[Leica] LEICA R8 VS R8.2 AF-X, various strategies [LONG]

[Andre Jean Quintal <megamax@abacom.com>]

At 19:01 -0400 06/09/99, Larry Kopitnik wrote:
. . .
> Just as with the M6 TTL, where sales have
>increased almost 25% and the public has demonstrated they want more, the
>photographic public is judging Leica's R efforts with their billfolds. R
>system sales have fallen behind where they were before the R8 and huge,
>heavy lenses like the 70-180 were introduced.
. . .
	--> a major dimension of the problem is that
	there is a limited market segment capable of
	affording Leica grade equipment and the World economy
	is in worse bad shape than many are willing to
	realize. Producers of many luxury goods are painfully
	aware of the situation, not just Leica.

	--> the Leica M system represents a unique product
	that has a mystique all its own and that is readily
	saleable to established photographers who know quite well
	what they get for the premium prices asked.

	--> this extremely high 'M' sales jump shows what a $5 diode
	can do for million dollar sales . . . !

	--> the newer Leica M lenses also are obviously unique
	with their convex front elements and demonstrably
	superior results . . .

	--> if you think of the situation in terms of replacement
	market(s), from a sales floor point of view, the Leica R8
	is not an "easy sell" relative to the latest generation
	of flagship designs from competing brands, in spite
	of its desireable qualities and superlative optics.
	I don't think it is a bad purchase but it probably is a
	difficult sale for the average salesperson.
	If you consider the "positioning" dimension to any purchase,
	the Leica R8 has a lot of very serious competition
	aiming at the one single Number One slot: you either
	get a Leica sale or you don't, and you have to consider
	a salesperson's options not to risk loosing any upscale sale
	to any across-the-street competitor that would most likely
	dazzle the average photographer with automated this and that,
	program this and that, 5 mode autofocus,
	whirring this and beeping that, and a wheel-barrel full of irrelevance,
	while the Leica R8 is hopelessly straigthforward:
	compose, focus, shoot !

	You have to understand that it's not every salesperson
	who is so proficient and secure at properly demonstrating a camera
	such as a LEICA R8. Most are used to "show" (forget
	about a professional demonstration) cameras like Canon Elan
	and Nikon F70 (N70), lenses like Sigma and Tamron,
	and a ton of snazzy P&S models that make real
	life easy on them, their main purpose being to get to write
	an invoice, seldom more these days, on average.
	Undersell is easy, not intelligent: e a s y  . . . !

	I would suggest Leica is far from "down and out"
	yet it owes itself another try at the semi-pro and
	pro SLR markets. I would hope they get the Leica R8.2
	to be as close as possible, functionally, to a Nikon F4s,
	with an appropriate selection of LEICA autofocus capable SLR lenses
	derived from the current models or from Leica M winners
	or totally new AF-X designs worthy of the brand.

	At the very least, the following are functions that would help
	make such a Leica R8.2 easier to sell:
		- integrated drive, 3 fps +, with auto-bracketing
		- focus confirmation at the very least
		- E-TTL
		- more advanced remote controlled functions
		  for the nature photographer ( 900 MHz ? UHF? IR?)
		- predictive autofocus for the "action" photographer
		- integrated 'Z' zone system program mode
		   [ see Hasselblad 205: it's so simple it's genial ! ]
		   ( make it Color Zone System capable too )
		- whatever it takes to remain useable when
		  batteries dies out
		- whatever it takes to make such a virtual Leica R8.2
		   P&S simple for the more affluent casual photographer
		   who just wants predictable high quality results
		   and never be bothered with the photography "thing"...
		   and HAVE FUN with his (her) LEICA and SHOW
	                   the results and NEVER have to be apologetic !

	The other touchy question is: do all Leica SLR bodies have to
	be German made ? A bad, bad, bad question to a national
	icon like Leica Camera A.G., but it has to be adressed.
	Perhaps, p-e-r-h-a-p-s, would a less expensive AF-X body
	and AF-X capable Leica designed lenses, cater to a wider
	SLR audience located between P&S and the current Leica R
	system market segments.

	Many on the LUG think of Leica exclusively in terms of
	top dog this, top dog that, but, in day to day reality,
	Leica is a job provider, Leica is a R&D lab,
	Leica is a high tech manufacturer,
	Leica is a marketing and sales organization
	that has to compete for sales and capital.

	That says it all.

	My private opinion: improve Leica's profitability
	and financial posture as priority # 1.

	What market segments can readily be "attacked"
	(as we say in French) with short term positive response
	and significant cash crop potential ? Worldwide.

	Most probably the P&S segments, and most probably
	an in-between 35mm model that would bring Leica
	optics and offshore manufacturing in the way of a Leica Z3x,
	to complement the current line. Revamping the Z2x
	for further market penetration potential.
	Continue the DIGILUX "adventure" (which could
	become a major source of revenue and prestige),
	perhaps "slapping" a Leica zoom lens on a good minicam
	such as Carl Zeiss did with SONY.
	Refine both Minilux models for even more saleability
	by inexperienced sales forces.
	Consider introducing an All Weather specific P&S:
	rugged enough for the alpine skier, while it's safe
	at a sandy beach on a day out with the kids.
	How about a Leica-nos underwater camera system or housing ?
	Consider the possibility of deepening the Leica M series
	with more affordable models, in worldwide context,
	or maintaining older designs longer while new ones
	introduce enhanced functions, as seen this year.
	Hybrid designs could "cash in" on Leica-M upsides
	while representing a true Leica upgrade path and replacement
	for the P&S crowd (a LARGE crowd that now owns average
	quality models designed with obsolescence in mind . . . ).
	Consider developing military and police surveillance
	specific models, with more appropriate "institutional" budgets...
	and targeted marketing efforts. This is a "quiet" secretive market
	that can bring millions when they decide they like something
	that makes life easier for them.
	Automated All Weather surveillance
	systems, combining digital and CCD technologies with Leica optics
	is one vertical market I'd investigate.
	Consider co-marketing strategies with current OEM sources,
	would it imply opening up accessibility of a few Leica SLR lens
	designs for non-Leica SLR bodies, versus access to
	AutoFocus patents and related manufacturing expertise,
	 hopefully protecting German jobs too, which is a major
	consideration for many "socially responsible" corporations
	such as Leica Camera A.G.

	This is a very complex set of issues and it's a very good thing
	that Leica is managed by people who have demonstrated
	their ability to redirect and "revamp" good companies
	sailing through contrary winds and return them to immediate and
	long-term viability. I, for one, would not want to be stuck
	with the kinds of decisions and various scenarios that have
	to be considered at this point in Leica's history,
	if but for analytical ability proper. MBA stuff, obviously.

	Do I believe in Leica's future? Yes ! A most definitive yes.

	Andre Jean Quintal