Every edition Ragtrader catches up with a previously profiled brand to see how it has evolved in the intervening period. Here Tracey Porter talks to David Goudie, managing director of apparel company Terry Rich.
Company: Terry Rich
Managing director: David Goudie
What were the key issues or challenges for your company five years ago? What are they now?
Five years ago we were focussed on getting the basics of product and positioning right. We were trying to lock down who are customers were and making the best products we possibly could. Also we struggled with the time we had to spend on the business as it didn't make any money. Today the biggest challenge is managing growth and development options. Local or international. Towels or apparel. Major accounts, independants or direct. Also how we envolve the business to be a leader in environmental responsibility.
What was the range like five years ago? What is it like now?
Five years ago we only had three different towels sold through a handful (less) of independant stockists. Looking back it was so small, but all we could afford to produce at the time. Today the summer 2008 collection has 11 different towel designs and about 40 SKUs in resort apparel and accessories. We design for both the southern and northern hemispheres. We are ranged nationally through David Jones and accross the country in premium resort and swimwear boutiques, online retailers, a handful of international stockists as well as a strong online franchise. The look and feel hasn't shifted dramatically but gradually drifted upwards to be more premium and sophisticated.
What was the retail climate like for your business five years ago? How has it changed?
When we launched the environment was pretty buoyant. Because we were doing something different to most of the market, we were received pretty well by the trade and consumers. Although we are much bigger today I would say the environment is tougher. This is mostly a macro economic thing I guess, but we have to work as hard or harder today to win and maintain accounts.
What was your approach to marketing and promotions five years ago? What is it now?
Five years ago we were into anything - from cheap giveaways to full page ads in Vogue. Today we're much smarter - more targeted. We have learnt what works and what is a waste of time and money. PR is better than advertising for us.
What was your approach to staff training five years ago? How has it changed?
We used to be less demanding employers. But we learnt quickly that it's hard to employ people in small business as you are in each others face every day, and so have become much more shrewd. Today we are more focussed, employing people with direct experience and perfect company culture fit.
How many staff did you employ five years ago? Now?
Then we had six expensive full time employees and no contractors or subcontractors. Now we only have four full time employees but more than 20 contractors and subcontractors. Much smarter, cheaper and more effective.
What was your approach to retail technology five years ago? Now?
Then it was as simple and basic as you can imagine. Zero technology. Today we have a fully integrated enterprise management system along with EDI and warehouse systems. But we added this stuff slowly as we could afford it.
What was your greatest moment/most significant development in the past five years?
Turning down an early offer to sell the brand cheaply.
What has been the worst experience of the past five years?
Generating enough cash to keep up with growth without adding too much debt.