Online electronics seller Kogan is expanding its digital storefront to New Zealand, offering most of the same products that it already has for sale in Australia. Kogan's own-brand products join electronics and homewares from brands like Samsung and Sony, with Kogan claiming prices up to 75 per cent lower than New Zealand retail competitors.
The Kogan NZ website is already live, and there's a sale of up to 70 per cent off some items to celebrate the occasion. Many products will be shipped from Kogan's existing operation in Hong Kong and Australia, especially the name-brand electronics devices — which are sourced from Hong Kong distributors.
The online retail giant will have a limited presence across the ditch, according to company founder and namesake Ruslan Kogan: "We plan for Kogan NZ to leverage from as much of the Kogan Global infrastructure that is currently set up as possible, but the NZ operation will also require a local distribution centre in New Zealand for bulkier items like TVs."
Customs costs are a big part of online sales in New Zealand, with levies imposed on any purchase above NZ$60. The What's My Duty website run by the NZ government suggests that on a Kogan-purchased Samsung Galaxy Note 3 at NZ$719, after a NZ$28 postage fee, an additional NZ$158.94 will have to be paid to Customs on the item's arrival. Kogan says it's a necessary part of doing business: "There are customs and duties associated with doing business in any geography that we operate in. This includes our operation in Australia, UK, Hong Kong and New Zealand."
The range of products available in New Zealand is initially smaller than in Australia, but the company is "rapidly expanding" that range. [Kogan NZ]