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AS FEATURED IN BUSINESS IN FOCUS JULY 2012 One in a Million

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I have traveled around the world searching for rugs and carpets. While in the Land Down Under, I was referred to this Brisbane rugs store. Their rug gallery features the latest imported rugs and rugs created by their own designers.

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Page 1: Rugs Brisbane

AS FEATURED IN BUSINESS IN FOCUS JULY 2012

One in a Million

Page 2: Rugs Brisbane

2 2 JULY issUe | 2012

Page 3: Rugs Brisbane

3 3 BUsiNess iN FOCUs

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4

By David Barratt

WHEN purchasing a rug, consumers want to feel the

fabric between their fingers and experience the

true to life vivid colours and patterns. This desire

makes rugs one of the few remaining consumer items that

need to be seen and experienced before being purchased.

Choosing a rug is still very much a “touchy feely” process as

Craig Wicks, founder and Managing Director of Rugs a Million

aptly puts it.

Craig’s company, founded 20 years ago in Queensland, has

grown to encompass 29 bricks and mortar retail locations sup-

ported by a powerful online presence, placing the company

as Australia’s top of mind name when consumers are looking

for new rugs for their homes. “After a couple years,” Craig

says, “we decided to expand from the Gold Coast to Brisbane

and area.” Ever since, the company has continued to grow

in a reasonably fast, but controlled manner, moving into its

third state by acquisition, with the purchase of an existing rug

company in Adelaide.

Rugs a Million has experienced measured growth through

much of the company’s existence, developing strong inter-

national buying power, and after a slow period due to the

gloomy retail market situation, is experiencing renewed

growth, opening several new locations in Australia.

“We focus totally on our staff. Of our 150-odd staff, more than half have been

with us for more than ten years.”

Thinking back to the founding of the company, Craig Wicks

identifies one major trend as the impetus of growth – the

decline in popularity of wall-to-wall carpet solutions in Aus-

tralian homes. “The timing was quite right as wall to wall car-

peting was losing popularity to hard floors. I saw the market

evolving almost overnight,” he says of his decision to leave

the carpet market and move into rugs as the primary focus

of his business. “As soon as you get hard floors in a house,

you need rugs aesthetically, acoustically, and to keep warm

in the winter.”

The trend toward hard flooring continues to grow as Aus-

tralians follow the fashion of America and Europe. “There is

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5

still growth in the marketplace as hard floors become more

popular, so I see no reason why there won’t be more growth

in this country.”

Though Craig founded Rugs a Million and is Managing Direc-

tor today, he credits the synergy of three key minds and their

complementary skill sets with providing the stable founda-

tion that has allowed the company its continues growth and

success in the market.

Craig himself brings a keen marketing and advertising experi-

ence to the table, while the company’s General Manager Paul

Mifsud brings a wealth of experience in the rug retail industry

and a passion for the product. All of these skills are tied to-

gether by the accounts department, who work to keep costs

down. The three key members work together, meeting each

Monday to share ideas and keep their finger on the pulse of

the company, the consumer, and their business.

And business is good, operated with a strong philosophy

of valuing staff, creating a second to none customer expe-

rience, and understanding the ever changing fashion of the

rug retail industry.

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“We focus totally on our staff. Of our 150-odd staff, more than

half have been with us for more than ten years,” says Craig of

the business’ unique company culture. This longevity can be

credited to the positive work environment inspired by Craig’s

leadership of the company, as well as staff commitment to

remaining knowledgeable about the products and provid-

ing excellent customer service. “We really pride ourselves on

making our customers number one while focusing on the

simple basics of good reselling.” Customers are indeed enjoy-

ing their shopping experience at Rugs a Million, benefiting

from the service and selection provided by the company’s

well trained and knowledgeable staff.

“We pride ourselves on making our customers number one.”

Rugs a Million stays at the top of the marketplace by ensuring

that its rugs are current, fashionable, and of high quality for

its customers. While offering the highest quality, handmade

traditional Persian style rugs, Rugs a Million also designs and

imports all the latest fashions from around the world to meet

the tastes of all of its customers. “Our buyers are up to date

with the colours and fabrics and designs most desired by

today’s consumers, and we make sure we have the range of

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rugs that people want,” says Craig, a range which is second to

none in the marketplace.

