A Better Deal? High Street Shop or Large Electronics Retail Outlet?

A Better Deal? High Street Shop or Large Electronics Retail Outlet?

This article appeared in Digital @ AsiaOne on Thu, Jul 17, 2008
A Better Deal?

Purchasing photographic equipment from specialized stores,the high street shops or large electronics retail outlet.
Chan Teng Heng gives his advice. -
Article and pictures by Chan Teng Heng, the Biz Professor who happens to like Photography

Lower prices of cameras

This subject became an interesting decision point for serious and hobbyist photographers. Should they purchase photographic equipment from specialized stores, high street shops or large electronics retail outlets? I went through this difficult experience when I visited similar stores in Malaysia, Hong Kong, China, Singapore and U.S.A. Being smaller countries, Hong Kong and Singapore have the access to the latest photographic equipment; new cameras are quickly introduced into these markets, due to the interest in latest camera technology, coupled with the renewed interet in photography in these markets in the recent years. This was because manufacturing technology and outsourcing of photographic manufacturing factories to lower cost countries like China (Olympus), Indonesia (Olympus) and Bangkok (Nikon) have made DSLR (digital single-lens reflex) cameras more affordable. In Singapore, the lowest price for a reasonably good DSLR (the Nikon D40, a good camera, although less competitive in terms of megapixel power) is less than S$900.

Lighter and easier to handle
Materials substitution using plastic polymers and lighter metal components have reduced the prices such cameras. In the past, professionals and semi-professionals were the major users of DSLRs, while the majority of consumers bought compact cameras. Today, there is a major shift of buyers towards DSLRs which are known to give better quality images and prints. The development of a group of consumers called the pro-sumer group who hope to earn some money as semi-professional photographers have fueled this growth of DSLR market. There are more ladies now now buying DSLRs as the smaller sizes have made it easier for them to handle.

Growth of speciality photography retail storesWhere do we find these specialty stores and how do they survive? In Singapore, they are located in Funan Center, Sim Lim Square, Peninsula Plaza and Lucky Plaza, there are more specialty stores here solely dedicated to selling photographic cameras and equipment than the rest of Singapore combined. Recently I found even more competition as new specialty stores are opening up, such as in the top floors of Sim Lim Square. In Kuala Lumpur, Malaysia, the Low Yat Shopping Mall and Pertama Comples are the places to check on the cameras. Why are these stores popular and why do they have a continuous stream of repeat customers?

U.S. experienceIn U.S. in California, for example, I have been to mega shopping malls and large electronic retail outlets to view the photographic equipment. In the giant malls there are however only two to three photographic outlets. In the Westfield shopping mall, which is part of the large Westfield shopping mall chain in the U.S., in St Jose in Silicon Valley, California, the outlets have limited range of photographic equipment, and most of them stock low end DSLR, the entry level DSLRs. High end DSLRs are only available on order. Most of these “photographic” shops offer printing facilities as well. One such large shop had computers that allow you to edit your downloaded photos, save the album, and order your prints for collection a few days later. The other photographic shops in this mall had a good range of compact cameras, camera bags and sling bags, and accessories. I also visited several Fry’s electronic stores, which is a large supermarket for electronic goods such TV, LCDs, computer parts and accessories, hifi equipment, etc. There is a limited section which sells cameras and related equipment, but I was disappointed that while there was a good range of compact cameras, the DSLR camera range was limited of the lower end range. Lenses are even more limited. The speciality store, St Jose Camera and Video Store had a wider range of photography equipment, stocked with Canon, Nikon and Olympus products.

Asian countriesIn Hong Kong, shopping malls have limited camera retail outlets with limited range of products. Speciality shops along the high street are better places to visit as the full range of camera products are stocked. In Beijing,China, near the TianAnMien Square, there are many photography shops clustered together in the popular tourists centers. In Malaysia, the malls such as Pavilion, Utama One and Mega Mall, similarly have limited camera retail outlets. In Singapore, Harvey Norman, Courts Mammoth and Best Electronics represent large chain electronic stores that have quite large sections selling photographic equipment.

The Harvey Norman outlet in Funan Center, Singapore, appears to stock the most current photo equipment and have the best promotion among the other outlets in the same chain in Singapore. Purchasing from these electronic outlets have their advantages and disadvantages. Because they stock so many electronic goods, cameras and similar equipment are always sold in packages, and there is less flexibility in how such chains can package your purchase demands.
Although the cost is higher as a package, the additional stuff, such as bags, memory cards, tripod stands, camera bags, and other accessories, are good value for money – provided you need these items. If you already are into photography for some time, many of the accessories, such as tripods, etc. as of no use to you. If you wish to purchase the camera equipment alone, then the pricing may not be favorable to you, as such chain stores need higher margins to contribute to their overheads.

Specialty stores are my most favorite place to purchase cameras and equipment. Some of my students who have done some consumer behavior research on these Singapore stores found that although well know outlet chain stores like Harvey Norman and Best Electronics are well recalled by survey respondents, the specialty stores like John3:16, Alan Photo, and Cathay, had as much as 80% of repeat customers, which reflect the high satisfaction that customers have from such stores. These specialty stores stock a vast range of equipment (Canon, Nikon, Olympus being the most commonly found range) with limited specialty stores selling Leica, Pentax, and Panasonic and Samsung cameras. These stores also offer the best prices in town. Sony has their Sony stores exhibiting Sony products and equipment., and other electronic chains and specialty stores selling Sony cameras.

We shall focus on the selling of DSLRs to better differentiate the services offered by specialty stores compared to other retail outlets. Specialty stores have the following advantages:

i) stock the widest range of DSLR equipment compared to other type of outlets which also sell cameras

ii)the prices for their goods are also the best in town.

iii)the sales people are more knowledgeable, and more approachable. You can develop a good relationship with the shop personnel as the retail outlet is smaller

iv)the latest product may not be introduced earlier than in other outlets, depending on the size of the outlet.

Because of these reasons, specialty stores for photographic equipment are more popular than the larger retail shops which sell electronic goods as well as cameras.

Picture description:
1)California's Westfield Shoppingtown combines ambience with great general merchandise shopping experience.

2)San Jose Camera is a photographic equipment retailing specialty outlet in California’s Silicon Valley.
3)Hong Kong’s photography retailing specialty outlet is on the high street.