Many years ago perhaps in the 1950’s we had the shopping strip. The grocer, baker, butcher, hardware, chemist and general produce store for eggs, flour etc. The hardware store possibly sold the odd electrical appliance maybe a toaster, iron or radio. Some of these store shared agencies like a post office and newsagent. Most times the stores where family businesses and the public understood this and formed a relationship with the owners. They liked it, and the public was happy. As years passed the newsagent, post office and appliance stores became separate units. The old businesses complained about this saying and rightly so that it took money out of their income. They where, right. But you know the public liked the choice and informed specialized help that usually came with the staff. The appliance store sometimes later split into even more specialized outlets, white goods and brown goods. There arrived at the time the photographic, lighting, wallpaper decorating, confectionary and perhaps carpet The public was happy.
The late sixties, early seventies saw the introduction of the local super hardware and appliance stores. The larger department stores and mass merchants increased their presence in the suburbs. These super store carried names like Sydney Wide Discounts, Bing Lee and Norman Ross Discounts. They offered lower prices because of their buying power, they where bright well presented and efficient. They purchased direct from the manufacturer in many cases local. Yes, in those days companies like, NEC, Sharp and Panasonic (National) manufactured here. The public loved the set up and the public was happy. Not so the smaller strip stores as like the previous family businesses the new outlets took business away from them.
If we look at the local manufactures for a moment we see some parallel’s. We had a manufacturing base larger than just electrical and radio. The automotive industry the likes of Ford, Holden and Nissan produced motor cars in most states. They most importantly sourced components from local manufacturers. Companies like REPCO (Replacement Engine Parts Company) in the sixties and seventies became major suppliers and, repeat and, manufactured for the automotive giants. They made brakes, clutch, mirrors and many other bits and pieces. I believe something like 40% of a Holden or Ford came from this company. Borg Warner for Gearboxes and Hardey Ferodo also for Brake Pads. REPCO was about the largest Australian owned company at the time outside of Mining and Insurance.
Then came local (by Country) consolidation and closing. Ford and Holden ceased manufacturing in Sydney. Nissan went home to Japan. The supportive manufacturing base went with it. The Australian makers began to source parts from overseas because they where cheaper. They had to do this to remain competitive against the imported makes like Hyundai and Subaru. In the Automotive market even more so today, it is a world market.
This is the same in the Appliance and Electrical retail environment. People like Gerry Harvey from Norman Ross and Bing Lee realised that they could both increase their profit and market presence by sourcing from overseas direct. This they did and this meant the demise of the local Electronic manufacturing companies. The public benefited from this with lower prices and in some cases better quality. The public was happy. Not so the strip stores again or the manufacturers they closed and are no longer.
Today we are beginning to see another shift, it is not really a shift it is an awareness. We have the greatest gift that perhaps mankind has ever had, computers and the INTERNET. In the strip days and the Super store days word got around about the best deals by mouth. Yes the retailer advertised but today the consumer is becoming aware that all the continual sales year round and, now is always the best time to buy is a con.
The Internet is a joining of minds on a world wide basis, more importantly it has the opportunity to be instant. We are also in a world market place at the base level, that of the end consumer. Yes it is effected by local effects like lower manufacturing costs and laws and taxes but that has been a gradual on going progression for perhaps the last 50 years Gerry. You chose years ago to source over seas to the detriment of local manufactures and you benefited.
Darwin said that everything is subject to Evolution, Gerry. The iceman has gone replaced by the refrigerator so too the milkman and the coalman. It is not just the GST. I recently, well, 3 years ago purchased a scanner Epson on Line. That scanner in a Harvey Norman store for the past 3 years has been $1000. Take the GST content out it is $910. I paid $650. It is fully covered by Epson Australia for warranty. Gerry, the Public is Happy. I have long respected you as a business man for many years and will continue to do so. You are a mentor for many and deservedly so. But you are out of line, now. Adapt or go Gerry this is evolution.
The Non Selective Sceptic.
