Kogan.com is an Australian portfolio of retail and services businesses including Kogan Retail, Kogan Marketplace, Kogan Mobile, Kogan Internet, Kogan Insurance, Kogan Travel, Kogan Money, Kogan Cars, Kogan Energy, Dick Smith, Matt Blatt and Mighty Ape. The company was founded in 2006 by Ruslan Kogan.
In July 2016, Kogan.com was floated on the Australian Securities Exchange. In its first year as a listed business on the Australian Securities Exchange, Kogan.com delivered $221.3 million in gross sales.
History
Kogan.com was established in 2006 by Ruslan Kogan in his parents' garage. He started with a website offering LCD televisions that would be assembled for him in Chinese factories.
In October 2010, Ruslan Kogan announced that Kogan.com would expand to the United Kingdom. The company officially entered the UK market on 15 November, with a range of LED TVs and GPS units. The expansion makes Kogan the only Australian-owned international consumer electronics brand.
On 14 September 2011, Kogan.com began shipping products from the company's Hong Kong operation. Bypassing wholesalers, distributors and retailers in this way enabled the company to offer products by brands including Apple, Canon, Nikon, Samsung, Motorola and more at low prices.
On 15 March 2016, Kogan.com acquired Dick Smith Holding's online business. With the physical retail stores shut down, the Dick Smith brand transitioned to an online-only consumer electronics store.
On 7 July 2016, Kogan.com floated on the Australian Securities Exchange.
In May 2020, Kogan.com acquired Matt Blatt, a leading Australian online furniture retailer, for $4.4 million. Kogan.com acquired New Zealand-based online retailer Mighty Ape in December 2020 for $122.4 million.
At December 2021, Kogan.com delivered $698 million in gross sales for the first half of FY22 (FY21 annual Gross Sales: $1.79 billion).
In December 2022, Kogan.com acquired furniture and homewares operator Brosa for $1.5 million after the company went into voluntary administration.
Businesses
Kogan Retail and Kogan Marketplace
Kogan.com’s business model relies on technology and digital processes aimed at reducing operational costs and offering a range of products and services at relatively lower prices.
Product lines available via Kogan Retail brands include TVs, consumer electronics, appliances, homewares, hardware, toys and more. Kogan Marketplace is a proprietary eCommerce platform that partners with sellers, providing them with access to Kogan.com's millions of Active Customers.
Kogan First offers members free delivery from Kogan.com on eligible products, upgrades to express shipping at no extra cost, priority customer service and access to exclusive member-only deals.
Kogan.com has also caused controversy with its product range. The company voiced its opposition to the Australian government's proposed Internet filter by releasing a fictional parody product, the Kogan Portector, and received media attention in 2009 parodying Australian Prime Minister Kevin Rudd's 2007 election campaign because of its "Kevin 37" television, a 37" television marketed using advertising mimicking Rudd's campaign, which initially sold for $900 – the value of the economic stimulus payments made to many Australians in April 2009.
Exclusive Brands
In July 2014, Kogan.com launched its first exclusive brand beyond consumer electronics, called Fortis.
By controlling the design, manufacture, packaging and distribution of the products, Kogan.com had increased the number of exclusive brands available to 10, within a year.
Kogan.com currently owns and operates 20 exclusive private label brands.
Kogan Mobile and Kogan Internet
TPG and Vodafone
Kogan Mobile was re-launched in Australia with TPG (formerly Vodafone) on 19 October 2015.
Kogan Mobile offers value based pre-paid mobile phone plans to Customers in Australia and New Zealand on the TPG and Vodafone New Zealand networks.
Kogan Mobile New Zealand was launched in September 2019 in partnership with Vodafone New Zealand offering prepay mobile plans in New Zealand. Glimp stated that Kogan Mobile New Zealand offers one of the cheapest unlimited minutes prepay plans in New Zealand.
Telstra / ispONE
Kogan Mobile was a pre-paid mobile phone service provider in Australia. It was known for being the first pre-paid mobile provider to use the widespread Telstra network. Kogan Mobile launched on 12 December 2012. By 14 December, it had already sold more than 10,000 SIM cards. In response to the announcement, a spokesman from Telstra stated; "Telstra Wholesale is not in partnership or any other direct relationship with Kogan."
Kogan Mobile experienced many problems with customers being suspended for "overuse" despite offering an "unlimited call" plan. Australian Communications Consumer Action Network (ACCAN), stated that Kogan was "falling afoul" of the Telecommunications Consumer Protections Code, introduced in September 2012, which states that a product cannot be called unlimited if it is not actually unlimited. Kogan stated that they did not suspend customers but is rather the provider ispONE. In April 2013, Kogan took the provider ispONE to the Victorian Supreme Court. Kogan won an injunction ordering service provider ispONE to reinstate the 600 accounts of Kogan Mobile users it had suspended after deeming them to be using excessive the service in excess of the levels permitted. The Business Review Weekly said this was not a good start for the 4-month-old [mobile] business.
The Kogan Mobile service ended with the collapse of ispONE on 19 August 2013.
Kogan nbn
On 7 June 2017, Kogan.com announced that it has extended its partnership with Vodafone to 2022. As a part of the partnership, Kogan.com announced that it will offer fixed-line NBN services as well as mobile broadband plans. Kogan nbn launched on 12 April 2018. The service is supplied to Kogan by Vodafone as supplied by nbn Co Limited.
