Case study: Clever Bastards

www.cleverbastards.co.nz

Launched in 2008 by designer and ex-creative director in advertising, Paul Kayser, beauty business expert, Michelle Procter and IT whizz, Blair Peach.

Have you worked in retail previous to launching your website: if so where?
No, but I did work in advertising as an art director and creative director for many years. In that time I worked on many retail accounts like Woolworths, Farmers and Air New Zealand as well as many iconic Kiwi brands.
What did you feel was missing from the retail sector that your website could provide?
At that time there were very few design stores in New Zealand. And one of the few, Eon who really lead the charge for NZ design, sadly closed its doors. Furthermore, the ever-growing design-hungry customers were no longer just based in the main cities, but all over the country, from small towns, right up to the back block dairy farms and they were going online. We could provide a mouse to door service.
There was also an opportunity to be more than a store. To be a 'place' you could hang out, read interesting stories about design and art, and to become a member of a community.
Another aspect of our model was to offer a low cost channel to market for the many and ever-growing number of talented artists, crafters and designers from all over NZ. Getting their work stocked in the local gift shop was the only option to reach a market. Now they could reach the world.

How important is social media to growing your business?
Imperative. Gone are the days when you'd open a store and wait for customers to walk in the door. Maybe a little ad in the local press would have given them a nudge in the right direction. Nowadays, the retailer has to actively engage with and relate to their customers in a meaningful and relevant way. That means going to where they hang out, interacting with them and offering something that interests them. And that does not mean SELLING to them. It's as much about giving something of value without expecting anything in return. It's about building a relationship. In this way the customer is more likely to be drawn to your brand or store.

What strategic marketing plans have you put in place to drive your business?
Large marketing strategies have not been our approach... mainly because of a lack of large budgets! We've been more inclined to trial many approaches and test the results. But the one long-term goal we've always had is to build an authentic following, not through bribes or expensive campaigns, but by consistently communicating with our audience. By working with all media, including social media, and providing genuinely interesting, unique stories about NZ creative people and what they're about as well as making.

What have been the benefits to running an online business rather than a physical store?
The obvious biggie is the lack bricks and mortar costs... leases, facilities, staff, power, insurance, etc.
The second is, there is no limit to the size and number of products you can 'stock' online so you can offer a wide range of options. This of course is limited if you do buy stock and have to warehouse.
Another for me is flexibility. I can be anywhere in the country, even overseas, and still run the business. I love it when I get up in the morning and find sales have been made while I was asleep. And when all the bricks and mortar retailers are working frantically up to Christmas Eve, I'm already at the bach.

Are there any limitations?
The hardest aspect of a successful online business is building and retaining customers. They don't know you exist; you're invisible to start with. Not only does it take time, but it takes resources in manpower [which is cost] and a consistent spend on online [and offline] marketing. Again cost. It requires skill and a huge dose of determination to succeed. You have to have a hundred [or thousand] times the customers you get in a physical store because the conversion rate of visits to sales is so small online.
The other and very obvious limitation is the lack of physical contact between customer and product. Designer products that have a high level of craftsmanship still provoke a desire to touch.

Do you believe online boutiques are the future of retail?
I believe that online boutiques will grow rapidly, though there will always be demand for the physical experience. That cannot be replaced entirely. However, with increasing innovation around the online shopping experience, and the benefits of convenience and the power the customer has in searching for options, there are no limits.