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Kogan Wins Big With ‘Retail Revolution’ of 2020
Kogan is continuing to smash records as its full-year results were announced this morning, with huge growth reported as a result of the pandemic-related e-commerce boom.
Its gross sales have grown 39.3 percent on the prior year, sitting at $768.9 million. It has seen a revenue increase of 13.5 percent, with FY20 results of $497.9 million.
“The second half of FY 20 was an extremely turbulent and challenging period for the world, the country, and the company,” Ruslan Kogan, CEO and Founder of Kogan.
“We have built a diversified,m resilient business over many years, which enabled us to help Australians in their time of need. In the midst of a crisis, our teams mobilised all our resources to ensure our supply chain remained open, our logistics operations continued functioning, and in-demand products remained available for speedy delivery,” he said.
Kogan’s active customer base has increased by 35.7 percent YoY, with more than 2,183,000 customers in its database. This growth is partly due to the e-commerce boom amid the pandemic. In the second half of FY20, Adjusted EBITDA, Gross Profit and Gross Sales grew 74.1 percent, 68.3 percent and 82.5 percent, respectively.
“There is a retail revolution taking place as more and more shoppers learn about the benefits of e-commerce,” Kogan said. “We’re seeing record numbers of first-time customers, who then go on to make repeat purchases at a 40 percent faster pace than previously.”
“For us, this is a very exciting trend that shows that once customers learn about shopping online, they change their ongoing behaviour. Once someone discovers the benefits of online shopping, I struggle to see why they would ever go back to the old way of doing things,” Kogan explained.
While its NPS score shifted slightly during the second half of FY20, its average score sits at 58.5, which is considered ‘excellent’ among industry standards.
One of the biggest winners for Kogan in FY20 was its marketplace. Kogan Marketplace’s Gross Sales in the second half of FY20 grew by 71.2 percent from the first half of the year.
“Kogan Marketplace was a standout performer during the year, exceeding all our expectations and providing our customers with more choice than ever,” Kogan said. “Importantly, the emergence of Kogan Marketplace has made Kogan.com even more scalable by enabling us to grow infinitely without a corresponding investment in inventory. This will enable us to delight more customers in more ways.”
One of the biggest acquisitions made by Kogan in the YF was the purchase of the furniture retailer, Matt Blatt.
The online boom will continue to bolster further growth for the online retailer, with the launch of its Kogan First community. This loyalty program has grown ‘exceptionally’ in the second half of the FY, with the customers purchasing at a higher rate than non-loyalty members.
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