Kogan.com wants to make the Australian whitegoods and built-in kitchen appliance market more price competitive by expanding its product offering to include these high-ticket items.
According to Kogan.com, Australian consumers have limited choice when it comes to purchasing large household appliances, such as fridges and washing machines. In a bid to take up a stake in this market, the e-tailer is planning to launch its own range of exclusive brand products at competitive prices.
“The Australian whitegoods and built-in kitchen appliance market lacks competitive tension, which has resulted in a limited number of players enjoying inflated margins,” Ruslan Kogan, the founder and CEO of Kogan.com said.
“One major factor contributing to this lack of competition is the additional complexity and logistical requirements arising from distributing bulky products.”
Kogan is confident that distribution won’t be an issue for his e-commerce business, as he believes the businesses rapid growth over the past 12 years has put the company in a position to work around any constraints.
“Our logistics and distribution footprint enables us to enter this market and provide Australians with unprecedented value on a range of the most popular whitegoods and built-in kitchen appliances.”
The company is planning on introducing a selection of fridges, washing machines, dryers, dishwashers, ovens, cooktops and rangehoods to its product range.
“It will be a great win for Australian consumers who don’t want to pay too much for essential household appliances,” Kogan said.
Kogan.com is planning on launching this new product range by the end of 2018 and says it will disclose more information closer to the range’s release date.
This news comes just days after news broke of a pending legal dispute between Kogan.com and Catch Group, as Kogan.com has been accused of violating Catch Group’s intellectual property.
The e-tailer has allegedly directed traffic to its site by implying a link between the products and services offered by both Kogan and Catch, by using sponsored links containing the trademarked word ‘catch’ on Google AdWords.
According to Catch, Kogan has violated consumer law by misrepresenting its mobile, insurance and loans services.
“The Google sponsored links representations are false because none of the Kogan Catch mobile products or services or catchmobile.com.au is provided by, or with the licence or authority of, Catch Group, affiliated with Catch Group, or sponsored or approved by Catch Group,” Catch officials said in a statement.
Catch is currently in the process of taking action against Kogan.com.