Business Case Study – Tom Joules (from Joules)
Seminar in Leicester College GP Hall in 21/01/2015 at 11:00
website: http://www.joules.com/
Tom Joules began his business like a one man with a van.
At the 1st year of his business in 1989, the overturn is 70k per year.
In the 2014, his business has an overturn of 70k every 5 hours.
Tom Joules describe his business at the present is a 24/7, 365 days retailing business, which is not a traditional retail business – it is because the benefits of using internet.
In the Christmas period of 2014, the online sale figures of Joules is over 154K.
The overall sales number of 2014 is over 100M.
Tom Joules think that his business is a design leading business, but work closely with buyers.
At the present (1st quarter of 2015), Joules has employed 2000 people.
The business story of Tom Joules:
Tom Joules’ father do business and owed a local shop, he watched his father and learn how to do business. When he grew up, he started to work for his father, which he found that work for his father is not easy and he quit after 6 months. After that, he become a car sale man but then he found that he didn’t like selling car, he wish to do something else which about clothing because he love it.
While he work as car sale man, he also do horse show or farm fairs with his father – which lead him to stop selling car and start his own business. He pledged his house to buy a business which sell hat and accessories in stow / road shows at the beginning. “At the beginning, the business also produce for branded company.” Tom Joules said.
“But it didn’t work out.” Tom Joules think that it wasn’t a good idea to make product for branded company, so he started to do product design for his own business and giving up working for brands.
At that time, his sale’s channel are stow / road shows, which he did make a good success from it. As the business grow, he re-pledged his Properties to get more money to produce more. “Accident happens.” Tom Joules said. After a while, stow / road shows company contacted him and told him the shows have stopped due to the animal virus (foot and mouth) spread out in the country. They have to stop the show because their show is about farming and animal, they can’t do it without them.
This problem cause him a lot of difficulties because he just invest a big money into the production and now he has no channel to sell. For him, it is no way back, so he need to put himself forward to think and start something else.
He started to wholesale products to retailers.
When he begin the wholesale channel, it wasn’t easy. It is not just because the retailers is hard to deal with, it is because they don’t believe in new products. It takes time to build up trust and relationship. Secondly, the retailers only pick up the products that they interested in the sales channel.
“They just want small amounts of kid’s wear, it is because the bestselling products is children clothing, then woman’s, shoes, accessories and last the man’s wear.”
“At the beginning, they just want small amount of products to try, but after 12 months, they want more and more, and when they want everything we produce.”
“It is because we believe in our products and our products is good.” Tom Joules stated.
In 2001, Joules’ overall sale is 1.5M, and 2003 is 2.5M.
Even Joules had a good wholesale channel, but he still keep the event channel running.
“It is important as a lot of business don’t know about their customer and have no connection with them.”
Tom Joules understand customer’s information and review is valuable for his business. In 2003, his start taking customer’s details and produce catalogues.
In 2005, he received ECMOD award and at the same time he started selling products online and catalogues.
From the research, 18% of people received their catalogues from event will shop from Joules – it is because customers have met them and been treated comfortably, it makes them have good memory and believing that they are belong to the branding, the branding can represent them, it is why they buy.
During that period, Joules have three sales channel.
Tom Joules mention that networking and social channel is important, it is because they follow social trend instead of fashion tread – that making them a lifestyle brand.
His design sometimes were inspired by TV program – specially the program about countryside. He like these program and love to do something to response to that kind of lifestyles.
“I am not selling clothing, but a lifestyles.” Tom Joules said.
At the present time, 95% of his customer buy products from online and catalogues platform.
When Tom understand the publication is important to both customer and business, he start making magazine for the goods of customer and product promotion, but the main purpose of the magazine is to give customer information which is helpful and about lifestyles.
At the same time, he opened the 1st store – which making a overturn of £11000000, tome think it is a good result but cannot compare with online and catalogue sales because the rent is expensive.
The main reason he opened a shop is because he got the money and needed to invest into something, a retail shop is good as it can get more market share to the business. While he open shops, he always select the metro area instead of high – because metro area match their styles and more classy, also the rent is cheaper. The rent contract is 5 years, he don’t like long term because anything can happen in retail business.
In the business side, Tom Joules has deeply influenced by John Lewis and he always observe how they do business.
John Lewis is one of Joules’ wholesale customer. At the beginning, John Lewis buy kid’s wear from Joules, when baby, man, nightwear and accessories.
The reason he work with John Lewis is because John Lewis understand customer and they provide good quality service.
Tom Joules believe he is successful because he is good at design and marketing, furthermore he is creative, but most important is he understand customers.
He is weak in sourcing, warehouse, stock management.
Joules has 5 channels to sale, which are retails, online, catalogue, wholesale and show.
After the success, he and the people in the company were lost – numbers of people quit the jobs, because they lost the mojo, start to think over and not sure what to do next. Lack of version will be a big problem. It is important to do research and get inspiration and keep yourself into something – which he get inspired and start a new campaign called “right as rain”. As Tom said “You always need to push yourself and try things which is new.”
In 2013, Tom Joules has sold 31% of company shares to investor – he no longer the boss but he think it is good idea as he need to meet and work with outsider which he can always learn new things.
He is now trying the international market, but it is not the main target of the company – Tom said it is fun to try and understand different market, as understand different area and culture, customers have different needs and wants.
Joules have tried to use online selling platform such as amazon as well (in US).
The recommendation and interesting point from Tom Joules:
He always have competitions, try not to compare but walk in your only path with your vision.
While work, involve with people, surround by people and work with good people.
Be yourself and do things that you enjoy.
Do things that work and always move forward.
Only sign rent for 5 years, not long term.
Understand the show before attending it.
Always to research.
Tom Joules don’t manufacture product.
Sourcing small run manufactory / production factory at beginning in your business.
Tom Joules always have problems with manufactory for QC, price, schedule etc… use your own QC and make check list.
The social network/channel is amazing. When people buy, they have feeling that they are being a part of something or a group.
People around Tom inspired him, also customer inspired him.
Joules have their own glamour and textile technology / department.
Men’s wear is 12% in total selling of his business, woman is the main target.
Stay connect with customer, keep understand and predict.
By looking the WGSM to understand the trend of fashion.
Follow the trend too much will fail.
No. 1 rule is do fashion maths.
Try and work hard to get yourself in front line.
Be creative to get yourself more competitive.
Don’t let yourself down by mistake, everyone do make mistake, learn from it and move forward.
Have positive thinking and be rational.
Tom Joules like business is simple and have one iconic product, he recommend people do / make something simple in business.
Do things is profitable and think how much you get from the product – if to make the product cost £5 and sell for £16, he won’t do it, but if it cost £5 to make and sold for £29, he will do it.
In the future, Tom Joules wish to:
Targeting US market and continues to grow online.
Work 3 days instead of 5 days a week.
Be tough and believe in yourself.
Want to see more, please go to: http://www.chilam.co.uk
Want to see more, please go to: http://www.chilam.co.uk
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