Is Panasonic a Serious Company??

[WantaPannySoon]

Sorry, long time lurker, first time poster.

I can only wonder how seriously Panasonic takes its business. They seem to have no plan at all. First, my latest issue of PopPhoto (I think it was that one) had three pages of ads for the new GH2. I assume, therefore, that the advertising budget is quite large for this product. Panasonic no doubt also spent millions of dollars to develop this model, the flagship of the line. So you would think they would want to sell it. But this is the effort thus far (at least with respect to the US):

1. Trickle a tiny number of units into the market.

2. Give loyal retailers absoutely no information on anticipated arrival dates that they can pass along to customers.

3. Have an on-line ordering system that is state of the art circa 1985 and has no way of tracking stock status.

4. Provide your customers (the best customers, mind you, the ones who early adopt) with absolutely no feedback as to order status, etc.
5. Have an 800 number that is, literally, busy all of the time.

What am I missing here? Does Panny want to sell these cameras or not? These cameras are the high-margin items for Panny, yet they seem to focus their sales efforts on flooding the market with low-margin compact clones rather than selling something they obviously put a lot of effort into developing. I just don't get it...

If Panny cannot challenge Nikon or Canon in the marketplace, they have only themselves to blame.

 

[phototransformations]

Scarcity seems to make the heart grow fonder.

 

[Vahab]

Panasonic is known for its passive advertisement campaign.

They believe (as far as I remember from a reading) a confident company does not brag a lot. This holds true in every product category (from nose trimmers to refrigerators to in-flight entertainment equipment).

They rely on their brand equity, unlike Sony or Samsung which are more aggressive. Panasonic does not believe in pushing their products. They also believe in word-of-mouth promotion! I think.

vahab

 

[Sean Nelson]

I think you're being a little too harsh for a product that is just barely making its way onto shelves. Be patient, there will be plenty available soon enough.

 

[Dan Clark]

I've been following Panasonic for the last 18 months. IMO, they make very good products, but their marketing and logistics are mediocre. While that's frustrating, I'd much rather have that than the opposite problem like Samsung and Sony - great marketing but less than stellar products.

That becomes obvious when you compare what happens in the Sony forum vs the u4/3 forum. Sony markets heavily and you'll see marketing trolls pop up everywhere (like in this forum). Sony enthusiasm skyrockets and they sell lots of products quickly but then users become disenchanted and start complaining. In the u4/3 forum, the opposite tends to occur... Users complain about the difficulty of getting the products (like this thread), but like them when they get them.

If you like great marketing, buy Samsung or Sony. If you want a great product, buy Panasonic or Olympus.

Regards,

Dan.

 

[BigBarney]

Sorry, long time lurker, first time poster.

I can only wonder how seriously Panasonic takes its business. They seem to have no plan at all. First, my latest issue of PopPhoto (I think it was that one) had three pages of ads for the new GH2. I assume, therefore, that the advertising budget is quite large for this product. Panasonic no doubt also spent millions of dollars to develop this model, the flagship of the line. So you would think they would want to sell it. But this is the effort thus far (at least with respect to the US):

1. Trickle a tiny number of units into the market.

2. Give loyal retailers absoutely no information on anticipated arrival dates that they can pass along to customers.

3. Have an on-line ordering system that is state of the art circa 1985 and has no way of tracking stock status.

4. Provide your customers (the best customers, mind you, the ones who early adopt) with absolutely no feedback as to order status, etc.
5. Have an 800 number that is, literally, busy all of the time.

What am I missing here? Does Panny want to sell these cameras or not? These cameras are the high-margin items for Panny, yet they seem to focus their sales efforts on flooding the market with low-margin compact clones rather than selling something they obviously put a lot of effort into developing. I just don't get it...

... the current position with respect to Panasonic USA more than it does with the position of Panasonic worldwide. I cannot comment on Panasonic USA but I can tell you that here in the UK Panasonic UK have always succeeded in launching new cameras when they said they would and keeping them suplied to their chosen retailers as well as their direct sales channel. I pre-ordered my GH2 and it was delivered on time last week from a good retailer, although I could have obtained it from a local retailer too.

After the launch of the G1 in 2008 Panasonic in Japan intimated that sales in the US had failed to meet their expectations, possibly due to the inefficiency of their local subsidiary company. This may have cooled Panasonic's enthusiasm and interest in the US market and made them focus more on higher priced markets such as the Far East and Europe.

So, to try and answer your question, I suspect that Panasonic does indeed want to sell these cameras but possibly not to you just yet.

