Canon losing 30% sales to grey market

[Kym]

http://www.smarthouse.com.au/Digital...7A4P9C9?page=1

The CEO of one of Australia’s largest camera chains claims that the importation of branded camera gear will appeal to small retail and online operators, but not the larger chains. He also said that Canon was losing up to 30% of their Digital SLR business to online.

Paul Shearer, the CEO of the Camera House chain, told ChannelNews that a lot of camera business is being lost to overseas web sites and that big brands like Canon, have already lost 30 percent of their digital SLR market to online operators and grey importers.

He believes that large operators like Camera House who often place orders for 500 cameras at a time would struggle to deal with grey importers who in recent weeks have established Australian bank accounts to facilitate trading over here.

In general I find Camera Market very expensive, and that on top of a high Canon Australia price means this is no surprise.

Hopefully this may make Canikon wake up.

[Xenedis]

This is really no surprise at all.

The writing has been on the wall for years.

I've been buying gear online for years, and saving thousands in the process. While I've bought some gear from B&Ms, all of my lenses have come from two reputable online suppliers.

I just had a quick look at the online site of a major photographics retailer, as well as that of a well-known, reputable online supplier.

The item I checked is the Canon EF 70-200mm f/2.8L II USM lens.

Big B&M retailer: $3,199.95
Online supplier: $2,989.00

It's a no-brainer.

And then there's the Canon EOS 5D Mark II:

Big B&M retailer: $3,200.00
Online supplier: $2,799.00

I'm not sure if the 5D Mark II from the online supplier includes an Australian warranty, but given an Australian warranty only lasts 12 months, it's up to the individual to decide whether that warranty is worth the $400, or whether the risk of having to fork out potentially significant money on repairs/replacement (in the event of a failure) is palatable.

None of the DSLRs I've owned has failed within the warranty period. The battery charger that came with my current camera failed, but it certainly wasn't worth $400.

[Kym]

To clarify - its Canon Australia that loses the sale. Canon .jp don't care if you buy grey.

[colinbm]

Oh dear, the poor old big end of town again
Poor old Jerry & co
Well, Canon Japan are still getting the sales
As soon as these multi-nationals realise & honour international warrenties the better.
Col

[Art Vandelay]

The only surprising item in that article was they only estimated grey sales at 30%

[Xenedis]

Yes, Canon Australia is a separate entity. The B&Ms purchase from Canon Australia.

What stinks is that a more exotic lens (like a 300/2.8) may not be available from the B&M, and the B&M has to order it from Canon Australia, which may also not have the item. Guess where Canon Australia sources it...

Online suppliers often have lenses that B&Ms don't keep in stock.

I'm not sure if you're aware, but a few years ago CPS (Canon Professional Services) changed the membership eligibility requirements such that your equipment had to be purchased from authorised retailers. If you bought a couple of 1Ds and a bag of L-series lenses from an online supplier and otherwise satisfied the other membership requirements, you wouldn't be eligible.

I suppose this was Canon Australia's attempt at discouraging people from buying outside Canon Australia's distribution chain.

Clearly Canon Australia is very much aware that people are keen to save significant money by buying elsewhere.

[ElectricImages]

The only surprising item in that article was they only estimated grey sales at 30%

Lol I was thinking exactly the same thing...

[colinbm]

Yes, Canon Australia is a separate entity. .............(Canon Professional Services) ..............

Well if they are so professional, why can't they handle competition ?
That is how buisness works, unlike cartels.
Col

[Xenedis]

Well if they are so professional, why can't they handle competition ?

Canon Professional Services is not unique re its membership requirements. Nikon Professional Services (NPS) does it too.

From https://nps.nikon.com.au/pages/register-criteria.asp:

All equipment to be registered with the NPS program must be purchased through an Authorised Australian reseller. Proof of purchase will be required.

From http://www.canon.com.au/en-AU/Pro-Ph...onal-Services:

equipment must have been purchased from a Canon Professional Dealer in Australia.

[Kym]

I have no problem with CPS or NPS limiting to gear bought via their supply chain.
I also have no problem with their prices per se. If they want to be uncompetitive then so be it.

I do have trouble with them complaining about the grey imports

CR Kennedy price match grey on Sigma and mostly their other prices are not over the top (my K-5 worked out to $50 more than grey in my hands).
Which proves Canikon could do the same.

[colinbm]

........CR Kennedy price match grey on Sigma and mostly their other prices are not over the top..........

