Australian consumer electronics retailer Kogan has launched an e-tail site in the UK, selling TVs, GPS devices and other consumer electronics.
Kogan launched into the the Australia electronics retail scene with 27-year-old founder Ruslan Kogan taking advantage of an under developed e-commerce market combined with a daring direct sell 'own brand' business model.
In a market dominated by bricks and mortar retail chain giants such as Harvey Norman, Kogan claimed that products sourced from the Asian tiger economy manufacturers was at least as equal to products of the major brands but at much lower prices.
Now Kogan is seeking to echo the success seen in Australia by entering the British market.
“UK High Street retailers all have a web presence, which is commendable. But why are they charging the same prices online as in store?” said Ruslan Kogan in a prepared statement. “Is it fair that an online customer should be helping pay for the rent, overheads and other inefficiencies associated with selling through a shop?”
Kogan compared the company’s entry into the British market as analogous to Richard Branson’s Virgin group entering the Australian market. “In the same way that Sir Richard Branson comes to Australia to innovate in flailing industries, Kogan is going to breathe new life into the UK electronics retail industry and give people what they want.”
Unlike most online retailers, Kogan offers a limited range of products and the British launch will be even more limited with just five televisions and two GPS devices initially offered for sale. Much of Kogan’s marketing is aimed at an audience unfamiliar with online discount sites.”
The retailer has also shifted tack to describing themselves as the manufacturer on the basis of the rebranded products, differing from that used in Australia which was up front about sourcing of consumer electronics from major manufacturers in China and other Asian countries.
“We are the manufacturer selling direct to our customers and cutting out all the middlemen,” said Kogan. “The Internet has made this possible,” he added.