phil&teds Most Excellent Buggy Company Ltd, a firm that prides itself on being quirky and somewhat irreverent and where product design is critical, grew exports by 173 per cent last year to $17.2 million.
Located in Wellington, phil&teds designs and markets innovative and world-leading nursery hardware products, including baby buggies, travel cots, car seats and highchairs; products that Managing Director Campbell Gower says help customers adapt and survive the conflicting demands of parenthood.
Mr Gower took over phil&teds in 1998 when the business was in danger of foundering. As he readily admits, he knew about finance but knew, quote, “bugger all” about engineering, design, marketing, exporting or pricing! The next few years were a massive learning curve as, with the help of staff, he transformed the business into a financial success and phil&teds into an international brand with attitude.
“Apart from the name, the business is not anywhere close to what it was when it started out of a garage in Wellington.”
He retained the name because it is vital in creating all important cut-through in an intensely competitive market. “Our brand never fails to make people smile. It’s a bit of fun, it’s quirky, and it’s innovative in an industry where so much is the same.”
Today phil&teds’ core products are well established as niche leaders in the expanding and very large global nursery product industry. About 95 per cent of sales are generated from exports to 25 countries, with key markets the UK/Europe, Australia and the USA. The company works through distributors as well as selling direct to retail customers.
Mr Gower says phil&teds has a deliberate strategy of sequentially entering new geographic markets when consumers in that market have moved past the ‘early adopter’ stage for purchases of 3-wheeled buggies (like its flagship product the e3), and there is at least one competitor already present in the market.
“While this strategy may mean that we lose some early sales in those markets we are entering at a time when we know it’s closer to a “tipping point” of sales, avoiding the risk of incurring high upfront marketing and advertising expense in a market that may be too early in its acceptance of the 3-wheeled buggy concept.”
The company uses online shopping to ‘seed’ product in new markets, an excellent way to get mothers seeing and talking about the product before the company’s present in the market. Product is gifted to celebrities and opinion leaders for similar reasons.
Sales are driven from New Zealand, with staff continually travelling to export markets; something which helps break down barriers retailers may have about dealing with a supplier from the other side of the globe.
Mr Gower says phil&teds competes on quality, not price, choosing retailers that support this positioning. Its world leading and differentiated product designs are a critical success factor and are created by a small in-house design team. Its strongest products all have unique selling points.
“Our travel cot is the only one in the world that’s lighter than the baby and we have the lightest, smallest folding clip-on highchair in the world. Our e3 buggy ‘adapts’ to take two kids; it’s unique in the world and a market leader, given most western families have two children within three years of each other.
“We are very good at listening to customers, distilling their need and creating a design solution and marketing that back into the channel in short speed-to-market timeframes. More than 80 per cent of sales are from products we’ve created in the past three years, so the range is always new and fresh.”
Manufacturing is kept low-cost by being outsourced to Chinese suppliers where phil&teds is 100 per cent of their production. There’s a big emphasis on quality control, which is critical as product is shipped directly from China to market.
Mr Gower says phil&teds would be nothing without its 22 staff, who all live and breathe the brand values. The company culture is not to take itself too seriously, but while it actively downplays corporate formality, it is very serious about what it does.
Staff are encouraged to grow and develop with the business. For example two years ago a staff member with a background in apparel design was given the resources to start a new business division, mokopuna merino™, a merino clothing brand for newborn to two years. It’s now being exported to the UK, with more markets under development.
Recently Mr Gower gave management the opportunity to buy into phil&teds and also sold shares to a private equity fund.
He’s justifiably pleased that the company has not only survived its inauspicious start, but thrived, with 80-100 per cent growth in annual sales expected to continue into the foreseeable future.
“Risk taking and confidence are enormously important in exporting. You’ve just got to give it a go; you can learn as you go. If we can do it anyone can.”
Image: phil&teds staff engaged in buggy design.
Contact: Campbell Gower, Managing Director, phil&teds Most Excellent Buggy Company Ltd
Phone +64 4 380 0833, ext 706Email Campbell@philandteds.comWebsite www.philandteds.com
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