Retail News CRM

Tag: Kogan

  • Kogan Group Gross Sales Pass $1 Billion as Core E-Commerce Offsets Mighty Ape Loss

    Kogan Group Gross Sales Pass $1 Billion as Core E-Commerce Offsets Mighty Ape Loss

    Kogan Group lifted annual gross sales past $1 billion in the year ended June 30, driven by double-digit expansion across its core Australian e-commerce platform.

    Group revenue rose 5 per cent to $510 million, while statutory net profit after tax reached $11.2 million. The result masked a sharp divergence between the company’s flagship Australian portal and its struggling New Zealand subsidiary.

    The main Kogan.com business expanded gross sales and revenue by 16 per cent during the period, delivering $16.3 million in net profit. Management credited internal automation and AI-driven processes with lowering operational expenses, freeing cash to reinvest in customer marketing while defending profit margins.

    Restructuring the New Zealand Arm

    Mighty Ape remained a drag on bottom-line earnings, posting a $5.1 million net loss. Gross sales at the Auckland-headquartered online retailer fell 14 per cent, while annual revenue dropped 30 per cent as the group dismantled unprofitable operations.

    To stem the losses, management halved inventory from $21 million to $10 million and shuttered its Christchurch fulfillment center. Those reductions lowered quarterly fixed operating costs from $4.9 million to $3.4 million, pushing Mighty Ape into positive adjusted EBITDA in the fourth quarter.

    Higher-margin digital services cushioned the hardware contraction. Paid subscriptions via Primate, marketplace commissions, and the Mighty Mobile telecommunications service all expanded their share of the subsidiary’s total top line.

    Marketplace Shift Across Australasia

    The split performance mirrors a broader transformation across Australasian e-commerce, where pure-play retailers have moved away from holding heavy direct inventory to rely on third-party marketplace commissions and automated logistics. RetailNews Asia has tracked similar inventory purges at competing digital platforms seeking to protect gross margins against stubborn freight and handling costs.

    Group management confirmed it will maintain strict capital discipline across both divisions entering fiscal 2027, with full-year performance hinging on whether Mighty Ape can convert its fourth-quarter operating stability into sustained annual profit.

  • Kogan gets into energy retail market

    Kogan gets into energy retail market

    Online marketplace Kogan.com has announced it is entering into the energy retail market before the end of this year.

    The move is part of the retailer’s multi-year agreement with Powershop Australia, a part of the Meridian Energy group, to offer competitive power and gas services to Australian households under the brand Kogan Energy.

    David Shafer, Kogan executive director, said the partnership with Powershop will help reduce the cost of power and gas for many Australians and offer customers a seamless digital experience.

    “This partnership will enable Kogan.com to offer Aussies low cost power and gas, and a first-class customer experience using technology that will enable customers to easily track their energy usage at any time,” Shafer said.

    “Meridian Energy Group provides world class generation from some of Australia’s leading wind farms and hydro power stations, and Powershop Australia was ranked Australia’s Greenest Power Company from 2014-2018 by Greenpeace.”

    Kogan has already branched out from its core retail operations into mobile communications, home internet, insurance, super and travel.

  • Kogan looks to cash in on marketplaces

    Kogan looks to cash in on marketplaces

    Online retailer Kogan.com announced the launch of Kogan Marketplace on Thursday, calling it a “win-win” for customers and businesses.

    The marketplace currently offers more than 100,000 products from brands such as Microsoft, Breville, Lego, Fisher-Price, Paw Patrol, SodaStream, Gillette, Gucci and Philips.

    That number is set to grow after today, when brands can apply to sell via the marketplace. According to Kogan.com’s most recent annual report, select brands and distributors were already selling on the marketplace in the 12 months to 30 June 2018.

    “With today’s launch, there are now over 100,000 products available to purchase on Kogan.com — meaning customers have more choice than ever before,” Lazar Monin, Kogan.com’s director of marketplace, said in a statement. “Our mission is to make the most in-demand products and services more affordable for all Australians.”

    The marketplace gives brands and retailers access to more than 1.5 million active customers on Kogan.com, as well as the retailer’s marketing and online distribution capabilities.

    “We’re obsessed with creating a great experience at Kogan.com for our customers and sellers alike,” Monin said.

    The marketplace also gives Kogan.com an opportunity to expand its range, reach new customers and increase sales, without having to buy and hold inventory or lose margin to the new low-value GST, which has dampened its global brands business over the last eight months.

    The potential for growth through an online marketplace is perhaps best demonstrated by Kogan.com’s rival Catch, which has seen significant success since launching a marketplace in 2017. The former ‘deal-of-the-day’ site now carries nearly two million SKUs and has roughly the same number of active customers as Kogan.com.

    According to a UBS forecast reported by the Australian Financial Review in October 2018, Kogan.com currently has a bigger share of the online retail market excluding food in Australia, but Catch, thanks to its marketplace, was expected to leapfrog Kogan.com to grab a bigger share of the market after FY19.

    Meanwhile, Catch has been diversifying its offering into telecommunications and financial services, a strategy that Kogan.com has been executing in a bid to meet more of its customers’ needs. Catch last year launched mobile phone plans with Optus called Catch Connect, and recently partnered with Now Finance to offer small personal loans to customers.

    Kogan.com has been launching similar services for the past few years and now has a portfolio of insurance offerings, credit cards, internet plans and even superannuation.

    The online retailer recently reported record trading during the peak Christmas period, driving first-half revenue to $231.8 million, up 10.6 per cent on the previous corresponding period. Gross profit in the half was $45.1 million, up 10.8 per cent on first-half trading in FY18.

    Lees ook: