Some might say Kogan was playing a dangerous poker game with his failed attempt to launch a mobile phone, but he has come back guns blazing, promising lower prices.
In a press statement, Kogan Technologies said it will be maintaining or lowering the price on all of its consumer electronics goods despite big name manufacturers threatening significant price hikes in February.
Above: Kogan founder Ruslan Kogan (the bloke at the back, not the poker model)
Kogan said the promise would cover the full range of high definition LCD TVs, Blu-ray players, GPS devices and video cameras.
Kogan founder Ruslan Kogan said NEC’s forthcoming departure from the Australian television and consumer electronics market would further decrease competition.
NEC joins Hitachi, Fujitsu, and Philips who have ceased consumer electronics sales in the last twelve months.
“It’s proof that when times get tough, the big players are not fast or flexible enough to cope with changes in the Australian market,“ Kogan said.
“I know where these companies get their components and have their manufacturing facilities – and for the most part it’s in exactly the same place that I get Kogan’s products. The prices at point of manufacture are not increasing in percentage terms in line with what the big companies are claiming.
“This points to the massive inefficiencies in the supply chain between manufacturers and consumers.
“Kogan cuts all the middlemen out, passing on the savings and cheaper prices directly to customers.
“Our continued success, as well as the departure of some big names from the Australian TV market, shows that traditional ways of selling consumer electronics are no longer financially viable – for the vendor and for consumers.
"While everyone is raising prices, we’ll be lowering them," Kogan said.
Kogan referred to reports that Harvey Norman would be closing stores around the country in the face of the economic downturn, as well as today's news that the Strathfield Group has gone into administration.
Kogan claimed his business model of selling direct to consumers had seen 20 per cent growth per month for the last three years.
Most vendors have announced price hikes of between 15 and 30 per cent in February 2009.
Some of these companies have been caught out for price fixing overseas.
Initial price cuts announced by Kogan include:
- 47” 1080p LCD TV from $1899 to $1699
- Blu-ray player from $349 to $249
- 42” 1080p LCD TV from $1499 to $1299