Kogan Share Price Skyrockets 6.69% after Announcing New Retail Market
The Kogan.com Ltd [ASX:KGN] share price has seen a healthy boost by over 6%, on the back of an exciting new announcement this morning. The e-commerce giant has signed supply and logistics agreements, which will give it the green light to start selling whitegoods and built-in kitchen appliances.
Kogan.com is one of Australia’s leading online retailers, and shares are currently trading for $9.68 apiece.
Why is the market in a frenzy?
Founder and CEO Ruslan Kogan identified a lack of competition in the market, and has jumped in to dominate. Given his company’s sky-high growth in existing markets, investors will be excited to see how taking on a new market will fare for the savvy retailer. Particularly one that seems to promise inflated margins in an uncompetitive environment.
Ruslan Kogan’s words shone with optimism:
‘Due to the rapid growth of the Kogan.com business over the last 12 years, we are now in a position where our logistics and distribution footprint enables us to enter this market and provide Australians with unprecedented value on a range of the most popular Whitegoods and Built-In Kitchen Appliances like Fridges, Washing Machines, Dryers, Dishwashers, Ovens, Cooktops and Rangehoods.’
‘It will be a great win for Australian consumers who don’t want to pay too much for essential household appliances. We are excited to be applying our business model to this industry and making the most in-demand products more affordable for all Australians.’
Is Kogan a goer?
The whitegoods market can be fraught with complexity and logistical headaches, a factor Mr Kogan has attributed to the lack of competition.
But if Kogan can continue to offer great value and user-friendly online shopping experiences, and smash an untapped market, then the share price could begin to deliver some stunning returns.
Specific details regarding what exactly Kogan will begin to stock are expected to be kept under wraps until the end of the calendar year.
For Money Morning
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