Canon Philippines is feeling the pinch of the gray market which is undercutting its sales of cameras in the country. Parallel importers are able to sell their cameras at a much cheaper price because they do not pay taxes and they do not have the overhead costs of the authorized distributor.
Canonâ€™s sales report to-date reflects only a 10 percent growth for its Philippine distributor, far below its target of 25 percent.
Competition has lately been tough for Canon Philippines because of the presence of more players. â€œBut we’re also hit by the gray market or the parallel importation,â€ says Ramon Arteficio, CEO of Canon Marketing Philippines.
Arteficio said they are now going after those gray market sellers. The company has hired lawyers to build cases against local retailers illegally selling Canon cameras.