Canon owns 157 stores across the country. The company’s continuing initiative to tap B-, C- and D-class cities of the country is instrumental in this regard. Andrew Koh, Vice President – Consumer Imaging and Information Center (CII), Canon India talks about the retail journey of the brand and their expansion plans.
Incorporated in 1997, Canon India Pvt. Ltd. is a 100 per cent subsidiary of Canon Singapore Pte. Ltd., a world leader in imaging technologies. Canon today has offices spread across 14 cities in India and an employee strength of over 1,000 people and markets. Known all over the country for its comprehensive range of over 200 sophisticated and contemporary digital imaging products, Canon India forayed into the retail space with the launch of its exclusive brand retail store Canon Image Square (CIS) in 2010.
Today, Canon owns 157 stores across 74 cities in the country. The brand is already present in several metros and plans to penetrate deeper into tier-II and -III cities.
What is your reach in terms of the total number of outlets and cities? What kind of footfall do you generate each month? Also tell us if your stores are based on the franchise model.
Canon India started in 1997, and up until about four years ago we were selling through MBOs alone. It was in 2010 that we set up the first Canon Image Square in a bid to expand our retail presence. Currently, we operate through both EBOs as well as MBOs.
At Canon, we have certain key qualities that we look for in our franchisees. Foremost among them is an experience in retail, preferably in electronic products. Technical know-how of such products is useful in building up the business quickly. Prior training or a passion in photography is always a positive aspect since a large part of our business is concentrated around cameras. Most importantly, we look for franchisees that are eager to proactively engage with us as well as the customers.
Tell us about your market positioning and customer profile. Which is your primary and secondary target group of customers?
Canon has always been a sought-after brand for seasoned photographers and professionals. Over the years, our loyal customer base in this target group has only increased. However, given the growing interest in photography in India, we are keen to offer irresistible camera options to first-time and amateur users, specifically women and youngsters.
In 2014, one of the biggest trends has been the sharp rise in the sale of DSLR cameras and lenses. We feel this is indicative of how passionate people are about taking great looking images, and experimenting with higher-end products. We want to ensure that Canon becomes the preferred choice of camera for this emerging group of photography enthusiasts.
Please provide details about the product range and services available at your stores.
The exclusive CIS store offers excellent photography and photo-printing solutions. It offer customers a wide range of products from high-end, mid-end to entry-level DSLRs and attractive new compact cameras from the PowerShot (Zoom series camera) and IXUS (entry-level, pocket-size camera) series. Also available are other essential photography accessories, such as flash, filters, camera bags, tripods, chargers, memory cards, etc.
Canon also provides a range of printing services where customers can take prints of photographs directly from their smart phones, tablets, pen drives, memory cards or CDs. The trained staff at stores assists customers in choosing products according to their specific needs. Other highlights include the comfortable finance facility with EMI through various credit cards and paper finance through Bajaj Finance. The CIS stores also provide regular free training workshops for DSLR camera buyers.
Such initiatives have helped our CIS stores become more than just retail outlets. They are a vital part of Canon’s commitment to promote the culture of photography in India.
What is the price range for products at your stores? Which price band is the most popular with customers? Also, what kind of items sell the most at your stores?
The CIS stores offer customers a wide range of products starting from approximately Rs. 6,000 to Rs. 5 lakh. These products cater to a large cross-section of consumers right from those who are comfortable only with a point-and-shoot camera to amateurs and professional photographers who would be interested in DSLR cameras. Products under Rs. 50,000 tend to be most popular with customers. In 2014, Canon EOS 1200D was the highest selling model in the DSLR category and IXUS 145 in the digital compact camera category.
Canon has recently launched the world’s highest resolution DSLR cameras – EOS 5DS and EOS 5DSR. In addition, it has also launched PowerShot G3X, which is a professional compact camera. More exciting launches are on the anvil for 2015.
What is the location strategy for your stores – malls or high street? Which locations do you prefer? Are you also looking at shop-in-shops?
The most preferred retail destination depends on several factors, most importantly size of the store and the buying potential of consumers in the region. Based on the buying behaviour of that particular city or town, we consider malls or high streets as ideal retail destinations.
Until about four years ago, we were selling through MBOs alone and it was only in 2010 that we set up the first Canon Image Square in a bid to expand our retail presence. Currently, we operate through both EBOs and MBOs. In addition to the exclusive CIS stores, we have approximately 500 primary channel partners, 14 national retail chain partners, and over 6,000 secondary retail points. All of these help Canon consolidate its retail presence in the Indian market.
Please provide details of your customer loyalty programme (if any). What is the loyalty club contribution to sales?
Last year, we launched the Canon Professional Services, which provide best in class after-sales service and a range of special benefits to professional photographers using Canon cameras and lenses. The service is a testament to the growth and demand of Canon’s professional imaging products in India. A professional photographer can avail benefits such as repair and maintenance for registered Canon photographic equipment, access to technical support and services, and solutions such as replacement support loan for Canon equipment in the event of loss, theft or damage. In addition, a member of CPS will also get invitations for events and forums organised by Canon.
What is your expansion strategy to open more stores? Are you looking at other regions of India?
Canon is already present in several metros and now plans to penetrate into tier-II and -III cities. We already have 157 CIS stores in over 74 cities. We are now planning to expand our reach to 200 stores across the country by the end of 2015.
Are there any interesting concepts or innovations that you have introduced at your stores?
Apart from offering customers an opportunity to touch, feel, and experience Canon products, we have taken the next logical step forward in our imaging services. In order to make the whole process of photo-printing easy and hassle-free, our CIS stores allow customers to take prints of photographs directly from their smart phones, tablets, pen drives, memory cards or CDs. So all one needs to do is walk into a CIS store and walk out minutes later with their prints ready.
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