  • Digital Camera with Interchangeable Lens
  • Interchangeable lenses
  • Compact DSC

Business Strategy

Strategic direction

  • Strengthening digital camera-interchangeable lens type.
  • Strengthen profitability by improving value and product mix of medium/high end SLR cameras and interchangeable lenses.
  • Launch new interchangeable lens type advanced digital cameras to reactivate the market.
  • Revamp sales system and continue developing and penetrating into emerging countries.
  • Continue further efficiency improvement through cost reduction and manufacturing process optimization.
  • Network connectivity and co-existence with smart devices will lead to launch of novel capture devices and applications.

An Interview with the General Manager of Business Unit

Although the business environment remains challenging, we will regard this adversity as an opportunity to create attractive, new products with typical Nikon quality through initiatives that will require the entire Imaging Business Unit to work in unison.

Nobuyoshi Gokyu
Senior Vice President
General Manager of Imaging Business Unit

Q1:How would you sum up the fiscal year ended March 31, 2015?

Compared with the fiscal year ended March 31, 2014, the market for digital cameras– interchangeable lens type decreased 19%, and the market for compact digital cameras declined 32%, which was more than expected. The delayed market recoveries in Europe and China in particular had a profound effect, and the business environment in which the Imaging Business Unit operates was generally harsh. As a result of these factors, net sales and operating income decreased approximately 15% and 12%, respectively, year on year, but the operating margin rose from 9.4% in the previous fiscal year, to 9.7%. We are aware of the successes we had in cost reductions, which were thoroughly implemented in procurement and focused on development and design, and in raising the sales ratio of medium and high-end class digital single-lens reflex (SLR) cameras. The market environment is predicted to remain severe, and we are expecting year-on-year decreases in revenue and profit in the fiscal year ending March 31, 2016, but our policy is to continue investing for future growth, such as by further tapping into emerging economies, strengthening the Nikon brand, and conducting R&D for new products. A modest recovery in the market environment for digital SLR cameras is expected from the second half of the current fiscal year.

Q2:Please tell us about your initiatives under the Medium-Term Management Plan Update.

The Imaging Products Business provides the backbone of the Nikon Group's revenue base. In spite of the harsh business environment, we need to strengthen our profitability to continue to support the Nikon Group. I would therefore like to consolidate our leading position in digital cameras–interchangeable lens type as well as in interchangeable lenses. Even though the market is shrinking in terms of scale, we will implement three measures to raise our profit margin and firmly secure profit.

First, with regard to our products, as for digital SLR cameras and interchangeable lenses that are the sources of our earnings, we will make further improvements to their basic functions and bring about ongoing product evolution. I am not satisfied with the current situation for our Nikon 1 advanced cameras–interchangeable lens type. We are planning to reactivate the market and expand our share by launching new models. With regard to compact digital cameras, I would like to generate value that the photography functions of smart devices are incapable of providing. For example, the high-value-added COOLPIX P900, equipped with an 83x optical zoom lens, was launched in the spring of 2015 and has exceeded our sales expectations, so we have increased production.

Secondly, we will enforce our Customer Relationship Management (CRM). This policy is centered on an approach we have called Customer Lifecycle Management (CLM), which emphasizes enhanced contact with the customer from the purchase of Nikon products throughout their life cycle. Over the past 10 years, Nikon has accumulated data from its sales of around 200 million products. We have recently established an organization within the Imaging Business Unit to promote the utilization of this big data. We will utilize big data, analyze how that data will fill the gap between the products sold now and the new concept products we should be aiming for, and promote initiatives that will leverage the results of those analyses in development and design.

The third measure involves further tapping into and developing markets. The economic situation in such countries as Brazil and Russia is expected to remain unstable, but, on the other hand, burgeoning demand is expected in India and the Middle East. In India, in particular, Nikon has become No. 1 in terms of its market share in digital SLR cameras by actively expanding its sales channels and thoroughly addressing locally based marketing. I would like to apply initiatives modeled on those efforts in India to other countries and regions.

Q3:What will be the key points of the Imaging Products Business strategy to make great strides in the years ahead?

Nikon's cameras possess well-established brand power, and it is our mission over the next 100 or 200 years to continue maintaining this brand power. The current camera market is shrinking, but that is precisely the reason why we will treat a difficult situation as an opportunity, and it is imperative that the Imaging Business Unit work as one to launch new, attractive, and distinctively Nikon products. To that end, I will clearly indicate the goals to be attained and share in realizing them with the entire Imaging Products Business Unit. In continuing to meet the expectations of all our stakeholders, I would like to show ourselves as continuing to change and evolve.