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Home / Business / Small Business

Kitchen specialists find growing demand

By Georgina Bond
30 Jun, 2005 08:19 AM3 mins to read

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Two schoolmates from Britain are cooking up a winning style in kitchens at the West Auckland kitchen company Moda.

Ian Smith and Nick Leack have teamed up to lead one of New Zealand's fastest-growing modular kitchen specialists, named best small business at the Waitakere City Business Awards last month.

They
have known each other since they were 12, having attended the same school in Liverpool.

Smith, a mechanical engineer, joined Leack in New Zealand five years ago when he took a position as systems manager at the Incredible Kitchen Co, now called Kitchen House.

During his year on the job, he came to see the local kitchen sector as a cottage industry begging for a branded player to come along.

"You'd have struggled to name four brands in kitchens," Smith said.

Selling his house in Britain to provide cash for the venture, he set out to change that picture, making many of the early cabinets himself.

He wanted to offer customers the best of both worlds - cheaper modular kitchen models where all parts are pre-built, but with scope for individuality.

Moda's Modul-plus allows a certain degree of customisation, so customers still get to express their individual style.

Although at the budget-end of the market, Moda uses many of the quality materials used by its bigger, custom-made kitchen competitors, including MDF board, granite, stainless steel and top appliances such as Classique and Smeg.

But the price tag is more appealing. Moda customers pay between $3000 to $8000 for a complete kitchen, from design through to installation.

Smith said the company's production systems saved costs.

The factory used Japanese manufacturing technique ISO9000, which involved checking and rechecking the project against its criteria at every stage along the way, which drove efficiency and avoided errors.

"With kitchens, there are about 200 odd variables you could get wrong, from handles, mounting, colours and finishes, and mistakes are where some of the biggest costs lie," Smith said.

The company makes 10 kitchens a week and is aiming to increase this to 15 by Christmas and to double that figure next year.

Turnover was $1.5 million last year and the company has projected $2.5 million for the year ahead.

Leack, who has a background in customer service, joined the company as sales manager in 2002, and manages Moda's new showroom in Henderson.

Smith oversees the production systems, finances, and the 10 sales and factory staff.

Smith said Moda, which is Italian for fashion, was a brand name that could lead the company into other areas such as bathrooms, vanities and furniture.

While it had always been his ambition to have his own company, he did not think it would have been achievable in Britain.

He said New Zealand had fewer "big boys" to compete with and the kitchen market was less brand-aware, which allowed small players such as Moda to get a foothold.

Smith wants to set up showrooms nationally and is eyeing Australia as the first export market.

What's cooking?


* Kitchen company Moda is run by British schoolmates Ian Smith and Nick Leack.

* Its Modul-plus model offers more flexibility in design than traditional modular or pre-built kitchens.

* Moda was named best small business at the Waitakere City Business Awards last month.

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