Australian consumers have been telling us that they want the ability to purchase quality brands of consumer electronics online and we believe there is a huge latent demand just waiting to be tapped.
John Hughes, Managing Director, Radio Rentals Australia

Bigbrownbox.com.au Screenshot.

Australian rent-to-own operator RR Australia (Radio Rentals Australia - RRA) will give Aussie retailers a run for their money with today's launch of Big Brown Box, a new online consumer electronics store that aims to provide Australian consumers with an innovative retail experience. The company announced plans to go virtual earlier this year.

Radio Rentals opened in 1937 and until recently was rent-to-rent only. The company entered the rent-to-own sector in 2002 with the introduction of rent-try-buy (RTB). By May of this year, 36 month RTB contracts accounted for 34% of Radio's rental revenue (see story).

Managing Director of RRA, John Hughes, said Big Brown Box will offer a wide range of name brand products at competitive prices along with free delivery. "Australian consumers have been telling us that they want the ability to purchase quality brands of consumer electronics online and we believe there is a huge latent demand just waiting to be tapped," Hughes said.

"Given the massive commitment that traditional retailers have to bricks and mortar infrastructure, we can certainly appreciate why they have fought the urge to go online. But the world has changed significantly and consumers have become very savvy with the internet and understand the value that a top site can deliver."

Hughes said Big Brown Box would provide consumers with the opportunity to research and compare products at a time convenient to them and then make a purchase with the comfort of knowing that they are dealing with a reputable retailer that has been in the business for over 70 years. "With our 'great deals – everyday' pricing plus free delivery we believe that it won't take long for consumers to really embrace Big Brown Box," he said.

"We are pleased by the very positive response from suppliers and this venture will certainly enhance even further the great relationships that we already have. Our membership of NARTA, Australasia's largest independent buying group, also enables us to deliver excellent value."

Hughes said recent reports had predicted e-commerce growth to average 24 per cent annually through 2011, and online sales expected to continue the explosive growth of the last several years, with $31.1 billion in B2C sales projected for 2011.

Big Brown Box General Manager, Peter Krideras, said "Shoppers are going to find our prices extremely competitive across the entire range of electrical and whitegoods products, including all the big brand names like Sony, LG, Fisher & Paykel, Westinghouse, NEC and Mitsubishi, to name just a few."

"I think our service and offering will really intensify competition and consumers can only benefit from that, particularly with Big Brown Box being accessible 24 hours a day and free delivery," Krideras added. Consumers in regional areas will be particularly excited because Big Brown Box offers them an enormous improvement in value and choice and it's all only a mouse click away".

RTO Online interviewed Peter Krideras in 2007 (see video). Excerpt: Do most Radio Rentals customers progress to ownership? "Between 50% and 60% of customers go to term and exercise their option to buy. Customers can return the merchandise before their term is up, but there are early payment penalties for doing so."

In providing a country-wide delivery service, Big Brown Box will utilize the strength of the Radio Rentals store network for larger items while smaller items will be distributed by Australia Post.