Nikon Australia's five point response to the rise of the Grey Market

Published on Mon, 21/11/2011, 11:28:49

|

By Patrick Avenell

JB Hi-Fi last week shook up the local retail camera category with its decision to sell directly imported name brand stock through its website. One of those brands it is now selling at drastically reduced prices is Japanese imaging specialist Nikon.

So pervasive is the threat of grey imports to Nikon, the manufacturer has provided a five point guide to why purchasing its products from authorised resellers instead of parallel importers.

The first point Nikon raises is that its products will always comply with Australian standards. Conversely, it says that grey imports “may not meet mandatory safety and certification codes, or may not have been handled properly, therefore they may malfunction”.

The second point is one of the biggest and most misunderstood: warranty coverage. Nikon says that if you purchase its products through its authorised resellers, full technical service is provided at a local service centre. This service is free of charge, provided the warranty period is still active and the damage being repaired meets the warranty conditions.

For grey imports, the warranty situation is much more convoluted. Nikon says grey consumers “May not be able to receive full technical support as the warranty is valid only in the country where the camera was purchased from”, and that “certain dealers selling grey items may not be able to provide technical support”, while consumers “will also have to pay to have [their] camera serviced if it was bought from another country”.

Click here to sign up for our FREE daily newsletter
Follow Current.com.au on Twitter

Third on Nikon’s checklist is the manual. With DSLR cameras one of the most technologically confusing products in the market, consumers need the manufacturer’s manual in order to make the most of their purchase. Nikon claims that grey imports can include a manual that is not in English and that they are often simply photocopies of the original documents.

Nikon further advises that due to imaging software constantly evolving, it provides consumers with the ability to register their purchase to receive software and firmware upgrades as they become available. Conversely, Nikon says that “owners of grey items may not be able to download online software and firmware upgrades available from the Nikon site, due to incompatible serial numbers”.

Finally, Nikon says the software CD included in a Nikon camera purchase may not be the correct version, leading to “problems involved when wanting to upgrade the software”.

For consumers who do choose to purchase a Nikon camera through a grey importer, the company has some stern advice.

“Please do not contact Nikon Australia for help with any grey market products. Please contact the reseller or importer of your grey market items for warranty and service information as well as software updates and downloads.”




