Fog And Smoke Machines ,Mini Fog Machine,Small Fog Machine,Dry Ice Smoke Machine Guangzhou Cheng Wen Photoelectric Technology Co., Ltd. , https://www.cwledwall.com
Japan's Nikon will become the next Kodak performance decline
In the 1970s, Kodak, a leading American imaging company, pioneered the world's first digital camera. However, this groundbreaking invention did not translate into long-term profitability for the company. By 2012, this once-mighty brand was struggling to keep up with the rapid shift to digital photography. While Nikon and Canon from Japan dominated the market in the digital age, most photography enthusiasts had little choice but to stick with these two giants. Recently, however, Nikon has also faced operational challenges, raising concerns that it could follow in Kodak’s footsteps.
A century-old brand spanning multiple eras
This year marks a significant milestone in Nikon’s history, yet its recent performance has cast a shadow over the celebration. In 1917, the optical measuring instruments division of Tokyo Keiki Co., Ltd. merged with Iwaki Glass Co.’s mirror division to form Nippon Optical Co., Ltd. Later, the company acquired Fujii Lens Manufacturing Co., laying the foundation for what would become one of the most respected names in photography.
At the time, Nikon employed 200 local workers alongside eight German optical experts to produce telescopes, microscopes, and precision instruments. By the 1930s, the company had expanded into photographic lenses, launching the Nikkor brand. After World War II, Nikon introduced its first rangefinder camera in 1946, which hit the market in 1948. This model was the first to bear the Nikon name, and it quickly gained popularity among journalists and photographers, thanks to its sharp optics and durable design.
Throughout the film era, Nikon continued to innovate, producing iconic models like the F3. During the digital transition in the 1990s, Nikon responded swiftly, launching a professional digital SLR camera priced below $6,000 in 1999. This move disrupted the market, offering superior performance at a more affordable price than Kodak’s offerings. As a result, many news agencies and advertisers began transitioning to digital cameras, boosting Nikon’s market share significantly.
Driven by its professional lineup, Nikon also expanded into the consumer market with entry-level digital cameras, capitalizing on a strategy that brought in substantial revenue.
The golden years are fading
Despite its early success, Nikon has seen a decline in recent years. The company’s brand value, as ranked by Interbrand, fell sharply—dropping 29% in 2015 and falling from 10th to 16th place. By 2017, it had slipped even further to 25th. This decline is largely due to its inability to adapt to shifting consumer preferences.
Smartphones have drastically reduced demand for compact digital cameras, which were once a major source of profit for Nikon. With each new iPhone release, features like high-quality video and advanced image processing make traditional cameras less appealing. According to IDC, global camera shipments dropped from 160 million units in 2010 to just 81 million in 2016, signaling a dramatic shift in the market.
Nikon’s financial situation has worsened, with annual revenues declining from a peak of 75.4 billion yen in 2007 to 18.2 billion yen in 2015, followed by a loss of 9 billion yen in the previous fiscal year. To address this, Nikon has taken drastic measures, including cutting approximately 1,000 employees in Japan and planning to close a factory in China. It has also scaled back its product line, abandoning plans for the expensive DL Series digital cameras due to poor sales prospects.
The road to transformation is tough
Nikon’s struggles reflect broader challenges in the camera industry. According to data from the Japan Camera and Imaging Equipment Industry Association, camera and lens production and shipments have been declining since 2014. Traditional players like Nikon are now competing against smartphones and mobile software, which have eroded their competitive edge.
Many companies are diversifying to survive. Canon acquired Axis, a Swedish surveillance camera manufacturer, while Sony shifted focus to gaming and entertainment. Sony’s 2017 second-quarter results showed a 22.1% increase in revenue, driven largely by its gaming and network services. In contrast, Nikon’s transition has been slower and less successful.
Though Nikon has ventured into semiconductors, medical imaging, and microscopic equipment, these segments remain small contributors to its overall profits. Its semiconductor business, once a leader in exposure technology, has struggled in recent years, losing ground to Dutch rival ASML.
While Nikon continues to rely on its legacy in SLR cameras, this may not be enough to reverse its fortunes. Like Kodak before it, Nikon risks becoming a cautionary tale of a once-dominant brand unable to adapt to a changing world.