In a move that significantly undercuts Australia’s major retailers, Kogan is now selling products from big brands like Apple. Canon and Samsung at drastically reduced prices, the Herald Sun reported today.
The online retailer says it is sourcing these products higher up the supply chain, eliminating added costs that normally add to the retail price tag.
The Herald Sun notes that in the past Kogan’s method of operation was to source components of consumer electronic goods overseas, assemble them under the Kogan brand and sell them to consumers online.
Kogan Technologies’ Ruslan Kogan told news.com.au that he expects the company’s new business model will ruffle feathers among retailers.
“We can expect the big retailers – and their lobby groups – to run crying to the Government for assistance,” Kogan said. “We think today’s announcement will shock and scare the big retailers because we’re now attacking the core of their business – big-ticket cameras and the most popular tablets.”
Given the reputation and increasing popularity of the iPad, this announcement seems likely to impact where – and how much – consumers pay for the product.