 

[Joe Braun]

Funny, if I didn't see the word "Panasonic" in your post, I'd swear you were talking about Nikon. The D7000 has the same "problem" that the GH2 has. So much pent up excitement, so much demand, and the company just can't seem to roll them out fast enough. And it's a shame too because they would make lovely Christmas presents.

But no, it's not just Panasonic doing this!

--------------------------------------------
Joe Braun Photography
http://www.citrusmilo.com

 

[Bobo Hodls]

The entire planet is involved in one upheaval or another. Businesses are still operating (some, anyway), but not as they used to operate. And at that, they way they used to operate was just like this - announce, hope to keep up with demand.

Grow up and put that instant gratification in perspective.

...Bob

--
...Bob, NYC

'Well, sometimes the magic works. . . Sometimes, it doesn't.' - Little Big Man

http://www.bobtullis.com

 

[Cani]

Selling high volumes at (relatively) low prices through Amazon is great when you want ot unload your stock, as for the G1 or GF1 or currently.

When you production pace limits the number of units you can ship, you go with the retailers that offer the best margins.

 

[WantaPannySoon]

Yeah, whatever. Appreciate the condescending attitude. World upheavals are irrelevant. Business is still business. Any company that wants to survive and thrive better learn the first rule: never promise what you cannot deliver.

 

[Jordan Cramer]

I am equally confused as I saw the same ads and wondered why a company is spending so much money to advertise a product that the audience cannot buy. I posted a similar issue some months back (which received the usual smattering of smart alec responses), but it is worth repeating: here in Chicago, a large market, the oldest camera store in the United States is unable to sell Panasonic cameras because Panasonic has made it near impossible to for this very reputable seller to get in the distribution chain.

It is one thing to be "proud" as one responder suggests, and another thing to just snub your customers and potential customers. If you look at a company like Apple, that sits atop the arrogance-proud hill, they have brilliant marketing and launch on their launch dates with usually enough product to meet the first wave of demands (not always, but pretty close). This strategy has slowly won over a once IBM/PC/Windows dominated market.

I have had a GH2 on order since October when it was listed as coming soon; it is now December and I am seriously considering moving on to something else. If the camera was not ready to be out yet, then they should have just said so in the first place, but instead they just continue misleading us. If people like us who are otherwise enthusiastic and ready to buy are this disillusioned, how is Panasonic going to really break into the Canon/Nikon dominated market? Perhaps they just do not want to as you suggest.

 

[WantaPannySoon]

Quite possibly true, but Panny certainly does spend the bucks to advertise heavily in the states. Every photo mag in the US has had one or more GH2 adverts in the past months. I assume if they weren't interested in the US market, they wouldn't expend so many resources here.

 

[pinnacle]

They are constantly joking around about things that should be taken a lot more seriously. They make me laugh.

Serious..No.
Funny...Yes.

Dan
--

Will I learn from life's lessons or will I lose my faith in the goodness life's promise had to offer?

 

[John Bean (UK)]

3. Have an on-line ordering system that is state of the art circa 1985 and has no way of tracking stock status.

Erm... I know you were probably exaggerating deliberately for effect, but you do realise that there was no such thing as an online ordering system (as you mean it, anyway) before the web existed?

The web didn't exist in 1985. If you were going to pick a year at random the least you could do is pick one that's believable ;-)

--
John Bean [GMT]

 

[TrapperJohn]

They have an 800 number, order tracking, better prices than most, they don't try to scam you on cheap add ons like a lot of retailers, and they have prompt delivery.

As for Panasonic... remember they're somewhat new to the high end camera business as compared to some of the legends that have been around for ages and have just as much trouble meeting unexpected demand.

Being tight lipped about future products... that describes pretty much every camera company.

Is Panasonic serious about photography? I look at the 7-14, 20 1.7, 14-140, 100-300 lenses, heck even the PL 25 and PL 14-150 4/3 lenses, and think: yes, they look pretty serious about photography.

 

[Cy Cheze]

Panasonic has taken the Japanese "just in time" inventory method to the next dimension: a day late and a dollar short. The advance promo of products not in stock foments market appetite and gives retailers extra time to sell out older models at tolerable discounts. If the GH1 is in stock, $850 looks like a good deal. Once the GH2 is on the shelf too, the GH1 price falls to $500 or worse. The second innovation is to distribute the new models before half the accessories or peripherals are available. This allows for sale of such items at premium prices throught the company site, with up to X months for delivery.