There is a lot of "may" in there. Having bought a Grey Market camera recently (a Canon, not a Nikon) I have to wonder if this is a lot of hot air. I was worried about the same things. The manual was complete, and included - not a photocopy. Same with the software. All up to date. Lack of compliance with safety standards is an absurd statement, and should be ignored. Upgrades are a valid point, but I'm sure firmware can be obtained anyway, and that would essentially be them deliberately blocking grey imports. So essentially the difference is about a 40% saving due to possible warranty issues on the slim chance of an issue occurring? Thanks. I'll keep my $550 and take my chances.
Posted by Matt Burgess. 21/11/2011 05:44:28 PM
I think Nikon Australia have to get with the program. Retail is never going to be the same again. Consumers and retails alike have easy access to a global market. Local distributors, like Nikon Australia, need to adjust their wholesale pricing to enable retailers to be competitive with the grey market, otherwise more retailers will start grey sourcing to remain competitive. Currently, retailers make tiny margins on camera sales, and are forced to make up the shortfall by selling accessories. This is a classic example of a company not adjusting to the times - Canon Australia, as I understand it, are equally slow to adjust.
Posted by Dan. 28/11/2011 01:53:59 PM
Here in the US Nikon took the route of forcing retailer to sell Nikon products at "minimum retail price" which means no more discounts. Package deal discounts are alowed on certain items as longs as the discount is within 10% of the regular price. This makes grey market a non-issue.
Posted by Wayne. 28/11/2011 03:05:32 PM
I have a 24-70mm F2.8 lens I sent to Nikon USA for warranty work, bad focus. I paid $50 each way for shipping and insurance on a near $2,000 lens. Nikon said to me it was 'just fine.' Then I took the lens to the local camera and lens repair professional and paid $250 to have the product fixed. $100 shipping and $250 repair costs for $350 total cost with a USA Nikon warranty still valid. I hear you say 'you should have sent it back.' That fairness fantasy cost me $50 each way, once was enough. Will I buy Nikon USA again, well the firmware updates are important for a camera, but are they for a lens?
Posted by Stanley Hoffman. 28/11/2011 04:04:22 PM
I agree with Dan. Nikon Australia need to accept that if they want to be a global concern they need to let their consumers purchase that way also.
Posted by Andrew. 28/11/2011 04:29:40 PM
This is all rubish. I bought a d7000 in Japan, as I was living there. After my wife and I moved back to Canada there was a firmware update and guess from which website I could download the new firmware?! Nikon Canada, whitout any problem... Besides, to the best of my knowledge, Nikon products are standart across the world. The only difference is the electric cord, sometimes, but even the charger itself is always the same for a given model. And the instruction manual, if you really wanted to have one in your language, can be purchased through special order at any "authorised retailer" for about 10$...
Posted by Librephil. 28/11/2011 04:31:27 PM
I have neen buying grey imports for 2 years. Grey imports are made in Japan and local items are made in China. So I gneerally stay away from local distributors due to the poor quality of their goods. Yes, grey imports are cheaper and better.
Posted by Hua. 28/11/2011 05:14:26 PM
What a load of Marketing Crap from Nikon. These fools need to understand that the prices they push into the australian market are so rich, that it is cheaper for me to FLY to the US and purchase equipment most times rather than pick it up locally. As for the bodies, I have never had a failure within a warranty period (although my D3 just died 3 years out of warranty). Lenses purchased overseas whilst travelling are covered generally if you can prove you physically picked them up (Proof of entry to the US would suffice). I have and will always buy my Nikon kit from bhphoto.com or Adorama.com as these are reputable authorised Nikon Resellers in the US so I trust I will get a product of good standard (with an English Manual). So to the Nikon Scare monger, go blow it out your @#$#....
Posted by Steve. 28/11/2011 05:28:45 PM
As someone who's actually had a terrible experience with Nikon Australia Service, all the patronising can be shoved back on their end. My professional grade camera's rubber grips (that's plural) started to fall apart and they refused to fix it under warranty even though it was 3 months old at the time. Went to Shanghai for a trip, had a lens clean and they actually offered without me prompting to fix the grip under warranty. But I told them I had bought it in Australia, the reply was okay, we will fix it for the equivalent of 60 Australian dollars... Nikon in Sydney quoted me nearly 5 times more for the same job.
Posted by . 28/11/2011 05:50:16 PM
Like other wholesalers they see the Australian customer as someone stuck on a rock, forced to pay their prices. If they cannot negotiate a better price then why should we pay for their lousy management. As customers we all watched as the AU$ continued to outpace the US$ but not once did they take their hands out of their own pockets and didn't even using the opportunity for a promotional run. My Nikon Life (.com.au)is a desert, they even had a camera give away competition but I never saw a winner announced...? Fat and lazy, no proactive campaigns and now I just got into study and the faculty has a Canon Shop. We all use Canons they tell me. Fat and lazy, about time the customers chased their chubby little suits around the track. Wake up Nikon Australia, your customers know you are not worth our money.
Posted by Tony. 28/11/2011 08:56:52 PM
A brief mention for the benefit of those making comments who may not be aware of Australian laws. My understanding of our law is that, in Australia, the manufacturer/importer/wholesaler is prevented from setting retail prices. They may publish a "recommended retail price (RRP)" but retailers are not bound by this and any attempt to coerce them into setting a particular retail price is forbidden.
