central south mid market 17 ESSENTIAL GROWTH INNOVATIVE INTERNATIONAL ... continued
lifecycle relationships with customers.
For example, the export of knowledge and expertise, rather than (or alongside) physical equipment and goods, is often how business is now done in the globalised world of engineering, the report notes.
CASE STUDY: Farrow & Ball Kim Hayward (left) and Arbinder Chatwal of BDO Southampton
Confidence-building business aspects that mid-market companies can bring to international markets are product and service quality, proven company reputations, creativity and technology or intellectual property. These can maintain competitive edge and exporting success in today‘s
Turnover: £70 million
Staff: 500 (250 at Wimborne factory)
Founded in Dorset by John Farrow & Richard Ball in 1946, paint and wallpaper pioneer F&B manufactures and designs premium quality eco-friendly water-based paints and FSC- accredited wallpapers. In the 1990s, it launched its website
www.farrow-ball.com and opened flagship showrooms in London, Toronto, Paris and New York. It has embraced the digital world and now has 50-plus showrooms in UK, Canada, Europe and a global stockist network plus colour consultancy operations.
F&B has achieved impressive international growth by adopting the latest marketing technologies, adapting to customer requirements, while successfully maintaining its important British artisan heritage.
Initially, F&B began exporting simply through customer orders from France and Canada. Buyers became F&B distributing agents,
attendance at ‘Maison D‘Object, the key international industry show, brought exposure and over the years shipping orders to 50- plus countries, explained CEO Don Henshall.
The company updated, restructured and step changed its growth during the 1990s, moving from B2B to a consumer- focused model, appointing its first independent stockists, starting to make artisanal wallpapers, opening international retail showrooms, and using digital technologies.
When Henshall joined F&B in 2010 it had started its international journey, but only had direct control of its UK and US markets, with the latter controlled from Canada. His biggest influence over the past five years has been focusing F&B activity on its four key target markets – UK, America, France and Germany – taking over retail territories and brand awareness from its local agents. ”Marketing money then benefits your objectives, not the agent‘s as well.
”By putting investment in those overseas markets, we have made
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – JUNE 2015
them profitable and sustainable. I am a great believer in the clustering and critical mass effect of retail stores. It‘s a much more efficient way to manage. We do not open new markets at the expense of optimising the financial return we will get from our four core markets.”
Interestingly, since a 2006 MBO, F&B‘s accelerated international growth strategy has been underpinned by private-equity funding. New Zealand university educated Henshall brought extensive international experience to his CEO role, having had board level directorships for major consumer-focused multinationals in USA, Scandinavia and the UK.
Top five tips from CEO Don Henshall
International markets can be very different: Fashion and design qualities are key in some F&B markets, product manufacturing and environmental credentials in others. ”Great brands have core truths about them and they stay consistent across all markets, but how you communicate those truths can vary.”
challenging global arenas, but overseas presence is vital as a company‘s international trading grows and it faces increased competition globally.
Foreign investment options – JV, partnership, franchise, acquisition, greenfield development – trading strategy, business hub development and future markets need to be carefully considered; not forgetting the need for administration structures to deal with financial implications, cross-border transactions, local and parent financial reporting, tax planning and compliance with taxation and regulation regimes in differing markets.
Faced with such issues, it‘s advisable for MSBs to have some expert guides and professional companions with them on their journey.
Walk don‘t run: ”The biggest single mistake is to try to operate in too many markets at once.”
Red-tape and localised regulation: It can be the proverbial business ‘elephant‘. Set up functions to steadily ‘eat it bit by bit‘.
Sustainable growth: Focus on the biggest opportunities, but assess them in a data-driven way.
Recognise your skills and deficiencies: Seek advice, and not just from one source. ”It‘s so important for your professional advisers to understand your company and its goals and have the depth and network to support you. You need to have the right people on your bus.”
If you would like to see the full list of the leading Central South mid-market companies growing globally, please contact Danielle Rushton: 023-8088-1700
danielle.rushton@
bdo.co.uk
www.businessmag.co.uk
CONFIDENT VITAL
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