Kogan attacks ‘Always cheapest prices’ claims of JB Hi-Fi
Online electronic retailer Kogan has launched a press campaign to attack the advertising claims made by rival JB Hi-Fi.
The ad, which takes the form of an open letter, claims that JB Hi-Fi has broken a promise to consumers made in its slogan “Always cheapest prices” – because of comments made at a shareholder meeting last week.
According to the ad, one shareholder said that consumers were “being screwed” by the likes of JB Hi-Fi when compared to prices offered by online stores.
The ad, which is also running on Kogan’s blog, reads:
Open Letter to JB Hi-Fi
JB Hi-Fi’s slogan promises Australians “Always Cheapest Prices.” You have admitted to breaking this promise.
At your Annual General Meeting of shareholders last week, one of JB’s shareholders claimed that Australian consumers were “being screwed” by the likes of JB Hi-Fi, when compared to prices available at online stores. In response, your Chairman and CEO both acknowledged the “challenging conditions” faced by JB due to the cheaper prices available online. The Chairman promised that JB would step-up the pressure on its suppliers to lower their prices, and even threatened to “import directly and bypass suppliers.”
At Kogan, we applaud JB for acknowledging your position. Acknowledging the facts of your situation is one thing, but you then need to act in accordance with those facts. If you choose to ignore the facts, you will have achieved nothing.
Given the acknowledgements by your Chairman and CEO that prices are cheaper online, we call on JB Hi-Fi to remove your slogan, “Always Cheapest Prices” from all advertising material, and to replace it with something honest. How can JB Hi-Fi, in good faith, claim to always offer the cheapest prices, when your Chairman and CEO both acknowledge that cheaper prices are available elsewhere right now?
At Kogan.com.au, we are proud to have played a role in lowering the prices of consumer electronics, and putting an end to the Australian public being ripped off.
As a result of our hard work, Australians can now avoid the globally uncompetitive prices offered by the likes of JB. Aussies can enjoy the World’s leading prices at the click of a button. The savings available at kogan.com.au are massive when compared to JB’s prices on products like Canon and Nikon cameras, Apple iPads, iPhones, and Samsung smartphones. But, don’t take it from us – compare for yourself. When we say we have the cheapest prices, we mean it.
Unlike our competitors, at Kogan we have been thinking globally since day one. We are constantly analysing the dynamics of the global consumer electronics market and investing in a global infrastructure designed to ensure we can sell products for the lowest prices in the World.
Millions of Australians are moving to stores like kogan.com.au. But, there are a lot of Aussies still shopping at stores like JB, in good faith believing that a company like JB Hi-Fi would be honouring its promises.
So, given that we now know JB Hi-Fi are aware of the price savings available online, and given that JB has made the positive step of acknowledging the problem in their pricing, we now call on your CEO to Smarten up. Stop pretending to offer ‘Always Cheapest Prices’ be more honest in your branding, and be more honest with the Australian people.
Australians have had enough broken promises.
Ruslan Kogan
Founder & CEO
www.kogan.com.au
I don’t understand the JD Hi-Fi bit: is that an in joke?
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it’s JB HiFi, not JD HiFi
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Who are “JD Hi-Fi”??
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Hey Guys – quick edit:: You wrote JD not JB in headling & para. Cheers
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JD Hi-Fi?
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Couple of typos guys. I’ll give you a clue: it’s in the headline.
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You wouldn’t by chance mean JB Hi Fi now would you?
Is this the same reporter who wrote about the new Hungry Jack’s breakfast spot?
Mumbrella – you’re slipping!
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I’ve never heard of JD HiFi 😉
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JD HiFi?
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“JD”?
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Search and replace JD Hi-Fi…..
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when you refer to JD Hi-Fi are you still referring to JB or there another rival out there I didn’t know about?!
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Apologies, JD Hi-Fi should obviously read JB Hi-Fi. Now corrected.
Cheers,
Robin – Mumbrella
JB perhaps…
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I’m not sure if i’m the only one who has issues linking through from your newsletter.
Also, you seem to refer to a fictional retailer “JD HIFI” in the same article that JB Hi FI is referenced… just saying.
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I find it amusing that the near-universal tone of comments on that blog post mirror my feelings to a tee.
Kogan, get off your horse. These kinds of cheap shots are disingenuous at best, and transparently childlike at worst. If I want a cheap grey market import with probably warranty headaches down the road, I’ll come to you. But it is not a like for like value proposition with what JB HiFi offers so stop pretending that is.
I can only see this perpetual whinging hurting the Kogan brand in the long run. Someone in PR should pull Ruslan aside for a quiet chat sooner than later.
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@Cameron, yes his comments are naturally serve serving but he has a good point. And certainly the CEO of JB, Terry Smart (I like the “Smarten up” reference) has not got consumers interests at heart, only his own pocket$.
