(Q&A)
A:
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Since becoming the world leader, surpassing the German camera industry in the latter half of the 1970's, the Japanese camera industry has maintained the highest levels of function and design, its products famous for their competitiveness, typical of Japanese export items. The situation has changed, however. Can you tell us the reason?
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B:
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The Japanese domestic market has reached a state of maturity. Eighty percent or more of Japanese families own cameras. In addition, the rapid appreciation of the yen since 1985 has cut deeper into profits than ever before, and exports have decreased drastically in the 1990's. |
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When did camera manuafacturers in Japan begin to move their operations overseas?
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B:
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In 1965, Ricoh began to manufacture and sell in Taiwan. That was the start. Canon followed, also in Taiwan, manufacturing and selling mid-level cameras in the 1970's. Asahi Optical Industries became a manufacturer and seller in Hong Kong in 1973. At the same time, Minolta began to assemble cameras and components in Malaysia. Asahi began in 1975 to manufacture cameras and lenses in Taiwan. Olympus Optical Industries started manufacturing parts in Hong Kong in 1988. At the same time, in Malaysia, Minolta began to manufacture parts and molds, and Canon began to manufacture optical lenses and to make and sell cameras. In Taiwan, Olympus started supplying parts for compact cameras. In 1990, Asahi launched compact camera production in China, and Nikon began the production of exchange lenses for single-lens reflex cameras in Thailand. The following year, Asahi began to produce compact cameras in the Philippines. By 1994, Olympus was manufacturing compact cameras in China, Nikon was assemblying auto-focus single-lens reflex cameras in Thailand, and Minolta was producing not only low-priced compact cameras, but manual and auto-focus single-lens reflex cameras in China. |
A:
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As you say, at first the camera manufacturers groped their way toward manufacturing large-volume items at lower cost. Gradually, howe ver, they were forced to make even single-lens reflex cameras -- synonymous with high-technology and quality -- at foreign factories because of the rapid appreciation of the yen and soaring dome stic labor costs. Is that right?
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B:
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Right. Another reason I should add was the intention of selling products in the Asian countries where they were manufactured. One of the aims was to manufacture goods that meet the needs of Asian markets at lower prices. |
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How much, and in what proportions, is the production at overseas factories of Japanese manufacturers?
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B:
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In 1994, the production in foreign countries of single-lens reflex cameras was valued at 20 billion yen, which was 26% of total production. For compact cameras, it was 100.3 billion yen, 49% of the total. The proportions of foreign production for each company, on a unit basis, are as follows:
| Canon |
75% ('94) |
| Nikon |
50% (estimated '96)
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| Minolta |
90% ('95) |
| Olympus |
60% ('95) |
| Asahi |
70% ('95) |
| Ricoh |
90% ('93) |
| Konica |
50% ('95) |
Information collected from various newspapers |
A:
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I'm surprised at those high figures. What about exports?
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B:
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According to the report "Trade Statistics" from the Ministry of Finance, in 1994 the value of exported single-lens reflex cameras was 40 billion yen, and compact cameras, including one-time use cameras, 70 billion yen. Sixty to seventy percent were exported to the West, and remainder to other Asian countries. |
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Then what is the present relationship between domestic production and demand, and between exports and imports?
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B:
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In 1994, production in Japan reached 260 billion yen, while domestic demand was 170 billion yen. Exports were 110 billion yen ; imports, 30 billion yen. The balance 10 billion yen is the carry-over to the next year. This is according to sources such as "Machinery Statistics" from the Ministry of International Trade and Industry, and "Trade Statistics" from the Ministry of Finance. Most of the major importing countries are in Asia and the ratio was 88% in 1994. Judging from the figures of 30 billion yen in imports and 120.3 billion yen in exports, we can suppose that three-fourths of production is sold in the country where manufacture or exported to other countries. |
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To simplify the whole picture, are you saying the Japanese camera indu stry has no rival worldwide, but, at the same time, cannot survive domestically and has no choice but to depend on foreign production?
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B:
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Yes. Cameras are typical of products affected by hollowing, or deindustrialization, and the lower prices of compact cameras, and low demand for single-lens reflex cameras, will make the hollowing more severe. In the end, only the R&D function will remain in Japan. |
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Yet I heard that one-time use cameras -- disposable cameras -- are most ly made in Japan.
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B:
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That's because their production is thoroughly automated, and manufacturing overseas is not necessary. Moreover, because the strobes and lenses are recycled, it would cost much more to make these cameras overseas. |
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The other day, I bought a disposable camera made in a foreign country. When I tried to use it, the film stuck after two or three exposures and it would not work thereafter.
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B:
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Yes, I believe Japanese goods are still superior. In terms of picture quality, too, Japanese products are much better than those from any other country. |
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When I attended the "Gift Show" held recently in Osaka, I was amazed to see a compact camera, switchable to the panorama format, with a wholesale price of 320 yen. The manufacturer's suggested retail price was 2,000 yen. That's cheaper than an ordinary disposable camera! I realized that cameras produced in Japan are no longer competitive in the world market, and, accordingly, Japanese manufacturers have no choice but to move their operations overseas.
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B:
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That's exactly right. |
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Are cameras using the new 24mm film, which went on sale in April, 1996,selling well? What do you expect from the "Advanced Photo System"?
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B:
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People have been using 35mm film for 60 years. They're used to it, and it will be hard for them to accept a new system quickly. Besides, 24mm film is what we call "half-size," which does not give the picture quality of 35mm film. And the developing cost is higher. There is no advantage to using it. |
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What do you mean, the developing cost is higher?
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B:
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At present, processing labs are not sure how well 24mm film will sell, so they are reluctant to install developing equipment costing approximately 30 million yen. Instead, they send the film to the labs of the film makers. This takes time and costs more money -- 25 to 35 yen for each exposure. And it keeps consumers away. |
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I've learned a lot about the camera industry today. Thank you very much.
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