KOGAN SHAKES AUSSIE WHITEWARE TREE

By Wares June 06, 2018 Major appliances

The Aussie pureplayer will need to watch out for falling objects as he shakes Australia’s whiteware tree.

In the last few days Kogan.com has yet again been shaking the tree.

Last week we heard that Vodafone NZ and Kogan Mobile would be partnering up to "deliver more choice ... in the New Zealand market".

On Monday it was announced that Kogan was getting into whiteware and built-in kitchen appliances.

The pureplayer has put in place both supply and importantly, logistics agreements (whiteware requiring much more logistical support than smalls) to supply a range of exclusive own brand products into Australia by the end of this calendar year.

Of this new move, Ruslan Kogan's pitch is that the Australian whiteware market "lacks competitive tension which has resulted in a limited number of players enjoying inflated margins."

We're trying to find out where Kogan's new own brand value-orientated whiteware will be coming from and will report on our findings soon enough.

Naysayers, of which there have been many (for example John Winning), object that it isn't just a case of getting fridges, cookers etc into purchasers' homes (in itself no mean feat given Australia's geography) and that there will need to be provision for the timely repair and/or replacement of Kogan's lower end offerings.

Will Australian consumers snap at Kogan's bait?

A big factor is that Australia's housing market is gradually "cooling", having just posted its first price drops in half a decade.

Plus, new residential building is currently flat or slightly worse (see the ABS's April 2018 figures here).

The upside is that online continues to grow as a percentage of Australian retail turnover.

Plus, whiteware can be a viable online category, as proven at the upper end of the market by the likes of Winnings' local pureplay example.

We'll bring you more as Kogan's whiteware offering develops. 

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