From groundbreaking product launches to impactful market penetrations, we undertook strategic investments in Africa which solidified our position as a leader in the industry, delivering long-term value for our customers and all our stakeholders, says Somesh Adukia, Managing Director, Canon Central and North Africa. In a Q & A with PAV, Somesh Adukia says Canon has not only weathered the global socio-economic storm that characterised the 2023 financial year; but also achieved significant growth highlighting the resilience of its business model.
How was 2023 like for Canon?
Somesh Adukia : In 2023, a year marked by global socio-economic challenges, we at Canon experienced remarkable achievements. Despite the prevailing storm, we not only weathered it but also achieved significant growth, boasting double-digit figures that underscored the resilience of our business model. Our overall financial health remains robust as we set our sights on a 10% increase in turnover for 2024, strategically derived from both Business-to-Consumer (B2C) and Business-to-Business (B2B) channels. This success was further propelled by our Flexibility, Adaptability, and Innovation (FAI) strategy.
Flexibility– Amidst the various economic challenges we continued to hear the voice of our Customers and Partners through ongoing communication platforms. Furthermore, we made a transformative change in our approach to partnership engagement with the launch of – Executive Circle Conference. This initiative is an exclusive platform designed to foster strategic conversations, explore future trends, facilitate networking, and encourage open communication. This new forum signifies a paradigm shift in the company’s approach to partnership engagement, underscoring a strategic focus on elevating the Partner experience.
Adaptability– We bolstered our Closer to Customer strategy and reinforced our distribution network in different countries including Ghana, Libya, Morocco, and Kenya.
Innovation– From groundbreaking product launches to impactful market penetrations, we undertook strategic investments in Africa which solidified our position as a leader in the industry, delivering long-term value for our customers and all our stakeholders. Notable among these endeavours is the launch of first Canon Contact Centre in Egypt. We also launched ‘The Multicam Show’, a dynamic event spanning Nigeria, Egypt, Morocco, and Algeria which was a tremendous success. Our partnership with Broadcast System Solutions (BSS) in Egypt resulted in the launch of a new state of the art Imaging showroom specifically targeting verticals like Filmmakers and News Agencies further enhancing the customer experience.
I am also so proud of the fact that our efforts have been recognized in the form of prestigious awards, including the YPP Partner of the Year Award at the Global Good Awards, highlighting our commitment to empowering young individuals in the Democratic Republic of Congo. We also placed second (out of 900 entrants) in the Women Empowerment in the Workplace category at the 2023 Gender Mainstreaming Awards. We received the recognition for not only advancing women in our workplaces but have also for successfully transforming corporate behaviour and practices.
What are the main challenges that you are facing while operating in Africa and how are you navigating the challenges?
Somesh Adukia : Frequent Currency depreciation against USD and High inflation in African markets were the two major challenges which all the businesses faced last year. Although they directly impacted the spending power of our consumers resulting into issues like inventory management and supply chain efficiency, we remained optimistic and chose to focus on the opportunities that presented themselves amidst these obstacles. We not only weathered the global socio-economic storm that characterised the 2023 financial year; but also achieved significant growth highlighting the resilience of our business model.
The African market boasts youthful demographics, coupled with significant investments and infrastructure development projects. This presents abundant opportunities for us. However, we are equally aware of the challenges posed by frequent currency depreciation against USD and High inflation in African markets which were the two major challenges which all the businesses faced last year. Although they directly impacted the spending power of our consumers resulting into issues like inventory management and supply chain efficiency, we remained optimistic and chose to focus on the opportunities that presented themselves amidst these obstacles.
We not only weathered the global socio-economic storm that characterised the 2023 financial year; but also achieved significant growth highlighting the resilience of our business model. Working closely with our partners in these markets, and supporting them, we are able to navigate some market challenges. While we continually reinforce the vision of becoming the preferred imaging brand in Africa with a steady supply chain, industry-leading support, and an extensive product portfolio, we, on the other hand, continue to respond to the economic challenges and cater to customer needs with imaging products and solutions.
Canon’s approach for 2024?
