Kogan outlines plans for Dick Smith
Having announced the acquisition of Dick Smith’s online business for an undisclosed sum, Ruslan Kogan has confirmed Kogan.com will adopt a dual brand strategy and work to establish trust with a new customer base.
Under the new ownership Dick Smith will operate as a pureplay online retailer, reviving the iconic brand after months of turmoil.
“We will invest in the brand and rebuild consumer trust. We acknowledge that consumer trust takes years to build and can be damaged very quickly,” Kogan said. “Ultimately, a brand grows when it delivers on its promises. We will work tirelessly to exceed the expectations of every Dick Smith customer with a beautiful shopping experience.”
Kogan plans to “leverage the millions of dollars we’ve invested into online retail systems and architecture over the last decade to sustainably run the business.”
Dick Smith will continue to focus on consumer electronics and appliances, offering a variety of private labels and the world’s leading brands.
“The combined buying power of Kogan.com and Dick Smith will provide a compelling proposition to the world’s leading brands and suppliers. This will enable us to trade on more favourable terms and pass on those savings onto consumers,” Kogan said.
Kogan said the supply chain will be optimised to a more innovative, streamlined business model, ensuring competition among suppliers, and logistics efficiencies.
Kogan said the business is not in a position to forecast how much revenue the Dick Smith online business will add to the bottom line. Adding, “We do know that by leveraging our existing systems and infrastructure, we are in the best position out of any retailer in Australia and New Zealand to run Dick Smith as an online only retailer. The Dick Smith online offering will soon be better than ever.”
There will be a transition period during the closure of the the chain’s bricks and mortar store network and Kogan.com will operate the online business from June 1, 2016.