Kogan reports record quarterly growth
KOGAN ANNOUNCES RECORD QUARTERLY REVENUE GROWTH
“BUYING CLIVE PEETERS WAS A HUGE MISTAKE BY GERRY HARVEY”
Melbourne, AUSTRALIA, 1st November 2010 — Australian consumer electronics manufacturer and retailer Kogan today announced record quarterly growth.
With Australian shoppers migrating online to buy consumer electronics, home appliances and other goods, Kogan’s Q1 FY11 revenue skyrocketed up 48.12% on the previous quarter.
The same period saw 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%.
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% 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.
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% 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.
“The better Australian dollar means better prices for imported goods like technology, and the customer ultimately is the winner. I don’t know why Gerry Harvey is complaining, our customers are very happy and that makes us happy, while helping us expand to international markets.
“It’s clear that Australian shoppers are increasingly using Google to compare prices and shop online for the best deals. When consumers do the maths and compare all the available product information, Kogan will continue to win business and market share,” Ruslan Kogan said.