Ruslan Kogan: Dick Smith collapse a “bittersweet situation” as Kogan.com considers acquisition “opportunities”
Monday, January 4, 2016/
Entrepreneur Ruslan Kogan says the collapse of retail chain Dick Smith is a “bittersweet situation” but says his business is committed to not raising its prices in the event of less competition in the electronics retail market.
And when asked if he would consider buying Dick Smith or some of its assets, the founder of Kogan.com told SmartCompanythis morning his business is “always considering all opportunities”.
Kogan says the appointment of voluntary administrators and then receivers and managers to Dick Smith Holdings is “a sign of the changing retail landscape that has more and more Aussies turning online for the latest products at the best prices”.
“Dick Smith has been an iconic Australian brand for decades and it’s sad to see their demise,” Kogan says.
“It’s a bittersweet situation. On one hand, we love competition – it gets us out of the bed in the morning. On the other hand, Kogan.com is proud to have played a significant part in creating more efficiency in the industry and driving down prices for shoppers, which has had a noticeable effect on many large retailers, past and present.”
“What Charles Darwin said about evolution strong applies to business – ‘it is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change’. Kogan.com prides itself on innovating new ways to bring value to consumers and constantly adapting to ensure we’re giving customers exactly what they’re looking for.”
Kogan says it is common for retailers to increase prices when competition decreases in their industry but “there won’t be anything like that at Kogan.com”.
“Our mission is to make the latest products more affordable for all Australians and we’ll keep using technology to innovate new ways to drive prices down,” he says.
Kogan.com, which celebrates its 10th birthday this year, has expanded its product range during the past 12 months, moving beyond consumer electronics to launch private label brands into categories such as pet supplies, camping and outdoors, men’s grooming, health and wellbeing and children’s wear.
Kogan told SmartCompany in January last year the expansion into different product categories is part of the company’s growth strategy, which was worth around $300 million at the time.
“They are the fastest growing area of the business,” he said.
“Some of them are huge industries – the vitamins industry is a huge industry, the power tools industry is a huge industry.
“There are only so many TVs you sell a customer.”