Fuji Film proves the correctness of the way of "diversification" transformation

Absrtact: Xu Yanyan I am afraid that no industry is as big as the imaging career area, and the impact of technology is so great. Every technological change may lead to the utter demise of some businesses, even the industry giants. On the road of transformation, the international shadow

Xu Yanyan I'm afraid no industry has been so affected by technology as the imaging business sector.

Every technological change may lead to the utter demise of some businesses, even the industry giants.

In the transformation of the road, the international imaging cause of the two giant Japanese Fuji film and the United States Kodak, can be said to choose two different roads. And with the 2012 Kodak's bankruptcy, Fuji Film but with sound financial data to prove its "diversification" of the road to the correctness of the transition.

The new challenges are still emerging and the logic of the company's diversified development is becoming clearer.

Insist on diversity

A few years ago, when talking about the diversification of the Fuji film Strategy, more people are questioning, and now, Fuji film with steady financial data to prove that the road is correct.

April 2014, Fuji Film released 2013 financial report shows that the company all year (April 1, 2013 ~2014 March 31) To achieve sales revenue of 2.44 trillion yen, operating profit of 140.8 billion yen.

Fiscal year 2012 (April 1, 2012 ~2013 March 31), sales revenue of 2.2147 trillion yen, operating profit of 114.1 billion yen.

But also in the Image processing field, Fuji Film has been the biggest competitor Kodak's situation is diametrically opposed, the company declared bankruptcy in 2012.

"Kodak in this difficult situation, just carried out layoffs, Fuji film even under difficult circumstances to diversify development, investment in the future development potential of the cause, this is our and Kodak decisive difference, eventually make Fuji can win." Taita, President of Fuji Film (China) Investment Co., told the first financial daily

In fiscal year 2010 and fiscal 2011, Fuji Film had a thorough structural transformation. We will focus our business resources on the key areas where the group's technological advantages are significant and have great potential for development, and take the emerging market countries as the core to advance the globalization process. The so-called focus areas of Fuji Film are medical health, high-performance materials, document processing, electronic imaging, printing, optical components and so on.

Take the printing business for example, 2008 ~2012 years, Taita in the United States as Fuji Film printing business in charge. For that "Concussion", he said "feel the strongest".

At that time, on the one hand, the financial crisis led to poor external environment, on the other hand, tablet computers, E-books and other digital technology to the traditional printing industry, like Kodak, Fuji Film, the traditional printing business also into crisis.

Even in that case, Taita said, Fuji has been trying to diversify its efforts to develop digital printing and acquisitions of companies such as sprinkler companies in the United States and inkjet companies in the UK.

According to the 2013 earnings, Fuji film in the imaging industry (including traditional imaging, electronic imaging, optical components) operating profit of 3.6 billion yen, while the information industry (mainly including medical systems, life sciences, industrial materials, etc.) operating profit of 72.9 billion yen; document processing business area 96 billion yen.

Taita told our correspondent, Fuji Film will continue to adhere to the road of diversification, the future set up six major development areas: medical system, printing, including digital cameras in the cause of electronic imaging, document processing business, liquid crystal flat material for the cause of high-performance materials, as well as optical components.

Digital Image higher End

Despite the success of the imaging business, but the development of science and technology to bring products, the speed of the rapid, it is a surprise.

Before and after 2006, Fuji Film realized the impact of digital image on traditional film, and timely turn the course; But Fuji did not quit the traditional film market, 2012 years or so, technology once again put the business of the most traditional business to push the perilous peak.

The impact comes from smartphones, which have left many old camera manufacturers almost out of the market.

Japan's international Camera Imaging Equipment Industry Association (CIPA) said that 2013 years ago 5 months, the global digital camera shipments dropped by 42% Year-on-year, which has a serious impact on Nikon, Olympus and other Japanese camera manufacturers.

Since 2013, Olympus, Canon and other enterprises have withdrawn from the Low-cost digital camera market. And some companies said that the future may be completely out of the market.

"We should not retreat from the market." In this respect, Fuji Film (China) Electronic Imaging business Minister Necambouroux is in response to the "First financial daily"

We have to admit that the digital camera market has shrunk dramatically because of the impact of smartphones. The hardest hit should be the low-end cameras that only take photos and store functions. Neconvoux said the Chinese market's total demand for digital cameras peaked in 2010, after a fall of varying degrees each year. Under such circumstances, the Fuji film began to shift to high value-added high-end products, which also greatly improved the company's earnings.

According to its 2012 earnings, the company lost 800 million yen in its imaging career. Earnings show that the company's film production, color film market demand has been decreasing. In digital video, high-end camera and high-end compact camera sales are good, but the impact of the popularity of smartphones, compact digital camera market demand for less, overall sales declined. In response to this situation, the Fuji Film Market strategy is to continue to expand and strengthen the use of its unique technology of high-end models and lenses of the camera product line, tap the market potential.

Neconvoux says the camera may not be able to spell a smartphone if it's just a photo-keeping, but if taking a picture as a hobby, as an art, from a cultural standpoint, digital cameras have the advantage that smartphones cannot replace. And this is Fuji film in the digital Camera product transformation in an important direction.

In fiscal year 2013, the imaging business, which included images, digital cameras and optical components, not just digital cameras, was operating at a profit of 3.6 billion yen, and the company reported that high-end digital cameras were still selling well and said it would work to expand and strengthen the high-end camera product line.

China market Export

As China's labor costs continue to rise, many foreign manufacturers have chosen to leave China, cheaper Southeast Asia and other countries, and even moved back home.

China is Fuji film's largest digital camera production base, Taita told our correspondent, for Fuji Film, the problem of rising labor costs is real, this is also the company is facing a major issue.

"Our company has a film production, assembly in the Philippines, part of the low-end digital camera production is in Thailand." But in China, the supply chains, including digital cameras and medical care, are quite intact, and we cannot replicate them immediately to the Philippines or Thailand, so we won't immediately transfer our production lines in China to Southeast Asian countries. "Taita said.

At the same time, in his view, in the past, China is the world's production base, but with the development of China's economy and people's consumption level, the Fuji film is a great opportunity. As sales of digital cameras are growing in China, future medical care will also be an important business for the company in China.

"Future production in China is for China, not for global production." "Taita to this newspaper

In addition, the development of technology in the past is in Japan, and the current face of China's huge market, he is expected to truly meet the needs of the Chinese market to develop production, the company's medical X-ray diagnostic system for the localization of the development is in progress.

"Three or four years ago, the proportion of Chinese market exports and domestic sales was about 6:4, and now it has turned 4:6." The future strategy is to constantly reduce the proportion of exports, increasing the proportion of domestic sales. "Taita said.