Apple and Canon comment on Kogan's latest move, plus industry feedback

Published on Thu, 15/09/2011, 09:40:59

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By Patrick Avenell

The source of the name brand stock currently being sold on the Kogan online website is uncertain, with none of the brands, or Kogan itself, providing details of their relationship.

Current.com.au contacted all the brands currently being advertised on the website yesterday, and Kogan’s representatives, to ask where the products were being sourced from.

A Kogan spokesperson gave the following response:

“To secure the prices we are able to sell these products for, we have cut out more middle men and gone higher up the supply chain. Beyond this, we don't discuss specific details of our supply chain. This is confidential information.”

On the supplier side, we received this answer from a Canon Australia spokesperson:

“Canon Australia has no direct relationship with Mr Kogan or any of his affiliated companies.”

And an Apple Australia spokesperson provided the following advice, which we were already on top of:

"You will need to speak directly with Kogan in relation to their business."

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Speculation about the source of this product was in industry overdrive yesterday afternoon. One insider told Current.com.au that he was upset with the “neutral responses” from suppliers, as this was not a good sign for their traditional retail partners.

Another insider, currently in a senior position at a well-known brand, gave the following insight:

“Apple and Canon sell online, and I expect this will happen more and more with major suppliers, so I can’t see the industry’s surprise at this move.  The key for this industry now is to reduce its overhead costs so it can compete in a global marketplace. At the end of the day, the consumers will decide what they will purchase, and from whom. Local suppliers and retailers are simply becoming ‘one’ of the options for the delivery of the products.”




suppliers will be their own worst enemies with devaluation of their products, there was the complaint of too many retailers carving up the products, but now they seem to be bulk selling to any online group,even to the detriment of their own distribution centres further down the line, this will make that look insignificant, shortly online groups like kogan will start to feel the same squeeze that bricks and motar have felt. Good luck to the industry
Posted by steve pica. 15/09/2011 12:56:51 PM
It would appear that the warranties are being underwritten by Kogan Hong Kong so we assume he is going the grey import route; good luck to him on that one!
Posted by Julian. 15/09/2011 02:00:08 PM
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