Posted by LesM. 28/11/2011 09:12:09 PM
Further to my post a few minutes ago .... On the other hand, I have just checked JB Hi Fi's website and see nothing priced to excite the local Nikon buyers.
Posted by LesM. 28/11/2011 09:20:15 PM
I bought my 7D + EFs 15-85 + EF 70-300 (non-L) + 8GB Sandisk Extreme + 58&72mm UV filters in Holland last year when I lived there. That price at Teds would have gotten me the 7D + 15-85 only. All of those excuses nikon have come up with are pitiful, but "not the right manual" has to take the cake. The manuals supplied with mine were dutch, french, german, and italian. 6 months later when I actually felt the need to read the manual for a specific issue, I just downloaded it. FROM THE CANON WEBSITE. (not sure how nikon operates though).
Posted by DrCroubie. 28/11/2011 10:30:53 PM
I had a raging forum argument with a moderator at photo.net about this. I was banned...woo hoo! Because the US market is stuffy about grey market imports, Nikon pulls a swifty. They do a production run with "US" added to the serial number and insert a US warranty card often together with the universal International Warranty card, to make US consumers feel special. Some folks think that the US gets a special batch. I'm sorry to disappoint them. Whereas here in Australia, its a criminal act under Part IV of the Trade Practices Act to deny supply when there is parallel supply as well. Its actually law that you have to provide alternate supply. The last vendor to threaten witholding supply due to a dealer parallel importing was Toshiba and they were fined A$300k. After all, the cameras all came out of the same factory. Nikon shouldn't care. The local distributor might though as he misses a sale. With international couriers so cheap nowadays you can send your broken whatever back to say Hong Kong. These dealers ship so much product for Nikon that the boat won't be rocked. Its usually not the price thats the issue, but availability. I ignore the local channel as they hardly ever keep inventory of the better stuff. I can get a new whatsit from Adorama/B&H/KEH in 4 working days to Sydney, hand delivered and insured. Thats faster that a local dealer can get the same product from Nikon Australia.
Posted by Stephen Praibin. 28/11/2011 10:44:57 PM
I've updated my Nikon DSLR Firmware at one point using both Nikon USA and Nikon Europe. Both updates seemed identical except for one of them defaulted the Video Out to Pal (Europe) and the other to NTSC (USA). Yes, all of this is rubbish. The only difference is perhaps a different plug for charging the battery and/or a localized instruction manual. I'm all for paying less.
Posted by hq. 28/11/2011 10:50:50 PM
Nikon and other global manufacturers need to quit playing illegal pricing games and just charge what they want for their products. With global markets and global consumers, price fixing doesn't scale well; buyers will go where they want to get the equipment the want, for the price they want. If they can't find it for the price they want, then they can either pay more it buy an alternate product. I understand that Nikon needs to make a profit, and that they can enjoy the higher profits that one market provides vs another. But they can't expect to continue 40% gains vs another market or subsidise market "B" by gouging market "A". Consumers won't tolerate it, and believe me the web makes them aware of alternatives. Like many have said, I will assume the risk and the manufacturer warranties aren't worth a damn anyway.
Posted by Michael Sloan. 29/11/2011 05:10:56 AM
Typical Australian fear mongering... nothing less. Nikon might as well appear on Today Tonight. If a camera is a grey import it DOES NOT mean it's a counterfeit. So you won't have issues upgrading firmware, etc. I've spent approximately AUD 30,000 on camera equipment and I've bought both "local" and grey imports and there's no difference.
Posted by Ok to go grey. 29/11/2011 05:13:58 AM
If firmware was really an issue or Nikon try to make it an issue, that firmware will be made available by people on other sites. If Nikon want me to buy local they need to meet the price. I see no reason why I just fund a bloated local Nikon operation or be subject to their price maximisation strategy. Retailers in Australia are going to be gutted by cost structures that were previously protected by geography. Time for retailers to cut sourcing costs, JB has done that by leaving out the pricey middleman.
Posted by Ralph. 29/11/2011 07:58:31 AM
Nikon Australia has some of the worst customer service, I don't see that as a plus for buying locally. Seems a number of companies forgot there is a thing called the internet, we can see how inflated the local prices are and we can buy from other countries. Nikon bringing up tenuous reasons to buy locally is a scare tactic to protect their market.
Posted by Sibko. 29/11/2011 09:33:49 AM
retail prices in Australia are just crazy, the other day I saw in a famous store a D300s (body only) at $3200 AUD whereas I can find the same camera online at $1550 AUD! That is how big the difference can be! I've never had any problems buying on the internet, on the contrary, pure satisfaction! (specially when you know you paid almost half price). Regarding warranty, I've never had any issues, I had already one of my cameras repaired within 30 days (I'm quite sure it would have been faster if my foreign base website would have not selected an Australian based repairer) Also, customer services here in Australia are poor or just nonexistent!
Posted by Alan. 29/11/2011 05:33:46 PM
Completely agree with Tony, being a Nikon enthusiastic, I feel quite disapointed on how Nikon Australia is operating, and they are falling very far behind Canon Australia! Whoever is behind the management of Nikon Australia is not worth carrying the emblematic name of Nikon. I'm glad I'm not the only one to realise this.
Posted by Alan. 29/11/2011 05:51:48 PM
