Success story from swamps

By ELLEN READ

Being small has not hindered furniture maker Rose & Heather's quest for global success. In fact, the Newmarket company sees its size as a bonus.

"The fact that we are a small business is the key," managing director Martin Bell said. "We're a classic New Zealand story."

Rose & Heather has just over a dozen retail staff in Auckland and Sydney and about 40 cabinetmakers. Its first export order was for tables and chairs for the restaurant in New Zealand's expo stand in Brisbane in 1988.

In the past two years the company, which makes furniture by hand from ancient kauri from Northland swamps, has increased its exports from $620,000 to more than $2 million last year.

The effort won it a Trade New Zealand Export Award last month and put the company in contention for the Exporter of the Year award to be announced next month.

Trade New Zealand account manager Anne Chappaz called the company a successful mix of family values and craftsmanship combined with strong business practices.

"They have a 'customer is always right' attitude that sees a high level of care displayed in their retail outlets and also in after-sales service. They have also added value to their business by offering clients an interior design component that complements the furniture purchase."

Bell says the family-owned business started exporting in 1992, focusing on Australia because of its proximity, cultural and design similarities and because it offered a market five times the size of New Zealand's.

"To become established in the Australian market and position ourselves as a premium brand, we chose to ride on the coat-tails of David Jones, an established company operating in our market segment."

While this strategy succeeded, in 1998 the company decided to make a total commitment to the Australian market and sell directly, opening its first overseas retail outlet in Sydney's North Shore. It now owns and operates two stores in Sydney and two in New Zealand.

"Opening our own retail store enabled us to move from selling product to selling our brand. By establishing a very close relationship with our customers, we can sell them the whole bedroom suite, not just the bed," Bell said.

That was where being small helped, making it easy to transfer systems and protocols from one outlet to another.

"When you buy from us, you buy into a system. We maintain a level of consistency and service."

Rose & Heather has about 200 furniture products in four ranges, all constructed using traditional cabinetmaking techniques.

To strengthen its position, it also sells complementary products such as bed linen and lamps. These are from a range of New Zealand manufacturers and artists who individually are not capable of exporting.

Bell says sourcing locally and exporting collectively under the Rose & Heather brand gives the company exclusivity of product overseas.

The kauri furniture - some of the wood dates back 36,000 years - is all made at Rose & Heather's workshop.

The company runs its own apprenticeship scheme to ensure a continuous supply of craftspeople competent in traditional cabinetmaking techniques.

Because it controls the entire process through to after-sales service, Bell says one of Rose & Heather's strengths is the intimate relationship it establishes with customers.

"We can react to feedback from customers in our retail stores, incorporating their suggestions into our product design and construction.

"Almost 40 per cent of our business is repeat, and our best advertising is our furniture in somebody's home."

Exports now account for 62 per cent of Rose & Heather's total sales. As well as Australia, sales are made around the world via a website and to visiting tourists.

The company is researching which overseas markets to expand into beyond Sydney. Bell says it will probably open a store in Melbourne next year and one in London in2006.

It is aiming for annual exports of over $6 million in the next five years.