So- You are Leica's New CEO - What to do ?

[Out to Lunch]

I suppose the entire CEO question depends on what the Board of Directors want for this company. If they want it to survive as a luxury brand, they'd have selected a manager from another luxury brand company. Since they selected a former Microsoft executive, I suppose they have other plans for the brand.

Here is the new CEO:

Oliver Kaltner has been a member of the Executive Board at Leica Camera AG since 1 September 2014 and has been responsible for the divisions Marketing, Sales and Retail; he has also been in charge of the development of retail and sales partnerships. He has amassed extensive experience in managerial functions and brand management in the consumer electronics and IT segments. Most recently, he held the position of General Manager at Microsoft Deutschland GmbH. In this position, he was responsible for the Consumer Channels Group and successfully boosted its revenues and profitability. As a member of the Board of Directors, he was in charge of the restructuring of Microsoft Deutschland GmbH to establish it as a Devices & Services organisation and was also responsible for the further development of the entire change management process for the consumer business sector. Other stages of his professional career saw him assume executive and managerial positions at prominent corporations such as Sky AG, Sony Deutschland GmbH, Electronic Arts GmbH and Nike GmbH.

 

[kbg32]

Cal,

Both my M8 and M9 were sent in, less then 3 months on the M8, 7 months on the M9, for both shutter repair and sensor replacement. I have 4 film Ms. Other then the occaisional minor rangefinder alignment, or a CLA at most, they have never failed me.

 

[SuperUJ]

I suppose the entire CEO question depends on what the Board of Directors want for this company. If they want it to survive as a luxury brand, they'd have selected a manager from another luxury brand company. Since they selected a former Microsoft executive, I suppose they have other plans for the brand.

I was thinking about the same thing and that's concerning. For a few years, we saw Leica was trying to mimic premium brands, e.g., Stores similar to Apple Stores, pricing its products as a luxury items, etc.. The new CEO has the background of aged tech companies, namely Microsoft, Sony, etc. Did I say OLD? Not sure if the direction that he is going to take will be following the same path since the launch of M9. A change of direction in a few years is not necessary a good marketing strategy.

The new CEO should keep an open mind and look into what some other companies went through, e.g., Swiss watch makers survived the digital wave, the reasons for the falling of SAAB, how Porsche 911 stays relevant for decades and helps build another models, etc.

John

 

[Calzone]

Cal,

Both my M8 and M9 were sent in, less then 3 months on the M8, 7 months on the M9, for both shutter repair and sensor replacement. I have 4 film Ms. Other then the occaisional minor rangefinder alignment, or a CLA at most, they have never failed me.

Keith,

I kinda remember that you had issues with your M9, but I think in fairness your experiences are valuable and need to be specified to present a balanced view. I'm not saying that all Leica digitals are problem free, but mine thus far has been. Sorry that you had problems. The M8 I had no idea.

Cal

 

[SuperUJ]

Keith,

I kinda remember that you had issues with your M9, but I think in fairness your experiences are valuable and need to be specified to present a balanced view. I'm not saying that all Leica digitals are problem free, but mine thus far has been. Sorry that you had problems. The M8 I had no idea.

Cal

I buy a few things new from Leica every year, so as Nikon and recently Fuji. Unlike many other here bashing Leica on the M9 sensor issue, my sensor replacement was painless earlier this year. Over the years, I sent in a few things to Leica USA for services. Out of the many maintenance requests, the customer service that I received has been top notch. The only exception was the Leica Service Department used the wrong part (black paint vs. black chrome knob). I take that as an honest mistake. The rest of my experience has been quite positive. Does Leica's customer service act like other premium brands?

I know a few car owners whose new BMW/Mercedes need to go back for service a few times in year 1 and another couple of times in year 2 outside of the regular oil changes. I honestly have not heard the same level of noise about BMW/Mercedes as some folks here on Leica. I suppose a century old company has certain baggage. The fact that Leica is still servicing my 60 year old M3, not to mention it still markets new film model, it speaks a lot about what the brand stands for.

The new CEO should observe such legacy and take the company into a new era while still focuses on art making and photography. How about supporting more up-and-coming artists, sponsoring equipment is one, or give them more exhibition space (like the Leica Store in Tokyo) as well as web presence, etc. Wasn't that's how Nike builds goodwill in a crowded market. Just another idea other than listening to real customers.

John

 

[semilog]

I would replace every M9 with corroded sensor with then current model for free and send a letter of apology with return.

I would get rid of the red line problem or at least allow for customer correction.

Public apology for spending so much money on acquisitions like Sinar and new facilities.

I would be smart enough not to take on this albatross.

Game, set, and match.

 

[semilog]

…e.g., Swiss watch makers survived the digital wave…

Some. How many remains to be seen. There is a cruise missile with an apple stenciled on its side, and it is pointed at the middle and lower segments of the Swiss watch industry.