I have just been down this very sad road, words do not translate into action
Yes I could buy a camera, but no I couldn't buy a lens for it
Another country far away in the continent saved the day & $$$$$$$$$$.
Col

[reaction]

that 30% looks like it was just pulled out of their ___

I think Canon loses more profit (not sales) to their employee 40% discount. Every canon user I know sources their lenses from an employee, and then there are those "brand new used for 2 wks" 2nd hand sales of gear that smells like an employee selling the gear.

[ElectricImages]

that 30% looks like it was just pulled out of their ___

Yes, but 77.53% of ALL statistics come from exactly the same place... XD

[peterb666]

http://www.smarthouse.com.au/Digital...7A4P9C9?page=1



In general I find Camera Market very expensive, and that on top of a high Canon Australia price means this is no surprise.

Hopefully this may make Canikon wake up.

As far as Canon et al in Australia are concerned, no it won't. They would prefer to sell a smaller number of units at a high profit than to sell at a fair price. It isn't just Canon, Nikon et al but lens makers too.

Last year I bought a Sigma 150-500 for over $400 under the typical selling price. I got it off the Australian wholesaler.

This week I took delivery of a Tamron 60mm macro lens for less than half the price locally. It came from Japan and arrived quicker than if I had bought it locally. All for LESS THAN HALF the cheapest price here.

We are being shafted. Local suppliers have always overcharged and recently have not reduced prices with the rising dollar.

The combination of silly pricing in Australia, poor service and lack of stock on the shelves is what is killing the retrail photographic market. Provided there are enough consumers to buy the bread and butter stuff through the chain retailers, the suppliers don't care.

I have some sympathy for the specialist retailers but in truth, many of them are not providing a great service either. Explain to me why Canon and Nikon prices in Australia are amongst the highest in the world, but you can have people like Mainline Photographics who are an Australian distributor for Voigtlander lenses, supplying these at prices amongst the lowest in the world? If a small company can do it, why not the large ones?

I prefer to buy locally, but I want service and value too.

[peterb666]

Yes, but 77.53% of ALL statistics come from exactly the same place... XD

But only 37.84% of the time.

[JM Tran]

Before I did this full time I worked in a camera store, and know some ppl from Canon Aus personally, the mark up that Canon Aus sells to retail stores here is unbelievable - 3 yrs ago a Canon 580EXII flash can be bought by staff working for Canon's camera department for $210 dollars.....the store's cost price to order from Canon Aus is $570 ish, add the store's mark up for profit on top and you wonder why its almost a no brainer to go with online buying! This goes for Nikon too.

Poor form from both of them in Aus.

[reaction]

Canon 580EXII flash can be bought by staff working for Canon's camera department for $210 dollars.....the store's cost price to order from Canon Aus is $570

looks like all we need now is an ausphotography list of staff we can order stuff from!!

I hear they don't need to work in camera department to get the discount.

[fabian628]

I understand thier prices need to be higher than online stores to employ people, but some shops have really poor service which gives you very good incentive to buy online.

I remember walking into a camera house asking about a 35 f/1.4 (the guy didn't even know canon made this lens )
In a different camera house, they could not explain the difference between a 60mm and 100mm macro lens, seriously

If I were operating a camera store I would try to make myself educated about all camera products so that you could at least sell to advanced people who are looking for specific info that you would find on gear forums.

[mikew09]

I have to agree - no surprise to me. I try to honour my local store and buy when they haggle close to match the on line price. To there defence they often barta down to within a few dollars of off shore. Having said that, I have been haggling for a Sigma 10-20mm F4-5.6 EX DC HSM lens. On my last visit to my usual store the price was 629 (only 30 bucks off, got a bit af haggling to go yet) - grey import 451. I say again, no surpise hey. Not sure I will get them down to that price considering the value of the dollar at this time.

[swifty]

It seems Canon Australia (and most likely Nikon Australia + all the other official distributors) who are the culprits.
If their mark-up is so high, it's no wonder local B&M stores can't compete, afterall you do have to make a profit, otherwise why do the trade at all.
I have noticed a trend lately though, at least with some Nikon gear, local prices were only about 5-10% higher so when you factor in things like GST, shipping etc. it's quite fair. If the difference is small I always still prefer a B&M store. I now have a good relationship with my local dealer and am happy with the face-to-face service. I always try to drive a bargain but it's pretty clear at what point they just can't compete.