Dick Smith brand to be resurrected by Ruslan Kogan

Just when you thought the eneloop bargains were gone for good…

Like a cat with nine lives, the Dick Smith brand is set to live again – this time as an online-only consumer electronics retailer owned by e-commerce pioneer Ruslan Kogan.

http://www.smh.com.au/business/retail/dick-smith-brand-to-be...

Comments

  • -2 votes

    Cool

  • +42 votes

    In other words Kogan bought the customer database. That's basically all this amounts to.

    The rest is just marketing. Kogan already sells own brand and branded goods online so how will Kogan Dick Smith differ?

    This is a nice way to say "we want to buy your customer database so we can spam them with our offers but that sounds too grubby so how about we buy your tarnished brand and trademarks too and we'll play this off like it's a brand resurrection".

    There's no guarantee they'll be able to stock the same items (except Dick Smith branded stuff that no one wanted anyway) and given that Kogan makes a lot of money via grey importing I'd say quite a lot of brands will continue to avoid him as he's subverting some of their profits.

    Tl;dr: This is marketing speak for "Kogan bought the DSE customer list and will begin spamming them shortly under the guise of Dick Smith".

    • +7 votes

      No.. there's branding and reputation that they also purchased as part of the sale. Intangible, but still "worthy". Basically its the best method to keep the Dick Smith name without paying for rent and relatively high Aussie wages to keep down the costs.

      Plus, Kogan and DSE-O only overlap some product sets and not all. Hence why they can use this to cover more products broadly using different branding. This brings about a certain amount of strategic benefits to Kogan in general - especially if he wants to make a move on the bigger boys (JB/HN).

      • +3 votes

        No.. there's branding and reputation that they also purchased as part of the sale. Intangible, but still "worthy"

        Someone would have to pay me to take Dick Smiths reputation. It was all over the news, thousands of Aussie jobs to go. Now Kogan is taking the name, offshoring the jobs… I can't see that PR piece going well.

        Plus, Kogan and DSE-O only overlap some product sets and not all.

        But that's just it, Kogan bought the name and customer list. They don't get any inventory or license to sell other products even of they wanted to. Kogan appears to sell literally anything he can get his hands on and a lot of brands are very wary of dealing with grey importers if they have a legitimate brand presence in the country.

        Selling online only and shipping directly from outside Australia is the opposite of what Dick Smith did. That's Kogans business model.

        He bought the name, he has no ability to use the business model (which was poor anyway). I still fail to see a differentiator or this as anything other than a customer list buyout.

        •  

          well.. as I said.. intangible because it is subjective and depends on what they will do with it in the near future (marketing can be so powerful). Offshoring jobs etc - which company isnt do that right now (other than the ironic companies owned by the "real" Dick Smith)?
          It might capture a bit of the middle aged market - who wouldnt know Ruslan Kogan from a bar of soap. But buying from Dick Smith who's been a presence for 40 years is still a possibility regardless of the ownership. As long as the price is right.

          Anyway.. arguments are moot. Will definitely show in the next 18-24 months if this is a good move for Kogan.

        •  

          @bchliu:

          Anyway.. arguments are moot. Will definitely show in the next 18-24 months if this is a good move for Kogan.

          There was no argument, my original point was that Kogan is buying the customer DB (which would no doubt include demographics and purchase history). That has value. Very obvious value to Kogan.

          The trademarks and domains are a side-deal yet the Kogan PR will push that angle because people rightly don't like the idea of their personal data being sold.

          Could Kogan leverage the brand? Maybe. Is it worth trying to use the brand? Personally I doubt it since a grey import online only Dick Smith would only cannibalise Kogans own business.

          However Kogan will be getting value out of that customer database immediately. That's where the money is, that's what this transaction was about. But publicising that angle isn't very good PR.

