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THIS BRAND SET TO RUN AND RUN
Reporting a 20% increase in turnover, British running apparel brand Ron Hill has exceeded its sales forecast for the half-year period to 31st October.Until this massive surge in sales, the company had been experiencing modest single figure growth for the last three years.
Commenting on the figures Mike Deegan, CEO of the OSC Group said:“We see the market increasing at around 5% currently, which makes our success even more marked.As a flexible, light-footed organisation with a small, dedicated team we are geared to be quicker off the mark when it comes to customer service. By using European rather than Far East factories we exercise greater control, which means having the ability to respond faster. In this way we can take the stock risk away from the retailer and at the same time help to maximise in-season sales at the full margin”.
Asked why the company was experiencing such growth, Deegan explained that it had taken time and work: “Back in the 80's the Trackster, a lightweight running tight, was the product that made the brand.However, what became clear from the drop in sales in the 90's was that one product from a company did not represent a brand - but a commodity.” Stores like Millets and Blacks stored the Trackster as a 'multi-utility product', but when the multiples started to turn the tap on it, it seemed it had finally reached the end of its cycle. The Ron Hill brand needed a revamp.
“Do we play to the past or re-invent the wheel?” was a question Deegan felt compelled to ask when developing a new strategy.He noted that the running boom had not ended it had simply changed.“The Marathon became more of a female thing in the late 80's and today more than half of Ron Hill's business comes from women.We now have a whole range of women's products for running, gymnastics, pilates and yoga.Gyms are now much more accessible, and women of all ages and sizes have become steadily more health conscious. This in turn has made them less self conscious about running outside of the gym.”
So it is that Ron Hill went from selling utilitarian products in Halfords to whole ranges in John Lewis.“It's taken five years of hard work to get here”, said Deegan. The brand has also just launched its biggest marketing drive in support of the Vizion Collection, along with a selected range of accessories including technical socks made from advanced, high specification fabric.
