Thursday, 15 June 2017 11:26

Klika clout and profits expected to climb with planned Amazon partnership

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Unlike most retailers who fear Amazon will damage their business, top 20 Aussie e-tailer Klika says it expects “profits to soar with Amazon” and welcomes its arrival.

With a 15,000 square metre central facility in South Oakleigh, Victoria, and satellite offices in two other countries, Klika is no minnow in the world of online retail.

Not only does the company have a range of private labels, it also offers a wide range of global brands including Sony, Breville, Apple, Huawei, educational toys from Colorific, Disney licensed toys and bedding, VTech, Uniden and Belkin, just to name a few. There’s even a Klika TV channel growing with new short-form episodes.

So, despite all the hysteria engulfing Australian retailers over Amazon’s impending arrival, Klika boldly states its refusal to jump on said “hysteria bandwagon” and notes its expectation that profits will soar through its planned partnership with Amazon.

Indeed, Klika noted the local online retail industry preparing for the next wave in retail revolution to sweep across the country, and expects that the “Amazon Effect” will grow Klika’s business and “eagerly awaits” the world’s largest e-tailer landing in Australia.

Klika’s director of commercial operations, Leo Zaitsev, who has also been recognised as an “Internet Retailing 2017 top rising star”, said: “Whilst many local businesses are under a real threat of becoming irrelevant, we’re excited and welcome the entrance of Amazon into the Australian market.”

The company states that, “unlike many players in the market,” it has “complete control of the entire supply chain of its private brands across thousands of products and is not restricted to being a mere website for local distributors to offload their excess stock".

Zaitsev continued: “Our private brands and products have a mass following, and are already entrenched in every online marketplace in Australia which naturally diversifies our business, and we forecast the same to occur with Amazon Marketplace. We know who we are and have a good customer proposition.”

He also expects the current 7% online market penetration in Australia to “double over the next few years with Amazon’s marketing power and for Klika to leverage off the traffic Amazon will command to promote its suite of products, and increase Klika’s market share through an entirely new demographic Amazon is likely to capture.”  

Zaitsev added: “We are able to be more innovative than just compete on price as our customers still look for a quality provider that gives them individual attention. Our customers have the option of shopping online, over the phone or the more traditional way in our physical store.

“In addition to nationwide delivery, we also offer on-demand delivery in Melbourne metro, as well as click and collect, to provide a more holistic shopping experience”.

Klika said that its “attentive customer service approach makes the online giant a serious player to take notice off. Offering for sale more than 10,000 products, with its Melbourne store trading 7 days a week and longer hours, means customers opting for click and collect have the flexibility of picking up their purchases before or after work, and on weekends".

Zaitsev concluded: “We are a genuine omni channel e-Tailer and we don’t believe any other e-tailer in Australia comes even close. We are excited with the prospect of growing even more by partnering with Amazon as another platform to market our brands and products.”

Founded in 2005 and trading seven days a week, with over 10,000 products on offer and a flat shipping rate nationwide of $9.95 for even its largest products and home installation services available for its more sophisticated and bulkier items, Klika has clearly clicked with Australians – and with the planned Amazon partnership, plenty more clicking is about to happen.

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Alex Zaharov-Reutt

Alex Zaharov-Reutt is iTWire's Technology Editor is one of Australia’s best-known technology journalists and consumer tech experts, Alex has appeared in his capacity as technology expert on all of Australia’s free-to-air and pay TV networks on all the major news and current affairs programs, on commercial and public radio, and technology, lifestyle and reality TV shows. Visit Alex at Twitter here.

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