The average selling price at Australian consumer electronics and IT stores fell 13 per cent in 2011 a move that has seen some retailers move to grey imported products in an effort to restore margin erosion.A new report the Canon Consumer Digital Lifestyle Index claims that the cost of computers, televisions and digital cameras fell significantly last year due in part to the pressure of online, at the same time unit sales rose to 716,800 units compared with the prior year.
Canon alone is believed to have lost up to 30% of their local sales to online as major retail chains like JB Hi Fi and specialist camera stores look to source from suppliers in Asia.
Canon Consumer Imaging director Jason McLean said the price of high-quality technology products had continued to decline over the past nine years.
He said the price of digital products in Australia was beginning to follow international trends.
“When you consider that since 2003 the average selling prices for digital cameras and plasma televisions have fallen 68 per cent and 90 per cent respectively, we can see just how much the market has moved,” Mr McLean said.
An adjustment was taking place as the technology market moved to address global price disparities as average selling prices declined across the index during the past 24 months.
The tough margins for electronics retailers has led to Dick Smith cutting back their retail network and WOW Sight and Sound closing their doors, while at the same time JB HI-Fi and Harvey Norman are slashing prices on popular digital items. Yesterday Retravision Southern who were the buying group for 104 Retravision stores was placed into administration.
The double-digit fall in electronics goods prices contrasts sharply with the national inflation rate of 3.1 per cent for 2011.