EVERY EDITION RAGTRADER CATCHES UP WITH A PREVIOUSLY FEATURED LABEL TO CHART ITS DEVELOPMENT OVER THE INTERVENING PERIOD. HERE BELINDA SMART TALKS TO ELK ACCESSORIES FOUNDER MARNIE GOODING.
LABEL:Elk
OWNER/FOUNDER:Marnie Goding
How has your label evolved since you founded it three years ago?
The company has grown as we have increased the number of stockists, started an online store and generated ongoing media exposure. We started by wholesaling to a small number of stockists in Melbourne where we hand made everything, to now selling all over the world and manufacturing nearly everything offshore.
What were the key issues or challenges for your company back then, and now?
Like most small business, cash flow and manufacturing were and to some extent, still are the greatest challenges. Initially getting manufacturers to give us a chance was really frustrating. Many suppliers we started with are still working for us as they believed in our business and supported us. We started ordering quantities between 20 and 50, whereas now our quantities are much higher and our confidence and ability to negotiate with new suppliers is greater.
What were Elk's ranges like three years ago compared to now?
We have always designed two main collections a year although now Elk's offer is more defined. In the beginning we designed more on the run and offered new styles as we made them. Now the collections are supported by look books, media releases and store showings. We started with around 20 to 30 pieces per range and it was only jewellery. We now release around 120 new styles per collection and offer jewellery and leather, not to mention adding knitted apparel and homewares which now come under the Elk Cabin label. We have also started to focus on supporting POS material which includes high quality custom printed swing tickets. We now make sure that everything from the pins to the string on the tickets has an 'Elk' feel. One of our employees focuses on merchandising strategies too, which is increasingly important.
How has your distribution strategy changed?
When we started we stocked Elk in quite different stores to now. We have worked very hard on building a brand that stands apart from others. We focus on using high quality materials and design everything we produce so it is imperative we have stockists who reflect and understand this quality and design ideal. The number of stockists now stands at around 200 which we have decided to cap, as we are conscious of over saturating the market. We have also entered into an exciting agreement to stock specific David Jones stores around Australia as an emerging, leading Australian accessories brand. We have also made a decision not to stock any other online stores other than our own.
How has the business climate changed?
We entered the market at a fantastic time. Accessories boomed around 12 months after we started. There was a huge push for quirky, stand out jewellery led by brands like Marni and Chloe. This gave us a great opportunity to launch our designs in a market with huge demand. As trends change, we have focused on staying true to our Elk aesthetic and on promoting the brand through public relations activities. These initiatives have given us good domestic and growing international brand recognition. Our wholesale accounts understand the benefits of stocking an accessories label with good branding and so support each collection in full. In this time of economic uncertainty our stockists have stayed with Elk, as they know we remain focused on branding and have worked very hard to maintain our price point.
What was your approach to marketing and promotions five years ago and how has it developed?
In the beginning marketing and promotions were not a part of the business we could afford to look at - our time and cash flow were spent on research, development, travel and production, now however they are a huge part of our business and annual budget allocation. It is vitally important to have support in place as so much time is needed to liaise with media, look for new opportunities and to undertake promotional activities. Our greatest focus is on the public's perception of the brand - all of our marketing and promotional activities are focused on maintaining excellent brand integrity.
How has your approach to staff training changed?
We are lucky to have a wonderful team with us - all of which have been with us from the start. We have a very relaxed approach to work which we encourage in our staff and look for in new employees. We have always focused on enjoying work and promote an environment where there is no "them and us" attitude. Our dog Grover comes to work every day and we try if we can to all sit down and eat lunch together. This closeness means most of the time we know if there are any issues and it promotes open communication. Formal training has been infrequent is something we will try to work on for the future, customer service will be a focus for 2009 because as we get busier all staff need to be multi skilled and be in contact with suppliers, customers and retailers.
What was your approach to technology five years ago? Now?
We are at a really interesting fork in the road right now. We have come to realise that our IT systems need great improvement to keep up with the work we are producing. The investment for a small business is daunting but we realise now we cannot delay any longer. We are about to invest massively in back of house technology which will include a web based wholesale ordering and stock control system, a product bar code and scanning system and improved retail on line software to include foreign currency transactions and other new features.
What has been your proudest moment?
We started our business with a goal to create a solid business which could afford to provide employment for others - this is something we have managed to achieve and will continue to grow. Our proudest achievement though is to see how Elk now provides, good, safe and consistent work for families in some of the poorest parts of the world. We focus on working with small manufacturers who we know we can visit, we make sure that all employees of our manufacturers have good working conditions and that their children are schooled. Dental and optical checks are carried out by our main manufacturer and we are proud to see that as we grow, Elk has a positive impact on many lives by financially supporting fair work for others.
What has been the worst experience of the past five years? So far we have had a dream run! We are now facing challenges in relation to IP, copyright and trademarking issues. These legal hurdles can be daunting and expensive as a small business grows.