Both sides claim victory in parallel import wars

By RICHARD WOOD

A parallel importer of digital cameras is claiming an average discount over regular retail of 20 per cent, and up to 50 per cent for particular models.

Tayne Derriman, a manager at Mobile Phone Traders, said this was down from a 30 per cent saving when the firm began this year.

Lance Wang, owner of parallel importer Etown, said the margins distributors put on were sometimes ridiculous and he had seen dramatic price drops on certain product lines.

Vendors have generally denied they have responded to the price competition, and claim parallel importers have had little or no impact in the market.

The Herald found the Fuji Fine Pix F601 at Camera and Camera for $2249, at Noel Leeming for $2249 and advertised in the Herald by Mobile Phone Traders for $1600.

In another example, the Sony F717 is on the web at $3299.99 at Noel Leeming online, and $3299 at Camera and Camera. At Etown it is $2675.

Ironically, Camera and Camera's Tim Ricketts said the increased advertising of digital cameras by parallel importers had boosted sales at his store.

He said the prices were not that much different, and cited examples where he was competitive with parallel imported prices, such as the Nikon D100 at around $5000 and the Minolta Dimage X for around $999.

Canon's manager of digital cameras, Mike Armstrong, said there had been little concern from his retailers, and the prices of digital cameras were dropping naturally anyway, as technology developed.

Tim Steele, business manager for Fujifilm distributor Hanimex, said price differences were not a case of retailers being greedy.

Prices varied globally because manufacturers had different export prices for different countries, which was what created the opportunity for parallel importing.

Steele said authorised importers needed a long-term strategy to be there for their customers.

"Our concern really is how long is a parallel importer going to be in business. Will they be there in six months?"

A Sony spokeswoman said parallel importing activity was usually very short term, and revolved around older models, so the firm would not bother to compete.

Derriman said Mobile Phone Traders was not a short-term player, and a seven-figure sum had been invested in the firm.

Most vendors the Herald spoke to were prepared to service, for a charge, genuine products that had been parallel imported, but would not deal with warranties.

Both Mobile Phone Traders and Etown offer a 12-month warranty.

Derriman said that so far only two faulty cameras had been returned out of hundreds of cameras sold by his firm.

He had two suppliers who could provide him with one-year warranties back to the Japanese manufacturer.