The introduction of the Nikon 1 series is an exciting and unprecedented step for Nikon, especially as it introduces a new Nikon lens mount for the first time in more than 50 years. I sat down with Masahiro Suzuki, general manager of Research & Development, Nikon Corporation, and Bo Kajiwara, director of Marketing, Nikon Inc., to understand the development process and to discuss the positive aspects for Nikon dealers.
JG: What was the thought process that you went through in coming up with the Nikon 1 series?
Masahiro Suzuki: Our team saw the opportunity to create a new subcategory within our brand lineup. The engineering team looked at three concepts that came out of our research with customers. The biggest and most important factor was performance, the second was size and the third was ease of use. We considered all of this while attempting to add new, innovative functions, such as the integration of the still image and movie functions.
When you say easy to use, I notice there are very few buttons. Was the objective to make the interface easier to control?
MS: There are lots of meanings of easy to use, and making the interface simpler was certainly one of our objectives. Another one of our objectives was portability. We tried to make it as small as possible, but it is not quite pocket size, because we didn’t want to sacrifice image quality. We had to find the correct balance of form and function.
The Nikon F mount has been one of Nikon’s enduring trademarks since 1959. Now there is a new lens mount for the Nikon 1 series. Was that difficult, culturally, for the Nikon company, or was it something they were ready to do to make this work?
MS: The challenge was a positive one, and we will continue the F mount well into the future. But our target user is different for this camera. We want to create a new market—it all connects—marketing spirit and the technology to make it work. We went to “what is the need” as opposed to “what we had” to make it work.
Bo Kajiwara: Understanding the user segment, and the frustration they are having with compact cameras and the portability of some of the DSLRs, we knew there is a market for this type of camera. So, knowing the target, and building it from the ground up, we made it happen—and along the way we added a lot of new technology. We wanted to propose new technologies, like the motion snapshot and smile photo selector functions, to offer a new way to create and share pictures. We were looking to provide benefits, but to provide the benefits, we had to have the technology to make it work.
Nikon claims these cameras have the fastest autofocus in the world. How do you accomplish that, so that it’s actually faster than a DSLR?
MS: Lens size is a key component of the speed of autofocus. The elements are more compact, and the lenses are very light, so mechanically everything can move that much faster.
You’ve stated that you’re not really going after the DSLR user, but rather you’re trying to create a brand-new market. How is this subcategory different from the other mirrorless cameras now on the market?
BK: The other manufacturers went after the DSLR market and did what they could to get to that market. We, on the other hand, built this camera from the ground up, in the hopes of creating a new product for a new market, understanding that there is a demand using all of the advanced technology. We wanted to propose a new approach, a different concept, for a totally different customer. We have been studying this for years; and even if our competitors did not enter this market, we would have done this anyway, because we believe we understand the needs of the users.
Who is your target?
BK: It’s a very simple approach. The compact camera market is a large market, but there are still people who are not fully satisfied with the performance of compact cameras. There’s also frustration in capturing the moment quickly and easily, given the speed of some current compacts. At the same time, there are people who use DSLRs but are seeking excellent quality in a smaller, compact design that is easy to use. We realized there is a new demand in this area, and the Nikon 1 system was our start to create this new market. Just adding a camera into one of the existing two categories is not going to help the imaging business. We need to grow the business in the imaging industry; that is our approach, and this is where we see the opportunity.
Incremental business, not just replacement business, is vital for our industry. And the Nikon 1 is the proposal from Nikon to help accomplish this goal for new growth.
Is this targeted at male or female users? The pink color suggests female.
MS: We’re not looking to concentrate on females but rather on people who are seeking a device that will accomplish what they’re looking for. However, we do have two series: the J1 is colorful, easy to use and targeted more to the younger, fashion-oriented consumer, and while it may track more for females we think it has pretty even appeal to men and women; the V1 is more for an advanced audience—a slightly more advanced male or female photo enthusiast.
This complements both your high end and your low end. How important is your brand story when selling this camera?
BK: Our approach was to create a new market, to appeal to people who are not currently satisfied with the other two segments. Again, as Nikon, we can talk about the total imaging system for all of our customers; we just added one more segment to the Nikon brand.
MS: Our investment to come up with new products, both high end and low end, is not going to change, as they are both important markets for us. In addition, we now have a third market in which to invest our knowledge and resources.
Is the objective of the price points ($649 for the J1, $849 for the V1) to keep ASPs growing for your dealers?
BK: If we want to have a healthy industry, manufacturers and dealers have to introduce solutions that have added value for which people are willing to spend money. Added value is important, as it will enable dealers to enhance their margins at these price points. We are here to create incremental business with this Nikon 1 system for dealers. But the price also has to be equivalent to the value of the product. We believe our price points reflect the value of the J1 and V1, and we believe consumers will see this as well.
Can we expect less Nikon entries on the lower end now in order to keep margin in the category?
BK: Our strategy is to be very strong in the compact camera business. We will continue to be a tier 1 brand and provide a good product selection from top to bottom. It makes sense for us to be there for our customers. We will stay strong in the compact business, because even though the market for this category is shrinking, it’s still a 20-million-unit market. It’s a huge business, and our brand is only getting stronger.
So what does the Nikon 1 series say about the future of Nikon product development?
BK: Our strategy will be to continue to strengthen our lineup in all three categories: Coolpix, Nikon 1, and our DSLRs. We will not compromise and will continue to innovate in all areas of our lineup to stratify demand.