        •  

          DS has been around for 40 years, and they have sucked for a lot less than that. Even then there were some good things about them. Many an electronics nerd still remembers when Dick Smith was the bomb and Tandy sucked (and I don't think Jaycar existed).

  • +31 votes

    Whether it's Dick Smith or Dick Smith Powered By Kogan, either way you'll still get dicked.

    • +3 votes

      In Russia you don't get bargains the bargains get you.

  • +4 votes

    really he is investing in their database and the domain name

  • +1 vote

    You should get an email with the link. Problem is it says opt out by March 22 in the email but the form says by March 14 which was yesterday.

    • +2 votes

      THIS^ Also why is the opt out for so long? Usually I can unsub from emailing lists databases by clicking a link or entering my email address. It's as if the form is aiming to gather more personal information. Why would they send me an email at 8:48am on the 15th if I could only opt out prior to that date?

      Not entering any of my personal info as form clearly states 14th cut off. Kogan could use it to claim further details off you citing you didn't opt out by the 14th.

  • +5 votes

    Why is it that as soon as I read Kogan had any involvement that I was suspicious of even putting my details in to that form to opt out.

    All that should be required is my email imo.

    • +1 vote

      Yeah, I just filled it in but I felt pretty dirty doing it.

    • +1 vote

      No idea - maybe it was the frankly idiotic hysteria that occurred this week where suddenly we longer lived in a law abiding society and there was massive dangers everywhere including Kogan, gasp, horrors, forgetting all about the law and spamming everyone with their newly purchased database.

      Don't worry, it's just the internet being an idiot again with more made up news than anything real - Kogan intends to follow Australia's privacy laws to the letter.

      You'd think people would be more worried about them being able to legally send the data overseas just like Dick Smith was legally allowed to but this wasn't bought to their attention via scaring sounding made up news that they recieved via a mate on a social network.

      But no, obviously recieving emails regarding various items for sale like they already were is a greater danger.

    • +1 vote

      Maybe they want to make it hard for you?

  • +10 votes

    previous comment

    eatwell365 on 07/01/2016 - 20:16
    Is it reasonable to guess Kogan may have some interest to buy DSE?

    turns out to be correct.

    • +5 votes

      PVA on 06/01/2016 - 21:23
      I am betting Kogan will buy DSE online business.

      did I beat you :)

    •  

      Lol he prob used all his dse cards to pay for the dB.

      • +1 vote

        Hypothetically, by using $25 Kogan credit to swap over your DSE $100 gift cards, then becomes a creditor and can decide future of DSE,
        as per insolvency. $25 store credit is like free money =- free delivery + $10 marketing expense. No lose. Smart businessman.

  • +1 vote

    Great, now we can get dicked by Kogan!

  • -1 vote

    another tricky dicky

  • -1 vote

    is it gonna be online only

  • +6 votes

    The Dick Smith brand will just become a label stuck on whatever generic cheap product comes out of China. It will be like Akai and Polaroid.

    •  

      when DSE started the sale there was barely a Polaroid product on the shelves, now its stacked high everywhere! so i'm guessing suppliers are dumping stock at the same time?

  • +5 votes

    Interesting that an Australian icon will now likely be selling grey imports to avoid local taxes.

  • +2 votes

    Anyone know what Kogan's purchase of Dick Smith online means for

    Dick Smith gift cards issued before receivership,

    extended warranties purchased before receivership,

    etc?

    • -1 vote

      More money in receivership pool for receivers to pay unsecured creditors.

    •  

      Unless I am mistaken, Kogan is only buying the brand ("goodwill") and some of the technology infrastructure. Not the business and its liabilities. "Goodwill" and technology are just "assets".
      Though I'm not sure how much goodwill is left in the Dick Smith brand.

    • +3 votes

      Kogan bought the naming rights and customer database. The current legal Dick Smith entity is still in liquidation and dying with it will be gift cards and warranties.

      Kogan inherits zero liability.

    • -1 vote

      Extended warranties were underwritten, so no change (necessary.)

