Over the past five years, while most of the world's developed economies have been smothered by economic slow-down, Australia has flourished. InForm talked to Michael Westrup, Managing Director of Shriro Australia Pty Limited, on that market's continued growth as well as Shriro's successes.
Australia, the 'land down-under', is epitomized by an energetic, outgoing lifestyle, where almost anything goes. Shriro, with almost two decades of presence in Australia, has embraced this very same culture. Employees are young, enthusiastic and have a love and passion for the products they represent.
"Australia is a very sophisticated consumer market, and the market is constantly in demand of the most advanced products. The competition is all there, so too are the brands," said Westrup.
Dedicated structure delivers performance
Shriro Australia in the past used to focus on electronics and that remains an important business for Shriro. Casio products, marketed by Shriro since the company's early Australian beginnings, continue to be an important part of the business today. Casio's scientific calculator is in fact part of the Australian high school curriculum, and Shriro is the biggest marketer of Casio calculators outside Japan.
"We have separate business units for each principal and, for some of them like Casio, we have divisions within the business unit to allow our people to specialize in product lines. Taking Casio as an example, we have educators who work within the calculators division - and this specialization pays off, as the product meets the needs of the school curriculum," said Westrup.
Beyond electronics
"As the company continues to grow, the need to diversify beyond electronics has become even more important. This of course has also been facilitated by the fact that we have a centralized finance administration, warehouse and distribution departments that offers cost efficiencies and synergies. So, we can offer potential suppliers substantial cost savings," said Westrup.
Westrup and his team are quick to recognize changes in the preferences of the ultra savvy and trend-conscious Australian consumer. Less than 10 years ago, Australians only considered coffee to be something that came out of a jar, which you added boiling water and sugar to. The spread of 'caffeine culture' to Australia has generated demand for premium espresso and cappuccino coffee shops. Recognising the market potential, Shriro in 2001 introduced Gaggia's quality espresso coffee machines to Australian homes.
Shriro also acquired Merry Go Tots, a baby pram and accessory company, in 2003. "Child products provide a constant stream of revenue, which safeguards us against the impact of the ups and downs of other products' life cycles," said Westrup.
Over the years, Casio products have been joined by other electronics goods within the Shriro stable, including Thompson (color TV's, audio products), Gaggia, an Italian espresso coffee machines maker, and most recently, Binatone (cordless home telephones).
Refreshing an aged brand
It is not just about spotting new opportunities either. Shriro successfully turned around a barbecue (Australians are the kings of barbecuing!) and gas heater company called Everdure.
Shriro acquired the Perth-based Everdure in 2001 despite market cynicism. It successfully revolutionized Everdure's production technology and modernized its product design. Now, not only does Everdure make money, but Home Beautiful, a popular Australian home and lifestyle magazine, recently presented Everdure with an award for the best outdoor products - the Stirling Barbecue.
"We virtually had to pull the whole business apart and reconstruct it. Even though we did not have any prior experience, we went into a completely new field with Everdure and were able to achieve great results," gleamed Westrup.
The A team
"Following and anticipating trends is a near impossible task. The key is to identify people with genuine interest for the products we represent. For example, electronic musical instruments are sold by people who are not necessarily marketers, but who, more importantly, are musicians or music lovers. These people are intuitively closer to the heart of the consumers and can better foretell shifts in customer preferences," said Westrup.
At Shriro, special teams are set up around each brand and they become the authority of those products in the market. "It is horses for courses, which underpins the need and the importance of getting the right people to sell our suppliers' products. We often employ graduates and find out what their interests are before we assign them to a product," added Westrup.
The Australian team seems to be on a winning formula, and Westrup accredits the success to the entire team. Having the right sort of people is one thing, keeping them is another, and a work hard/play hard attitude is what keeps the place alive. When sales targets are met, it is time to whip out the Everdure barbecue set and try it out for themselves, barbecuing being a typical Australian celebration.
"In today's rapidly changing markets, we must add value to the products and the markets in order to succeed. This is crucial to our relationships with principals along with our ability to perform, and meet and exceed their targets," concluded Westrup.
Plans are already underway to introduce Lorenzo Banfi to the Japanese market. The shoes and accessories will be distributed through Shriro's sales network comprising of consignments with department stores and specialty shops. The addition of Lorenzo Banfi will strengthen the consumer division of Shriro in Japan, which already represents other prestigious Italian shoemakers.