 

[Calzone]

Some. How many remains to be seen. There is a cruise missile with an apple stenciled on its side, and it is pointed at the middle and lower segments of the Swiss watch industry.

I think my Rolex and Paneria will outlast any Apple Torpedo.

Cal

 

[semilog]

I think my Rolex and Paneria will outlast any Apple Torpedo.

Cal

That is precisely the problem that the Swiss watch industry (again, especially its lower and middle segments faces.

Same with Leica. I already have a perfectly operable M6 and Leica optics were already better than they needed to be twenty years ago.

 

[Kwesi]

I think my Rolex and Paneria will outlast any Apple Torpedo.

Cal

Love it!
Hopefully so will my Swiss Army watch🙂

Honestly though, i think the last thing Leica needs right now is advice from us.

 

[Dralowid]

They seem devoid of creativity.

Buy time. Close down production, watch 'The Stone Tapes' and find a forward thinking genius.

To survive they need to make a big step change in development. Right now they are no more than a 'legacy brand' trying to live on core values that most of the world has left behind.

Michael
(runs for the hills)

 

[Calzone]

That is precisely the problem that the Swiss watch industry (again, especially its lower and middle segments faces.

Same with Leica. I already have a perfectly operable M6 and Leica optics were already better than they needed to be twenty years ago.

Your points are well taken. Perhaps the distinction is that the lower and middle are seriously being threatened, and maybe the top might not be effected.

Maybe the durability of Leicas is both an asset and a liability at this point.

Cal

 

[SuperUJ]

That is precisely the problem that the Swiss watch industry (again, especially its lower and middle segments faces.

Same with Leica. I already have a perfectly operable M6 and Leica optics were already better than they needed to be twenty years ago.

To keep the company going, Leica needs new markets, in addition to keeping existing customers happy. My point on mechanical watches was that there is a growing trend of high end watches, like Rolex and Panerai that Cal mentioned, that are gaining popularity in the West Coast among the Tech savvy generation. For mid level brands, like Tag and other well known brands are developing traditional looking smartwatches as well. How did the watch industry do all that? That's a business case for Leica to look into. I am sure you can name more than a few failed watch makers too. The new CEO as a businessman and a marketing expert should understand why they don't exist today too. Leica is in a unique situation that has a strong name that can be leveraged in many meaningful ways.

John

 

[Roger Hicks]

They seem devoid of creativity.

Buy time. Close down production, watch 'The Stone Tapes' and find a forward thinking genius.

To survive they need to make a big step change in development. Right now they are no more than a 'legacy brand' trying to live on core values that most of the world has left behind.

Michael
(runs for the hills)

Dear Michael,

The key word is "most". There are still plenty of people who don't want more of the same sort of mass-market rubbish peddled to the dull, unimaginative majority.

As a general comment to everyone who doesn't want to buy a Leica because it doesn't suit their (often inflated) opinion of themselves, the answer is simple. Don't buy 'em. Let the market decide. But don't make stupid suggestions about things you know little or nothing about and don't like anyway.

Cheers,

R.

 

[jsrockit]

To survive they need to make a big step change in development. Right now they are no more than a 'legacy brand' trying to live on core values that most of the world has left behind.

I would think, in this case, its legacy is a pro not a con. I'm not sure it should ever get into the lower priced, volume based sales game.

 

[jszokoli]

Leica, Leica, Leica...

Their cameras are expensive because they don't make anything like the number big boys make. That's good. This allow them to make unique cameras. Now for this argument lets stick to 'M' cameras. Sure Voightlander makes film rangefinders but they don't have the associated costs of digital cameras. Just look at Zeiss, even though make by Cosina they needed to be sold at a premium for a small incremental gain in quality. (Voightlander and Zeiss make tons of good glass and I think they go a long way to supporting prices on used 'M' bodies of all makes) Now look where Leica is from a quality standpoint.

They are not overpriced, they are priced for what they are.

People do buy Leica new. Plenty of people right here buy new bodies and lenses. If having a full frame rangefinder is worth the money to you, you will buy one. Maybe you will wait and buy used, but you will buy if thats the product you want.

If it sounds like crazy money, then you properly don't want one.

The sensor defect issue is a red herring, customer service is reported as generally good here. You know what allows for that good customer service? The high prices.

If you want unique you pay for it. What would be worse for all the 'M' body and lens users would be if someone else came into the market with a digital 'M' body and drove prices down. It would be the end for Leica and an end for any new rangefinders...

Joe

PS what is scary is that Oliver Kaltner comes out of Microsoft, and I've never seen anything good come out of that orbit, lets hope he owned a Leica at some point in his life.

 

[SuperUJ]

PS what is scary is that Oliver Kaltner comes out of Microsoft, and I've never seen anything good come out of that orbit, lets hope he owned a Leica at some point in his life.

I read somewhere that Oliver Kaltner led up the XBox dept in Germany when PlayStation was the market leader a few years ago. It's my understanding that XBox was one of the few things worked out for Microsoft in recent years. And the experience of competing as an underdog may serve him well on his new job ... although I remain being skeptical.

