Howard Harrison, Benoit Ruscoe and Alastair Hops
have taken the humble laptop bag and made it sexy. In this
exclusive interview, the founders of luxury bag company knomo share their thoughts on growing a brand,
why DJs need laptop bags and how Apple has kept them on their
toes.
Tell me about the business and where it came
from?
The idea for knomo was hatched on a business trip in 2004 while
waiting in line at the airport. I (Howard) realised
that virtually all the other businessmen and women around me were
carrying an ugly nylon laptop bag that was similar to the one I had
also been forced to carry with no other alternatives available. It
was a 'Eureka' moment, and while canvassing others for feedback,
two of my friends agreed that there was real potential and we
decided to team up to build a brand.
How did you settle on what the 'brand' would
be?
After realising the potential that the market offered in stylish
technology-relevant accessories, we decided that knomo would focus
on creating everyday bags that are stylish but also perfectly
utilitarian. It would be a fusion between a fashion accessory and a
functional workbag.
The brand name came about as a fusion of 'knowledge' and
'mobility', and although we have taken some criticism for it being
a little confusing to pronounce (the k is silent, like in the word
'knowledge') we have learnt to love it - it is pretty unique!
How did you secure funding?
The business was funded for the first two years by our savings,
supplemented by bank finance. We didn't take a salary during that
time. In 2008, we raised equity investment from the Capital Fund
and also from business angels. In 2010 we were struggling to
increase our bank trade lines despite significant growth and so
were forced to do further minority equity fundraising, which we
found via our main Asian supplier. This has worked very well to
supplement our working capital, whilst also strengthening our
sourcing partnership.
How do you keep knomo fresh and cool? I mean, it
looks to me like both the fashion and tech industries move on
pretty fast...
It is definitely a challenge to work seasonally on collections
to fit in with the fashion industry and keeping to their buying
seasons, while also keeping up with changes in technology items. We
started to work with an Italian design house who have been
instrumental in updating the product and introducing innovative
materials and designs. On the tech side, most of us in the business
are real tech fans so we all try to keep up with the hottest
gadgets and gizmos anyway!
What influence and support has Apple had on the
business?
Apple has always been a brand that we loved before starting
knomo and it became more relevant when we hit upon the idea of
designing technology accessories. Apple is a phenomenal brand that
is moving very fast in both product design and innovation as well
as in its retail presence, and the energy and excitement behind
this brand has definitely fuelled and motivated our growth. Our
presence in Apple stores has boosted knomo's visibility and
provided credibility, and Apple has been supportive of what are
trying to do, since the very beginning
What, in your case, is the key to managing
growth?
Constantly being aware of all the various needs in the business
and trying to find budget to support that. Otherwise, the most
important factor has been managing working capital over the last
two years, while our business has been growing by over 55% per
year, and credit has become impossible to access. We have
improved our forecasting capability as well introduced stronger
product ranges with faster sell-through.
Can you describe how you coped with the setbacks
along the way? I'm thinking in particular of the
recession?
The recent recession has certainly had an impact on us but while
we carried on increasing sales through organic growth and
international expansion during the credit crunch, the biggest
challenge has been accessing working capital.
Can you give us the scoop on some of your
collaborations, how did they come about?
We started off focussing on fashion collaborations and worked
with London fashion design duo Belle and Bunty and from there we
have worked with much larger companies like Bafta, Twentieth
Century Fox and musicians like Erick Morillo. The Erick Morillo
collaboration is our largest to date, and came about via our brand
manager. We approached Erick about the chance to design a range of
bags that cater to a DJ's needs (all DJs use a laptop these days,
rather than a turntable!) and he was thrilled to get involved. We
pitched the idea to Selfridges who loved it and we worked together
to create a launch event where Erick could host a party in the
store and meet and greet customers.
What is your biggest
challenge?
Constantly keeping our designs fresh and relevant to both
fashion and tech markets, and trying to innovate the functional
aspect are key challenges.
What's the single most important thing you would
say to someone thinking of starting up their own
business?
Be very clear on what you want from your business and how you
want to achieve it. Work out what you stand for and stick to it in
all areas of the business.
What is knomo's five year
plan?
In the next five years we would like to see knomo to become a
highly desirable brand in our existing markets. We believe we can
continue to grow revenues at over 40% per year through expanding
our distribution in existing markets through concessions and
potentially our own retail online. We also intend to enter into
Asia, including Japan, China, South Korea, and India. We always
welcome feedback via our twitter account or our Facebook
page and we'd love to hear what Smarta's savvy readership
think!
Experience the knomo brand yourself with our exclusive competition.