Kogan avoids channel and expands

Kogan's Australian head office will manage the Kentucky-based warehouse and products manufactured in China will be shipped directly to the US.

Ruslan Kogan founder and CEO said the company is in the final stages of opening the US branch after three years of growth in Australia.

He said the US market is 20 times bigger than the Australian market and shoppers purchase online there, which directly fits with Kogan's direct online sales model.

"Our buying power will increase and products will become cheaper for everyone especially our Australian customers who will then benefit."

Furthermore, Kogan announced European expansion plans. The company will open a UK warehouse sometime this year in Birmingham.

Kogan said his online and direct sales model benefits his customers and the company will continue this strategy globally. He said the company does its own distribution which makes it more efficient.

"We manufacture, we warehouse here and we ship products. It's as direct, as direct gets," said Kogan.

"We believe conventional retailers are an old technology, it's inefficient, when you're on our website we know what pages you're looking at, we know what you want."

He said Kogan supports Australian businesses by having an Australian warehouse, local staff and local deliver services.

Meanwhile today, the company released a range of new products which included a Wi-Fi internet radio which can tune into any online radio station in the world and an 8" Wi-Fi photo frame.

More product details to come.