The company’s user friendly five year warranty and money

back guarantee is also very appealing to choosy customers,

as is the business’ policy of allowing customers to bring rugs

home to give them a try.

“We’ve gone through a consolidating era and are moving into a growth sector

through the toughest retail times our country has ever known.”

“Today’s consumers are very well informed because of the in-

ternet,” says Craig, “and we ensure that when customers come

in they get good solid product knowledge and old fashioned

service.” The company’s web store, though it accounts for

only about 2 per cent of sales, is a great way for customers

to get to know the product before they make their way into

any of the many physical retail spaces the company operates.

“We embrace the website as synergy, not an opposition. It’s

one form of a driver to get customers into our stores,” says

Craig of the role played by the company’s web presence. “We

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benefit in that we do not have the internet as competition

because rugs are still a touchy feely purchase and colour is

not represented accurately on the computer screen.” Craig

expects the company’s web store to continue to grow, but

does not anticipate it forming a significant part of the com-

pany’s business in the near future.

The company also attracts customers to the store with its

annual television marketing campaign based around the

seasons. Often, customers who see the television ads are

prompted to research products on the website before ac-

tually entering a store to make their purchase. “We run a

very strict advertising campaign annually, based on the

seasons, that allows the Rugs a Million name to be foremost

in our market.”

The company has resumed growth generally despite the

recent dip in national markets that businesses have faced

across the board. In 2008, the company understandably took

a fair hit as markets fell, but with strong leadership, Rugs a

Million has been able to navigate the market successfully

where others have not.

“At the end of 2008, this company did not sit on its laurels

– we reacted immediately to the national financial situation

by cutting off every bit of dead wood the company had,

including retail locations.” Craig felt that to remain com-

petitive, it was important to make the company as lean and

strong as possible.

“Rugs a Million stays at the top of the marketplace by ensuring that its rugs are current, fashionable, and of high

quality.”

“I could sense tough retail times ahead, so we worked to be

safe and survive anything the economy could throw at us.”

The company has not only survived this major test, but

as of the 2011 financial year, is experiencing real growth

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and increased profits. “We’ve gone through a consolidat-

ing era and are moving into a growth sector through the

toughest retail times our country has ever known.” Even in

Queensland, an area Craig says has been hit particularly

hard, the company’s four new retail locations have all had

very successful openings.

Although Rugs a Million has manoeuvred itself to the top of

the rug pile, so to speak, Australia’s rug retail industry has suf-

fered generally with fewer imports each year and consumers

buying cheaper rugs. “The industry has bottomed out in my

opinion, and as soon as a little bit of confidence has been

restored in the market sector, sales will increase considerably

as a ‘catch up period’ ensues.”

Rugs a Million imports about two thirds of its stock directly

from overseas wholesalers, and the company has built strong

relationships with its vendors, enabling it to amass extensive

buying power. “We probably import 150 containers a year,

which makes us a serious customer for many manufacturers. I

don’t believe anybody can buy better than us so we can keep

ourselves competitive in a tough retail environment.” Rugs a

Million uses its buying power to pass on significant savings to

customers who are hard pressed to find a better price for rugs

anywhere in the nation.

Going forward, Craig sees continued measured growth and

new successes in the financial year to come, as the company

projects another increase in profits over last year. Planned

growth in its physical locations as well as in the web side

of the business means that Rugs a Million will be moving

even more rugs this year than last and expanding across

the nation to serve more customers with its supportive,

customer-centric experience.

Page 10: Rugs Brisbane

675 Victoria Street | Abbotsford VIC 3067 | Phone: 02 8412 8119 | ABN 93 143 238 126

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Rugs a Million - Browns Plains Brisbane | Shop B01, Village Square Shopping Centre, 18 Commercial Dve, Browns Plains, QLD, 4118 | Online order enquiries: (07) 5579 0513

For more info:

www.rugsamillion.com.au

www.saleaseman.com.au