Japanese importers profiteering by exploiting devalued Yen

Started May 17, 2013 | Discussions thread
Lance B Forum Pro • Posts: 31,051

Chad Gladstone wrote:

I don't know how many of you have noticed the near 30% drop in Yen value verses the dollar or Euro over the past year, but the profit generated by the currency devaluation is not exactly being past on to consumers, even with the instant rebates, the street prices of Japanese exports does not comport with the dramatic devaluation is the Yen's currency exchange.  To the contrary, parity in consumer price fails to mirror the near 30% rise in margins realized by the importers (without accounting for the cost of imported resources necessary to engineer and ship the consumer products).  One would expect to see a demonstrable rise in direct imports to counter this trend, but this has not yet occurred.  The bottom line is that the Japanese exports are purchased at margin far above what should be expected and foreign consumers are paying a substantial premium above their trade value because the foreign currency has more buying power.  If Nikon USA or whomever your countries authorized importer is, does not properly reduce their price of their products accordingly, direct importers should surely capitalize on the generous price gouging we are allowing ourselves to be subjected to if this trend continues.  How long are we willing to tolerate such practices?

How do you know how close to the bone they were selling products before the devaluation of the Yen? I mean, you are really making some huge assumptions here and have no proof whatsoever bandying about these wild accusations about pricing and gouging. For all you know, they could have been selling them close to cost in Yen terms and are now just starting to reap the benefits of the lower Yen. Also, do you have any idea of where and how they move their money around to offset or soften fluctuations in exchange rates, as many multinationals do?

The other thing to remember is that most of the products are not made in Japan these days, some being made offshore in China which is pretty much linked to the US$ and has moved abouit 2% in the last 12 months. Other countries where they are being made have not fallen to the extent the JPY has fallen. Nikon makes much of their product in Thailand and the Thai Baht has only fallen about 6% against the $US in 12 months, so no joy there.

With all this outsourcing, the cost of these outsourced product parts need to be factored into the cost of the total finished product even if they are assembled in Japan as these other countries currencies have all climbed against the Yen.

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