Dr. Andreas Kaufmann took over the then-seriously ailing Leica Camera AG 20 years ago and brought the company back into profit. He spoke to ProfiFoto about the future of the company.
This article is syndicated from Profifoto; a fellow member of TIPA. The Phoblographer and Profifoto have an article exchange agreement. You can view the original here. Our article is a translation.
ProfiFoto: Dr. Kaufmann, you turned 70 last year. What are your plans for yourself and Leica Camera?
Dr. Kaufmann: When we joined Leica Camera AG 20 years ago – the main shareholder at the time was Hermès, and Leica was listed on the stock exchange – our goal was to get the company back on track and ensure long-term success in cooperation with the committed employees. I will continue to be available, but the next generation is already ready and working with us at various levels. For Leica Camera AG, we have a clear strategy for continuous growth and innovation in order to strengthen our position as a leading provider of high-quality optical products. And very important for us: promoting the culture of photography as a matter close to our hearts and an important part of the Leica brand!
ProfiFoto: In October 2011, the US investment company Blackstone acquired a 44% stake in Leica Camera AG from ACM. Investment companies like Blackstone usually do not hold on to investments for ten years, but sell them on. What is the outlook here?
Dr. Kaufmann: You have to ask Blackstone that question. Our collaboration has been extremely successful so far, and we are confident that we can continue to be successful together. Looking to the future, we will make the best possible decision in the interests of the company and everyone involved.
ProfiFoto: What is your opinion on the option of taking Leica Camera AG public again? Is the expansion of the brand line-up a preparation for this step?
Dr. Kaufmann: The expansion of our brand line-up to include products such as watches, eyeglass lenses, a cinema TV, and the cooperation with companies such as Xiaomi and Sharp in the smartphone sector are part of our strategy to expand our product range around the company’s core competencies such as optics, mechanics, design, software, and electronics. These steps are aimed at making Leica future-proof and more versatile, while at the same time opening up new market opportunities for us.
By the way, expect to see more products in the oversize format – you call it medium format, but I think that’s an outdated term now – in the future!
Dr. Kaufmann
ProfiFoto: Next year, Leica Camera AG will celebrate 100 years as a camera supplier and has commissioned an agency to evaluate the brand positioning. Why is this necessary?
Dr. Kaufmann: We know a lot about our brand internally – but it is always necessary to check and focus on it with external help. The evaluation of our brand positioning on the occasion of the 100th anniversary of the Leica camera is an opportunity to reflect on our strengths and opportunities.
ProfiFoto: When it comes to cameras, Leica Camera AG is currently focusing on the three full-format lines M, Q and SL, after APS-C and medium format models were discontinued. Wouldn’t it make more sense to position yourself more broadly here?
Dr. Kaufmann: We also offer a hybrid instant camera SOFORT 2 and the D-Lux, a powerful and versatile compact camera that gives beginners the perfect start in the world of photography. We are always striving to optimize our product portfolio and respond to the needs of our customers. By the way, expect to see more products in the oversize format – you call it medium format, but I think that’s an outdated term now – in the future!
ProfiFoto: The Leitz Phone 1, a Leica smartphone, has been available in Japan for some time. What are your experiences with it and when will a Leitz Phone be available outside of Japan?
Dr. Kaufmann: The smartphone is the camera that everyone uses, so photography with the smartphone is an important part of our strategy and our vision of offering optimal image quality and the best possible user experience. Just as there used to be a Leica Minilux as an entry-level model, you can see a smartphone as an entry-level camera.The Leitz Phone, which was introduced in April, is already the third generation – based on a cooperation with Sharp – and has received a positive response in Japan, which we are very pleased about. You can assume that we will continue to invest in offers for smartphone users. The new Leica LUX photo app represents the third pillar in the mobile area and underlines the strategic importance of the division for the successful further development of the company.
ProfiFoto: What role does the cooperation with Xiaomi play in this? And why does Leica use the Leitz brand name for its smartphone?
Dr. Kaufmann: The cooperation with Xiaomi is part of our strategy of licensed engineering, as we call it. We see a promising future for both companies in this partnership.
The use of the Leitz brand name is a tribute to our long history and our heritage – after all, we are standing on the shoulders of over 150 years of Leitz family history!
ProfiFoto: Leica Camera AG stands for photography culture like no other brand. What added value does this commitment bring to the company?
Dr. Kaufmann: Thank you for this question. Our commitment to the culture of photography is an integral part of our corporate identity – for example, we have 29 Leica galleries worldwide, a world record so to speak! The added value in terms of ROI is the importance of photography, the love of the art of photography as the core of our brand! It not only strengthens our brand and customer loyalty, but also helps to promote awareness of the importance of photography and consolidate our position as a leading provider of photo products internationally.
