Online entrepreneur Ruslan Kogan has continued to expand his Kogan.com retail offering, today announcing he will launch his own whitegoods brand.
By the end of the year, Kogan.com (ASX:KGN) will start selling fridges, washing machines, dryers, dishwashers, ovens, cooktops and rangehoods under its own brand.
“The Australian whitegoods and built-in kitchen appliance market lacks competitive tension which has resulted in a limited number of players enjoying inflated margins,” Mr Kogan told investors on Monday morning.
Kogan was now of a size where it could cope with the “additional complexity and logistical requirements arising from distributing bulky products”, he said.
It will be a great win for Australian consumers who don’t want to pay too much for essential household appliances.
We are excited to be applying our business model to this industry and making the most in-demand products more affordable for all Australians,” Mr Kogan said.
Further details would be released later in the year, he said.
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Kogan.com — which Mr Kogan founded in 2006 — posted a 45.7 per cent jump in revenue to $209.6 million for December half. Profit was $8.3 million, up 470 per cent.
“Every decision we make in our business is driven by data and analytics whether it be who we hire, what products we allocate capital to and how we do our marketing,” Mr Kogan said earlier this year.
“We know what every single cent we spend is doing.”
Mr Kogan, 35, owns about 42 per cent of Kogan.com, worth more than $300 million.