Retailer morphs from online to pop-up.
In a rare comment from a businessman, Ruslan Kogan has said he was “wrong” to say that Kogan.com would always remain online only. This comes as Kogan, also owner of the eponymous brand, opened his first pop up store in Chapel St in Prahran, Victoria.
“Since we launched, Kogan has grown from working out of a suburban garage to employing hundreds of people and stocking tens of thousands of different products across three continents. We quickly became the leading online retailer in the country,” Kogan said.
“During that time, I have made some statements about different business models in the retail industry. With some of those comments I was right, with others I was wrong.”
“One where I was wrong was talking about physical stores. While I’ve often spoken about how the physical retail business model has some advantages and is a sustainable business model if done correctly, I’ve also said that Kogan.com will always remain online only. I should not have used a blanket statement.”
However, Kogan has said both his store and its management are different from his competitors.
“We’re opening a Pop Up store because we have huge amounts of data about the shopping behaviour of our customers that we can use to enhance their experience — whether they are shopping online or in a store,” he said.
“We know where our customers are, what their interests are, what they like, what they don’t like, what products are trending in their area, and more. We also know the conversion rate of every product by location so we can ensure we’re only stocking the products most relevant to customers in that hyperlocation. We know how to use data and insights to create the most efficient retail model — whether it’s online or offline.”
Finally, Kogan says that he has spent quite a few hours on the shop floor interacting with our customers.
“Customers drive our business and it’s important that our senior management never lose touch with how our fans feel and what they want from Kogan.com. We will continue to be driven by what smart shoppers want from us,” he added.