OHKI Set to Upstage Kogan with New Buyout
- 16th September
- Neha Kale 289
Discount electronics retailer OHKI says that its acquisition of Stax Electrical will help secure a competitive advantage over its main rival Kogan.
Cut-price electronics retailer OHKI claims that its latest buyout will see it oust main rival Kogan within a year. OHKI has just signed an agreement to acquire electrical goods retailer Stax, in a move it says will increase the competitiveness of its product offer. Sydney-based Stax is an established electronic goods retailer with an eighteen-year history. The terms of the deal have not yet been disclosed.
OHKI, which was launched in December last year, says that the acquisition will allow it to buy branded electrical product at a margin that is 15% greater than current margins of 25-30%. The new business is tipped to generate revenue of over $7 million and offer an 11,000-strong product range.
Lucas McEntee, Managing Director of OHKI told Startup Smart that the deal has given the business a distinct edge over Kogan.
“Kogan has turned into an importer of products from Hong Kong with a three-day dispatch. With us, you’ll pay a bit more, get next-day delivery and not be at risk of ‘grey’ imported goods. You know what you’re getting,” he said.
McEntee also confirmed that OHKI is establishing satellite warehouses across Australia to satisfy its next-day delivery offer.