Leica Sets Another Sales Record, Shows the Power of Premium Products
Leica’s continued focus on premium and luxury products appears to be working very well as the company has set a new sales record.
“The Leica Camera Group was able to increase its sales revenues in the 2022/23 financial year once again and achieved new record-breaking results. Sales revenues rose to 485 million euros in comparison with the previous year’s figure (444 million euros) and, with a significant increase of nine percent, achieved a new record high,” the company explains in a press release.
As reported by Amateur Photographer, this is the third year in a row that Leica Camera Group has posted record revenue, signaling continued growth despite what has been a challenging landscape for camera companies.
This growth trend mirrors what has been seen with other camera companies, where selling more expensive products has helped preserve, or even increase, revenue while sales of less expensive (entry-level) models wane.
Smartphones have disproportionately impacted the sales of beginner-level and inexpensive cameras and lenses. More traditional players like Canon, Nikon, and Sony have responded by focusing more heavily on their enthusiast-level and professional equipment. In Leica’s case, there is not much need for a course correction, as the company has always lived on its position as a premium camera maker and luxury company.
“The Leica brand has always stood for optical expertise ‘made in Germany’ and for technical innovations, most recently in the field of Content Authenticity Technology. With the market-launch of the Leica M11-P, Leica sets an example in the battle against fake photos and AI-generated images,” says Matthias Harsch, Leica Camera AG CEO.
Leica also cites the standard M11 as a particularly successful new model in its product portfolio. The rangefinder is a beautiful and fantastic camera, and it costs $9,000 without a lens.
Leica’s enduring M-System is celebrating its 70th anniversary this year, and Leica would undoubtedly love to set another sales record in early 2025.
Like many others, the company faces the ongoing challenge of finding new ways to create compelling upgrade paths for existing customers. As camera technology improves at relatively diminishing rates, getting customers to buy new gear is a constant hurdle.
Leica claims that it has seen continual positive developments in online sales. However, it also cites that its global retail expansion has been positive, which is yet another way the legendary German company is bucking trends. Leica says its retail sales rose by 16 million euros (13 percent) against the previous year. Retail growth is also something Nikon has focused on recently, especially in burgeoning markets like China.
Despite growth, Leica is not putting all its eggs in the luxury camera market. The company’s mobile imaging technology is featured in the brand-new Xiaomi 14 series smartphones, and the company says it is working hard on the further development of its Leitz Phone. And hey, if the camera market slows down for Leica, there are always timepieces.
Image credits: Leica
