I was able to stop by Centrum FotoSkoda today since it is close to my hotel. It is a large store with a large business and huge inventory of used equipment in many brands legacy and current. It is a main component of the business. They have a dedicated buying counter fully staffed and a large technical and repair department to CLA all the different brands. Just a huge inventory of used stuff, worth a visit if you are ever in Prague. They were very open about the fact that the used Leica equipment was the most active of all the brands. They are anxious to buy all Leica stuff.
It is a viable business, and a good opportunity for Leica to optimize and leverage.
highdesertmesa wrote:
Exactly. Imagine a Chinese made version of the M-EV1 with the lower cost SL2-S sensor priced around the $6K-$7K mark. A Chinese built version couldn't possibly have a worse defect rate than the M11 does now. They're about to leave a large portion of their new M buyers behind with the M12, as I assume it will further cross the $10K USD mark.
If a Chinese known brand comes to market with what you describe at more than $4k, I will not be interested. (It seems we are now numb to Leica current pricing levels.) If LLL can offer lenses at around one-fourth the Leica price (1966 50/1.2 as their most expensive example), then a bit more than 25% of the Leica price point is enough for them to make it work, IMHO.
Many of LLL lenses come in at 15-20% of similar Leica prices. Then take Mandler with a KOB 35/2 lens at $348. My German used one goes for around $3k and my Canadian version goes for around $2k. Neither of the Leica lenses offer any advantages over the Mandler from my testing.
For starters, I don't know the first thing about HSG, their strategy, and what other companies they have in their portfolio. I went to take a quick look, and they seem to have investments in BYD, Bytdance, Alibaba - a slew of pharma and tech companies - but also consumer companies like Shein, AMI Paris, Marshall, etc. Chinese investors are, as we know, very strong in manufacturing, tech, mining, supply chain, etc, etc, etc, but the one thing don't have plentiful is branding and historic consumer brands - to that end, Leica would fit very nicely in the portfolio.
There was a time I worried about Chinese ownership, but if you see what they have done to companies like Hasselblad and Volvo, they have played their cards very well.
Chinese business often have a much longer term view than e.g. Wall Street driven publicly traded companies doing everything to pump share-prices to milk out executive bonuses.
I actually thing HSG involvement could be a good thing, at least in the 5-10 years horizon.
stgrove wrote:
If a Chinese known brand comes to market with what you describe at more than $4k, I will not be interested. (It seems we are now numb to Leica current pricing levels.) If LLL can offer lenses at around one-fourth the Leica price (1966 50/1.2 as their most expensive example), then a bit more than 25% of the Leica price point is enough for them to make it work, IMHO.
Many of LLL lenses come in at 15-20% of similar Leica prices. Then take Mandler with a KOB 35/2 lens at $348. My German used one goes for around $3k and my Canadian version goes for around $2k. Neither of the Leica lenses offer any advantages over the Mandler from my testing....Show more →
I was describing Leica coming to market with a Chinese made variant of the M-EV1, not a third party M camera.
I feel like if Leica could have been financially exploited, stripped down, or taken in a worse direction for profit, a firm like Blackstone would have done it years ago. They manage over a trillion dollars and exist to maximize returns.
I’m not saying this new ownership will be better or worse. I have no idea. But acquiring Leica feels like a serious flex. They now own one of the most prestigious names in photography and a company that’s doing exceptionally well.
At that level, Leica starts to feel less like a business acquisition and more like a crown jewel in a game played by billionaires. Owning Leica carries a certain prestige that goes well beyond the balance sheet.
