One of Australia’s leading online retailers has declared that bricks-and-mortar stores have lost the price war and should stop complaining and move on if they wish to keep their customer base.
Ruslan Kogan, CEO of online electronic retailer Kogan, made the comments after revealing his online store’s latest sales figures: triple that of the same period last year.
“Some of the big retailers have spent the year complaining about retail conditions. They won’t return to an optimistic outlook until they start innovating and providing real benefits to consumers,” he said.
Kogan revealed November sales figures of $8.12 million, up 330 percent from the $1.89 million in the same period in 2010.
He described 2011 as the year the Australian public became more knowledgeable about the benefits of shopping online. The effect of this is showing in the lead-up to Christmas, with Australians heading online in droves, and Kogan reporting high Christmas figures.
“Particularly during the busy Christmas period, Australian consumers are finding the best prices coupled with maximum convenience by being able to shop in the comfort of their own home.”
Kogan aims to provide the latest technology to consumers at the most affordable price. For example, Kogan’s online store sells the Apple iPad2 16GB for $509, a $70 discount off the RRP price tag listed on the official Apple store’s site.
Recalling its own positive figures, Kogan described the online retail industry as on the up and up, and undergoing tremendous growth.
“It’s time for big retail to move on, and start looking at where they can provide value in other areas; 2011 has shown that online is no longer the marketplace just for books, CDs, and massage vouchers. More and more Australians are comfortable making serious purchases online. They are now spending hundreds of dollars online,” said Kogan.