August 4, 2011: Canon Australia has made significant price cuts on its digital imaging portfolio virtually across the board, with some models dropping in price by over 20 percent.
Price reductions on 95 separate products vary, ranging from 5 percent to over 20 percent. The new prices apply from August, with retailers briefed on the move over the past 4 weeks.
Among the more dramatic falls are the Canon EOS 550D Super Kit (with EF-S18-135mm f3.5-5.6IS) which drops from an RRP of $1949 to $1449, while a PowerShot SX130 moves from $329 to $229. Lenses, flash units, printers and camcorders are also included.
‘It’s something we have been planning to a while.’ said Jason McLean, director, Canon Australia Consumer Imaging (pictured right) . He said that the Japanese tsunami had prompted Canon Australia to delay the initiative, originally planned for March. He said the price ‘repositions’ were part of a smorgasbord of marketing initiatives ‘to support local value.’
It was ‘a happy coincidence’ that the announcement has come out in a week where the news on the Australian retailing scene is otherwise all gloom and doom.
The objective of the price reductions and the thrust of Canon’s marketing spend was to drive home the message to consumers that, ‘If you are in the market for digital imaging products – look locally.’
‘With more than 95 Recommended Retail Price repositions taking effect this month, Australian consumers can feel confident of receiving great value for money in any of our authorised local retailers,’ said Mr McLean.
‘Anyone considering upgrading their imaging technology should take a look at their retailer and see for themselves the value that’s on offer.’
He said that the inroads made into local digital imaging sales by offshore online sellers was ‘one of the considerations, not the driving force’. in deciding to lower local prices. He said that we are now competing in a global marketplace and that offshore online retailers were a competitor.
‘We felt as market leader we needed to support and drive local value,’ he said.
Thinking local
The price reductions are ‘a decision taken locally for our market’ and are not part of a worldwide policy to reduce global price differentials overall.
‘Canon doesn’t have a global position on pricing.’ he said.
Canon in New Zealand is managed separately and has not as yet made a similar move.
‘They will make their own decisions,’ said Mr McLean. ‘If you look at the economic conditions in both countries, they are not that different.’
When the market leader reduces prices, it is common for competitors to respond, but Mr McLean said he preferred not to comment on other brands.
‘They may or may not [reduce prices]. I haven’t taken much time to think about that,’ he said. ‘We have to move forward as market leader.’
Mr McLean said that there would be several other initiatives announced through August to further bolster the competitive position of local retailers.
“There’s never been a better time to buy digital imaging technology in Australia and we’re investing around $15 million in campaigns to attract consumer attention and make people aware of the great value that’s available with local retailers in our categories,’ said Mr McLean.
‘The passion for digital imaging continues unabated, with strong underlying demand fuelling potential for future growth in our industry and for us as a business.’
Canon has a range of campaigns active through the remainder of the year to help consumers get the creative results they want from their digital imaging devices, including the Canon TruCapture compact digital camera campaign; Canon World of EOS series of video tutorials, creative challenges, customised gallery space, and tips and tricks from the experts; and the Pixma Creative Printer campaign
Mr Mclean would neither confirm or deny strong industry rumours that Canon was also preparing to go online with direct sales to consumers.
Sample Canon price ‘repositions’:
EOS 550D Super Kit (with EF-S18-135mm f/3.5-5.6IS): $1949 to $1449
EOS 60D Premium Kit (with EF-S 18-200mm f/3.5-5.6 IS): $2399 to $1999
EOS 5D Mk II Premium Kit (with EF24-105mm f/4L IS USM): $4899 to $4499
MT24EX Macro Twin Lite for EOS range: $1499 to $1199
HFS20 HD digital video camera: $1199 to $899
EF70-300IS EF 70-300mm f/4-5.6 IS USM: $1199 to $949
EF40056LU EF 400mm f/5.6L USM: $2319 to $1999
PIXMA MG5150 multifunction inkjet printer: $179 to $129
PowerShot G12: $799 to $699
IXUS 310 HS: $449 to $399
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