David RichardsTechnology giant Samsung have kicked off a digital camera war in an effort to unseat vendors like Canon, Sony Pansonic and Nikon. During the past 6 months the Company have lifted their share of the digital camera market from 2% to 10% and is now rolling out nine models digital camera’s including a digital SLR model.
While their success has come in the entry level market where several vendors are buying market share Samsung are determined to be a key player in both the entry level market the DSLR market and the Camcorder market.
Among their arsenal of camera’s is a 14.6 Megapixel DSL with CMOS sensor and LCD screen. Developed jointly with Japanese camera Company Pentax Samsung are looking to initially take on both Panasonic and Sony with their DSLR as opposed to Canon and Nikon who have an estimated 70% market share in this category.
Samsung have also rolled out a new NV series which includes the world’s first 24mm wide angle lens. The NV24 can also capture HD video content.
A big problem for Samsung at the moment is retail distribution with the Company currently selling via the traditional IT channel and speciality retailers however they are confident that over the next few months that they will expand their retail distribution to include camera shops and mass retailers as well as discount stores and duty free.
Stephen Jacobs Digital AV Group Manager for Samsung said “We are determined to be a key player in the digital camera market. We know it will not happen overnight however we do have the strength of the Samsung brand on our side and this will help. We are also delivering a superior product range across several key categories. Last year we had 3 cameras in the entry level category and we quickly grabbed 10% of the market. We are cutting this back to two models in 2008 and I am confident that we will grow our share. In the DSLR market our battle is about taking everyone on except Nikon and Canon. We will leave that battle till later on.”
During the past few months Samsung has hired several new people into their AV division including Ben Halcomb as Digital Still Product Manager. Formally with Olympus Halcomb admits that he has a tough job ahead however he is confident of success. “We have an excellent product and in the later part of 2008 we will roll out a new range of lenses and accessories that will help us. We will initially target the likes of Sony, Panasonic and at $1,100 we are very much price competitive.”
Backing the roll out will be major advertising and marketing including new point of sale and in-store promotions.
Stuart Poignant Marketing Manager at Canon said “The CE brands are licking their lips at the opportunities and the potential profits from the digital still camera market. Right now Canon and Nikon have around 80% of this market and the CE Vendors are going to have to lift their brand credibility to compete in this market. In 2008 the market will grow at around 30% to around 150,000 units and what we are witnessing is consumer upgrading from a compact camera to a digital SLR. They want a better picture and more creative control”.
He added” Going forward the market is going to get competitive and other brands have either got to increase share or get out. Currently the mass retailers are selling 29% of DSLR camera’s the specialist 50% and the rest are the traditional CE channel”.