We ask Paul whose company – Emelda Grace is The Furniture Partner for the Signature Awards and the Midlands Economic Summit for insights into his journey in the world of entrepreneurship.
Q: Why did you choose furniture?
A: I actually started off in the hospitality industry, an industry I still have a soft spot for. I grew up in my father’s sofa factories, weekends and school holidays all spent at the factory. So, it was a natural progression I guess when I set up my second business aged twenty-four, the margins in furniture were much better than teaching people how to make cocktails and throw bottles about like Tom Cruise.
I like design, architecture through to floristry. So, I do enjoy what I do which is important I believe. When it comes to furniture, there is a lot of poor quality being sold at ever increasing prices, especially when it comes to outdoor furniture. And this is where Emelda Grace slots in. Our mission is to provide high quality furniture at a fair price, accessible to all. We achieve this through innovation and savvy buying.
Q: And why particularly garden furniture?
A: Two reasons. First, I was looking for a product to sell that would fill the quieter periods of the family business and the second, a strong growth forecast in the sector. I spent a summer selling a well-known brand at consumer shows around the UK. To gain a USP, we manufactured our own cushions in-house using marine grade, all-weather luxury fabrics.
Our British made cushions, which can be left outside all year round, proved a great success and gave us the upper hand over companies who had been selling in this arena for 20+ years. At the end of that summer, I took a flight out to Guangzhou in China, the heart of China’s furniture manufacturing. I had found a couple of factories through Alibaba, or so I thought.
Turned out the factories I had been talking to were in fact only agents, this is fairly common practice in China I discovered. None the less, we purchased stocks for two years from China before I visited trade shows in Jakarta and Ho Chi Minh. I had heard good prices and honourable business practice were to be found in Vietnam. And as I mentioned earlier that trip to Ho Chi Minh proved to be the best move, I ever made.
Q: What challenges did you have when setting up?
A: Understanding different cultures and local practices with overseas suppliers was a challenge. We had our fingers burnt a couple of times, nothing too bad like some of the horror stories we hear, but it was part of the learning.
We made sure we did not make the same mistake again and soon, completely out of the blue if I’m honest, on my first ever trip to the annual furniture fair in Ho Chi Minh City, I fell on my feet meeting a business contact with a wealth of experience and knowledge of the Vietnamese furniture industry.
We partnered with our first OEM manufacturer, securing great prices and a proven supply capability, and designed our first collections, our Vietnamese operation was up and running. But even better than that, the business contact, Ivy Pham, and I are planning our wedding for next year. So, what began as a challenge proved to be a game changer for the business and without doubt the best thing that will ever happen to me.
Q: Why decide to export?
A: Why sell to one country when you can sell to the world. Today’s world is very connected, not only online but also in trade. Whether you are shipping a container to a trade client or working with a 3PL to deliver to the consumer, the infrastructure exists.
Sure, there will be challenges, if you are starting out and you do not have large storage and delivery volume, getting the right prices with a 3PL is likely to be one of them. But with research, networking, determination, and patience, it will come together and the orders will start to flow in. That is what I keep being told anyway.
Q: What does your current exporting look like and where do you want to take it?
A: At present we export to Europe and North America. We are working on new markets in the GCC as well as North America, D2C and B2B. Earlier this year we signed our first overseas showroom at the forthcoming Dubai Global Connect. A state of the art, 365 days a year B2B exhibition centre that is being built next to Dubai’s new super airport.
By getting in early, we secured a fantastic double-showroom in a prime location on the main piazza. This space will showcase our British and Vietnamese made collections to buyers operating in luxury retail and hospitality across Europe, the GCC and Africa. We are now looking for a B2B space in North America. We are also building 3PL partners in these regions to sell through marketplaces D2C.
Q: What Opportunities exist for you?
A: We are in the early stages of setting up a new company, Connect Vietnam. We’ll be connecting Western companies to leading Vietnamese factories and producers that include coffee, fashion and furniture. Our USP here are my native business partners who have helped run some of the largest manufacturing companies in Vietnam, across all sectors.
We’ll also be taking products from around the world into Vietnam for the domestic and export markets. One example of this is our current conversations with composite board manufacturers in South America and India for supply into Vietnam to service the booming furniture and construction sectors.
Another that I am working on is a large-scale home furnishings concept that will serve the end user as well as B2B clients, globally. The B2B side of it brings something new and will open us up to a large, whole new market. It will also offer large retailers the opportunity to reduce their carbon footprint. So, there is lots happening at the moment. Exciting times.
Q: Why do you think big and others do not?
A: Some might say because I am a dreamer. I say it is because even if you only get close to where you set your targets, you might get a lot further than you otherwise would have. The home furnishings concept I mentioned is big, but with the right idea, a solid supply chain and the correct people in the team, big is possible.
We know it is possible, others do it, have done it, will do it. So of course, so can we. I am not trying to reinvent the wheel, big furniture has been done before, but this idea is different. I am leveraging our Western and Asian knowledge and networks with a bit of innovative thinking to find a new angle.
As for others, I think some people worry about trying to go big. And some people see a benefit, and reap the rewards, for not thinking big. There are arguments for both sides. Personally, I like a challenge.
Q: Where do your ideas and innovation come from?
A: Good question. I like to look at problems, understand them and then fix them. So, the innovation might come from that?
My ideas, I really do not know. They just pop into my head, usually about 2am just as I am falling off to sleep. Ping! And I am awake all night.
Q: What is the benefit of exiting the family business?
A: Not being charged with murder probably. My dad and I are very close and love each other very much but wow, we used to argue. Only ever about work, different opinions and ways of wanting to do things.
We still work along aside and support each other but creating a second business to complement the other was the best thing we ever did. Maybe we will merge once my dad enters retirement before we split them up again when my children join me.
Q: What have you learned that others might benefit from?
A: To never give up. I have heard it so many times from the big success stories. Even when you think it is all over and there is nowhere left to go, keep on. Learn from the mistakes and keep going.
Another thing I like to keep in mind is the Albert Einstein definition ‘Insanity: doing the same thing over and over again and expecting different results’. If something is not working the way you had planned, do not be afraid to switch it up.
I see too many people hit a barrier and start to give up. We must roll with the punches, stay resilient. There is nearly always a way around any challenge, keep probing and exploring alternatives and the solution will pop up.