Yesterday, bricks and mortar giant Gerry Harvey told us online prices are set to soar. Today, surprise, surprise, his online rival Ruslan Kogan has lambasted Harvey as a “dinosaur”.
Kogan's comments are the latest swipes in an ongoing rivalry between Kogan's online retail site kogan.com.au and Gerry Harvey's retail giant Harvey Norman.
Yesterday, Harvey Norman and AMP Capital's chief economist Shane Oliver came out with some sobering indications that the 33-month low for Australia's dollar will lead to hikes in online retail prices.
But never one to shy away from the spotlight, Kogan has taken the opportunity to have a personal stab at Harvey while claiming online retail prices will not soar.
Kogan said in a statement: "It's ludicrous to have a bricks and mortar dinosaur out there in the media telling the public what online retailers are going to do to their prices. Gerry should not be speaking on behalf of our industry when Harvey Norman is not a real part of it, and does not understand online retail.
“It's very interesting timing for Harvey to come out with these comments, veiled as a community service message. I think Harvey Norman is looking at some dismal numbers to end the 2013 financial year and this is an attempt at urging people to buy something at his stores before June 30.
“When the AUD was high, Gerry was whinging that people are buying too much from overseas. When the AUD plunges, Gerry whinges that prices will go up. When prices are low, Gerry whinges that he has to sell more to make the same profit. When the prices increase, Gerry whinges that people will buy less. What does the man want? How do we appease him?
“Some retailers use the excuse of a falling AUD to raise prices, but this shouldn't be the case, especially in the consumer electronics industry. The fact is that the way we manufacture technology is always getting smarter and more efficient. Just to put this in perspective, your average $200 smartphone now has over 100x more processing power than the billion dollar computer system used by NASA to land a man on the moon in 1969. This trend has never stopped...
“I can confidently tell the Australian public not to worry: the prices of your technology purchases will be cheaper in the future than they are now. That is the promise of an efficient business model designed for smart shoppers.”
Gerry Harvey declined to comment on the record in response to Kogan's attacks.
The battle between Kogan and Harvey continues...
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