UPDATE: Canon issues fighting words to JB Hi-Fi over grey imports

Published on Mon, 21/11/2011, 04:53:40

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By Claire Reilly

The local subsidiary of Japanese camera specialist Canon has today issued a stinging statement in response to JB Hi-Fi's decision to sell Canon-branded, grey imported cameras on its primary website.

In a statement to Current.com.au this afternoon, Canon said the decision to sell grey products could have a negative impact on the supplier/retailer relationship.

“Naturally we are disappointed that JB Hi-Fi has launched a direct import channel, which in our mind changes them from a pure local-based retailer to a local/grey-market ‘hybrid’ operator,” said Canon Australia’s director of Canon consumer imaging, Jason McLean.

“JB Hi-Fi is a key Canon customer and any changes in our local sales results that this brings about will see us having to redirect our customer focus and support.

“Canon Australia’s purpose as always is to drive value and support locally, and we will continue to work closely with our key customers to do this and deliver our local business targets together.”

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Interestingly, McLean’s disappointment echoed the words of JB Hi-Fi CEO, Terry Smart.

Speaking to Current on Friday, Smart said that the decision by some suppliers to sell directly to consumers (as Canon has done with its online Canon Store) was “disappointing”.

“It’s disappointing because you have a supplier competing, but that is not the driver of this [the move to selling direct imports].

“Retailers and suppliers always have to work together, there is no question,” said Smart. “With products like cameras, it is harder in the sense that you’ve got to continue to work with the supplier but you also have an opportunity of getting products much cheaper off shore and therefore you are competing directly with them if you’re going to participate in that category.”

Last week, Current.com.au reported that JB Hi-Fi was selling DSLR cameras on an “Online Only Direct Import” section of its website, at prices hundreds of dollars below those found its traditional authorised reselling site.

As an authorised reseller of Canon products in Australia, the JB Hi-Fi website offersone Canon-model twin lens kit for $1,177. However, the same model is available for $795 through the new direct import section of the online store.

UPDATE:

Terry Smart has responded directly to the statement issued by Canon yesterday, reaffirming JB Hi-Fi’s position regarding grey imports, and discussing the impact the new online sales model will have on its relationships with local distributors.

“Our goal and desire is to work with local distributors but our overriding objective is to ensure we protect the JB Brand by continuing to offer customers the best value in this global market place,” said Smart.

“We will continue to work closely with all the camera distributors to ensure we work towards delivering the best outcome for us, them and most importantly customer.”
 




Dear Mr McLean, Exactly what does Canon Australia do that justifies nearly a 50% price premium?
Posted by martinX. 22/11/2011 10:21:51 PM
Canon ink cartridges are the same grey market much cheaper than canon aust i have to buy grey to be competitive with my local newsagency
Posted by Stewart Carruthers. 23/11/2011 10:08:28 AM
Suppliers are the ones hurting the retail industry. Why should I buy local if buy local if I can get the same product hundreds of dollars cheaper than over-seas? We are living in the age of a global market, but for some reasons suppliers keep sticking to regional pricing.
Posted by Simon. 23/11/2011 03:10:48 PM
Sorry guys, but Canon Australia is in the right here, not JB. I get that cheaper prices is great for us, but look at the bigger picture. Canon Australia (aswell as Nikon and Sony) employ locally and contribute to this economy. COmpanies like Canon Australia help keep our taxes down by assisting in funding the government. Also, if their sales drop immensely, they would most definitely start cutting costs, which will include their employees. Imagine if it was YOUR son, YOUR daughter, YOUR cousin, YOUR wife/husband who is suddenly out of a job. This is where CAnon Australia is coming from with this angle. Furthermore, I don't buy Terry Smart's argument that Canon competes w/ JB by selling direct to consumers. Look at Canon/Nikon/Sony's websites. If they do sell to consumers, they only sell at RRP. They do this to respect their dealers in JB, Harvey Norman, and camera dealers, etc etc.
Posted by . 24/11/2011 01:37:51 PM
@.24/11/2011 yes I totally agree with you... Only with how canon contributes to the Australian economy... On the other hand they need a market to sell their products... And they find ways to get rid of their floating stocks in order to recover the cost prices.. If they wait around until major dealers and retailers sell the products then again there won't be any revenue to keep the engineers n the work force going for a long time... Since the world is in a recession I can understand why people are looking for cheaper prices... At least they keep the money floats rather than not spending at all.. also to Keep the passion for The camera n photography etc.... Going...
Posted by Prasad hewagamage. 01/12/2011 09:12:31 PM
@.24/11/2011 I do not agree with you. Canon does not manufacture its product here. They just distribute it, almost the same way as so-called grey importers. Therefore, the jobs simply move from unviable sellers to more viable sellers. Since Canon's product is sold through retailers rather than online there may be some job loss. However, this gets somewhat compensated because cheaper prices increase sales encouraging more grey importers to come into market and/or to employ more workforce. Cheaper prices also allow consumers to divert their savings to other areas of the economic growth. Therefore, ripping off consumers in the name of sustaining economy reminds me of the famous saying "patriotism is the last refuge of a scoundrel". This saying obviously applies to all the rip-off businesses including supermarket chains, banks and especially miners who had unleashed their ads blitzkrieg against Kevin Rudd to extract their pound of flesh.
Posted by Az. 13/02/2012 02:22:02 PM
Canon Australia mocks consumers, they should compete with what their products are actually worth as a 'canon fanboy' I find it a joke when looking to buy a 5d mark 3 comes out as $3499 USD and then we get the same product at $4199!! even though our AUD is better. Canon I own 3 slr's and 2 digital camera's for wedding photography and events. only 2 have been purchased from Australia, they aren't made here, they are only sold and rip us off here. I don't see how this helps the Australian consumer besides only making a few jobs. This does not in my opinion outweigh the cost, we should get things cheaper in Australia.
Posted by Liam Byrne. 06/03/2012 02:32:38 PM
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