[JPT]

Just letting you know about this because don’t have time to even read it right now, let alone summarize it.

DC Watch has published an interview with Noboru Akahane, the president of Ricoh Imaging.

Please use whatever translator you prefer, but remember none of them are perfect. Don’t make too many judgements based on computer translation.

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Last edited by JPT; 07-06-2022 at 07:30 AM.

[luftfluss]

DeepL translation:

A "fresh start" toward brand value for a new era. Interview with Mr. Akahane, President of Ricoh Imaging Co.


The news that Ricoh Imaging, which has developed camera brands such as GR, PENTAX, and THETA, will close its "Ricoh Imaging Square" in Shinjuku, Tokyo, was greeted with a sense of urgency by some users who felt that the brand was in danger of being discontinued due to the recent shrinkage of the digital camera market, especially the rapid decline in the SLR market. The news of Ricoh Imaging's decision to close Ricoh Imaging Square in Shinjuku, Tokyo, seems to have made some users aware of the crisis in the digital camera market, especially the rapid decline of the SLR market.

If Ricoh were to withdraw from the camera business, the impact on users and the camera industry as a whole would be enormous.

We spoke directly with Noboru Akahane, president of Ricoh Imaging, about Ricoh Imaging's future strategy.


Ricoh "restructures" its camera business

The camera industry has been greatly affected not only by the shrinking digital camera market, but also by the reduction in the flow of people due to the Corona disaster. Nowadays, the shortage of semiconductors has also added to this situation, and there is no doubt that the situation is severe.

However, President Akahane is aware of these concerns and brushed off the author's question about the possibility of withdrawing from the business. He brushed off the author's question about the possibility of withdrawing from the business.


President Akahane comes from a banking background, and after taking over the management of Ricoh Imaging in 2012, he left Ricoh Imaging for a time before being reappointed last year. When financial institutions send in personnel to rebuild management, they tend to "slash and burn," especially in business areas that are highly hobbyist in nature.

However, while streamlining the organization, Mr. Akahane allocated management resources in the direction of strengthening ties between the brand and users, which are supported by deep-rooted fans, and strengthened Ricoh Imaging's business foundation by clarifying its position in the camera industry.

He said that the decision to close Ricoh Imaging Square after the re-launch was not a backward-looking decision.

The shrinking market size is due to changes in the business environment, which we cannot control alone," he said. It is true that Ricoh's camera business is facing a major turning point, but we are not looking to withdraw from the business. What we are trying to do is to change the "shape of the camera business" in order to sustain the camera brand in the new market environment (Mr. Akahane).

On the other hand, PENTAX and GR are actively pursuing reforms with the aim of nurturing their brand value. In simple terms, this is the DX (Digital Transformation) of the consumer camera business.


Seeking a new type of fan community

President Akahane's goal is to create a community of PENTAX and GR fans who will work together with Ricoh Imaging, the manufacturer, to nurture the culture of photography and cameras, taking into account the modern market environment, the Internet, and the smartphone environment.

For example, Ricoh Imaging Square, a gallery, showroom, and repair desk, was a place where manufacturers and users, as well as the photographers who created the work, could gather and interact.

However, as the market shrinks, it becomes more and more difficult to secure a large space in a convenient location. In terms of location, there may be some debate as to whether it is sufficient to have only one location in Japan.

If this is the case, it makes more sense for manufacturers to create their own online communities and actively participate in them from a user-friendly perspective, in line with today's society where smartphones have become widespread and online services are used on a daily basis.

[luftfluss]

#2

However, this is not to say that they will not build a "base" at all.

The company is working on building a new type of base that is suited to today's world of digital media and network technology. At this point, they cannot give a definite location, but it will be called the "PENTAX Clubhouse," and the nearest station is Yotsuya Station. The opening is scheduled for summer, so more details will be announced in the not-too-distant future.

The new building will be located at the Yotsuya Station in Yotsuya City. When we move to the new location, we will not just move it as is, but will incorporate new ideas for renewal throughout. We will not be able to incorporate everything from the initial opening, but we will make it a place where manufacturers and users can create value together under a new name (Mr. Akahane).


