It is reported that the electronics retailer Dick Smith, which recently declared bankruptcy and closed all its stores, has recently been bought by Australian e-commerce pioneer Ruslan Kogan for an undisclosed price.
Ruslan Kogan acquired brands and trademarks including Dick Smith, online businesses in Australia and New Zealand, customer databases, websites and domain names. And Ruslan Kogan is just trying to revive the brand's online business.
Although Dick Smith's online business accounts for only 8 percent of its sales, Dick Smith's customer databases and intellectual property rights are popular and have led to intense bidding.
Ruslan Kogan is considering that Dicksmith will be revived in the hands of Kogan because of concerns about the reaction of physical retailers, who have refused to supply Kogan, perhaps for Dicksmith.
The founder of Ruslan Kogan, the richest man on the BRW list, has been selling televisions online in his parents' garage since 2006, and later selling cheap electronics. Now the website has expanded to the sale of daily necessities.
Kogan expects to take over Dicksmith's online business in June.
Editor's words:
The collapse of Dick Smith is really complicated, and it is hard to tell who will benefit from it. But what we have to say is that this Kogan is still very discerning. We can all see Dick Smith's current mess, and it's really hard for anyone to take over. It is an indisputable fact that the traditional home appliance market has become smaller and smaller. Who wants to enter a shrinking market, aside from the rest? But the network value of Dick Smith has not shrunk much as a result. From the beginning to the gradual approval of the search engine (let's just say GOOGLE), a website that requires a process of. Dick Smith's website has been approved by GOOGLE for a few years, when you are searching for home appliances. It is no doubt much more likely to appear in search engines than many smaller sites. No matter how bad Dick Smith's reputation is now, the value remains the same (in search engine jargon called weight). Kogan does online sales. It is feasible to transfer traffic from Dick Smith to Kogan's website or re-run Dick Smith. So Kogan is worthy of doing e-commerce to start, the network or very well known. Everyone saw the worthless side of Dick Smith, but he saw the valuable side of Dick Smith.