Pioneer to scale back mass retailer distribution model

By Chris Nicholls

MELBOURNE: Pioneer Australia has confirmed it will alter its channel balance to focus more on small premium shops, attacking mass retailers for failing to get Pioneer’s ‘premium’ message across.

In a face to face interview with Current.com.au, Pioneer Australia managing director Yasuo Sakuma said the company would aim to increase its current independent premium retailer sales from its current three to four per cent to “double digit” figures wityhin two years after a poor showing from mass retailers. 

“In terms of value business, we aim for 15 per cent. Eventually, 20 per cent, but the first goal is 15 per cent,” he said.

"Traditionally, we have always used mass retailers. The mass retailers do not put our message across to the customers.

“We have a model called CPE – the Complete Plasma Experience – which includes a five year warranty, complete installation and very high after service (including replacement of the television while any problems are fixed, if they occur), which we believe is valued at $800. So if the price gap is $1,500, and if we deduct $800 from the price, the gap is maybe $700, and the picture quality is justified.

“From pre-sales to after service, we try to differentiate and give higher satisfaction, which is a premium brand strategy. So we will try to do this strategy in a clearer manner and change the Pioneer vision and goals and strategies.

“The mass retailers just use price tags. So the consumer will say ‘How come this is $1,500 more? Oh forget about Pioneer. The picture quality is maybe better, but not justified.’ We will use a suitable channel, where they deliver our message,” he said.

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