Nikon published their Q&A for the Q1 financial results. For the Imaging Business, Nikon already sees "signs of recovery" in North America, Asia and China. The company's strategy for the next few months will be cost cutting, generating sales by introducing new products (D750, SB-500) and concentrating on promotional activities:
Q: Please tell us about your outlook for the interchangeable lens-type digital camera market and the downward revision of the full-year sales volume forecast.
A: Although we started to see signs of recovery in North America, Asia and China in the first quarter, we forecast that recovery of the European market conditions will be delayed due to impacts of economic circumstances and the like. In reflection of these circumstances, we made a downward revision to our outlook for the overall market as well as our full-year sales volume forecast in the current fiscal year.
Q: What can you tell us about your future sales strategy in light of the market outlook?
A: Since the previous year until the first quarter of this fiscal year, we have implemented rigorous cost cuts as well as measures to improve profit margins. The effects of these efforts are reflected in the operating profit margin of the first quarter.
From the second quarter and onwards, we will carry out measures to secure the sales of the Digital cameras—Interchangeable Lens Type, which are our leading products, while leveraging the underlying cost cuts and profitability improvements that have been made continuously since the previous year.
Specifically, we will aim to ensure sales by introducing new products and carrying out promotional activities based on a sorting and differentiation of target products and regions in which we will focus our efforts.
Additionally, in terms of the compact digital camera market that has been shrinking significantly, we will ensure a continued surplus by promoting the light asset production and sales structure that we have implemented since the past.
Although the market as a whole is inclined toward shrinking, for our medium-term activities, we plan on carrying out market revitalization through efforts such as cultivating the underdeveloped regional markets and creating value driven by new concepts.