Expects suppliers to rethink strategy.
In an exclusive interview with Appliance Retailer, Ruslan Kogan said he sees JB Hi-Fi’s acquisition of The Good Guys as an opportunity. He believes it is likely that suppliers will diversify their channels to market.
“Twelve months ago, brands had four big channels through which to retail their products – JB Hi-Fi, Harvey Norman, Dick Smith and The Good Guys. Now they have two and they are concerned. Consolidation usually means an increase in retailer margins at the outset and a squeeze on supplier margins. Savvy suppliers are already seeking more channels to reach their customers and Kogan.com will only benefit,” he explained.
When asked about the imminent arrival of global retail giants such as Amazon: “we are excited by that prospect because we think they will do great things to boost the profile of online retail locally. Amazon is already here in a big way and there has been talk for many years about their potential launch in Australia. They are a top 20 site in Australia with more traffic than news.com.au and realestate.com.au”.
eBay is the fifth most popular site in Australia and eBay is used as an additional channel by Kogan. “In the same way we are one of the biggest sellers on eBay Australia, we would be one of the biggest sellers on Amazon if they were to open local operations.”
“We see Amazon as a real opportunity to supercharge the growth of the Australian online retail sector and deliver more choice to Australian consumers. A rising tide lifts all boats. Online retail is still underrepresented in Australia compared to other major developed economies. However, it’s predicted the Australian online retail market will deliver 11.5% compound annual growth between now and 2019,” Kogan said.