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Kodak in digital imaging network

Kodak (Far East) has launched a new digital imaging retail network to service the public and corporate customers.

Lawrence Chan Digital is the brain-child of Lawrence Chan, who runs the territory's second-largest wedding studio. He has been using Kodak films, paper and equipment for the past 10 years.

Mr Chan will manage the franchise business and operate the first stores. He plans to open 10 to 15 stores by the end of the year and more than 40 by the end of next year. The first store opened in Mongkok last month.

With services aimed at the general public, preferred store locations will be residential districts, shopping arcades, entertainment spots and areas near the immigration department and China Travel Services.

However, Mr Chan has already set up another division catering to the digital imaging needs of enterprises, corporations and the government.

Kodak's role is to provide the equipment used in the service outlets, including digital cameras, scanners and colour printers.

A typical set-up would be the Trilab System 105, which consists of a scanner, digital camera, colour management system and image manipulation software. It would require an initial investment of about $400,000.

Kodak also provides support in training, marketing, technical help and maintenance.

'The whole concept aims to capitalise on the growing popularity and demand for professional digital technology by bringing it to the general public at an affordable price,' Jacky Chan, Kodak's general manager for professional markets in Hong Kong, said.

Kodak hopes the outlets will also promote the use of the company's digital cameras.

Digital images have become more fashionable in the past few months. The input of photos on calendars or greeting cards and the production of glamorous portraits and posters have become popular.

High-quality passport photos are also in high demand. The advantage of using a digital technology for passport photos is that the image can be previewed and retouched if necessary.

The result is guaranteed and photos are ready within minutes. It is also cost effective as one A4 size output can hold up to 25 passport photos for a standard rate of $90.

Mr Chan said Digital imaging was a profitable business and shops would be able to break even within the first year in terms of cash flow. Investment for franchising a store is about $740,000.

Kodak has secured a loan service provided by Wing Hang Credit, a subsidiary of Wing Hang Bank, that allows low interest instalments over a two-year period.

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