In three years, with no start-up capital, Ruslan Kogan has reinvented the supply chain for consumer electronic goods, in the process building a thriving business. Kogan is now a well-known Australian brand, featured in every major media outlet and sparking close to 3 million internet articles. In 2008, Ruslan was named as one of Melbourne's 100 Most Influential People and SmartCompany's Top 30 Entrepenuers Under 30. This year, Kogan Technologies is Australia's #2 Online Retailer.
In 2005, shocked at the cost of buying an LCD TV, Ruslan began researching a cheaper way to access the same product. He believed the answer was to assemble the highest quality components from other manufacturers and sell direct to the consumer through minimalistic online retailing. With a 1300 number diverted to his mobile phone to give the perception of a large organisation, Ruslan persuaded Chinese suppliers to come on board by helping to translate their user manuals.
Funding the venture by pre-selling the contents of his first container, Ruslan started undercutting the major brands by up to 50%. He continues to strip costs out of the business, running a paperless office and outsourcing accounting.
Following coverage on 'Today Tonight' and 'A Current Affair', and fuelled by viral marketing, the Kogan brand gained strong recognition. Ruslan challenged the idea that you have to pay high prices for good brands, using online sales, initially through eBay, and then through Kogan's own website.
He continues to harness the power of the internet and public relations. For example, his 2009 "Kevin 37" (37" LCD priced at $900) promotion in response to the Federal government's stimulus package, gained mainstream media exposure.**
Ruslan's short-term plans include replicating his business model in different product markets and launching in the US and the UK by the end of the year.
