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Canon eyes 40% jump in sales in India this year to Rs1200cr

Canon eyes 40% jump in sales in India this year to Rs1200cr
PTI
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First Published: Sun, Aug 08 2010. 11 39 AM IST
Updated: Sun, Aug 08 2010. 11 39 AM IST
New Delhi: Japanese digital imaging firm Canon is looking at an over 40% jump in total sales in India to Rs1,200 crore by the end of this year, for which it will spend about Rs110 crore on brand building.
The company, which had clocked sales worth Rs840 crore last year, said it will focus on tier-II and tier-III cities to create awareness about its brand.
“We had sales of Rs840 crore last year. We are confident that this year, we will do around Rs1,200 crore,” Canon India president and CEO Kensaku Konishi said.
The company has been growing at an average rate of 30%, but said it witnessed a slowdown last year.
“However, the economy has recovered. In the first half of this year, we have grown by 56%. This is the fastest rate we have ever grown,” he said.
He said the company expects more than half of its sales to come from the rural and semi-urban cities this year. At present, small towns contribute around 45% to its overall sales.
“We are focused on the tier II and tier III cities. These are the potential markets for us. Spending power in the rural areas has increased,” Konishi said.
As for Canon’s marketing budget, he said: “This year, we have increased our overall ad spend, including our below-the-line and above-the-line activities, by 30% to around Rs110 crore.”
Canon has already earmarked Rs10 crore for its ‘Image Express´ campaign, which will be held in 39 cities across the country, particularly in tier II and tier III cities.
“A few years back, we did such touch and feel campaigns only in the metros. Last year, we expanded to around 10 cities. This year, we are doing a 10-month campaign in 39 cities, specially in tier II and tier III across the country,” he said.
The company also plans to add 7-8 service centres by next year, taking the total number in the country to around 20.
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First Published: Sun, Aug 08 2010. 11 39 AM IST