Canon is undercutting major retail customers on the newly-released Canon EOS 70D in a promotion on its website, supported by email marketing and social network marketing.
For example, the EOS 70D with a 18-55mm kit lens is advertised on Ted’s Cameras and Camera House websites at $1599, plus $10 postage. The same camera is available for $1511 (free delivery) on the Canon website with a bonus $99 3-year Canon Care extended warranty.
The Canon Store price represents better value than discounters Digital Camera Warehouse ($1482) and JB HiFi ($1499) when the $99 extended warranty is included. In fact, Canon’s own direct-to-consumer price even beats US offshore online retailers! Shipping the camera from B&H Video or Adorama in the US will cost a total of around $1530 at today’s exchange rate (without adding GST).
Canon is currently offering a 10 percent discount across its online Canon Store range including products already discounted. Another deep discount is on the IXUS 510 HS, released just last month. This is available with a bonus Lexar 8GB microSD card for $152.10 while it’s being advertised on camera specialist websites from $300 – 330.
Two years ago, when Canon first announced it was opening a direct-to-consumer online store, Canon Australia director Jason McLean told a PMA audience: ‘I think the reality is the online channel is a distinct channel, whether we like it or not. As CE is, as mass is, and as photo specialty is.
‘So Canon’s position has always been we need to be where the consumer is. The difference is that this channel is direct to consumer.’
He said he didn’t see the Canon Store as a threat to photo specialist retailers. ‘The way you manage your consumer from an in-store experience, your knowledge, your know how – the reality is there is no reason they [photo specialist customers] would buy from Canon.’
He also said that pricing on the Canon Store would not influence photo specialist customers. ‘Our pricing is not that exciting to a consumer that wants to go and get knowledge from an in-store experience.’