By Claire Reilly
Dick Smith, Harvey Norman and JB Hi-Fi are all jostling to remain competitive in their pricing of cameras and tablets, but both categories have shown a downward trend in advertised prices over recent months at all three retailers. The findings are detailed in the Credit Suisse Pricing Index report on Australian Consumer Electronics and Whitegoods, released last week.
According to Credit Suisse research analysts Grant Saligari and James O’Brien, Harvey Norman was the “most expensive retailer” in a survey of 18 retailers, including Officeworks, Masters and The Good Guys, as well as overseas retailers that ship to Australia (see full list of retailers below). The research analysts also found that “JB Hi-Fi is, on average, the second most expensive retailer” in the pricing data analysed.
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Credit Suisse measured pricing across the retail groups from July 2012 through until April 2013, comparing deviations in retail prices to the industry average that was recorded in July 2012. The results show the month-by-month deviations in pricing for each retailer, measured against that July average.
While camera and tablet pricing at Harvey Norman stayed close to the 100-point industry average, accessories prices were “materially above those of its competitors. It was a similar story at JB Hi-Fi, with accessories prices staying above average until “heavy discounting” activity in January saw a drop in prices, with tablets also trending downwards.
At Dick Smith, Credit Suisse noted “errative pricing behaviour” although the overall trend was towards a lowering of prices.
The Credit Suisse Electronics Retailer analysis graphs below show data from July 2012 to April 2013 with advertised pricing for accessories in black, camera pricing in purple and tablet pricing in blue (click on graphs below for a larger view).
Variations in pricing are measured from the industry average recorded in July 2012 for each category.
Dick Smith Electronics
“[Dick Smith] has displayed erratic pricing behaviour by moving categories in and out of promotion. There remains a material price differential to online retailers whose discounting patterns tend to be smoother. [Dick Smith] screens as the most expensive camera retailer, with Harvey Norman now the most price competitive among the store-operating retailers.”
Harvey Norman
“Harvey Norman is the most expensive retailer in our survey. The prices of its accessories products are materially above those of its competitors. It is relatively more competitive in Cameras and Tablets, however remains above its competitors in advertised prices.”
JB Hi-Fi
“JB Hi-Fi is, on average, the second most expensive retailer in our data set. Heavy discounting in Accessories improved [JB Hi-Fi’s] overall price competitiveness in January [and the retailer] continued to reduce the prices of its tablets throughout 1Q13, in-line with competitor behaviour.”
List of retailers included in Credit Suisse’s Pricing Index survey:
Amazon – Electronics
Appliances Online – Whitegoods
Big Brown Box – Electronics
Bing Lee – Whitegoods
Deal Extreme – Electronics
Dick Smith – Whitegoods
The Good Guys – Whitegoods
Harvey Norman – Electronics and Whitegoods
JB Hi-Fi – Electronics
JB Home – Whitegoods
Kogan – Electronics
Masters – Whitegoods
MSY – Electronics
Mwave – Electronics
Officeworks – Electronics
Shopping Express – Electronics
T-Dimension – Electronics
Top Buy – Electronics