Kodak to exit the camera market

Kodak to exit the camera market

FMCG SUPPLIER NEWS

Business Day - Feb 13th, 09:27

South African customers may soon be buying cellphones and airtime from Kodak Express stores as the company chooses to opt out of the digital camera market and move into more lucrative revenue streams, it said on Friday. 

This follows the announcement by Eastman Kodak Company that, as a result of its "ongoing review process and commitment to drive sustainable profitability through its most valuable business lines", it planned to phase out its capture devices business — including digital cameras, pocket video cameras and digital picture frames — this year.

The company filed for bankruptcy last month after it struggled to adapt to the fast pace and lower cost structures of the digital world.

Anthony Doyle, sales director at Optus Brands, the authorised distributor for Kodak in SA, said Kodak’s consumer business in SA would now include online and retail-based photo printing, and desktop ink-jet printing.

"The Kodak moment will be about the actual picture now — not about taking the picture. We think the mobile business will be complementary to our printing business," he said.

The economics of the camera category had proved too difficult to operate. "We plan on focusing on growth areas such as desktop printing and the retail printing business. It is part of the strategic realignment of the brand."

The local stores will phase out the products over the next four or five months, he said.

"We are basically reinventing the Kodak experience, creating new revenue streams. You will see more personalised calendars and photo books and gifts," he said.

All customers who have purchased Kodak cameras are assured that all warranties will be honoured, he said.