Cover photo by 20RyanKino24
Canon Faces Industry Changes
Canon has long been committed to "domestic production in Japan," but it is now facing global demand changes. While the market for low-priced digital cameras has shrunk due to the spread of smartphones, the demand for compact cameras has recently regained attention.
To respond to these changes, Canon is considering the possibility of "outsourcing" its production bases outside Japan. This article examines the background, impact, and future prospects of this strategy.
Photo by ⭐︎グッチー⭐︎
The Changing Camera Market and Canon's Challenges
Canon has long prioritized domestic production in Japan, but the recent market contraction has dealt a significant blow to the company. Since 2008, it has faced a severe situation with sales of digital cameras and printers decreasing by approximately 820 billion yen.
Photo by kei utsunomiya（宇都宮 慶）
On the other hand, after closing its Zhuhai factory in China in 2022, Canon faced challenges in responding to the rapid recovery in demand for compact cameras. In light of these circumstances, Canon is exploring flexible management through "outsourcing according to production volume."
New Possibilities Brought by Outsourcing
Outsourcing enables cost reduction and improved production efficiency. Other companies, including Nikon, have adopted similar strategies with several success stories. However, due to risks such as quality control and technology leakage, Canon plans to continue developing important products and technologies at its "mother factory" in Japan.
Photo by あお🐐
This approach aims to balance cost reduction with maintaining technological capabilities. The strategy is drawing attention from the entire industry as to how it will enhance Canon's international competitiveness.
The Resurgence of Compact Cameras and Future Prospects
In recent years, interest in compact cameras has revived, particularly in the second-hand market. If Canon utilizes outsourcing to reintroduce low-priced cameras, new products that appeal to the smartphone generation may emerge.
Additionally, there is anticipation for revitalizing the market with entry-level mirrorless cameras and unique models. The camera industry is entering an era where creators cannot take their eyes off its evolution.
