There are probably plenty of people in this industry who've blagged their way to success using the smoke and mirrors approach, but it makes a refreshing change to meet someone prepared to admit it.
When Darren Holliday left his director's job at Jacuzzi to set up tap business Abode, he realised the first thing he needed to do was convince people this was a much bigger company than it actually was. And six years later, the plan seems to have paid off.
"If retailers buy from a new company, they want to know it will still be there in years to come," he explains. "Hence we had to create a marketing approach that made us appear to be a huge operation. In reality, we were three people operating out of a shed in Wakefield. It was a bit of a confidence game. We knew the products were good, but we gave the impression we were a much bigger company than we were with an 80-page catalogue - and people said they'd give it a go."
Fast-forward to the present and Abode has established a solid position in the mid to top end of the market. With a turnover of £8.5m, the company is happily riding out the market downturn and is about to launch more than 100 new products at kbb Birmingham.The philosophy from day one has been to shake up the market by offering innovative design-led products, manufactured in Italy but designed in-house.Holliday was happy to tell me more...
Q What made you decide to set up Abode?
A I'd been with Jacuzzi for 12 years, working my way up to marketing director, but it's a big boat and took a long time to steer. That model of manufacturing had seen its day. Design trends move much faster now; you have two seasons to make it work or you move on to the next thing. I was bleating that we needed to change the way the business operated. If you're a volume player you need to make sure the products meet the market needs. I thought it was time to go and do something myself. It's the best move I ever made.
Q How much funding did you need?
A The business took about a quarter of a million to get going. We spent more on marketing in the first year than we actually turned over. The first thing I did was to spend 10 grand on market research and found retailers weren't buying on price or even design, but on reliability. It's all about creating confidence in the name.
Q What's the overall philosophy?
A Everything we do is about design and technology and moving the product forward. We do a lot of R&D on site, but all the manufacturing is done in Italy. That way if we think we can get a patent on it, we've got it in-house and nobody else has seen it. That's how we protect ourselves. A good example is Swich - basically just a little switch on the front of your sink that converts a normal tap into a filter tap. It's unique and patented.
Q What's likely to create most interest at the kbbBirmingham show?
A We've got a new range of mid-range kitchen taps called Linear and as the name suggests they are very slender and very designer. This is driving the new style into the market. We're not waiting for the market to create the designs, we're doing it ourselves. Anyone can bring out taps for £8,000, but the relevance is getting your designer taps in the market for under £200 and making them sell.
Q Did you consider a cheaper Chinese manufacturer?
A China isn't necessarily cheaper. I took a long time choosing factories. In the past, companies would only use one factory. But clearly one factory is set up for one type of tap but not another, so we've now got seven factories in Italy, some doing traditional, some doing modern. Having products only two days away works for us. We need to keep infrastructure prices low.
Q How much has the recession affected you?
A We've grown over the period. We finalised 2009 with an £8.5m turnover, which from a standing start six years ago is pretty good. We're up 2% on 2008 and when you consider the market is maybe 20-25% down we're growing our market share. It's a much smaller market now. I've taken people on and spent more on marketing. We're launching 104 new products at kbb.
Q How do you differentiate what you are offering from your competitors?
A It's a crowded market-place so we're very quirky. It's about creating a personality for the brand. This is a fun operation and we enjoy what we do. My first question when I'm doing interviews is 'what's your favourite joke'?
Q Who are your main rivals?
A Crosswater, Eurobath and to an extent Bristan. But we try to pitch ourselves against the Germans, people like Hansgrohe and Grohe. The difference is that our products are designed for UK conditions but theirs aren't. People here want slide levers.
Q What's your target going forward?
A To not go backwards [laughs]. I still think 2010 is going to be a tough year, but people are going to expect things to get better after 2010 and will be gearing up to drive things forward. That's why we've brought out so many products - people are waiting to see what's out there. By putting on a big show we want to show that we're prepared to invest when it's very difficult.My gut feeling is that the first six months of the year are going to be fairly sticky - the levels of last year - but we should see a much stronger back end into Christmas.
Abode: Stand E24 Hall 19
