Monday, 01 November 2010 11:49

Kogan announces record sales growth, disses Gerry Harvey

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Ruslan Kogan, founder of the Kogan online electronics retail business has used the announcement of record quarterly growth as an opportunity to bash his more traditional rivals.


With revenue growth of 48% in the first quarter of financial 2011 (though there was no indication of how profitable the company was), Mr Kogan can perhaps be forgiven for carping about the way LG Electronics recorded an operating loss of $US164 million, and Harvey Norman chalked up a 0.6% decline in sales (on a like-for-like basis) with a 30.8% drop in profit.

"Gerry's complaining about price deflation with customers spending less on technology as companies like Kogan drive prices of TVs down," said Mr Kogan. "He should be more worried about improving his own business and streamlining it to take advantage of the high Australian dollar and improve value for customers."

He went on to assert that "Buying Clive Peeters was a huge mistake by Gerry Harvey. My mother always taught me that two wrongs don't make a right. Combining one ageing business model with another won't solve Gerry Harvey's problems. I'm happy to give him my mother's email address if he'd like some common sense business advice."

Kogan is launching a UK operation this month.

The company's basic business model is to import consumer electronics and other products directly from the manufacturers, and then sell online with low overheads and low prices.

 

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Stephen Withers

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Stephen Withers is one of Australia¹s most experienced IT journalists, having begun his career in the days of 8-bit 'microcomputers'. He covers the gamut from gadgets to enterprise systems. In previous lives he has been an academic, a systems programmer, an IT support manager, and an online services manager. Stephen holds an honours degree in Management Sciences and a PhD in Industrial and Business Studies.

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