No1 Online Retailer in Australia Kogan – Is Kogan business model their penetration pricing strategy

Marketing Management Blog T1 2015

Ruslan Kogan in his parents garage started selling LCD televisions by direct shipping from manufacturer to consumers by which unnecessary costs is bypassed and the savings were passed to customers then this revolution business model of Kogan was born.

Because of this new model Kogan has grown at surprising speed with different products across the world and operating in 15 countries including their Home brand Kogan. No1 online retailer in Australia

Kogan is the most recognisable face of the online retailing revolution in Australia.”

Inside Retail Magazine

Kogan.com prides itself on offering the products we want, at the best prices. As an independent online store, they are able to go straight to the manufacturers, and bypass the agents, importers, wholesalers, distributors and retailers that are usually part of the retail process. By cutting out these expensive middlemen, Savings is passed to us.

KOgan1

Kogan’s Mission is “to provide the…

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3 thoughts on “No1 Online Retailer in Australia Kogan – Is Kogan business model their penetration pricing strategy

  1. Clearly Kogan has momentum and to be Australia’s number 1 online retailer is an impressive achievement. Would I consider buying a Kogan branded product ? At this stage the answer is no. Perhaps I am a little conservative and/ or perhaps I am not an early adopter, however at present I do not feel that despite the very competitive prices and service they offer, they have not yet attained a level of brand equity that would see me move away from buying an established branded TV such as a Panasonic Flat screen that I could still buy from say JB Hifi. My position on Kogan may change as they establish an even greater foothold here in Australia. Once I hear of family and friends purchasing Kogan products ( which I have not yet), this will probably also provide that brand more credibility for me. I am sure it will be a matter of time before I am seriously considering buying some from Kogan online……….

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  2. When I first read this article, the first appeal to me is online retail. I really interest in the online retail and I think the online retail is very popular. There are lots of advantages of online retail, As you said in your article, you can bypass agents, retailers, importers, distributors and wholesalers. By cutting these link, it will save some cost, so the pricing online will more preferential.

    However I have no idea about the Clearly Kogan, so I enter the Kogan.com to know something about this company. they sell electronic products. For me, i don not like buy electronic products online, because i cannot see the quality of the product before I decide to buy, and may cause the product damage in transit. So compared with online buying, ever if the online purchase will be on price has some attraction to me, but I prefer to JB HiFi or Dick Smith.

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  3. Kogan has one of the most interesting stories of a modern retailer. He is effectively the model of an “etailer”. Maybe in time past he would have had a physical store with differing electronic options, with his heart set on being a entrepreneur in the mould of Dick Smith. However in the online economy he has been able to find his way with essentially none of the traditional restrictions that shops faced. His business model to import quality but low cost has hit a niche with savvy web based buyers who have the time and willingness to research their products. Great subject matter choice for a blog.

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