Kogan Shares Jump 12 Percent – Amazon No Worry, Says Ruslan
SYDNEY – Shares in online goods flogger Kogan.com jumped 12.6 percent on Friday, after Kogan reported that its revenue had increased 36.2 per cent in October, compared with the same period last year, when Kogan was still establishing itself.
The price jump occurred despite the company facing a huge growth in online competition in coming weeks from Amazon’s newly-established Australian subsidiary.
Kogan shares finished the day at $4.29, up 12.6 percent, but still below the October high of just a shade under $5.
Despite the advent of Amazon, chief executive and would-be space traveller Ruslan Kogan claimed that online retail is under-represented in the Australian market and he expects consumers to alter the way they buy goods, creating a growth opportunity for the company.
And what about Amazon? “While Amazon is already a major force in Australia (it’s a top 25 site), the launch of a local presence will undoubtedly bring more shoppers online,” quoth Kogan.