We think of Kogan as an online site that sells electronics, but their quickly becoming Australia’s own Amazon, with their verticals now including Internet services, Energy, Insurance, Cars and now Furniture.
Kogan have announced the acquisition of Matt Blatt Furniture for just $4.4 million. With luxury furniture a fairly difficult business to be in right now, Kogan picked up the company for a song. Back in 2018, the company was worth $43 million.
When Kogan acquires a company or enters a new market, they tend to keep the best parts of the business and scrap anything that’s not, much like when they acquired Dick Smith.
Kogan are great at optimising the supply chain and love the streamline the manufacturer to consumer path, to ensure you get products as cheap as possible and still leave some profit in it for them.
“We are pleased to bring the iconic Matt Blatt brand into new ownership, and relaunch the business as an online only offering. We look forward to serving and delighting furniture and design lovers all over Australia.”Kogan.com CEO Ruslan Kogan
Buying larger items like furniture online is perhaps a bigger jump than most are ready to make, particularly when it comes to something like a couch that may look great in a photo, but feel extremely uncomfortable when you sit on it. It’ll be interesting to see what options Kogan offers to solve this and encourage buyers to skip retain and turn online.
Matt Blatt has had online sales for quite some time, but you can already see the audience is presented with a more diverse range of products from the Kogan catalog. Right now, Matt Blatt’s website allows you to shop for more than 10,000 items furniture and homewares products.
We can see from the website that it now matches the same CSS of Kogan’s primary site. It is understood the Matt Blatt brand will live on but as with the Dick Smith brand, this is really to capture and retain the existing audience.