  •  

    Will they be honouring Dick gift cards again then?

  • +1 vote

    Just unsubscribed from Dick Smith spam mails.

  • +8 votes

    LOL of course Kogan would want Dick Smith.

    Their ethics are a good match.

  • -1 vote

    Poised to give consumers a good dickgan

  • -1 vote

    Eneloop bargains? Don't you mean Koganeloops! (Chinese generic brand equivalent)

  • +1 vote

    Any bargains Kogan-Dick ?

  • -1 vote

    Will Kogan be erecting his own Dick's?

  • +1 vote

    I wonder if Mr Kogan was mostly motivated by being able to make his own Dick marketing jokes.

  • +4 votes

    Well Ruslan (or someone) better fire the online marketing dept quick-smart.

    I got a Direct Mail from no-reply@e.dicksmith.com.au today, subject: "Important Notice Regarding the Sale of the Dick Smith Online Business"

    None of the body content was readable as it was purely template data. Instead the content was buried in massive images titled: Important Data, Privacy policy, Data Policy, Important Data, Personal details form, Important Data… etc. Any half-decent mail-reader will display images optionally, so all that gets wasted as it just shows up blank.

    Sigh. Anyone sending mass-mails should know that and ensure the important content should also be contained in plain text at the top. Clearly this is the last hurrah of the DSE online marketing dept.

    LOL: I wish I were a fly on the wall to hear them say "You're fired!"

    Beware all you web-recruiters!!!

    Imagine if DSE had contracted Ruslan's mob to do their online web strategy, they'd probably still be in business! It's amazing how little all these analysts understand about modern retail.

  •  

    Transfer of stock/supplier arrangements possible?

    • -1 vote

      Kogan doesn't want local Australian stock or suppliers. His company makes money by drop shipping and grey imports.

      Getting local stock and suppliers destroys his competitive advantage (which is all about price).

      •  

        chance to diversify?

      •  

        Good thinking and agreed.
        My guess:
        1. buying online only means no need to carry all debts and warranties from the whole DSE.
        2. not like the young guys like you, the elderly often has string attached to the name Dick Smith. With the goodwill is 10 times more like to get them across.

  • +2 votes

    Not sure who's worse. DSE or Kogan

    • +2 votes

      Well one is a failed company and the other is going from strength to strength.

      Kogan gets a lot of hate but they do something and they do it well - offer cheap electronic goods that are delivered to your door.

      To be cheap they sacrifice bricks and mortar stores, support and quality control but his business model has proven that customers will happily sacrifice those things for price.

      If you want local support and warranty, if you want high quality control, then pay more and go elsewhere. But if you want cheap consumer electronics and the dollar is your main factor, then Kogan has you covered.

      Compare that to Dick Smith who, in the end, had bad service, terrible inventory systems, confusing shop fronts and branding and (unless on fire sale) uncompetitive prices. By all measures and for many years DSE has been way worse than Kogan.

  • +7 votes

    I have one word to describe the situation UNSUBSCRIBE

  • +2 votes

    Seems like another weak attempt to appear Australian, still not buying in to it, Mr. Kogan.

  • +2 votes

    Kill it. Kill the brand with fire !!

  • +2 votes

    just opted out. kogan better not spam me now.

  • +4 votes

    'Kogan' items is just rebranded Ali Baba garbage.

    Ruslan probably fondles himself everytime the 'Somebody bought xxxx' pop-up comes up on his website.

    • +1 vote

      Pretty sure he can afford to hire a professional fondler to do that for him. As if he's going to fondle himself like a commoner.

  • +5 votes

    Wow. This is like combining AIDS and EBOLA.

  •  

    Great PR stunt.

  • +2 votes

    KOGAN is buying Dick Smith. What could possibly go wrong?
    Dick Smith has a bad reputation for price and expertise. Kogan has a bad reputation for quality and service. So the combined entity has just about every weakness that exists in business.

    http://www.news.com.au/finance/business/retail/can-dick-smit...