I found it pretty hard to locate the link to the "Direct Imports" section of the JB site but got to it eventually. As a comparison they are selling the D7000 with 18-105 VR kit lens for $1549 + $22 delivery. The same deal is $1793 ("hot price" till 7/12) for the "legit" version. DWI are doing it for $1527 with free delivery. JB's product range looks pretty limited so far at least. As far as warranty goes, both JB and DWI state that they will provide a warranty service equivalent to the manufacturers warranty. Personally, on a tight budget, I would prefer to buy grey market than used.
Posted by TRS61. 29/11/2011 06:43:52 PM
I've bought 'grey market' Nikon camera equipment for the past 6 years and have not had any problems with firmware updates or English manuals (most are multi-lingual, even the EN-EL3 battery manual is!). I've bought from B&H, Amazon (Adorama) and even eBay (digital Rev) without problem and at prices half what Nikon Aust are asking. An example was a SB-600 from Adorama for $176 + post. Local was $340 and upwards!.... It's about time International corporations thought global with a Global warranty and focused on the Consumer, not the single distributor in a country with monopoly (pricing) powers.
Posted by Everything grey. 30/11/2011 07:25:34 AM
I just purchased my V1 with 2 lens for £400, yes 40% less from Japan than the UK list price, also Nikon Binos 20-120 listed here today $20k in UK UNDER $7K in USA, and my local Nikon dealer who I might add has stocked the biggest selection on Nikon products in Cornwall for years has recently been informed by the mighty Nikon that as he not a listed dealer? he is now restricted to only selling nikon accessories and low end products and to return for credit all stock forbidden under the new regulations, Canon are looking more inviting by the day, when the 2.27 NX2 upgrade was released because I had lost my original receipt Nikon completely blocked my programme requiring me to purchase a new copy, I think 'rectum's' a nicer word but you gather what I mean meets the description of my opinion of Nikon.
Posted by A Daddow. 30/11/2011 09:00:03 PM
I don't like seeing JB going down the grey import path. Not because I'm afraid of warranty or firmware issues, but because it gives consumers another reason to step away from dedicated camera stores that can (in most cases) offer advice and expertise that you won't get at a big box store or from an online retailer. I'm more than happy to spend a little bit more money and to create a little store loyalty, because in the long run I want that store to be around when I have to source something same day that may be a little higher spec than the "average joe" accessories that a JB Hifi store will offer.
Posted by Dave. 01/12/2011 07:25:18 AM
@ Dave. Well maybe if they forced the distributors and the big two (at least) to price comparatively to the rest of the world then they would be more relevant. Unfortunately they are not for the bigger ticket items especially. Sigma will price match grey market (+ plus delivery )via their distributors ... why they do not off the same price straight up still shows they are looking to gouge unsuspecting Australians ... but at least they do it.
Posted by Matt. 05/12/2011 10:45:01 AM
Nikon Australia, Nikon USA, and all the other localized importers who complain about grey market gear have a legitimate gripe: if they did warranty work on gear they didn't make money on, they're losing money. There are simple solutions to this problem. The easiest is to charge money for the repair of grey market items, and not whine about it. Whining and threats don't win points with customers. The best solution is one that SHOULD come down from Nikon HQ in Japan: they should allow the localized importers to bill them for repairs to grey market gear. This is the only way to provide appropriate support for customers, especially ones who travel/move. Why should a manufacturer penalize customers for their personal life decisions? Doing so is reprehensible. Speaking as a USA resident, I am sorely disappointed with the service I have gotten from Nikon USA under warranty AND when I've paid out of pocket. I'm currently dealing with a shoddy repair that has been NINE MONTHS in the making. Nikon and it's subsidiaries need to do less threatening and more apologizing for their lack of accommodation, and lack of ability to cope with the realities of the current global economy.
Posted by Micah. 07/12/2011 10:39:00 AM
Hi,,just reading about the Nikon camera,which I just purchased from Kogan website.got the camera and most accessories for under a grand .nikon 1 v1. Delivered. The manual was in Japanese ,but on searching the apple app store I found they have a few free apps,that download PDF manuals in any language you choose. They also have apps showing you every little nook and cranny about the camera. Just type in Nikon in app store or Sony etc and you'll have everything you need and more. I bought at Kogan because the same cam and acces,in Australia were around the 1300.00 mark at cheapest, Kogan I got twin lens, bag, memory card etc for 919 delivered to the door. Took a week,but for me saving 400 bucks was huge. Would have gladly bought here in oz if the retailers were not so greedy. They will have to move with the times,or go bust. I know what I'd be doing.
Posted by John Lowden. 29/12/2011 08:15:32 AM
Add your own comment




6,964
current latest news

Free Picture Taking Help at the Digital Show

Not Just Bits and Bytes

Fri 27/04/2012 11:48:10 / Read More »

Make Secure Password Management Easy with Trend Micro DirectPass

Synchronize online credentials across PCs, mobile phones and tablets.

Mon 16/04/2012 03:48:53 / Read More »

What's the hottest thing about Teka's IR 631 Induction Cooktop? The price.

Where it matches the competition in design, practicality and reliability, it exceeds the rest when it comes to affordability.

Thu 29/03/2012 11:51:35 / Read More »

Make Coffee Like a Barista at Home.

WITH THE NEW NESPRESSO MAESTRIA RANGE

Mon 12/03/2012 04:32:07 / Read More »
current join to free enews