[kwb]

There was an investor meeting of Ricoh Co. Ltd. (the mother ship, not the company that makes your camera, that's Ricoh Imaging Co. Ltd.) on Mar 3 2021. Ricoh as a group is a big business, consumer camera is just a tiny part of that. In the previous meeting (Nov 2020) Ricoh laid out a plan to become "digital service" company targeting other businesses, they continued the theme this time, but president/CEO Yamashita also talked a bit about the future of Pentax and GR.

To summarize: He expressed his (or Ricoh's) willingness to make PENTAX and GR continue for future as a valuable business. He said that they "will start searching for a way" to do it, that in doing so they hope they can work with outside partner(s). Later, when asked about accepting outside investment VS selling camera business, he said that they're willing to work with partners if necessary and are willing to invest, OTOH they won't be able to "fulfill responsibilities" (to make the brands continue) if they just sell the brands and therefore they need to think long and hard.


He chose words to convey his sense that it's their job to make sure that the heritage goes on, mentioning enthusiastic fans as the reason why he feels that way. OTOH, he signaled that the way Ricoh Imaging operates under Ricoh as of now cannot continue forever though he didn't make any definitive statements and certainly he didn't give any time scale.

You can stop right here unless you're really interested.

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Below are English and Japanese version of the presentation. Relevant part is on page 9, but the sentence about SV (Smart Vision) doesn't make sense because the Japanese sentence wasn't great to start with. What does "integrate cameras (PENTAX and GR) into Ricoh Imaging" mean when Ricoh owns these brands anyway?
https://www.ricoh.com/-/Media/Ricoh/Sites/com/IR/data/pre/pdf/ir_pre2020.pdf (English)
https://jp.ricoh.com/-/Media/Ricoh/Sites/jp_ricoh/IR/events/2020/pdf/r02_keiei.pdf (Japanese)

Redacted transcript (which seems to be only available in Japanese) is better.
https://jp.ricoh.com/-/Media/Ricoh/Sites/jp_ricoh/IR/events/2020/pdf/presentation_text_2020.pdf

(on page 10)
一番下に、SV事業について少し記載しています。PENTAXとGRなどのいわゆる製品カメラはリコーイメージングに機能を集約して、未来に価値ある事業として残す模索を始めます。これは、外部の方々にも力を借りながら進めてたいと考えています。一方、360度のカメラと光学技術は、デジタルサービスの会社には不可欠なため、引き続き強化をしていきます。
Written at the bottom is about SV business. As for consumer cameras like PENTAX and GR, we'll start searching for a way to make them continue as a valuable business for future by integrating (business?) functions into Ricoh Imaging. We hope to be able to proceed with a help from outside parties. OTOH, 360 degrees camera and its optical technologies are essential for a digital service company, so we'll keep pushing that.

After the talk there was a Q&A, which was also published by Ricoh but it's a bit sanitized (Japanese, https://jp.ricoh.com/-/Media/Ricoh/Sites/jp_ricoh/IR/events/2020/pdf/presentation_qa_2020.pdf). You should read Impress Cloud Watch's report instead (again in Japanese):
????2022??????20??????????2???????1000?????? - ???? Watch

山下社長は、「カメラ事業は、量をたくさん作って売るという大量生産、大量商品の競争になっていた。だが私自身、GRとペンタックスを担当してきて感じていたのは、使っているお客さまはブランドを愛していただいているマニアともいえる人たちであり、大量に売れるモデルではないが、ファンがいる。そのため、未来に残していく方法はないかと考えている。共感をしていだたける方がいれば、連携も辞さず、出資も辞さずと考えている。だが、売却するとなると責任を持てない状態になる。この部分はよく考えていかなくてはいけない」と述べた。
President Yamashita said: "Camera business was competing by volume, making and selling large numbers. However, while taking care of GR and Pentax, I myself felt/appreciated that customers using our products are people who love the brand, or enthusiasts I might say, we don't sell our models in large numbers but we have fans. Because of this, we're thinking about how to make (the brands) continue for the future. If others share the same vision (of making these brands continue for the future) we're willing to work with them if necessary, and we are willing to invest if necessary. OTOH, if we just sell it, we cannot make sure that our responsibility (to continue the brand) will be fulfilled. We have to think long and hard.

Let's see how it goes.

Attached Images

 

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Last edited by kwb; 03-10-2021 at 01:12 AM.