Somesh Adukia : In 2024, we are introducing an innovative approach for Canon Central and North Africa: Innovation, Customer Experience, Employee Experience (ICE). We emphasize the need for continuous innovation, a seamless customer journey from pre-purchase to post-purchase, and ensuring employee satisfaction and growth. As always, our dedication lies in providing exceptional products and services to our customers while fostering an enriching work environment for our employees. We are driving this growth through significant investment in innovation, dedicating more than 8% of our global sales annually to Research and Development (R&D). I’m excited about the opportunities that lie ahead and the positive impact we can create in the dynamic African markets.
I’m excited about the opportunities that lie ahead and the positive impact we can create in the dynamic African markets.
What are the steps that Canon has put in place to advance its sustainability efforts?
Somesh Adukia : Our philosophy at Canon is Kyosei – a Japanese word meaning ‘living and working together for the common good. It underpins our vision for sustainability and everything we do as a business.
Canon has implemented several steps to advance its sustainability efforts. Firstly, we are committed to reducing our environmental footprint by promoting energy efficiency and waste reduction in our operations. We are committed to delivering a 50% reduction in lifecycle CO2 emissions per product by 2030 in line with the Paris Agreement and are currently on track to deliver this, having achieved a cumulative 43% reduction since 2008, with a yearly average reduction of 4.1% against a 3% target. We will continue to focus on the use of innovative manufacturing to design out waste and use materials responsibly, keeping all our products and materials in use for longer and work towards becoming a more circular business. In addition, we strive towards making both B2C and B2B consumables 100% recyclable or reusable.
Secondly, we are actively involved in recycling programs to responsibly manage end-of-life products and minimize electronic waste. We have a wide range of initiatives supporting our circular business and reducing our environmental impact, both across our own operations and with regards to our products. We continually invest in R&D to create new products that will have longer lifetimes and improved end of life strategies compared to previous models.
Additionally, we are exploring renewable energy sources to power our facilities and operations, thus reducing our reliance on fossil fuels. We recently converted 100% of power to renewable energy at five manufacturing sites for printing business.
Guided by our corporate philosophy of Kyosei, which means living and working together for the common good and creating a better world for everyone in it, our constant effort right from the start has been to ensure we engage in giving back to the communities that we operate in. We have continued to invest in education and empowerment of the youth in Africa. We empower the next generation through social initiatives and storytelling programs through Young People Program, Miraisha, Canon Young Champion of the Year Award, Student Development Programme.
More than 60% of Africa’s population is under the age of 25 and young Africans are expected to constitute 42% of global youth by 2030. Africa’s youth hold the key to its development potential and how is Canon leveraging the youthful demographics and urbanization?
Somesh Adukia : With more than 60% of Africa’s population under the age of 25, Canon recognizes the pivotal role that young Africans play in shaping the continent’s future. We are leveraging this demographic dividend by tailoring our products and services to meet the needs and aspirations of young consumers. We are doing our best to listen to the young consumer and follow the trends to provide solutions that meet their expectations. The focus on youth is also being implemented through our educational programs such as Canon Miraisha Programme, Canon Academy Juniors, Canon Academy Photo, Canon Academy Video and Canon Print Hub.
Moreover, as urbanization continues to reshape African cities, Canon is strategically positioned to capitalize on the growing demand for imaging products and solutions. We are actively engaging with urban communities through partnerships and outreach programs to foster digital literacy and empower young talent with skills for the future.
New market opportunities in Africa?
Somesh Adukia : The African market presents exciting new opportunities for Canon’s growth and expansion. Urbanization initiatives, such as the development of monorails and airports, are driving demand for imaging products across both the business-to-business (B2B) and business-to-consumer (B2C) segments. As African economies integrate into the global marketplace, Canon is well-positioned to capitalize on emerging market trends and consumer preferences. Our focus on geographical expansion, investments in new product concepts, and innovative business models, such as vertical business expansion, enables us to tap into new market segments and enhance customer engagement. Moreover, the anticipated inclusion of Egypt and Ethiopia in the BRICS community opens avenues for enhanced collaboration and economic growth, further bolstering Canon’s presence and influence in the region.
