MARKETING OF ELECTRICAL EQUIPMENT
The consumers of electrical equipment are largely European
interests which may be divided as follows: (1) Private industries,
(2) public-utility companies, and (3) Government. With the exton-
sion of transmission limes into the native districts, the natives may
eventually become a more important factor in the marketing of
electric appliances and electric lighting fixtures, but the equipment
necessary for the generation and distribution of electrical energy will
probably always be purchased by Furopeans.
QUALITY AND PRICE
The quality of the heavy electrical equipment sold by European
firms compares very favorably with that manufactured by American
firms. In fact European goods are probably more suited to the
particular needs of the country, particularly since the German,
Dutch, Swiss, and Swedish electrical engineers stationed in the
Netherland East Indies as representatives of their respectives com-
panies, have studied the conditions and needs of the country and the
equipment they supply is entirely satisfactory. The initial expendi-
ture which a large American electrical-equipment manufacturer
would incur in obtaining a first-hand knowledge of the market would
probably make the price of his equipment out of line with the prices
quoted by his European competitors unless he were willing to make
sacrifices to that extent in order to develop possible future business.
In the past, some American electrical equipment which has been
imported has not given complete satisfaction because the same type of
equipment suitable for use in the United States was supplied to buyers
in Java or Sumatra. In many cases American electrically driven
machines have broken down after a few days operation in Java.
The result has been that until the suitability ‘of the equipment for
use in & tropical climate has been conclusively proven, few firms will
order from the United States.
TYPE OF AMERICAN EQUIPMENT IN DEMAND
With the exception of flash lights and batteries, the imports of
American electrical equipment have been chiefly in lines in which the
United States specializes, such as high-tension insulators, lightning
protective equipment, X-ray and therapuetic equipment, and electri-
cally driven household appliances. With one exception, few American
firms have secured any volume of business in power house or sub-
station equipment. dvnamos, or electric-lichting fixtures.
NATIONAL PREFERENCES
No discrimination is shown by Dutch firms or by the Government
against goods of American or any other origin. However, the
Government naturally shows preference to Dutch manufacturers
whenever possible. The introduction and sale of American equip-
ment is difficult, since the majority of electrical engineers in charge
of purchasing equipment have been educated in European technical
schools where the merits of equipment of European design have been
stressed. American practice is not generally recognized in the
Netherland East Indies, and a considerable amount of educational
ans is necessary on the part of factory representatives of American
TINS.
