Kogan has grown almost 50 percent in a single quarter with Ruslan Kogan using the opportunity to take a swing at rival Gerry Harvey and his bricks and mortar retail chain Harvey Norman.
Kogan’s Q1 FY11 revenue skyrocketed up 48.12 percent on the previous quarter, over the same period manufacturer LG post an operating loss of $164 million and retailer Harvey Norman post a like-for-like sales decrease from Q1 FY10 of 0.6 percent.
Kogan bucked the trend in a slow Australian retail industry to become Australia’s 15th fastest growing company (BRW 2010 Fast 100). Internet search traffic for the Kogan brand rose 56.62 percent against Harvey Norman’s in the same quarter.
This record growth in revenue and market share has allowed Kogan to take this hugely successful Australian brand to the international market, beginning with a launch in the UK in mid-November, employing well known Melbourne businessman David Shafer to head Kogan’s international push.
Ruslan Kogan said Kogan’s growth was a sign that Australians are finding the best deals by shopping online.
“Whether shopping at Kogan.com.au or elsewhere, Australian shoppers are realising that the best deals are always available online.
“Bricks and mortar retailers like Harvey Norman appear to be blaming the the foreign exchange markets for their poor results, but this is just a smokescreen for the real underlying issues associated with their business model. Any economist will tell you that a rising Australian dollar should be positive news for retailers of imported goods like Harvey Norman.
“In the same period that Kogan saw record growth, Harvey Norman’s ageing business recorded a huge downturn in profit of 30.8 percent on the corresponding prior period.
“Gerry’s complaining about price deflation with customers spending less on technology as companies like Kogan drive prices of TVs down.
“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.
“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.” said Kogan.