    •  

      I too read that article before stumbling onto this thread.

      Perhaps the Dick Smith brand isn't as bad to non-ozbargainers and there has been alot of traffic in the Dick Smith retail stores that it would benefit Kogan.

  •  

    Nah … Kogan bought the business for Dick's batteries

    http://www.smartoffice.com.au/business/retail/3IS162BD-dodgy...

  •  

    Just wondering since the internet is silent about it, is Dick Smith foods still going to exist?

    • +1 vote

      I thought DS foods is owned by the original Dick Smith who founded DSE.
      They should have nothing to do with DSE collapsing?

      •  

        Ahh I had no idea, I vaguely recall them being related somehow. Their website says nothing about it though.

    •  

      i don't see why it wouldn't as it has nothing to do with DSE

  •  

    Couldn't let Dick Smith die with its dignity intact?
    This should be interesting (to say the least!!)

  • +1 vote

    Same (Kogan) $#!t, different name.

  •  

    Sorry kogan, I unsubscribe from you & DS long time ago…now I'm just subscribed to real deal at ozb

  •  

    Smart move losing ALL physical stores. Keeps people from price matching at Officeworks.

  •  

    Good on Kogan

    Smart move to buy a "house hold" brand for cheap

    Just the organic traffic alone will pay for the website price tag

  • +3 votes

    I find it funny how there is a lot of hate for Kogan here.
    Bought numerous things from them over the years, never had a problem.
    In fact the 3 Kogan TV's bought circa 2010 are still going versus the piece of cr*p I bought from samsung.

    I am now up to my 5th Samsung TV in 6 years, yes they were all replaced under ACL but what a major headache going without and arguing every single time.

    So why all the hate for Kogan?

    •  

      No so much hate, people just recognise he sells low quality products imported straight from china and just slaps his name on them.

      •  

        Low quality maybe, but like I said 5 Samsung TV's in 6 years….and they are supposed to be better quality..:)
        One of the Kogans is a 50" that is used daily for TV/Netflix and gaming and has not missed a beat.
        Maybe not the 'best' looking but considering it cost me 1/4 of the Samsung and has lasted 5 times longer that all the others makes me think..

        •  

          I've had good luck with Soniq TVs and terrible luck with their DVD and Bluray players. I would guess you got a good item (3 of the same TV??) and that may or may not represent what others experience with Kogan. 5 bad TVs on the other hand speaks to a design or quality control issue for that TV. It may or may not represent Samsung. You're right not to be in a hurry to buy another Samsung but your trust in Kogan may be misplaced.

          tl;dr working TV is as expected and meaningless without large sample. Faulty TV replaced many times = lemon model/QC issue.

        •  

          @syousef: The faulty TV was replaced with another model, which then broke and got replaced with another model etc.

        •  

          @macfanboy:

          In that case remind me not to buy a Samsung TV.

    •  

      Think people are also sick of his publicity stunts. He's repeatedlyengaged in public arguments with Harvey Norman and JB Hifi (for no other reason than to get attention), he even went on Today Tonight to tell them he applied for a job at McDonald's, saying he'd like to learn their methods, as they're 'the Kogan of fast food'.

      Buying the DSE name is just another such stunt, as well as acquiring the customer database.

      •  

        he even went on Today Tonight to tell them he applied for a job at McDonald's, saying he'd like to learn their methods, as they're 'the Kogan of fast food'.

        Really?

        He's repeatedlyengaged in public arguments with Harvey Norman and JB Hifi (for no other reason than to get attention),

        To get attention? I like anyone who gets into public arguments with Gerry Harvey.

    •  

      Simple, Kogan cannot be trusted. I bought a BD player and when I received it, found the box to be already opened. Plugged the thing in, but wouldn't work. That was dodgy, I've stayed away from them since.