Blog » Blog article: 3 Big Japan Electronics Chains Won’t Sell Kindle
3 Big Japan Electronics Chains Won't Sell Kindle
Posted on 11/16/2012 by admin
TOKYO (Nikkei)–Three of the nation’s largest consumer electronics retailers have decided not to offer the Kindle e-reader, fearing an exodus of customers to Amazon.com Inc.’s own virtual mall.
The U.S. online retail giant is gearing up to begin Japanese sales of its Kindle Paperwhite on Monday and its Kindle Fire tablet in mid-December.
Yamada Denki Co. (9831), Edion Corp. (2730) and Yodobashi Camera Co. will not be stocking the Kindle at their stores — a casualty of their brutal price war with Amazon in a wide range of consumer electronics. They are wary that selling the devices may increase “showrooming,” in which consumers visit physical stores to check out products that they ultimately buy online for less.
Low profitability is apparently another reason the three retailers have decided not to bother with the Kindle.
“At around 10%, the Kindle’s gross profit margin makes it less profitable for stores than other products,” says an official at a major consumer electronics retailer.
Bic Camera Inc. (3048) and Joshin Denki Co. (8173), which have online stores in Amazon’s virtual mall, will sell the Kindle at their real-world locations. So will K’s Holdings Corp. (8282).
“We will benefit greatly if Amazon customers use our online store,” a Bic Camera executive says.
In the U.S., many Kindles are bought online from Amazon itself. American retailers are seen strengthening their guard against the firm, as evidenced by industry leader Wal-Mart Stores Inc.’s suspension of Kindle sales.
(The Nikkei, Nov. 17 morning edition)
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