Toward Reforms Based on Fans' Opinions

In fact, it is not that difficult to increase sales in a growing market. However, at present, the strategy of expanding the scale of sales itself is not working well. First of all, we need to make sure that those who purchase Ricoh Imaging products will choose PENTAX or GR next time as well. If we can strengthen our engagement with customers and increase the number of people who like our brand, we can strengthen our user base, including people who like photography in the surrounding areas. Based on the premise of growth, we decided to change our approach to selling products to people who have never heard of Ricoh cameras (Akahane).

PENTAX and GR are both brands that have been supported by small but deep-rooted fans and users who identify with these products. President Akahane's goal in reforming Ricoh Imaging is to pick up the opinions of the fans that form the core of these brands and apply them to product development and marketing.


So what specific initiatives will change Ricoh Imaging as a whole? The opening of Ricoh Imaging Square and the renewal of the PENTAX Clubhouse is only a small part of this.

The market is not expanding, but I believe that the people who are enthusiastic fans are those who understand and share the unique value of the products that we have created. We will create products that share values with such people, in other words, with people who share the same senses. Although we cannot make each product separately for each user, our basic concept is that we should be a "workshop" that delivers products to people who understand their value (Mr. Akahane).


Aiming for a "co-creation environment" in which manufacturers, users, and distributors are united

Ricoh Imaging has also been promoting distribution reforms at the same time.

The camera business, especially the interchangeable lens camera business, has a significant distribution problem. While there are camera specialty stores around the world that have close ties with users in each region, sales have recently shifted to sales via the Internet.

Ricoh Imaging is also changing its business structure to have direct contact with consumers via the Internet. As the market size becomes smaller, the active introduction of DTC (Direct to Consumer) is essential to focus on the connection with users and to form a community.

When we announced Ricoh Imaging's new business plan, we were asked by the camera distributors who have been our customers, "Does this mean that you will no longer be using our products? Realistically speaking, it is difficult to have the same relationship with all distributors as before. However, camera specialty stores play a very important role in strengthening the connection with users. We would like to create a market together with dealers who have built close relationships with fans of GR, Pentax, and other brands, not just with "any distributor. It is important to have a co-creation environment that not only involves the manufacturer, but also the user and distributor (Akahane).
Weaving a story that focuses on even a single accessory

At present, we are creating a community space on the Internet where manufacturers themselves can participate, and users themselves can join in the creation of the "story" of PENTAX, GR, and their accessories.

For example, camera straps are created with the actual use of the camera in mind, while considering the cameras with which they will be used and the situations in which they will be used. The idea is to create a product that tells a story behind why it is designed the way it is, and to create that story with the people around the brand.


Long-time PENTAX users look at PENTAX products with a sense of value that only they can understand. We will continue to explore and share these values to create the next generation and the next generation of products with a workshop-like sense of value.

President Akahane acknowledges that the trend of interchangeable lens cameras is rapidly moving in the direction of mirrorless cameras, but says that it is precisely because we are in such an era that he is "focused on the value of SLR cameras. He says, "We can only do this because we are a small manufacturer, but no matter how big the trend becomes in the mainstream, there are still values and roles that exist in the side streams.

The image you see with your own eyes. An image that sees and feels the natural air and light. I think the beauty of SLR cameras is that they directly record that light. It is because you can trust that feeling that it makes for a good photograph. I would like to pursue PENTAX cameras with people who share my belief in the pursuit of SLRs when it comes to photography, not convenience or video functions."


President Akabane, who speaks like this, does not seem like a financier who came from a bank to rebuild a business. However, a manager should focus on the company's "core business," face the core business more squarely and sincerely than anyone else, and concentrate on increasing the value of the core business.

In this sense, the direction of seeking ways to survive while refining the core business may not have the power to revolutionize the industry, but it is one way of life for a camera manufacturer.

If you have a talent for painting, you can embody what you find beautiful with your own talent and skill. However, with the tool of a camera, you can express yourself without any artistic skill. By focusing on an SLR that captures light and air, everyone can participate in art. That is how I see it."

[Joe Dusel]

"I would like to pursue PENTAX cameras with people who share my belief in the pursuit of SLRs when it comes to photography, not convenience or video functions." Yeah, I know, could be a bad translation. LOL, then why bother having video functions in the camera at all? And, by convenience, does he mean things like flippy screens on the back of the cameras? Is that the reason for the boneheaded decision to not have a flippy screen on the K-3III? Oy... Who exactly is Ricoh listening to for customer feedback?

