Melbourne-based online electronics retailer Kogan has been deemed the most mobile ready Australian brand.
Kogan, an Australian online store launched by entrepreneur Ruslan Kogan in 2006 from his parents’ garage in suburban Melbourne recently beat a number of leading Australian brands to take out the country’s ‘most mobile-ready’ title.
The company has gone from being the first in Australia to sell private label TVs online, to a retail juggernaut that sells tens of thousands of products—from mobile phones and laptops to clothing and beauty products.
The most mobile ready title was based on analysis by mobile marketing and technology agency, Ansible.
Ansible’s MDEX report of the world’s most mobile ready brands, released in February, is the first study in the world to benchmark a brand’s mobile performance, based on five key measures across mobile presence and performance.
Not just mobile ready
Kogan’s chief technology officer, Goran Stefkovski, said the company is continually innovating to ensure the user’s experience is an enjoyable one, regardless of whether they are shopping from home or on the run.
“We understand that our customers interact with the brand across multiple devices and platforms,” he said.
“The Kogan mobile website was designed with this in mind—we built the responsive web experience with our customer’s needs front-of-mind to ensure that all customers are able to access everything they’re after, regardless of their device.”
Mr Stefkovski points out, for example, that the menus and links on the mobile site are spaced out so it is touch friendly and easy to reach with one hand. He said this helps prevent the frustration of accidentally tapping the wrong link or button, which is a common issue with mobile design.
“Customers shop differently on their phones than on the desktop. They’re more time-constrained, so the ordering and presentation of relevant information is paramount,” he said.
Innovating through custom-built technology
Rather than relying on off-the-shelf technology solutions, Kogan has developed its e-commerce experience and platforms internally from the ground up.
“Because we’ve built this all ourselves, and we aren’t reliant on third-party integrations, we’re able to stay ahead of the game in terms of creating a great shopping experience on all devices,” Mr Stefkovski said.
He added that Kogan makes daily upgrades to its website to ensure customers are continually getting the best experience.
From strength to strength
Since its launch in 2006, Kogan’s revenue has been growing at a rate of between 200 and 300 per cent per year.
While consumer electronics remains its core business, since 2014, it has invested heavily in expanding its product range through private label brands.
Product categories at Kogan now include men’s grooming and women’s beauty products, pet supplies, homewares and outdoor and camping items.
Private labels are now the fastest-growing area of the business and in 2016, it’s best selling items included its own brand of of air conditioners, LED TVs, bed sheets and kitchen knives.
In July last year, Kogan listed on the Australian Stock Exchange. The move came just four months after it bought the online retail business of iconic Australian electronics retailer, Dick Smith, for an undisclosed sum.
Funds from the float has allowed Kogan to extend its range of private label products even further. This expansion, coupled with a 33.7 per cent increase in active consumers to 830,000, contributed to the company reporting a net profit of $A3.7 million in the first half of the 2016/17 financial year. This excluded costs related to the company’s share market listing.
Kogan is now based in South Melbourne, just a short walk from the city centre, and Mr Stefkovski said employees have moved from all around the world to work for the game-changing online retailer.
“What we’ve found is that once they’ve seen the exciting and challenging work we do at Kogan—and try a Melbourne coffee from one of the many local cafes—the decision to work with us in Melbourne is an easy one to make,” he said.