At least one Australian retailer was excited about a mid-term amazon chatter about last year. Ruslan Kogan, founder and chief executive of Kogan.com, a one-stop online shop, said: “the high tide will make all boats rise.
Mr Kogan expects that, shortly before amazon’s launch in Australia, the shopping giant in Sydney will “retrain people on shopping and rebrand the brand”.
Australians have been slow in the online shopping boom, but that they are getting the NAB the latest online retail figures, although the consumption of the traditional branch is smooth, but online shopping is increased, equivalent to 7.6% of the purchase. Gao gan has been waiting for this moment.
In many ways, he has become the archetypal tech entrepreneur. He was outspoken, risky, and occasionally failed, and he did the same. How his 11-year-old business responds to market trends may signal a bigger business picture.
Personally, he is more cautious and less than expected. This is a challenge in 2010 claiming to be the “enemy” Gerry Harvey debate on national television, launched a $900 Kevin37 flat-screen TVS, taking advantage of the 2009 stimulus plan, and put forward the 8000 thread root spam “Portector” in response to a communications minister Stephen conroy 2010 Internet filter is put forward. High roots gave good pr.
Perhaps his black T-shirt in the interview was a clue to his newfound cordon: the brand’s ASX KGN, a memorabilia of Kogan.com’s day in July 2016 on the stock exchange. It wasn’t an immediate success, but the stock market quickly went up, and in 2017 Kogan.com became the best performing stock in ASX’s regular index, with an average annual gain of more than 300%. These days he has shareholders to report and protect the bottom line.
Kogan was born in belarus and arrived in Australia in 1989 with his parents and sisters. The family’s name is $90, and Kogan grew up at Elsternwick in Melbourne.
He earned his first profit when he was nine years old, collected abandoned golf balls at nearby golf courses, then cleaned and sold them to players. At school, he was interested in science and technology, and then in a PhD, general electric, telstra and accenture before the doctor’s degree in information technology won the double major business system of scholarship.
In 2006, at the age of 23, he started Kogan.com, selling private label televisions on his parents’ Melbourne garage. Legend/pr has brushed off his and his friends’ credit CARDS, bought shares from China and sold them directly to customers below the market average. By 2011, he was Australia’s richest man under 30, and now his personal wealth is estimated at $169 million.
The money didn’t flash: he lived quietly in Melbourne with longtime Mexican girlfriend Anastasia Fai, a video producer who spent most weekends at a farm in Victoria. Kogan is reported to be close to home, recently Posting his own UberEats and sending his mother’s meals home.
His firepower is left to the office, and 2017 is a big year. In its first year as a public company, Kogan.com reported revenue of $298.95 billion, up 37.1% from the previous year ($211 million).
The company has yet to offer many products, including books, toys, fashion, furniture, appliances, gardens and household items, all sold under its own brand and other brands. It also operates with Kogan Travel, Kogan Mobile and Vodafone and Kogan Insurance. In June 2017, the company announced it would provide fixed-line broadband service with Vodafone in 2018.
Despite Kogan’s growth, Kogan argues that shopping’s potential online “could be somewhere between 20 and 40 per cent” and could not replace the traditional store experience entirely. “Our business is commodity-based products, all of which are valid. It’s ‘hey, I know what I want, I have a very busy schedule, any spare time, I’d rather play with the grandkids in the park than try to find a parking space. So you know, it’s two purposes. And there are bricks and mortar. The business is doing well and the business is booming. ”
For some products, experience is everything, according to Kogan: “I like nectarines. If you don’t hold it first, I won’t buy the nectarines, and make sure it’s a heavy nectarine, because you can order it online, but a nectarine doesn’t equal a nectarine.
So Kogan doesn’t eat groceries? “I didn’t say that,” he said quickly. In fact, Kogan Pantry launched in 2015, aiming to challenge Coles and Woolworths ‘duopoly with 600 branded product lines, but failed.
Mr. Gao is looking for a break in other industries. Energy retail must be on the list, although he is uncommittally, just saying it is an “interesting market”.
His expansion principle is straightforward: “when we think about expansion, it’s a mass-market product or service, and it’s usually very expensive to buy.”
Insurance is a logical process for companies that now have 1 million active users. With the success of Vodafone’s mobile collaboration, NBN broadband is the same.
“Sally, who is our client and lives at this address? We know that NBN in December 12, address became more active, so we will send Sally a promotional information, “click on the button, you will have a NBN preparation in the day it is active to”, said Kogan.
He has no sympathy for the government’s NBN’s difficulties: “has the government ever introduced something that has no problem?”
But if Kogan’s customers are not cared for, that could be a problem. Relying on other suppliers, Kogan’s Telstra wholesaler ispONE entered voluntary management after the first round of Kogan Mobile failed in 2013, leaving 120,000 prepaid Mobile customers idle.
Kogan said the company is trying to avoid NBN’s problems. “Any service or product that owns our brand, we are working hard in the background to make sure the customer experience is as smooth as possible.”
The company has not failed: it has had mixed feelings with the government, the ACCC, apple and Microsoft. In addition to the failure of Kogan Mobile 1.0, kogan.co.uk was also carefully shut down, trumpeting the company’s global expansion in 2010, but has now moved to the Australian web site.
While one of Kogan’s main selling points is low prices, others have questioned the cost of implementing them. The company in 2016 Baptist world aid report “bar code” behind the ratings is not high, the report of electronic company employee rights, policy, traceability, transparency, supervision and training. The assessment is based on “public information and the company’s self-reported data”. Kogan.com is marked as unresponsive.
Kogan rejected the report, pointing out the company’s ethics and sustainable procurement policies, and insisted on visiting the factory in person. “We know that we are improving the lives of thousands of people. We know that if it weren’t for the economic boom in manufacturing caused by many of the world’s biggest brands and retailers… These people will live in poverty.
He says the company takes employees’ benefits seriously. “We care about these things because ultimately happy people make better products.”
Kogan sees automation as an opportunity rather than a threat, and promises to further use algorithms to recommend products to customers. “I don’t care about it. I think technology is doing very well. Yes, we should use it intelligently, yes, we should make sure that it is committed to solving the right problems, but in general, this is the next industrial revolution. ”
He criticized Australia for its lack of support for the technology industry, saying that if he did not succeed at Kogan.com, he might work in a technology company in the UK, us or Germany. “You always want to work where your skills really value.
“IT could be part of the reason that many people come here, get our IT and technology degrees, and then leave. Grew up in here, even mastered the skills, then said, “hey, when our major retailers and business leaders to talk about technology, when it can become a superstar in the United States, why should I insist on here?
But he says the best government can do for tech entrepreneurs is to get out.
“The less the government has in the entrepreneurial community, the better. My general advice to the entrepreneurial community is to cut taxes and reduce regulation. Don’t take people’s stuff away until they make it. That would really motivate the business community, really incentivize more people to start businesses, more people to hire people, and more people to invest in growth. ”
And, he later said, “be careful of those who want to give and subsidize.”