I agree with Kogan, false advertising should be stopped, including that by JB.
Where I live there is a JB and Dick Smith opposite each other. Without exception, the Dick Smith is routinely cheaper than the JB, and that’s without haggling. Absolutely superior service and product knowledge too.
JB is overrated and talks itself up, go Kogan for calling them out on this.
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oops, “self serving” correction to above.
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What a load of crap.
Ruslin, how can you even compare yourself with the likes of JB/HN/GG/Retra etc…
You sell at most, what, 1000 + items, maybe 2000, including the ‘copies/crap’ you sell via Milan Direct…
JB sell at least 200,000 items including the best priced CD’s/DVD’s in AU (in a retail storefront!) all within the confines of a Govt. controlled Taxed economy. JB, HN’s, GG’s, Retra do the same with Audio Visual etc, on products that you don’t (can’t!) sell. They all sell a locally supported product fully backed by the manufacturers AU warranty. Not a warranty out of HK that you have to FIGHT with ‘Customer Support’ to get honored..
Yes… Tell the public about all the major distributors, Sony, LGE, Samsung, Panasonic etc. whom you approached, but alas, no one would sell you their product… No one wanted to be associated with your branding… Then tell people about the containers of returned/damaged/DOA product with your name on them.
All you’re doing is ripping off the AU people/economy and by-passing the Tax levy that all Australian based brick & mortar retailers have to abide by…
And this make you what? Smart ?
I hope people realise this before they line your gold plated pockets any further.
The buck stops with Kogan folks.
No shareholders, no investors, no good for Australian economy – Grey Import TAX FREE products direct from Hong Kong (China folks!)
You’re a danger to the Australian Economy Ruslin…
You’re actually hurting our country…
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I’ve Kogan a few Kogan teles and recently bought an iPad from Kogan for $150 cheaper than the Apple store. Love what the Kogan guys are doing. Even if you don’t like their outspoken nature, they’re doing great things in the Australian tech market. Keep stickin’it to them Kogan.
KOGAN KOGAN KOGAN Oi Oi Oi
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You have to hand it to Kogan for gettin so much attention for free. Time and time again they get the press reports for their releases.
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Good work Kogan! This is exactly what the industry needs. I have one of your TVs and love it…I saved $100s
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@cameron @Rey Therat
Real people don’t use the term grey market. You really think consumers care? And as for warranty ‘headaches down the road,’ would this be the same JB HiFi that have been selling warranties that consumers don’t need as they are already covered by Australian consumer law, just like Kogan is? Rey, the fact Kogan sells far less doesn’t excuse JB from having a marketing line that is just plain bullshit. I hope the ACCC takes notice.
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What I lurve…now we’re bringing Dick into it is how he’s on his band wagon about buy Australian…bastard supermarkets won’t stock my Aussie made product …and yet he lives in his mansion in one of the best suburbs in Sydney, no doubt funded by the electronic wizard’s profits made by bringing in chinese/japense/korean crap.
If that ain’t hypocritical what is? And now we slag Kogan and go to Dick Smith where I expect less than 5% of anything he sells there is Australian made.
I want to see you cash it all in, give it to charity and really back that good Aussie product – I’ll come buy it then.
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Only point I have on this is why didn’t the open letter also refer to the fact that JB’s customer service SUCKS! I have now banned JB from my regular Large electronic device purchases (in the last 3 years have included 2 Large screen LCD’s, PS3, DVR, and an LCD/Surround Sound system I bought for electronics phobic mate), because when you go in for service, all the “look at me I’m so hip” floor staff are too busy talking to each other about the new bohemian themed afhgan nightclub on Brunswick Street they went to the night before. I kid you not, I have walked out 3 times, ready to spend, gone across the road to a ‘Good Guys’ or Dick Smith store and found staff bending over backwards to help.
Accurate advertising? “We’re not the cheapest and or service is non existant, but look how trendy our casually dressed staff are!”
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@self serving much? grey market is actually a common term in some consumer markets
@rey interesting t see kogan grow to a point now where its “comparatively” cheaper but not for those who care to look.
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Kogan Your the Man, You know how to set the standards to a new level! Your in a game of your Own, where every one else is trying to work out the Rules!
Well done!
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Go Kogan – Dick Smith doesn’t own Dick Smith Electronics. He sold it to Woolworths a very long time ago.
Also he doesn’t live in Sydney.
Remember, if you’re not well educated, there’s always Google.
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All these comments are from JB or Kogan staff. Why don’t you take your battle offline
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The story of stuff. So who really pays for all this stuff be it Kogan’s or JB HiFi’s or Dick Smith’s stuff
https://www.youtube.com/watch?v=9GorqroigqM
It’ll teach you something, it’ll make you laugh, and it just may change the way you look at all the stuff in your life forever.
http://storyofstuff.org
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