Ruslan Kogan relaunches Dick Smith as online-only retailer

Dick Smith

Dick Smith has relaunched today in Australia and New Zealand, less than two months after entrepreneur Ruslan Kogan purchased the electronic chain’s intellectual property and said he would continue to operate it online.

Kogan purchased Dick Smith’s trademarks, websites, domain names and customer databases from the company’s receivers for an undisclosed sum back in March.

At the time, Kogan.com said it would take ownership of Dick Smith’s online business from June 1.

However, the online retailer announced the relaunch of Dick Smith this morning, one month ahead of schedule.

Dick Smith’s revived online store will sell more than 5500 products, including smartphones, cameras, tablets and home appliances.

Kogan.com hopes its fast shipping and customer service infrastructure will win over customers who recognise and are loyal to the Dick Smith brand.

David Shafer, the executive director of Kogan.com and Dick Smith, says he is extremely proud of how quickly Dick Smith has been relaunched.

“The efficiency with which we have been able to relaunch Dick Smith is the same efficiency that will see us delivery product and price leadership into the future,” Shafer said in a statement issued to SmartCompany.

“Dick Smith’s recent history has been disappointing for many Australians, but for millions of us, it is an iconic brand we all know and love. We will work hard to restore the faith Australians have put in the Dick smith brand for almost 50 years.”

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D. John Carlson
D. John Carlson
4 years ago

EMBRACE E-COMMERCE OR GO BROKE

THE TREND TOWARDS E-COMMERCE HAS JUST BEGUN – 3 OBSERVATIONS

Around the world, the penetration of online retailing ranges from 6 – 20% of total retailing, depending on the country.

It is highest in countries like China with less bricks and mortar infrastructure, and lowest in countries like Australia with established infrastructure.

In Australia, online retailing represents between 6 and 8 percent of total retailing. Estimates suggest, however, that online retail will represent 50% of total retailing within 10 – 15 years. For those not in online retailing, this is a major threat. For those selling online or planning to start in the next 12 months, this is a major opportunity.

For those doubters regarding the spread of e-commerce, consider:

• Some of the fastest growing product sectors are among the most personal, like fashion, and now include all product sectors.

• Five years ago, no one had even heard of AirBNB selling accommodation online. Today, AirBNB is bigger than Hilton.

• E-commerce is becoming just about as common in B2B as it is in B2C.

• The world’s largest online retailer ALIBABA is opening offices in Australia in 2016, while Ebay and Amazon have been in Australia for some time.

That said, anyone needing convincing that e-commerce will eventually represent 50% of retailing is kidding themselves, and any businessperson who thinks their business is immune, is living in a dream world. It really is a case of embracing e-commerce or facing decline into demise.

In embracing e-commerce, it is important to understand what drives online purchasing and what is necessary for it to work well. Research has highlighted the importance of:

• Range – you must have what consumers want or they will get what they want from a business that does. Be aware, someone will.

• Convenience – the site must be easy to use and delivery must ideally occur within 3 days.

• Price – online prices do not have to be lower than offline prices, but there is an expectation that they will be competitive.

• Trust – the site and the technology used needs to establish trust through credibility – making customers feel secure.

Factors essential in offline retailing are as important online as they are offline. Critical are:

• Service – fast, efficient and friendly;

• Information – current and fulsome;

• Attendance – access to staff 24/7.;

• Complaints – must be dealt with efficiently.

On this last point, and emphasising that price is rarely the primary consideration, research suggests that consumers tend to spend more online than they do offline and are prepared to pay up to 25% more for a high quality customer experience.

Trends within e-commerce include:

• Multichannel shopping – seamlessly delivered

• Linking e-commerce and social media

• The use of virtual salesforces

• Increased focus on mobile technology

• Online loyalty programmes

• Real time analytics

This is a rapidly changing area of marketing with trends emerging almost monthly.

TRUST ME

1. The growth in e-commerce has only just begun – in all sectors.

2. 50% of retail will be online in 10 years – there is nothing to stop this.

3. There are new trends in e-commerce every month. Success will depend on engaging with these trends.

Stuckster
Stuckster
4 years ago

Hmm. Thank you for this. But not really on topic. You should start a blog 😉