John

 

[JOneZero]

Leica have got to do something new and innovative and disruptive, otherwise they're just another canikon, spewing out an "upgrade" every few years. Currently there is just no justification whatsoever for the price they charge for their cameras.

Here is my idea: Everybody knows how folks love to keep their Leicas mainly forever. Everybody knows Leicas are built to last. This is a huge draw to the brand, and I hasten to add that this reputation is absolutely deserved. So, I would get every available engineer onto designing a digital rangefinder with a modular back end. So you could buy a module with a CMOS sensor, a CCD sensor, a monochrome sensor, a higher resolution, faster processor, etc etc etc. That way you get to keep the body, with all of it's cool brass showing, and its sentimental value, and all you have to do is swap in whatever lens you want, and whatever sensor you want. This swappable sensor could even be loaded through the bottom plate, just like the film Leicas.

Is this a _hard_ problem? YES. Is it impossible? I don't think so. Not for a company with some determination and engineering talent. I'm not even saying they should price it in the canikon D750 range. The problem is hard enough that the cost of producing it MIGHT actually then justify the price tag of a Leica body designed this way.

As I see it, this is a way to marry the longevity/visceral sentimentality/build quality that is already a huge draw to the brand, with the ever-evolving, instant obsolescence of the digital era.

Anyway that's my idea. I am 100% sure that reality will bring us something more along the lines of what Mr. Toad proposed early on in this thread: 15% layoffs, and executive bonuses all around.

 

[willie_901]

There words - lenses, lenses, lenses.

Leica's electronics has never been competitive. Developing a Leica line of optics compatible with the most popular DSLR/mirrorless bodies will not dilute Leica camera body sales. Leica could even develop lines of AF lenses. The optics and essential mechanical bit could be made in Europe, assembled overseas and then rigorously tested back in Europe. The marketing strategies can be diverse. Everything from reviving old Leica coatings and optic designs to the ultra-high performance is possible.

Keep on mind DSLR functionality and image IQ have plateaued. Enthusiasts and pros could differentiate themselves by using Leica glass.

When there is a breakthrough in digital imaging technology, Leica will not be able to implement that technology in a timely fashion (unless CMOSIS invents the breakthrough). Either way selling excellent, value-added lenses to very little impact on M body sales. SONY, Fujifilm and others already took a sliver (niche of a niche of that miniscule customer demographic anyway.

Leica probably has business agreements with Panasonic that make this plan moot.

It is good to learn the new CEO has experience in a digital electronics product (XBOX). Perhaps he will be able to assess how Leica can excel in digital electronics. At this point leveraging Leica's film M camera excellence to shape customer opinion of digital Ms is rapidly approaching obsolesce.

 

[Calzone]

There words - lenses, lenses, lenses.

Leica's electronics has never been competitive. Developing a Leica line of optics compatible with the most popular DSLR/mirrorless bodies will not dilute Leica camera body sales. Leica could even develop lines of AF lenses. The optics and essential mechanical bit could be made in Europe, assembled overseas and then rigorously tested back in Europe. The marketing strategies can be diverse. Everything from reviving old Leica coatings and optic designs to the ultra-high performance is possible.

Keep on mind DSLR functionality and image IQ have plateaued. Enthusiasts and pros could differentiate themselves by using Leica glass.

When there is a breakthrough in digital imaging technology, Leica will not be able to implement that technology in a timely fashion (unless CMOSIS invents the breakthrough). Either way selling excellent, value-added lenses to very little impact on M body sales. SONY, Fujifilm and others already took a sliver (niche of a niche of that miniscule customer demographic anyway.

Leica probably has business agreements with Panasonic that make this plan moot.

It is good to learn the new CEO has experience in a digital electronics product (XBOX). Perhaps he will be able to assess how Leica can excel in digital electronics. At this point leveraging Leica's film M camera excellence to shape customer opinion of digital Ms is rapidly approaching obsolesce.

Willie,

You are right about Leica glass and how some photographers want to stand out.

Recently I bought a 50 Lux-R "E60" for use on a future Nikon D3X. Some crazy things happened and somehow my Noct-Nikkor that I traded away came back to me as my friend and I unwound our trade. Then another friend sent me a black R8 with motor winder. Then on top of that I found an unused black SL2-MOT at Adorama for only $279.00 that didn't get used due to a wonky meter. The SL2-MOT is with Sherry getting overhauled and repaired, and now I will use the Leica glass as intended on a Leica body.

I think the CEO has to see and know that only about 2700 50 Lux-R "E60's" were ever built and the pricing and demand is kinda crazy. Shooters are willing to be handicaped by loss of an auto diaphram and having to use stop down metering to shoot Leica glass on other maker's DSLR bodies. Obviously there is a demand.

I would love even a manual focus Leica lens that would mount my F3P or D3X without the loss of the auto diaphram.

Cal