Dick Smith Web Site Flogging Products From Questionable Sources
As Kogan brags about their recent Dick Smith brand name acquisition, it appears that the online retailer is not living up to the former Companies reputation by flogging grey imported branded products that have no local manufacturer’s warranty.
A visit to the new Kogan owned Dick Smith web site reveals that several Nikon products are listed but according to Nikon Australia executives the Nikon products ranged on the Dick Smith site are not being supplied by Nikon Australia which is a real risk for consumers they claim.
“Dick Smith customers have come to expect that the products they buy are genuine and not sourced from third party overseas suppliers. The Nikon products being sold by on the Dick Smith site have not come from Nikon Australia” the executive said.
“When a customer acquired a Nikon product from the former owners of the Dick Smith site the product was supplied by Nikon Australia, this is not the case now”
Kogan who has a reputation for selling cheap made in China products is marketing the new web site as “Back and Better Than Ever”.
“There is nothing better about the new Dick Smith web site. It’s another version of the Kogan site with branded products sourced from overseas said a senior executive from Harvey Norman.
Also being questioned is the actual size of the new Dick Smith customer database with one insider telling ChannelNews that a “great many” of the listed Dick Smith customers were also listed on the Kogan database.
The Dick Smith databased which was estimated to be up to 1 Million is believed contain over 300,000 duplicates.
It is believed that 90 per cent of Dick Smith’s million registered customers have now had their details shifted to the Kogan database.
Currently Kogan is investigating a possible $300 million initial public offer and listing on the ASX in the next 12 months, however he refuses to disclose his current or past financials.
Analysts claim that with the pending arrival of Amazon, Kogan’s online operations could get “smashed” by the US online operator.
Kogan who acquired the Dick Smith online business, trademarks and intellectual property has commented for this story.
Kogan is seeking fresh investment funds to bolster a business that is coming under pressure from more aggressive online marketing from the likes of JB HI Fi who does sell Nikon cameras supplied by Nikon as well as the likes of Harvey Norman and The Good Guys.
In the photographic market Kogan is also facing stiff competition from DigiDirect.
Since its founding in 2006, the online retailer has spruiked their business with wild claim PR stunts. Founder Ruslan Kogan predicted that Apple was set to “shaft retailers” by pulling out of the selling their products via Harvey Norman and JB Hi Fi. It never happened.
Industry research group IBISWorld has estimated Kogan’s sales at $500m but other estimates put sales closer to sub $150M and possibly falling prior to the Dick Smith acquisition.