Major vendors are bypassing billion dollar distributor Ingram Micro to go direct to mass retailers this has forced the Company to slash costs, retrench people and offer extended credit to key retailers in an effort to retain a relationship say several industry insiders. It has also forced them to consider a new service revenue model.
The consumer electronic market is still growing and while flat panel TV sales have slowed there is still plenty of opportunity and 'solid growth' for vendors and retailers said Carl Rose the CEO of Sony Australia. However he has taken a swipe at white good and AV retailers who he says will struggle going forward unless they make changes.
When Gerry Harvey went into battle recently for a 10 percent tax on overseas online purchases he set off an explosion which resulted in most Australians suddenly becoming aware that a lot of retailers are price gouging when one compares the overseas cost of a same brand product to that being sold in an Australian retail store.
Andrew Young a former director of bankrupt appliance business Kleenmaid and Gerry Harvey have become the FlowerPot men after Gerry gave the disgraced Young a job running a NSW, agricultural business that was placed into administration earlier this year.