Canon to invest in Lebanese market
Lebanon-Japan, Business, 5/4/2000

Canon has appointed Image Systems s.a.l. as its new distribution partner in Lebanon and is to embark on a major drive to "regularize" the Lebanese market gray or parallel imported products by Lebanese resellers, according to Canon Middle East general manager Gordon Jones.

By establishing official offices, distribution and investment in Lebanon, Cannon hopes to provide quality service to match its products.

"We are very keen to promote the 'official' channel in Lebanon," Jones said. "There are very real concerns about customer value when customers are being approached by 'unofficial' vendors who are not working closely with Canon."

"The need for regulation is immediate, because the new generation products which Canon is bringing to market demand technically capable service and support in order to deliver their full value," said Canon Europa vice-president Andy Szeliga. "The immediate promise of parallel imports does not make financial sense in the long term, so we¹re working to offer customers a value package that makes the supported sales channel more attractive in Lebanon."

The company is to embark on a twin track program of promotion and investment in Lebanon, with a sharp emphasis on training, skills and technology transfer. Image Systems already has a fully trained customer support and service staff of 20 in Lebanon, and aims to grow both the number of staff dedicated to its Canon business and the skillsets of existing engineers. "We want to address the problem of parallel imports by offering our customers a stronger value proposition, and that means providing them with the service and support which helps them to use Canon products to their full capability," said Cesar Chalhoub, managing director of Image Systems. "The ball is very much in our court, we realize. We need to ensure that we are providing keen pricings as well as great service, and that is a challenge we are totally prepared for."

Promotional initiatives will focus on the growing digital imaging systems market in Lebanon, and will aim to positively reinforce the benefits of purchasing through the 'legal' channel, commented Jones. "The Lebanese market for digitally capable products is one which we believe is on the cusp of huge growth, and we are working hard with Image Systems to ensure that customers are presented with a range of products and services which provide them with a capable, reliable solution. Our concern with the existence of parallel imports is that these do not necessarily come with an acceptable quality of technical support or servicing capabilities guaranteed by the vendor. Customers can find that their important business solution investments are in fact highly problematic in the long term, and we really want to avoid that happening to anyone."

Lebanon is a key volume growth market for digital imaging solutions in the Middle East, fueled both by the country's economic growth and the dynamism of the Lebanese information technology market, which has attracted regional players including Microsoft and Dubai's GITEX computer exhibition to set up ventures in the country. "Lebanese businesses are fast moving into the digital arena these days, which is just where Canon's business solutions are positioned today," said Chalhoub. "The opportunity is there for both Image Systems and Canon to build a dynamic and regularized market based on that strong demand."

Canon is a $25.7 billion company focuses on business machines ­ including imaging systems and compute input/output devices ­ cameras and optical products, a company statement said.

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