Lulu O'Sullivan, managing director of online retailer giftsdirect.com
What sets your business apart from rivals?
I would say that we have the largest range of gifts to choose from that can be delivered worldwide. You can order something today and have it delivered to your son in New York and it gets there speedily. Also, our other website, Siopa.com, which was launched last year, is focused at the Irish diaspora in the US. We offer a mixture of Irish brands like Belleek and Tipperary Crystal, but also smaller artisan producers. Only Irish products are sold on it.
What was the best piece of business advice you’ve ever received?
Understand the numbers. You really need to be able to know them and to monitor your KPIs [key performance indicators]. Know the ones that will have an impact on the business, and keep an eye on those.
What’s the biggest mistake you’ve made in business?
Focusing on increasing turnover as opposed to the bottom line. About 10 years ago, we more than doubled turnover, but the bottom line really suffered. We weren’t growing in a sustainable way that was going to last. After about a year or so, we realised how much of an effect it was having, and so we really got to grips with the actual sales that were making us money and those that weren’t.
And your major success to date?
It’s probably seeing the opportunity of going online. We were one of the first five or so e-tailers in Ireland, launching over 15 years ago. Up until then, we would take orders through a catalogue and phone. In the beginning, people said it wouldn’t take off, because why would people buy something they couldn’t see?
Who do you most admire in business and why?
Chuck Feeney, because of the scale of the business he built but also his philanthropy and the effect that his profits have had on so many people through education and health and other areas.
Also Moya Doherty, because she’s a woman but also because she seized an opportunity that was given to her and everyone was blown away by it. Others have had that opportunity handed to them and didn’t run with it. She created a worldwide brand, and thought big scale from day one.
Based on your experience in the downturn, are the banks in Ireland open for business to SMEs?
Luckily we’ve got the credit we’ve needed after 25 years of building up a very good relationship with the banks, but they are definitely very careful at the moment. We have been offered pretty much the same terms, but it just took a bit longer to make a decision and they asked more questions than they’ve ever asked before.
What one piece of advice would you give to the Government to help stimulate the economy?
The economy depends on consumer confidence. We can really see the effects here – if the news is really bad for a couple of days, we can see the effect immediately. I think the Government really needs to run a very tight communications strategy that actively promotes good news as there are plenty of things happening. It’s all about people spending money – people saving money is not helping the economy.
Thankfully for us, however, sales at both giftdirect.comand siopa.comare up. Emigration has helped. People's children have gone abroad, and they want to send birthday presents to them. About 70 per cent of our sales for giftsdirect.comare in Ireland and 30 per cent abroad.
What’s been the biggest challenge you have had to face?
We’ve had to continuously invest in the future. We’ve managed to stay the market leader, but that’s a constant challenge.
How do you see the short-term future for your business?
Our plan for siopa.comis to get that as well known with the Irish diaspora as possible. We're about to put 400-500 new products live, and will be looking at more wedding gifts and gifts for men. The future is about understanding what the customer wants and making it as convenient as possible.
What’s your business worth and would you sell it?
It’s always hard to say, but I would say between €4 million and €5 million. If you’re in business, you’re always prepared to sell if the price is right. It’s always the end goal. I would definitely consider it.
In conversation with FIONA REDDAN
