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Kogan calls Gerry Harvey’s bluff

Melbourne, AUSTRALIA, 6th December 2010 Ruslan Kogan today calls out Gerry Harvey on his China bluff.

Gerry Harvey announced today that Harvey Norman would launch a China-based website to avoid GST costs, following Myer’s similar announcement on Friday.

Ruslan Kogan responded:

“Harvey Norman will never open an online store selling direct from China. This is an absolute hoax. It’s nothing more than Gerry and Bernie trying to force the Government’s hand to change the GST laws.

“The freight cost from China cancels out any GST saving on Harvey Norman products.

“Last week, Gerry Harvey was saying that Harvey Norman had no intention of embracing the Internet. This week he’s announcing a new online store based in China. Harvey Norman shareholders must be very tolerant people.

“It’s clear that traditional retailers are trying to put political pressure on the Government. They are trying to stir up popular unrest by threatening job losses and outsourcing to China. The Government should not respond to this posturing.

“I’m personally challenging Gerry Harvey and Bernie Brookes to actually open their China-based websites. I think there is about as much chance of this happening as Australia winning The Ashes.

“In the highly unlikely event that they do open their stores and keep them open for three months, I will place prominent links on directly to Harvey Norman’s and Myer’s China-based online stores,” Kogan said.

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