Company Report
Last edited one year ago
PerformanceCommunity EngagementCommunity Endorsement
Performance (18m)
-22.1% pa
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#Business Model/Strategy
Added one year ago

Lots of good coverage on the numbers already.

I don't hold KGN on Strawman but have in my real world portfolio for a while. I've decided to sell out after these numbers after there is a bit of a bottom feeding bump.

Why? Retail is a tough hunting ground, and Kogan has had lots of promise and growth so far. As it matures the experience of the customer becomes far more important to keep people coming back. As a customer, I have to compare it to the Gorilla in the room, Amazon. 

Kogan has always had a reputation as a bit cheap and nasty, but I always put up with it because it's too cheap to ignore. Customer service has always been a bit hit and miss, and to be frank, the few times I've had to call or email them, I've given up.

Contrast to Amazon AU, who I've joined as a Prime subscriber recently after buying on and off from Amazon US since the early 2000's, and the customer service experience has been orders of magnitude better than the local competitor. Had a parcel go missing after arrival in Australia from the USA and being lost by the courier, and after a quick phone call, it was refunded no questions asked. Contrast that to the well documented experience of Kogan being hit and miss, and I am pretty set on where my consumer dollars are going.

The Gorilla has far deeper pockets than Kogan does, and more than likely will be the dominant player. Even if there is upside in the share price, my capital is better deployed elsewhere.