Kogan.com Limited [ASX: KGN] is a portfolio of retail and services businesses that covers a wide range of everyday needs for customers.
Founded in 2006, the Australian consumer brand focuses on making in demand products and services.
Today, their share price increased by 5.07%.
What caused the Kogan share price rise?
It’s simple. Kogan won’t stop expanding.
Today, Kogan announced four new smart TVs that they’ve added to their line-up. The key thing here is that they’re affordable.
The Kogan 32’’, 43”, 49” and 55” Smart HDR 4K LED TVs feature panels from LG and are priced at $299, $439, $499 and $559 respectively.
Incredibly cheap for a smart TV.
Kogan also announced that they will take on the world of broadband. They will be offering three pay-as-you-go NBN products.
Executive Director David Shafer is confident on using their existing customer base as method to gain traction and beat its competitors.
‘Where you’ve got retailers buying a product from a government utility for the same price, the retailer who can market the most efficiently should win in the long term.’
What next for Kogan?
Kogan’s business model has revolved around selling cut-price consumer products via its website.
However, Kogan has recently been using their ever-growing customer base to introduce them to new range products and services.
This leverage has been massive.
Kogan mobile is a great example of this.
Kogan mobile contributed to 12% of Kogan’s gross profit in the first half of 2018.
Mr Shafer stated:
‘We think there’s no reason that within five years Kogan cannot be one of the biggest telcos in Australia.’
Kogan has been a great performer on the ASX ever since it was listed in mid-2016, and if it continues to expand, there’s no reason why that performance won’t continue.
Editor, Money Morning
PS: Kogan has been a consistent performer on the ASX since listed, however, our Money Morning Editor, Sam Volkering, argues that the biggest potential gains can be found in the sector with the biggest potential risk — small-cap stocks. If you’re interested in learning more, check out his free report ‘Top Three Aussie Small-cap Stocks to Own in 2018’, downloadable here.