Get to know about Does Amazon Own Kogan?
Amazon is a tech giant of American origin which has a business of E-commerce, digital media streaming, cloud computing service, and smart automation products based on artificial intelligence.
Jeff Bezos is the founder of Amazon who started the company back on 5th July 1994 in his garage in Bellevue, Washington, the United States as an online book-selling platform. Today it is renowned to be one of the most influential and successful companies in the tech sector.
Its headquarters is located in Seattle, Washington, United States.
Does Amazon own Kogan?
The answer is No.
Kogan is not owned by Amazon. It’s an easy misconception because Kogan sells its products on Amazon so at first thought, almost everyone thinks that it is owned by Amazon. But it’s not (At least not yet).
Kogan is owned by Ruslan Kogan who is the founder and CEO of the company.
Witnessing the rapid growth of Kogan, Ruslan Kogan is also nick-named the Jeff Bezos of Australia.
What is Kogan?
Kogan is an Australian Company founded back in 2006 having its headquarters in Melbourne, Victoria, Australia.
Ruslan Kogan, the founder, and CEO of the company has had an entrepreneurial knack in him since an early age. When he was 10 years old, he started his first business in which he did the work of finding lost golf balls, cleaning & repacking them in egg cartons, and selling them on weekends to golfers.
It is one of the largest retailers in Australia that is famous for offering attractive deals and offers to its customers.
In the beginning, Kogan had physical stores. Then in 2010, it acquired Dick Smith and entered the online retail market with the help of Dick Smith’s online business holdings & technical expertise and finally gave rise to kogan.com.
Today, Kogan doesn’t have any physical retail store and is now an online platform that provides a space for small and large vendors to sell their products thereby ensuring the best deals and smooth shopping experience for its customers.
At present, they sell gadgets like LCD & LED televisions, laptops, tablets, Blu-ray players, home theatre systems, home appliances, and many more.
Reasons why Amazon can own Kogan in the future?
Despite being surrounded by tons of criticisms, legal actions, and other disputes, one cannot ignore the impact of Amazon on the global e-commerce market, customer’s buying experience.
With the aim of enlarging the scale of its business, improving its functioning, and entering into new domains of business, Amazon is using its best bet of acquiring leading startups, businesses, and companies who are in their A-game in their sectors.
This way, Amazon is making its way in different sectors with a great kickstart.
Online retail business is also one of the sectors in which Amazon is using the same strategy to grow bigger in business. Hence there is a strong chance that a rapidly growing company like Kogan may be in Amazon’s acquiring targets.
Following are the reasons which make Kogan worth owning in the future:
Rapid Growth in Revenue generation:
Ø Kogan has become successful in increasing its revenue by around 14% per year and has helped it in growing its earnings per share to 65% per year.
Ø The pandemic outbreak has worked as an accelerator in achieving the above statistics.
Diversified Portfolio:
Ø Kogan has a diversified portfolio in online retail business in Australia and New Zealand that includes Kogan.com, Kogan Mobile, Kogan Internet, Kogan Insurance, Kogan Energy, Kogan Travel, Kogan Money, Kogan Cars, Dick Smith, Matt Blatt, Mighty Ape and many more.
Ø So, acquiring it can open dozens of doors for Amazon in the sector they want to jump next into as it will give them a kickstart with the help of Kogan’s loyal customer base.
Commendable Customer Base:
Ø At present, Kogan claims to have 2 million+ active customers who purchase products from them.
Ø Australian customers generally prefer Kogan to Amazon for purchasing products online.
Ø It is committed to ensuring the best offers by partnering with different industry leaders to reduce their margins and make the products more affordable for the customers and this ultimately strengthens customers’ loyalty toward Kogan.
Rising Business Empire of Kogan:
In 2020, it has owned Matt Blatt, a furniture retail company. Including this, at present Kogan owns more than 15 businesses covering different markets from retail to pet insurance.
So, it won’t be wrong to say that the company which will own Kogan will be on cloud nine in terms of business growth and Amazon can be the one who can snatch it away.
Conclusion:
In a nutshell, we can say that owning Kogan in the future can be super beneficial for Amazon.
Now whether Kogan will sustain itself as an independent company or get acquired by companies like Amazon is something that can only be known with time.