Finally, here's the zinger the GH2 folks need not know until after they buy: In 2011, Panasonic will introduce Power OIS to the m4/3 lenses, which will be much better than the extant Mega OIS. Think of the money to be made in upgrades. The lenses will come bundled with $500 3D converters for stills and video. 3D nay-sayers will still pay $2,000 to get the better lenses. Very clever.

A loose translation of the Japanese, based on an ancient Shinto saying, is "Build it and they will come."

Actually, the company's reall problem is that it makes more products than it can keep track of. Once upon a time, Japanese conglomerates could make money solely on the basis of good tech, work ethic, and low wages. Tech-wise, there is now more competition; and to compete with Mainland wages is next to impossible. Any start-up competitor can "rip" an idea, source the parts wherever, and sell comparable consumer items in the US for lower cost. Prestige goods like the GH2 don't really make any money or matter in the aggregate. It's the big screen TVs or hand-held gadgets that drive sales.

Panasonic lost big money in FYE Mar-09 and Mar-10. After cost-cuts, and with some sales rebound, it posted a Y75B six-month profit for Sep-10. That's still only a 4% return on equity, however. To achieve a competitive return of 15% or higher, it may have to cut product segments that lag.

Panasonic might be better off, earnings-wise, to abandon high-end camera products. To some extent, it's a miracle that Panasonic has advanced a prestigious but small volume product like the GH1 or GH2 in a market that has been so severe with its core products.

Ironically, it may be the good fortune of m4/3 lovers that Panasonic is attached to product developments that may not make perfect sense from a Gordon Gekko or Warren Buffet perspective.

So count your lucky stars, camera enthusiasts, that some corporations don't behave with perfect efficiency. Were that the case, Panny might be making even less GH2s or perhaps none at all.

 

[VisualFX]

Please not another Ichiro/ET2 incarnation, lol! Why do you think Panasonic owes anyone all of this, especially arrival dates of new cameras? They don't want that information leaked out to their competitors.

Sorry, long time lurker, first time poster.

I can only wonder how seriously Panasonic takes its business. They seem to have no plan at all. First, my latest issue of PopPhoto (I think it was that one) had three pages of ads for the new GH2. I assume, therefore, that the advertising budget is quite large for this product. Panasonic no doubt also spent millions of dollars to develop this model, the flagship of the line. So you would think they would want to sell it. But this is the effort thus far (at least with respect to the US):

1. Trickle a tiny number of units into the market.

2. Give loyal retailers absoutely no information on anticipated arrival dates that they can pass along to customers.

3. Have an on-line ordering system that is state of the art circa 1985 and has no way of tracking stock status.

4. Provide your customers (the best customers, mind you, the ones who early adopt) with absolutely no feedback as to order status, etc.
5. Have an 800 number that is, literally, busy all of the time.

What am I missing here? Does Panny want to sell these cameras or not? These cameras are the high-margin items for Panny, yet they seem to focus their sales efforts on flooding the market with low-margin compact clones rather than selling something they obviously put a lot of effort into developing. I just don't get it...

If Panny cannot challenge Nikon or Canon in the marketplace, they have only themselves to blame.

 

[eilivk]

"Panasonic does not believe in pushing their products."

? Never seen anything near the advertising of G2 on TV (Norway). Everybody must know what it is now. Earlier they only had heard about Pen.

Now there's G2 everywhere, but no new superzooms to be seen while SX30 has been here for a long time.

GH2 not coming this year.... (but I can wait.) Ony a problem if you-need- a-camera- and-need-it-NOW!!

 

[Bobo Hodls]

Yeah, whatever. Appreciate the condescending attitude. World upheavals are irrelevant. Business is still business. Any company that wants to survive and thrive better learn the first rule: never promise what you cannot deliver.

I read that too. I've also read, "Good things come to those who wait.".

Since 2001 I've also been anxious for new hardware when it's announced, and it's always the same. This is not new at all (except, to you). You haven't been paying attention if you think otherwise, all this time.

--
...Bob, NYC

'Well, sometimes the magic works. . . Sometimes, it doesn't.' - Little Big Man

http://www.bobtullis.com

 

[Ann Chaikin]

If they didn't have such a good product it would all be different.
--
Ann Chaikin
Painting & Photography:
http://www.annchaikin.com
http://www.flickr.com/photos/annchaikin/
Photo a Day
http://www.blipfoto.com/achaikin
Family Websites:
http://www.chaikinsofbellingham.com