Danoz Direct targets multichannel growth
Danoz Direct has appointed a new CEO, tasked with growing the business via its three key channels: TV sales, e-commerce and wholesale.
Liz Diles, a 20-year veteran of Danoz Direct, was promoted to CEO in December.
“Danoz is embarking on a big journey and the next six months will see us drive online hard along with TV and retail,” Diles said.
“We don’t see the three channels cannibalising each other,” Diles said. “It’s just offering the customer easy ways to do business with us, to shop with us and to have access to our product.”
TV selling is still at the heart of the business, which is owned by Canadian company Thane.
“Everyday without fail our call centres takes calls from customers responded to our TV advertising,” Diles said.
“There aren’t many people in this country that know how to do it and certainly do it so it becomes a viable business model. TV advertising is very expensive so you have to know how to make it work.”
Danoz is also growing its wholesale business, supplying big box retailers like Big W, Harris Scarfe, Harvey Norman and Mitre 10. However the company isn’t interesting in owning its own Danoz Direct stores.
In the early 2000s the company invested in stores called Danoz Directions, which operated under a franchise model.
“It’s very hard to build bricks and mortar retail stores when you have a limited number of SKUs and when you have a focused offering,” Diles said.
“The product can change based on demand, or the next big thing coming around. It’s not something that you stock with toasters and kettles. It’s very hard to maintain that model. So we find it easier just to supply wholesale rather than try to do our own bricks and mortar.”
E-commerce has also evolved since the channel was launched two decades ago.
“The e-commerce channel launched in 1996,” Diles said. “It was a wordpress platform, it had a multitude of products on the site because we also had a catalogue business back then, so there was hundreds of SKUs, products varying from very low price points and high price points.”
Operating on a Magento platform, the online store now offers a more focused offering.
“We don’t have hundreds of SKUs anymore. We focus on a core range of product that we devote all of our energies to rather than have this multitude of product and hundreds of SKUs sitting in our warehouse.”
Growth is still a priority for the well-established brand which is exploring strategies around customer retention, increasing its wholesale base and tapping into social media networks, which is a much cheaper way to reach an audience than television advertising.
Diles said Danoz Direct recognises it is operating in a customer-led economy.
“We are focusing very much on the customer experience, we have very intense training sessions in-house with our sales and service teams to make sure they are providing the right service at the right time, understanding our customers needs and, more importantly, meeting those needs,” Diles said.