PICTURE PERFECT

New Delhi, Feb. 11: Japanese digital imaging company Canon will focus on the retail business to increase its presence in India.

Aiming a turnover of Rs 700 crore in the current year, Canon will soon roll out flagship stores in the country.

“Multi-brand stores is the only set-up where we can invest, stock and display all our products. Hopefully it will be a successful model for us. We tied up with 13 retail chains last year and hope to sign up seven more this year,” Alok Bharadwaj, senior vice-president of Canon India, told The Telegraph.

The company clocked a turnover of Rs 510 crore in 2007 with the highest market share of 28 per cent in the digital camera segment.

The company has already tied up with retail chains such as Croma, Reliance, Metro Cash and Carry, Jumbo and Future group’s Home Solutions and Big Bazaar. It is now in talks with Bharti Wal-Mart and RPG Cellucom.

At present, the retail chains contribute 15 per cent to Canon’s business in India. “We expect this channel to contribute 30 per cent to our sales soon,” Bharadwaj added.

Though India is the fastest growing market for Canon, it contributes only 0.3 per cent to its global revenue of Rs 1,60,000 crore. In India, Canon grew by 38 per cent last year, surpassing China at 30 per cent. “The performance of our new division — the direct sales operations — last year was responsible for the company’s high growth,” said Bharadwaj.

Canon India will spend Rs 100 crore this year on marketing, the highest among all the global subsidiaries. The company’s headcount will also increase to 700 this year from 520, with a focus on solution consulting. “The involvement of Canon Japan in India is increasing. It is evident from the fact that our senior officials now visit India thrice a month,” Bharadwaj added.