There is something endearingly cheeky about Ruslan Kogan, the founder of online retail upstart Kogan Technologies.
In June, we shared Kogan Technology’s very funny satirical advertisement for Minister Conroy’s ‘spams and scams’ internet filter. This was not the first time we caught a glimpse of the young entrepreneur’s sense of humour. In March 2009, his company introduced Australian consumers to the chuckle-prompting KEVIN 37 Plasma Television set for $900.
This week, following a not-too-carefully constructed remark from business icon Gerry Harvey, who reportedly described Kogan as “a con” to The Age, the following commercial was aired during the highly anticipated (and highly watched) Ben Cousins’ documentary on Network Seven.
Kogan’s anti-advertising advertisement
Funny? Hypocritical? Pure viral marketing gold? That’s for you to decide. What’s more interesting about this public spat is the underlying question it raises. What drives consumers — expensive television advertisements to establish trust and, therefore, create the ability to sell products at a premium price or the opportunity to purchase online at discount rate?









Big Aussie Reply:
August 28th, 2010 at 2:48 am
By the time Gerry and all his pre-baby boomer mates finally “get” the Net… it will all be over. You can still count on 1 hand the number of Australian bricks and mortar retailers with real, working , shopping carts online. It can obviously be done; check out the range online at Walmart. Distributor/Resellers like Kogan are just cutting out the multitude of middlemen between China and Australia, and we get to reap the benefits.
The number of manufacturers in China (and Japan) who share technology is staggering to the average public. There are a very limited number of manufacturers of most technology products. These are then “marketed” under different brand/label packaging. The same thing happens in many different industries, not just the tech industry. Cosmetics is another awesome example.
Usually the higher price (of superior brands) is a reflection of the marketing (and also some R&D) dollars spent on a product, to get it to the public. I have been associated with many different industries where more than 3 “marketing” companies shared a manufacturing plant and the stamps on a product were changed before dispatch; and that was all.
I don’t see a $50 delivery fee from Kogan being that different from the delivery fee charged by the Big Retailers if you want your purchase delivered.
Disclaimer:
I have never purchased from Kogan or Hardly Normal; and am not employed by either. I wonder if Alex can say the same :p
[Reply]
William Busta Reply:
July 5th, 2011 at 6:16 am
‘Usually the higher price (of superior brands) is a reflection of the marketing (and also some R&D)’ . . . R&D? How much does Kogan reinvest back into R&D?
Kogan = empty pursuit of profit.
[Reply]