Kogan expansion plans in full flight with travel division launch

Australian online retailer Kogan is set to reach even greater heights with the launch of its new travel division, Kogan Travel, today.

Kogan, which began as an online electronics retailer, has undergone rapid expansion recently by launching more than 15 retail categories in the past year or so alone and venturing into the online grocery delivery market with Kogan Pantry in January.

Kogan Travel, a travel deals website, joins the company’s growing list of brands including pet product label Pawever Pets, vitamin and supplement label Nutrivance, baby and toddler line Bubbli and camping and outdoor brand Komodo.

Founder and chief executive Ruslan Kogan said this morning the latest venture represents a continuation of its disruptive approach to online retail.

“We’ve applied the same approach of digital efficiency that has seen us undercut the big players in the retail industry for nearly a decade,” Kogan said.

The idea is Kogan Travel will be able to leverage the buying power of Kogan’s existing two million customers when curating deals with hotels, resorts and tour organisers.

“Given our digital reach and customer base, we are able to make going on a well-earned holiday more affordable for all Australians,” Kogan said.

“We’ve amassed a dedicated fan base that loves Kogan.com for an honest deal every day of the week.”

“The negotiating power of two million fans means we were able to curate unbeatable deals for holidays in Australia and around the world.”

National Online Retailers Association executive chairman Paul Greenberg told SmartCompany Kogan is doing a great job of showing the industry the “power of brand”.

“I’ve been saying for a while, brand has never been king like it is today,” Greenberg says.

Greenberg believes Kogan is now an overarching brand, which has superseded Ruslan Kogan himself.

“I have to take my hat off to them,” he says, adding that Kogan has become a “glowing example” of how online retail innovation.

“What I also admire is the ability to try different things,” Greenberg says.

“Not everything they have done has succeeded, but they learn by doing. I’ve always advocated in this new world of retail it’s learning by doing.”

“The concept of failing forward, and small failures being stepping stone to success.”

Greenberg says Kogan’s move into the travel market is a smart one.

“The move into travel is very tactical, I think they would certainly have done their homework, they’re data driven,” he says.

“Travel is an exciting category, a big category, (with customers) looking for value, selection and service. I feel quite bullish about this on their behalf.”

“Good business people see little adjacent offers as tactical and strategic,” he adds.

Greenberg says Kogan is also a good example for other small businesses in the way it has leveraged partnerships in the travel business.

“Partnerships are very powerful,” he says.

“Branson didn’t get into the credit card business, he partnered with experts in the field. No matter how big or small you are, you can’t do it alone.”

SmartCompany contacted Kogan but did not receive a response prior to publication.