Environmental Finance reports that Nikon cameras in Switzerland are utilising the services of weather risk management firm CelsiusPro AG to offer camera buyers in Switzerland a refund should the weather turn bad over a defined period over the Easter holidays.
CelsiusPro have sold Nikon a weather derivative based cover that allows them to run a weather refund promotion to their customers. Nikon will refund the purchase price of a camera to consumers who qualify for the deal by buying and registering their camera between 15th February and 14th March if the Easter break is a washout from rainfall.
The weather derivative underwrites the offer meaning that Nikon won’t be out of pocket for any claims that come in.
Now, weather refund promotions aren’t unusual in themselves. We’ve covered a number of these in the past (see our previous coverage here). What makes this particular deal worth highlighting is the fact that Nikon as a camera manufacturer isn’t a weather dependent business (in the same way as travel companies and sporting events) with a product that can be directly affected by the weather. In this case (as Environmental Finance rightly highlight) the weather cover is being used as a marketing tool, giving Nikon another way to attract customers to buy their product within a defined period. A great way to increase sales during a period that is traditionally slower in the electronic consumer goods industry!