Re: [Leica] Reason for new Rebates

[dci@aa.net (Don Chatterton)]

Pascal:

You wrote:

>>Leica announces another rebate program
>>All R-8 bodies will recieve a $400.00 rebate, which will be paid directly
>>to the purchaser by Leica.
>
>I feel disappointed :-)
>Why does such thing only seem to happen in the US of A ? Over here, in
>Belgium, there are simply no rebates! Is this due to the commercial
>feeling of the Leica importer in the States or to the more competitive
>market?
>
>Pascal

___________________________________________________

Leica USA is in a little different spot here, than in the rest of the
world. While being a part of the "Solms"  family, they often seem to be
held, by Solms, to different sales constraints and pressures than the other
Leica divisions..

With the strong US $, and the ever increasing pressures from the
independent importers from both Asia and Europe for a share of the market,
as well as the constant necessity to maintain the momentum of their newly
achieved market share and keep it growing...Leica USA has few options.

The european consumer marketing strategy has traditionally been the slow
institutional type of presentation, as Leica, Rolex, Mercedes and BMW have
done for year. But today, it has gone 180 =BA, which attacks the strong US
Dollar, and builds their market share based on exchange rates and unit
costs, and uses American advertising techniques..

The US loves sales and bargains, and with their big margin and decreased
costs against the D-mark, Leica has greater leverage, and can now push 3
big and over-priced (by today's market) items to pump life into the "R"
market. These were not pursued in the last promo of "M" equipment and "R"
lenses.

This is just step 2 of the last long promotion. and this year we will
probably see them
grow" the R" system. Also, this allows them to catch the independent
importers and the non-Leica Authorized Dealers with inventories which will
have to be sold at a loss.

This same technique is also being used big time by Mercedes-Benz. They are
expanding their outsourced items  such as the new M-Class and A-Class,
rolling out much more competitive C and E Classes, and mainting a stable
market in their S-Class.

Leica, with its mini market, outsourcing of parts and research and
development, has shut the lid on "Old Leica", and created a market that
they will be streatched both financially and creatively to keep growing. If
they  are up to it, they can start a "new" German Photographic industry, if
not, the option is that of Rollei and Zeiss......let's hope all goes well.

Don