In the year 2002, Nikon Imaging (China) Co Ltd (NIC) was established in Wuxi City, Jiangsu, China for manufacturing compact digital cameras and the lens unit is now closing their production. This will have adverse effects on the thousands of employees who will become unemployed, soon. Nikon speculates a total loss of ¥7 billion ($61.6 million) due to the termination of this branch.
At the cutting edge of smartphones, the use of cameras seems to plummets day by day. The number of camera users sees a downfall from 100 million to 12.5 million within a span of 7 years. The characteristics – availability, cost efficiency, portability, sleek design and high resolution comes as handy for any user. Assuming the ultimate loss, Nikon steps back from the market race.
Luan Xiaofei, media specialist at Nikon China says, “The procedures of dissolution of labour contracts started on Monday. Nikon will strictly abide by local laws and regulations. We will also provide the best compensation plans to employees based on our current fiscal situation. So far everything has been going on smoothly.”
The root of this issue is the number of diminishing compact digital cameras. With it, the facilities provided by Jiangsu branch also tend to reduce. The Camera & Imaging Products Association in Japan recalls, earlier between 2008 and 2011, 100 million compact digital cameras were shipped. However, shipment declines to one-tenth of that number right now.
The closure of the branch will not halt the camera vend in China, instead outsource of products will propel.
Nikon looks forward to selling 4.8 million within March 2018. The number subsides by 24% from the earlier year. To add fuel to the fire, for the compact segment, the downfall is determined to be at the rate of 28%, approximately.
Nikon's plans to restructure the global scheme for their company to gradually escalate in coming days. Nikon assures to put further emphasize on SLR and other higher-end models with an eye toward improving overall gain. Nevertheless, Nikon will run its other branches in Thailand and Japan.