![Harvey Norman chief Gerry Harvey Harvey Norman chief Gerry Harvey](/images/transform/v1/resize/frm/silverstone-feed-data/a42f586a-dd21-40dc-afba-9d60d3fb9cd9.jpg/w1200_h678_fmax.jpg)
Electronics retailer Harvey Norman plans to launch a website to ship goods directly from China to consumers in Australia, days after Myer revealed a similar move.
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Harvey Norman chief Gerry Harvey told a trade publication today his company's site will be in place possibly before Myer's, as traditional retailers struggle to compete against a tide of inexpensive merchandise bought online and imported directly by consumers.
“We may even beat Myer to getting our shop up" Mr Harvey told IT sales publication ChannelNews. "We may not make a lot of money, but it's better than making no money at all".
Mr Harvey told BusinessDay this afternoon he was serious about setting up the website, following frustration with the tax-free and duty-free prices offered by overseas competitors and inaction by the federal government.
"I spoke to our online man this morning, and I said why can't we do that? And he said there is no reason we can't do that at all.''
Mr Harvey said his offshore website would most likely not sell large whitegoods, such as washing machines or televisions, as they typically sell for above $1000 and attract the GST."The products that we sell are basically not affected, the big products are clothes and shoes, accessories and cosmetics, so if we went into it we might look at selling some of those products online.''We would look at doing some other types of products that are good sellers online, set that up, if we set it up and do it the same way as others, we wont have to pay any duty or GST either.''
Australia allows consumers to import items worth $1000 or less from overseas without incurring the 10 per cent goods and services tax. Local traditional retailers, including Mr Harvey, have blamed internet-based competition - aided by a strong Australian dollar - for contributing to lacklustre sales in the crucial Christmas season.
Last week, Myer chief Bernie Brooks shocked consumers by announcing Australia's largest department store would be operating a online sales site from February that would ship items directly from a warehouse in southern China.
Online sales typically involve much lower costs for the retailers by eliminated the need to hold large amounts of stock, pay for physical locals or employ large amounts of staff.
Harvey Norman's comments were seized on by online electronics retailer Ruslan Kogan of Kogan Technologies, who dismissed them as a hoax.
"Harvey Norman will never open an online store selling direct from China,” said Mr Kogan, whose business model involves direct sales of products from manufacturers to consumers.
“This is an absolute hoax. It's nothing more than Gerry and Bernie trying to force the government's hand to change the GST laws.”
czappone@fairfax.com.au; egreenblat@theage.com.au