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Camera makers eye local market
( 2001-07-11 00:12 ) (1 )

Demand for digital cameras in China is expected to double this year and top 150,000 units.

The country will replace Japan as the world's largest consumer of digital cameras by 2005.

Responding to the large market potential resulting from China's rapidly expanding economy, two global imaging giants Eastman Kodak and Fuji Photo Film Co are both localizing their digital camera manufacturing in China.

On Monday, Fuji revealed that the firm's latest joint venture in Suzhou, East China's Jiangsu Province, had obtained a licence to make and sell digital cameras.

Huang Guorong, a marketing director of Fuji, said 30 to 50 per cent of the digital cameras produced at its Suzhou facility will be sold in China.

He said Fuji will also invest more than 50 million yuan (US$6 million) to set up stores that offer digital image processing services using high quality laser technology.

Kodak recently announced an ambitious plan of opening franchises across the country. In response, Fuji announced at investment of 1 million yuan (US$120,773) to establish digital processing stores.

Insiders deemed this a countermeasure against Kodak's rapid expansion.

Two weeks ago, Eastman Kodak Co announced in Shanghai that its joint venture with local camera maker Seagull would produce digital cameras targeting Chinese consumers.

It was reported that Kodak is considering a joint venture with Phoenix, another local camera maker.

Analysts said the US imaging firm was attempting to gain market dominance in the digital imaging field.

The local production of digital cameras could help Fuji cut costs.

Fuji lags behind Kodak in the domestic film market.

Kodak has seized almost half of the market, while Fuji has 30 per cent.

It has been widely reported that Fuji has been trying to establish a joint venture with Lucky, the only domestic film maker.

Huang did not deny Fuji had been in contact with Lucky, but said no deal has been finalized.

(China Daily by Dai Yan)