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Kogan flags further category expansion

On the back of an aggressive expansion into new categories, online retailer has more industries in its sights.

“We focus on entering categories where there is a structural advantage to selling the products online, and we only focus on products where we can offer better value to the consumer than the best deals currently in the market,” David Shafer, executive director of Kogan, said.

“We compete against everybody from the big supermarkets, to travel giants, to the big bricks and mortar retailers in Australia.

“We will continue adding new categories where we can deliver better value to the consumer. We’re not slowing down anytime soon, so stay tuned.”  

New product categories must play the online retailer’s strengths such as Kogan Pantry, which launched in January 2015 to shake up the supermarket duopoly, which doesn’t try to compete on fresh produce.

“Offering a range of perishable items requires massive physical infrastructure to work well, which means lots of stores.

“But there are aspects of grocery shopping, particularly with non-perishables, that can be done a lot better. Kogan Pantry aims to deliver the non-perishable staple goods that you buy regularly for your house and pantry more affordable.”

Travel is another service which Shafer believes is more suited to online transactions than via a bricks and mortar store, having launched Kogan Travel in August.

“We can deliver all the services that a local travel agent delivers, but without needing to cover all the overheads required to run that store, which means a better deal for the consumer,” Shafer said

When asked if Kogan would consider introducing a membership model, such as Costco or US online retailer Jet, Shafer said their aim is “to engender that loyalty among customers without asking them to pay to enter our community.”

Since its launch in 2006 with just two Kogan-branded TVs, has drastically accelerated its expansion into new categories  over the last few years, including toys, homewares, camping, sporting, power tools, beauty, travel and pantry.

“We are not slowing down. We think there are still many more ways to apply our digital efficiency to a range of sectors and categories that will save smart Australian shoppers more.

“Stay tuned for some more big launches soon!”

This story first appeared on Internet Retailing’s sister site, Inside Retail. Click here to subscribe.  

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