Kogan Insurance
Kogan entered financial services in 2017 under the name of Kogan Insurance. Underwritten by Hollard Insurance, Kogan Insurance was launched with home, contents, landlord, car, and travel insurance. By 2018, Kogan had entered four more areas of the insurance business. A partnership with Medibank enabled the creation of a health insurance brand, Kogan Health; another partnership with Hollard subsidiary PetSure Australia permitted the establishment of Kogan Pet, for pet insurance; and a brand for life and funeral insurance, Kogan Life Insurance, was founded via an agreement with Greenstone Financial Services.
Kogan Energy
Kogan Energy was launched on 9 September 2019 in partnership with part of the Meridian Energy Limited group and provides power and gas deals to Australian households.
Kogan Cars
Kogan Cars was launched on 4 July 2019 and provides consumers with access to networked negotiating power for deals on new cars, and acts as a marketplace for vehicle trade-in.
Kogan Travel
Launched on 21 August 2015, Kogan Travel provides travel deals to international destinations.
Kogan Money Credit Cards
Kogan Credit Cards is a credit card with uncapped Kogan reward points, no annual fee, complimentary Kogan First membership. It was launched in October 2019 in partnership with Citigroup Pty Ltd.
Kogan Super
In partnership with Mercer Australia, Kogan.com offers a no frills, ultra low fee Australian superannuation fund, Kogan Super.
Kogan Pantry
In January 2015 Kogan.com launched Kogan Pantry, an online service delivering non-perishable foods, confectionery, cleaning products, toiletries, and pet food. Kogan Pantry has a smaller range of products than the biggest Australian supermarkets, Coles and Woolworths. However, independent consumer group Choice says the prices at Kogan pantry are 50-60% less than the big supermarkets. According to News.com.au, over 30,000 products were sold within the first six hours of the launch.
Marketing
In July 2011 Kogan launched its "Cut the Cable Con" campaign in Britain. The campaign targeted John Lewis and Currys, criticising the way that such retailers attempt to sell expensive cables with their new televisions and computers, and accusing them of a campaign of "deliberate misinformation" with regard to this issue. Kogan.com began giving away cables free of charge with every television purchased.
John Lewis and Currys defended the practice of charging for cables by pointing out the various features of their cables. Kogan responded by stating: "I think it's a bit misleading what they've said. When it comes to durability, it's an HDMI cable that you'll use to connect your TV to a Blu-ray player, or a Playstation, or another device. You're not using it as a skipping rope or to go rock climbing with."
In August 2011 Kogan announced his desire for online retailers to be viewed separately from traditional retail by economists, stating that "If we have been grouped with traditional retailers, then we want a divorce!", and arguing that all of the innovation and growth is in online, rather than bricks-and-mortar, retail. Business Magazine BRW noted the similarity of the "divorce" to a campaign by the National Australia Bank.
Financial results
Sales at Kogan's online store in November 2011 were $8.12 million, up 330% from $1.89 million in the same period in 2010. During the period there were 708,525 visitors to Kogan.com.au, an increase from 222,411 the year before.
In October 2010, BRW ranked Kogan as Australia's 15th fastest growing company with yearly revenue of $12.22 million.
Also in 2010, the company released Q1 FY11 growth figures, with revenue up 48.12% on the previous quarter.
The business recorded its highest single day of sales ever on 31 July 2012, exceeding $1 million in transactions.
In October 2012, Kogan again made the BRW. list of Australia's fastest growing businesses, this time ranking at No. 14, noting a 123% growth rate since 2011.
The professional services firm, Deloitte, listed Kogan as one of the top 10 on the Fast 50 Australia in November 2012.
In 2017, Kogan.com released its FY17 results, which showed revenue of $289.5 million, up 37.1% on the prior year. It also grew its customer base to 955,000, up 36.0% from 30 June 2016. Kogan.com was the best performing stock on the ASX All Ordinaries index in 2017, with an annual gain of more than 300 per cent.
Awards
The company has won the following awards:
2017 StarTrack ORIAS People's Choice Award — Large Retailer BRW 2011 Fast 100 at rank 27, ranking the fastest growing companies in Australia in any sector and any size. BRW 2010 Fast 100 at rank 15, ranking the fastest growing companies in Australia in any sector and any size. BRW 2010 Fast Starters list at rank 17. BRW named Kogan the 15th fastest growing company in Australia, with 106.74% growth. Australian Retailer's Association Retail Innovator of the Year 2010 BRW 2009 Fast Starters list at rank 37 Power Retail's Top 100 Online Retailers of 2014, at rank 3.
Controversies
2009 advertising controversy
In April 2009 the company was ordered by the Australian Competition & Consumer Commission (ACCC) to modify its advertising, after it was accused of possible misleading conduct. The ACCC stated that price comparisons in the retailer's advertisements in the Herald Sun newspaper and on its website may have misled customers, and the ACCC's chairman Graeme Samuel said the advertisements may have breached sections of the Trade Practices Act 1974. In response, Kogan.com agreed that it would not advertise its products at a discount unless that product had been advertised for sale at a higher price, that it would implement a trade practices law compliance program, and that it would not make representations about the savings available to consumers unless the basis by which those savings are calculated was also stated.
Harvey Norman