GDM Group Ltd

Providing leading retailers in New Zealand and Australia with innovative fixture solutions to display their merchandise has become a multi-million dollar business for Wanganui specialist manufacturer GDM Group Ltd.

The company was founded 30 years ago by Managing Director Michael Eden. It originally built decorative metal products but changed direction when the opportunity arose to create customised fixtures for a Wanganui retail clothing company that was going national in the mid 1980s.

The New Zealand business has grown continually, says Mr Eden, with customers including many large nationwide retailers who are household names. Six years ago, to accelerate its growth, GDM Group moved into export.

“Australia was targeted as our first export market. Several of our New Zealand customers were expanding their operations there and it was logical for us to grow with them. Although Australia wasn’t successful for all our New Zealand customers, the experience and knowledge we gained allowed us to successfully target other customers in that market.”

Today exports to Australia account for 50 pecent of GDM Group’s annual sales. It has several large customers in Australia – including retailers as diverse as discount/variety, electronics/computers, pharmacy and books/stationery. All are large multi nationals with hundreds of stores across the country.

GDM Group has built its business by adding value to customers.

“As part of our strategy we have positioned the company as a retail solutions provider, not just a fixture and fittings supplier,” explains Mr Eden. “We create fixtures to enhance our customers’ products and increase their sales to consumers. We are continually looking for new ways to assist our customers to display their merchandise to create a fresh look, and are very skilled at turning a ‘look’ into an actual manufactured product.

“Our competitive advantage is offering customers a made to order product rather than a stock product, and we back it up with exceptional service and delivery. One of our key strengths is our people who have extensive knowledge and are highly skilled and committed to the business. This market is increasingly competitive and to survive on price alone isn’t an option.”

GDM Group keeps ahead of competitors through design, innovation and continuous improvement, which Mr Eden says negates the need for expensive intellectual property protection. As part of its R&D strategy, management travel extensively visiting different markets and shopping environments to keep abreast of international trends. They also regularly attend trade fairs.

Staff numbers now total around 60, with offices in Auckland and Australia along with its Wanganui head office and manufacturing operation. Mr Eden says being based in Wanganui is a big positive, providing a stable workforce and a very “cost effective and business friendly environment”.

Seven years ago, in order to boost its manufacturing capacity and meet the growing demand from customers, GDM Group formed a joint venture with a Chinese company, which now manufacturers about 40 percent of its products.

“All our product development and prototyping is undertaken in Wanganui with a design team using modern computer modelling systems and software, and staff regularly visit the Chinese factory to monitor quality and product design interpretation,” says Mr Eden.

GDM Group is planning to grow its export business significantly. In Australia it will target large retailers, using word of mouth and referrals from existing customers to help it win new business.

About 12 months ago, to support its expansion plans, the company implemented a structured programme of Lean Manufacturing with support from New Zealand Trade and Enterprise. Called GDM Group World Class, Mr Eden says the programme is all about continuous improvement of manufacturing excellence and involves every aspect of the business.

“Management and staff have really taken it on board – it engages them and actually starts right down on the shop floor with ideas and the solutions they have to their everyday issues. For our people it is an expectation that we are world class and we operate in that manner. For our customers, it is a commitment to professionalism, partnership and service.”

Mr Eden stresses the critical importance of relationships with both customers and suppliers to GDM Group’s approach and success and says that will be a key factor as it works to grow the international business.

“It can take 12 months or more before we get an order with big customers. During that period it is critical for us to establish a relationship that can be built into a partnership, not simply a business transaction. Results show that taking the time at the start lays the foundation for solid commercial results.
 
“Building the right relationships and choosing carefully who you do business with ensures that customers understand the value you add to their business and helps reduce the risk of exporting.”

And he puts a lot of value in face-to-face meetings.

“Spending time with customers is the secret to success and my advice to would-be exporters is to pack your suitcase well, you’ll be away from home a lot.”

Contact: Michael Eden, Managing Director, GDM Group Ltd, phone 6 349 1789, email Michael@gdmgroup.biz, www.gdmgroup.biz