Kogan to expand into bulky appliances

Image source: Kogan Facebook
Ruslan Kogan.

Kogan has unveiled plans to enter the whitegoods and built-in kitchen appliances market, bringing it into direct competition with bricks-and-mortar stalwarts Harvey Norman and JB Hi-Fi Group.

The move will introduce another online only player to large appliances alongside the likes Winning Group’s Appliances Online.

Kogan said on Monday that it had signed a supply deal for a range of its own exclusive brand of whitegoods and built-in kitchen appliances, which are slated to be launched before the end of 2018.

It is the latest step in Kogan’s ongoing expansion, but its first concerted move in the retail sector for some time, following heavy investment into new service verticals in recent months.

Just last Friday Kogan announced it was expanding its successful Kogan Mobile partnership with Vodafone into New Zealand.

The addition of Kogan into the space could spell trouble for JB Hi-Fi-owned The Good Guys, which has had to invest in price to maintain market share in recent months amid an uptick in competitive intensity.

Founder and chief executive Ruslan Kogan intends to bring a new level of price competition to the category, saying on Monday that there was room to undercut existing players.

“The Australian whitegoods and built-in kitchen appliance market lacks competitive tension, which has resulted in a limited number of players enjoying inflated margins,” Kogan said.

Kogan said that the company’s growth over the last twelve months had positioned its logistics and distribution footprint to overcome traditional barriers to entry associated with retailing bulky goods.

The offer is expected to include a range of fridges, washing machines, dryers, dishwashers, ovens, cooktops and rangehoods.

“It will be a great win for Australian consumers who don’t want to pay too much for essential household appliances,” Kogan said.

More to come.


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