Digital Camera Company Canon, who recently moved to price gouge revenue directly from consumers by trying to charge full retail prices at a new corporate online store, is set to face the wrath of retail partners.
A major retail partner of Canon told ChannelNews yesterday “We don’t like what they are doing. Whichever way you look at it they are taking business away from retailers. We are seriously considering dropping the locally sourced Canon product for Canon product we can buy from overseas sources at significantly cheaper prices than what Canon Australia is selling the same product for in Australia”.
“What we are currently negotiating is warranty support and volume discounts. If we can get this right we will move to a parallel importing model which allows us to compete with the likes of Kogan and other online sites that are sourcing Canon product from the same suppliers in Asia”. they said.
They added “If Canon can get their online site to work they are going to pocket a lot of money as they save on profit margin to retailers, rebates to large retailers and they don’t have to support retailer co-op dollar marketing programs. This is a lot of savings for Canon Australia which is not being passed onto the Australian consumer. In some Countries Canon product is 30% cheaper than what we can buy a product for”.
When asked at the Nikon 1 launch yesterday as to whether Nikon was set to follow Canon’s lead online Nick Segger, the Marketing Manager at Nikon Australia “we are already selling online. All you have to do is visit the Nikon Australia web site and you will find direct online links which with one click allows visitors to buy a product directly from the online store of JB Hi Fi”.
“we don’t see the need for our own selling operation” he said.