Online store takes success trans-TasmanNZ’s Fastest Growing Companies |
Country ’s second busiest website has seen revenue grow by leaps and bounds.
Hamilton-based online sports goods retailer Torpedo 7 plans to expand further into Australia with a second company offering a wide selection of unrelated products at bargain prices.
One Day launched in the domestic market two years ago with items sourced locally and offshore and is now New Zealand’s second busiest site after Trade Me.
Luke Howard-Willis, who founded Torpedo 7 with his father Guy in 2004, said products could include chocolates, perfume, clothing and make-up anything as long it was a good buy.
"We have a strong team of buyers searching New Zealand and the world, anywhere they can find a good deal," he said, "and once we have it in our warehouse it goes on sale for 24 hours."
"We plan to launch 1-Day in Australia next month and as there is nothing similar there we are expecting big things of it."
"Torpedo 7 is still going well with sporting goods and we have had record sales from both companies in the past three months." The business has listed in the top 10 of the Deloitte Fast 50 companies for the past three years at seventh, eighth and fifth with revenue increases of 447.59%, 968.32% and 570.65%.
Luke, then 25, and his father began Torpedo 7 after identifying a gap in the specialist sports market and imported product including clothing and accessories, mostly from the US.
"I was into mountain biking so we started there," Luke said. "People were interested in smart gear from the top brands which is cheaper overseas."
"We went into skiwear three years ago, then last year it was motocross and we are looking at others, seeing what’s out there. We want to do more outside the normal range of sports which are well-covered by the larger market."
"Our growth has been driven by finding what people want then doing it online pretty well at the best price and with very good service."
"We put a lot of attention into service, building customer confidence and making sure they get the product as quickly as possible, preferably overnight."
"And our website is pretty amazing, stock is controlled online and we take a lot of trouble with photographs as customers cannot touch or feel the products." Luke said that while his father was the company managing director he did not have a title but was responsible for growth strategies, product and marketing.
Torpedo 7 moved into Australia in 2007 and with a strong relationship with NZ Post negotiated freight rates which made shipping from Hamilton a viable solution rather than establishing a warehouse across the Tasman.
1-Day, he said, grew from Torpedo 7 offering three daily specials in 2007.
The business employs 85 full time staff with about 50% in the warehouse and the rest in IT, photography,customer service, finance and buying.
Deloitte Hamilton accounting and advisory partner Doug Wilson said the company’s strength was its team and innovation in tackling a niche market in which they had to think widely outside the square.
“The difficulty with net-based retailing is that people tend to have a lovely gooey front end but fail to recognise the need for a strong business model behind it," Mr Wilson said.
"Torpedo 7 has done that in its warehousing, dealings with NZ Post, finance and logistics issues."
"A lot of the dotcom companies of the 1990s failed because they did not recognise the harsh business realities needed behind the front."
"E-mail retail is a difficult sector price-sensitive and with high competition due to the low barriers to entry so people have got to be on their game to understand pricing, margins and the market."