FTA To Force Tech Price War?
Appliance boss John Winning predicts good times ahead for the consumer and with lower pricing for Japanese
brands like Panasonic and Sony following the signing of a historic free trade agreement between
Australia and Japan.
The free trade agreement, Japan-Australia Economic Partnership Agreement, signed last week by Tony Abbott and Japanese PM Shinzo Abe, mean tariffs will be lifted on Japanese imports such as cars, TV’s and whitegoods.
John Winning CEO of Winning Group, owners of Appliances Online, Big Brown Box and Winnings Appliances welcomed the free trade agreement and confirmed it will pass on any savings that come about as a result of tariff cuts.
Consumers will see improvements in local pricing
for Japanese brands like Sony, Panasonic, Sharp and NEC, although didn’t put a figure on it.
While consumers will see prices fall, but “they shouldn’t
expect too hefty cuts as the tariff is already low,” he told CN. All consumer electronic goods imported from Japan will be impacted by the FTA, including
TV’s, appliances and home cinema systems.
“This is a positive move for Japanese brands, especially within the
appliance sector where there has been increasing competition from other
Asian players, including South Korea’s LG and Samsung.”
Winning also believes competing Asian vendors will try to counteract the impact of the FTA and non-Japanese technology brands will be forced to drop pricing in response.
“Australia’s consumer electronics market is extremely competitive so price is a powerful driver for consumers” he says, forcing other Asian brands to drop pricing or offering bonus packages and deals. .
But will the trade agreement lead to Japanese electronics becoming more
popular than Korean or Chinese brands?
“I think retailers will see a surge in sales for Japanese brands however other Asian players will have strategies in place to ensure they also stay popular.”
“At the end of the day, the customer will benefit.”