[biz-engineer]

Oy... Who exactly is Ricoh listening to for customer feedback?

A dozen of local customers, next door, in Japan. Being centered on Japan is not unusual for Japaneses businesses, as the Japanese culture has a long history and is also quite strong.
Technically, Pentax/Ricoh are right, photography and video are disciplines that have nothing to do with each other. Video requires fairly a different skills set. The business problem comes from marketing created expectations by other brands, video is often mentioned and requested by customers who will never have any serious use of video. Customers complain about Pentax video, although their poor results come from the lack of skills... starting with recording videos hand-held when a professional would use a gimbal.

Personally, I think Pentax staying with DSLR is a big and challenging business decision.

From a customer standpoint, the optical viewfinder has merits, no doubt about it. But from the perspective of generating revenues (sales), I believe DSLR is much more challenging option.

- First, I think DSLR is more complex to design (mirrorbox and controls , PDAF collimator lenses and PDAF sensor etc.) , more costly to assemble (requires calibration), mirrorless cameras are mechanically and optically more simple to design and make.

- Second, again, keeping the same lens mount is great for old time customers who already have lenses, since they can get a tech upgrade on the cameras without spending money on buying new lenses. Now, if customers don't need to buy new lenses, that's not helping to generate revenues for Pentax in a shrinking ILC market. OTOH, mirrorless change of lens mount trigger sales of new lenses along with the sales of new camera models, which makes it easier to run a camera business.

- Third, closing the door to mirrorless is also closing the door to customers who may want to use their Pentax glass on a mirrorless camera.

We'll see how all this turns out, so far, Pentax staying purely DSLR looks like a money saver for customers and a big business challenge for Ricoh, in my opinion. Time will tell if the decision was right.

[wadge22]

...keeping the same lens mount is great for old time customers who already have lenses, since they can get a tech upgrade on the cameras without spending money on buying new lenses. Now, if customers don't need to buy new lenses, that's not helping to generate revenues for Pentax in a shrinking ILC market. OTOH, mirrorless change of lens mount trigger sales of new lenses along with the sales of new camera models, which makes it easier to run a camera business.

If what it takes to excel in this business is making decisions contrary to the interests of the customer, I am happy enough supporting the company that does a middling job financially but has its consumer's happiness at heart.

Ricoh's recent statements have often implied that they are seeking ways to strike the balance it takes to make their way in a challenging market environment by staying small (and, I think we all understand too well, staying slow), rather than saying that they plan to do what other, more "successful" brands do to get ahead. I am so far happy with this direction.

[JohnX]

The aspirations set out in the statement are great, but we as Pentaxians need an international direct line to the company so we can share our views with confidence that the company will listen AND ACT!

Look at how SDM and aperture block issues were seemingly ignored.

Keeping 'us' on side is vital. No Pentaxians = no Pentax!

[beholder3]

Look at how SDM and aperture block issues were seemingly ignored.

Both issues today are non-issues for new products (that is what they have to focus on) and I certainly do not want them to spend a second on them.

And the aperture block thing happened exclusively in the cheap entry market segment that today is completely irrelevant, so if that pissed of someone, it only happened to irrelevant consumers.

Keeping 'us' on side is vital.

No, there is no "us". There are only individuals. And the only vital ones are the ones who recently bought brand new equipment or plan to do so.
Used buyers: irrelevant. Legacy only users: irrelevant. People not buying new stuff for 5+ years: irrelevant.

It's a business and they certainly do not want to waste money on the wrong people.

How much money did you spend on brand new Pentax equipment in the last 2 years?

[jersey]

And the aperture block thing happened exclusively in the cheap entry market segment that today is completely irrelevant, so if that pissed of someone, it only happened to irrelevant consumers.

This statement is a bit disconnected from reality. Pentax still offers entry level camera and most likely will continue to do so. If user of entry level camera is pissed then he will never, ever buy high level gear from same brand. So instead of getting new customer upgrading gear, Pentax is inviting them to switch brands and spend their money on competitor gear.

I agree with rest of your post, people spending money are important. Though legacy users may be somewhere around the end of important customer lists. They may buy new camera to use their legacy lenses. I think this is reason why K-3 Mk III has the EXIF functions for old lenses with manual apertures.

