MENU

Why Kogan.com Ltd (ASX:KGN) shares are pushing higher again

In morning trade the Kogan.com Ltd (ASX: KGN) share price has pushed higher after announcing its expansion into another area of the retail market.

At the time of writing the e-commerce company’s shares are up 3% to $9.39.

What has Kogan announced?

According to an announcement released this morning, Kogan has signed supply and logistics agreements which will allow it to enter the Australian whitegoods and built-in kitchen appliance market with its own range of products.

Founder and CEO, Ruslan Kogan, decided to make the move into this market due to a distinct lack of competition. This has led to a limited number of players enjoying inflated margins on their products.

Mr Kogan believes this is partly down to the additional complexity and logistical requirements arising from distributing bulky products.

But this is all about to change. He stated that: “Due to the rapid growth of the Kogan.com business over the last 12 years, we are now in a position where our logistics and distribution footprint enables us to enter this market and provide Australians with unprecedented value on a range of the most popular Whitegoods and Built-In Kitchen Appliances like Fridges, Washing Machines, Dryers, Dishwashers, Ovens, Cooktops and Rangehoods.”

Before adding that: “It will be a great win for Australian consumers who don’t want to pay too much for essential household appliances. We are excited to be applying our business model to this industry and making the most in-demand products more affordable for all Australians.”

Details of the exact nature of Kogan’s offering will be unveiled closer to the release date, which is expected to be prior to end of calendar year 2018.

What now?

While this could be good news for Kogan shareholders and Australian consumers, it is likely to be yet another negative for the likes of Harvey Norman Holdings Limited (ASX: HVN) and JB Hi-Fi Limited (ASX: JBH).

The potential loss of margin on these products could be yet another squeeze on their overall margins.

In light of this, I think this is another reason to be bullish on Kogan and bearish on Harvey Norman and JB Hi-Fi.

Finally, if you like disruptive shares like Kogan then I think you'll love these disruptors that are growing at a very strong rate.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!