[ffking]

Interesting - thanks, as ever, for your work bringing this to us

[NZ_Ross]

president/CEO Yamashita also talked a bit about the future of Pentax and GR

kwb, thank you again for the effort you put into sharing valuable information. I found it really interesting

[JensE]

Same here. The somewhat confusing messages about integrating cameras into Ricoh Imaging sound to me as if Smart Vision and the camera business have been run independently side-by-side and they're now looking into realizing synergies/shares resources, which Ricoh may have promised earlier. I wonder what part of the 360 degree cameras currently sit where, this seems to be the most obvious overlap.

[AfterPentax Mark II]

Below are English and Japanese version of the presentation. Relevant part is on page 9, but the sentence about SV (Smart Vision) doesn't make sense because the Japanese sentence wasn't great to start with. What does "integrate cameras (PENTAX and GR) into Ricoh Imaging" mean when Ricoh owns these brands anyway?
h

Maybe I am wrong, but I understand from this that Smart Vision is part of Digital Services and that the 360 degrees camera's Theta belong to that part of the business. On the other hand Theta is also a photographic tool. The question is should Theta integrate with Imaging (Pentax and GR) or, as 360 degrees camera's are a strong point of business, should it remain seperate from imaging. On page 9 SV is mentioned as a future business and the indication is to establish a new company for that. On page 10 they state the option to integrate SV with Imaging. 360 degrees imaging is targeted at real estate businesses I read in another piece about Ricoh Imaging last year. But the reserve they have about that is that the Theta brings them money (hence establishing a separate company for that) but Pentax and GR are a point of concern (if you read between the lines) as they probably do not.

[jersey]

Thank you for information's, it was interesting reading (English document of course ).


In general I think page 6 was pretty interesting as Ricoh does not seem to be interested in the continuous growth of revenue, more like keeping it at reasonable levels. So it seems that there is place for them to invest and keep "sentimental" brands alive, even if only for marketing values, at least as long as loses are not to great.


It also makes sens if we look at ending of KP production etc. With as few cameras as possible in production and development it will be easier to finance lens development and make Pentax/GR earn money. If Pentax/GR cut as much gear as possible from segments that are not selling well and keeping only those aimed at enthusiasts with money.


Will see, but all in all it looks like there is future for Pentax. Well, for now at least.

[Kunzite]

Interesting - but I don't know what to make of it. Things can't continue as they are indefinitely, they want to keep Pentax alive - but what's the impact on the product lines and development?

Then - if it goes out on pentaxrumors, trolls will be happy; it's easy to ignore the positive wording and spin everything into a negative.

[Zygonyx]

*ambivalent* news it is...

[ffking]

If Pentax/GR cut as much gear as possible from segments that are not selling well

That can result in death by 1000 cuts - there will always be a line that is the least selling - cutting that just exposes the second worst seller, and so you go until you don't have enough on offer for people to consider buying into. If you reduce your market presence too far, you simply disappear from consciousness.

[jersey]

That may be true, but then if product generates loses why should company keep it if there is no perspective in making it profitable.

[JensE]

The point above from @ffking - If losses are small enough, they can be considered "marketing budget" for other products if the brand can be positioned accordingly with more reach, resulting in a net positive effect.

[ffking]

That may be true, but then if product generates loses why should company keep it if there is no perspective in making it profitable.

I think that most businesses have products that have little or no profit in them, but their presence in the catalogue is necessary for the sale of items that ARE profitable - they're purpose is to stop customers looking elsewhere.

[bobmaxja]

Thank for the info but for me it seem to be a similar situation as Olympus. I understand they will accept an investor for the Ricoh imaging business.
Few extract
he signaled that the way Ricoh Imaging operates under Ricoh as of now cannot continue forever

Later, when asked about accepting outside investment VS selling camera business, he said that they're willing to work with partners if necessary and are willing to invest

[jersey]

I think that most businesses have products that have little or no profit in them, but their presence in the catalogue is necessary for the sale of items that ARE profitable - they're purpose is to stop customers looking elsewhere.

Yes, but Pentax/GR are in no way connected to Ricoh main business. They are primary office gear and with cameras their 360 gear. So DSLR/compact cameras are a bit of side product not really connected to main company. Those papers even state that research into optics and semiconductors will be directed at office gear (printers/scanners).

I hope that Ricoh will keep them as sort of pet products if they can make Pentax/GR at least operate with zero profit (or even marginal loss), but if they siphon too much money from company it will go Olympus way.

[hoosierdome]

Olympus said they were fine up to the day they sold, not sure I'd read a lot into this.