Alex Zaharov-Reutt
Thursday, 29 January 2009 05:52
Opinion and Analysis
Page 2 of 3
Ruslan Kogan continued: “Australian consumers are getting smarter about how they shop for consumer electronics. They’re not blindly walking into a retail store and paying the ticket price.
“Everyone is looking online to get the best deal. When times are tough, every dollar counts.
“In 2009 Kogan will continue to deliver on our promise to offer the best technology at affordable prices. While everyone is raising prices, we’ll be lowering them.
“I know where these companies get their components and have their manufacturing facilities – and for the most part it’s in exactly the same place that I get Kogan’s products.
“The prices at point of manufacture are not increasing in percentage terms in line with what the big companies are claiming.
“This points to the massive inefficiencies in the supply chain between manufacturers and consumers.
“Kogan cuts all the middlemen out, passing on the savings and cheaper prices directly to customers.
“Our continued success, as well as the departure of some big names from the Australian TV market, shows that traditional ways of selling consumer electronics are no longer financially viable – for the vendor and for consumers.
“The best example of this is last week’s announcement by Harvey Norman that they will be closing stores around the country,” Kogan said.
On top of this, Kogan noted that another major Australian retailer, the Strathfield Group, has also collapsed and gone into administration.
So what is Kogan's strategy?
Please read on to page 3...