[AfterPentax Mark II]

I guess that the interview was made with regard to the Japanese market, not for the rest of the world. Ricoh Europe webshop has more items with "not in stock" in their catalogue than products that can be ordered. Local photography shops, brick and mortar and webshops, are having the same problems and items that they have in stock are few, out of stock items have a delivery estimate of "we do not know when it will be in stock again". One shop actually stopped with selling Ricoh/Pentax. I can not see a bright future for the Pentax brand. And from the interview I get the feeling that Ricoh is struggling with the Pentax brand. Brands like Nikon and Panasonic to name a few have special offers with the holidays in mind with nice discounts. Pentax only offers a K-1 with a free 100mm macro (where others have offers in FF and APS-C). Which is a nice offer, but on holidays I would prefer the 28-105 as a give away. They actually offer that combination for a bargain price, but the "not in stock" sign prevents me from buying it. Of course, they are struggling everywhere due to a shortage of all kinds of everything. So I do not blame them, but special Ricoh shops is just for Japan and not for the rest of the world, so I do not get in what way they think how to have more interacting with the fanbase. For this moment I enjoy my outings with the KP, and sometimes with the K-01 if I want to have pocketable camera. Fortunately I have deep and large pockets ().

PS. this was of course written with the translation above in mind and I might have gotten it wrong as I myself are not so strong in the Japanes language.

[Paul the Sunman]

How much money did you spend on brand new Pentax equipment in the last 2 years?

A lot! K3iii and DFA 21 Limited especially.

What would I buy in future, if released? A significantly upgraded K1iii; possibly a new 645, especially if it rose to the challenges posed by Fuji; a super-tele fast prime ($$$); a FF 60-300 zoom; ... probably quite a lot. But will they offer any of these? The conversation needs to go both ways. Ricoh, be honest and open with your customers. What is in store for us if we stick with you?

[Rondec]

Personally, I think Pentax is going along the only path open to them. They don't have the investment necessary to jump into the MILC market and it wouldn't make sense for them to launch a third rate MILC in a market that is pretty saturated. Even Nikon, with all of their tech and investment, had some pretty major flops before seeing things turn around a little with their Z mount cameras.

Pentax is going to try to be Leica-lite. If they can get people to see SLRs as a special type of camera -- a throw back to the past with more care invested in each camera than is present in the typical MILC, then they can get a premium for cameras that have specs that are less than the typical MILC.

I like the gear they have turned out to this point. Currently, I am waiting for their updated K-1 II and a 70-300 variable aperture zoom. Otherwise, I'm pretty happy with my current gear.

I guess there is a DFA * 35mm coming at some point too, but my FA 31 limited is good enough that I probably won't be looking at that seriously -- at least not for a while.

[JohnX]

t's a business and they certainly do not want to waste money on the wrong people.

How much money did you spend on brand new Pentax equipment in the last 2 years?

It appears you know nothing about running a business. There's an old adage which states that you if you upset 1 customer you stand to lose 100. I suspect if you had any involvement in running the Pentax business it would have disappeared years ago. Thankfully it appears you had nothing to do with it.

Pentax made it clear that they see a clear link between them and us, so p'ing off any of us directly or indirectly is potentially losing sales.

Unlike you I don't see there are inferior or superior purchasers of Pentax based on what they own. I simply see people buying what they want within their requirements and budget. Entry level purchases often lead to trading up over time.

I'm on my 7th Pentax DSLR having been a mere inferior purchaser of a K100d with kit lens many years ago.

As to what I spent on new camera equipment in the last 2 years -£1000's - mainly with Pentax.

I bought the new K3iii kit almost as soon as it was released in the UK -£2200.

[iheiramo]

This statement is a bit disconnected from reality. Pentax still offers entry level camera and most likely will continue to do so. If user of entry level camera is pissed then he will never, ever buy high level gear from same brand. So instead of getting new customer upgrading gear, Pentax is inviting them to switch brands and spend their money on competitor gear.

I don't know about that. I was pissed with ABF of my K30 when it happened, but it passed and I don't hold a grudge. Actually I now consider it as a good thing, as it guided me onto a better path and I have become a true pentaxian instead of the holiday snapper I was.

[MarkJerling]

DeepL translation:

A "fresh start" toward brand value for a new era. Interview with Mr. Akahane, President of Ricoh Imaging Co.......

Thank you for sharing that. Very interesting interview.