Kamera Digital News

Digital camera gray market hurting Canon business in RP

August 29th, 2007

Digital camera gray market hurting Canon business in RP
By Erwin Oliva
INQUIRER.net
INQ7.net, Philippines

Last updated 06:50pm (Mla time) 08/28/2007
MAKATI City, Philippines — Parallel imported Canon digital cameras are hurting Canon’s business in the Philippines, the company’s top executive said.

Considering the Japanese company’s dominance in the digital camera business, parallel importers are now buying products outside of the country illegally and selling them for a cheaper price because they are not taxed.

“Competition is getting tougher because there are more players now. But we’re also hit by the gray market or the parallel importation,” said Ramon Arteficio, president and CEO of Canon Marketing Philippines.

This development has prompted Canon to recently issue warnings against local retailers now selling its products without going through legal channels.

“We’re addressing this now, sending letters to them, warning them,” Arteficio said.

The company has hired a law firm to build cases against local retailers illegally selling the Canon digital camera product.

The local executive said the company was only able to achieve 10-percent growth year-to-date, although it was targeting a 25-percent growth.

Arteficio said this lower-than-expected growth was due to lower photocopier and digital camera sales.

The company was able to generate about P1.3 billion in revenues for the year to date.

“If we don’t do anything about this, they will move more products in,” Arteficio said.

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Entry Filed under: World Digital Camera