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Though the digital camera market in India crossed the million-mark during FY 08, nearly a quarter of it still
came from the gray market. This, however, did not deter the three top vendorsCanon, Sony and Kodakalong
with the likes of Nikon and Samsung from significantly increasing their product portfolio with India-specific
pricing, introducing new schemes and widening their retail presence across the country.

The industry also got a boost in September when the Central Board of Excise and Customs exempted digital
still cameras from the basic 6% customs duty. As a result, prices of digital cameras have fallen between 6-
10% since October. Earlier, a digital still camera was classified both as a still and video camera, thus
attracting higher duties. The new tax structure brought cameras in line with taxes levied on computer
hardware. However, the CVD and VAT, valued at 16% and 12.5% respectively, were proving to be a major
deterrent for most digicam vendors.

Meanwhile, as more retail outlets opened, a streamlined distribution network was generating better margins
for resellers. Camera vendors, who traditionally have been selling their products through stand-alone
electronics outlets, photography shops, and stores selling computers and peripheralss, began selling through
specialty stores, electronics chains and single-brand stores like Croma, Subhiksha, Haikos, and Spencers,
among others.

Canon teamed up with thirteen retail chains that operated fifty-five outlets across India for its digital
cameras. About 15% of Canons digital camera revenue came from such retailers. Sony India had a broad
retail presence through 7,000 channel partners and 260 Sony outlets.

Kodaks digital cameras were available in at least 50,000 outlets spanning some 330 towns, including at least
1,600 Kodak Express outlets. Samsung India significantly boosted its presence in the still photography
channel, up from 400 locations where it sold its digital cameras to at least 1,000 locations.

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The household penetration of digital cameras in India is only about 8 percent currently,
much lower than other developed countries where it is about 70 percent, said Alok
Bharadwaj, Senior Vice President of Canon India, adding that he expects it to nearly double
by 2015.

In the digital SLR (DLSR) section, about 60,000 units are currently sold in India.
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The total camera market, currently pegged at Rs.1,750 crore for FY10, is growing at 30
percent per annum, and is expected to reach Rs.2,250 Crore by FY11.
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New Delhi, November 3, 2010: 6
   




 


     
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Table 1: India Digital Camera Shipments (in thousands) by Form Factor* April-
June 2010
Growth
2Q 2009 (Apr- 1Q 2010 (Jan- 2Q 2010 (Apr-
Form Factor (2Q 2010 ov
Jun) 2009) Mar 2010) Jun 2010)
1Q 2010)
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 "È ith rapid technological changes and evolving consumer preferences,
a virtuous cycle of adoption of lifestyle enriching devices such as cameras
has gathered pace. 

³In recent years, social networking has picked up in a big way amongst
Indian internet users, giving rise to the trend of sharing photos online. Digital
cameras score over their analogue counterparts providing ease of use, ease
of sharing content and affordability. This has helped popularise digital
cameras, especially amongst young, urban users,´ $%





  
    

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Figure 1. India Digital Camera Market ASV Trends, 2Q 2009 to 2Q 2010
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