Keep calm and carry on
Kondor, 49th on the Solent 250, a value-added distributor of accessories in the mobile and consumer electronics channel, with a depth of key brands and complementary own brands, provides out- sourced services to the retail, etailer and mobile networks. Sue Hughes spoke to managing director Robert Haycock
A private company with more than £27 million invested in working capital, Kondor, based at Christchurch, operates in one of the fastest- changing environments – accessories technology – where a long-term product is spoken of as one enjoying more than three to five months of shelf life.
Established in 1994, it is the UK’s premier distributor of mobile and consumer electronics accessories and set to double the size of its facilities this year. Long-standing partnerships with mobile networks, mobile phone retailers, key high street retailers and grocers, which equate to the best channel coverage in the industry (around 12,000 of the 15,000 in the UK market) have resulted in unprecedented growth.
Having relocated in 2011 from four warehouses near Ringwood to new 60,000 sq ft purpose-built offices and a semi-automated fully-barcoded warehouse, designed to last for eight to 10 years, Kondor has outgrown the space. 2013 sees building work commence this month on an adjacent site. Haycock explains it will be a duplicate site: “Kondor has invested in everything you see here and, with no cash restraints, is fortunate to be able to tackle a project like this.
“We’re quite a cautious company, a bit shy really, because it is more important that our customers and brand partners are shining, therefore we do keep a lower profile than others in the technology sector.
“For some customers we are an outsourced arm, such as the big etailers and retailers, for others, such as Samsung and Nokia, we source product for them,“ he explains. “We also have own brand development to enhance retailers’ margins, which are highly successful because they are quality products akin to some of the most well-known brands.“
In a very strong position in the marketplace, Kondor analyses all sales data weekly and can respond incredibly quickly to market drivers, although lead times are more normally six to eight weeks. It ships to 18 distribution centres four times a week and provides everything for some customers – a total package for Amazon for example, featuring promotional videos and all product imagery. This alone sets it apart and to undertake this aspect, it employs eight promotional people, including animators and an inhouse photographer. Professional imagery and content can increase sales online by 30%.
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With turnover around £68m it is highly optimistic and envisages 25% growth next year, ambitious for a relatively small company, which comprises five directors and 150 staff.
“Come into the toy shop,“ says Haycock, knowing the wow factor generated on entering the multifunctional showroom – it’s hard not to be blown away by gadgetry displays, some as yet unnamed, everything consumers have, want and have yet to imagine they want for a plethora of smartphones, tablets, and audio and gaming devices (both traditional and remote control which can be controlled from an iPad). The showroom includes brand showcase areas, a merchandising wall, audio demonstration environment and informal meeting area.
If he had to cite an obstacle for growth in 2013, it would be HR; he has the budget for 30 additional staff, but it is not so easy to find suitable people. The company is starting a graduate programme this year and with Bournemouth University’s media talent, can tap into graduates on the doorstep and further support the local economy. “Our recruitment policy is pretty constant,“ Haycock says.
Keeping gadgets safe and accessorising them with the latest on-trend covers (think Union Jack and the ’Keep Calm and...’ ranges so popular with the Jubilee and London 2012) is an unstoppable snowball: “Tablets are driving growth, but although we are aware of what other companies are doing, we’re not actively looking at acquisitions. New markets are of interest. Exports are currently at 1-2%, so a big part of this year’s
recruitment is to bring on board people to take that figure to 10%.“
A sales arm in Hong Kong sells products internationally – they are mostly manufactured in China, Korea and the Philippines: “Having created an export hub overseas we want to boost growth into Europe.“
With the iPad mini boosting tablet ownership, new acquirers want cases, attachments, mini speakers and numerous ’i-bits and i-bobs’ which comprise cool kit for their cool gadget. So what’s next? Haycock says action cameras, currently very pricey, will be the next to be developed and priced more modestly, without compromising on quality.
Kondor, secure with its funding and enjoying a good banking relationship, is financially stronger than its nearest accessories’ competitor 20:20. All five directors have share options and the great incentive for young staff is the kudos of working with blue-chip names. Some move on, some remain, but Haycock is pragmatic, viewing it up to a point as building long-term contacts within a burgeoning industry.
An accountant by career background, Haycock’s target this year is to add up square footage and find space for more people: “I’d like to get the new building finished by September. Then looking at the growth of devices and mobile platforms, see pay-by-app or swiping increasing as technology allows consumers to trust safe transactions.“
And a key message for the Government: “We’ve looked at growth fund initiatives, but we don’t qualify. They help with initial employment, but we’re no longer a start up. Mid-category support would be welcomed.
“We design things, we sell them, we provide what customers want.“
Keep calm and carry on Kondor. SOLENT 250 SPONSORS
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THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – MARCH 2013
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