Custom-fit comfort for the fleet of foot

By LIBBY MIDDLEBROOK

If David Boyd was an Olympic marathon runner his feet would probably be the envy of the fitness community.

The Christchurch man runs Foot Science International (FSI) - a 20-year-old manufacturing business that delivers some of the world's premier custom-fitted insoles to sporting and medical professionals.

Set up in 1980, FSI exports to 22 countries with sales in Europe expected to double in the next 24 months.

From tender stumps to overgrown paddles, millions of pairs of feet around the world are wiggling with delight thanks to the tiny South Island company.

"The most important thing about being successful is not being really clever but just having enormous perseverance," said Mr Boyd, who jointly owns FSI with Dr Charlie Baycroft and two minority shareholders.

"You've also got to have an absolute passion for what you're doing and a tight focus on your target market so you don't end up spending money in a scatter-gun approach, thinking you can sell your products to anybody."

A focus on foot comfort while working in the ski industry led Mr Boyd to insole manufacturing.

During a chance encounter with Dr Baycroft in a retail ski shop, the pair swapped notes on the quality of insoles available and eventually came up with Formthotics - a polyethylene foam-based product which could be moulded inside most types of footwear, including ski boots and golf shoes.

"Before either of us had met each other we were both looking for the same kind of product and were both playing around with the same sort of idea. As it turned out it was great that we didn't know what we were doing because we've managed to come up with a unique product. In 20 years I've never seen anyone else do what we're doing."

Many insoles are manufactured via injection and compression moulding, but FSI's Formthotics are ground or milled from polyethylene foam, allowing for more consistent weight distribution.

While the process was initially capital and labour-intensive, after eight years of development the company came up with a machinery-based system that allowed FSI to limit staff to 14.

In the development process, it became clear that a strong export business would have to be rapidly established to sustain FSI's long-term future.

The United States was not a viable option because of fierce competition in the insole industry and Europe became the focus. Through Mr Boyd's contacts in the ski industry, FSI licensed overseas distributors to market and sell Formthotics for up to $80 a pair, targeting industrial, medical professionals and the premium sports market.

" One of the biggest mistakes when we first started exporting was wasting an enormous amount of time, energy and money thinking that we could sell our products to anybody," he said.

"The real change in our export business was when we finally woke up and realised that the key to success was deciding on our market and staying as narrowly focused as we could."

The company sells up to 150,000 Formthotics annually, at $50 to $80 a pair, with FSI's turnover expected to grow to between $3 million and $5 million by January.

"We're trying not to expand too quickly because the key we believe to our success in the next few years is consolidated growth within the countries in which we already have opportunities in.

"Most New Zealand companies we see in the export market don't think long term enough. They expect to decide whether they have succeeded or failed in an overseas market within a year to two, and that's just ludicrous."

FSI is stamping its brand name throughout Europe via an advertising and marketing campaign, which uses internet, international trade shows, point-of-sale material, displays and videos.

While New Zealand manufacturers were often reluctant to employ marketing consultants, Mr Boyd said advice from promotions specialists had been the key to the company's export growth.

"New Zealanders, particularly manufacturers, have far too much belief in the do-it-yourself mentality.

"It was a trap we initially fell into. If we had taken on more specialist advice, I think we would have been able to accelerate what's happening now."

Mr Boyd said another trap the company fell into during its early days was pursuing design patents, rather than trade mark and marketing issues.

"That was one of our biggest mistakes. It's a very easy way to be rid of vast amounts of money and even if you are successful in getting them it's unlikely that they give you any real form of protection against someone who wants to knock you off."

Meanwhile, the company has just launched a $75,000 national advertising programme aimed at increasing domestic sales. The print and internet-based campaign promotes foot care along with podiatrists from Invercargill to Auckland.

While FSI has largely avoided publicising its brand in the campaign, Mr Boyd said by promoting foot care the company hoped to increase Formthotics sales through public awareness.