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MCV 13/11/09 49
DISTRIBUTION SPECIAL: CREATIVE/MERONCOURT
While others are simply surviving in the current economic climate, Creative Distribution is celebrating record turnovers. James Batchelor speaks to managing director Gareth Dain about the secrets of success… How good has business been for Creative Distribution in 2009? This has been by far the most successful year in the history of Creative. We have seen our turnover more than double to £38 million in our last fiscal year. We have turned the rather unsettling economic climate into a positive and learned that if you push yourselves during difficult times you can really prosper.
How do you plan to continue this growth next year? How high are your sights set? We aim to capture contracts with some big brand non-traditional companies here and abroad to supply video games.
Are there any particular factors that have led to this success? With the help of the popular ex-EUK executive Kevin Young, we have signed a number of preliminary agreements to supply budget product into some nontraditional outlets within the UK and Europe. In terms of hot sellers, Wii and PS3 continue to be the stand out formats for us.
We also aim to surpass a turnover of £50 million and have plans to launch departments wholesaling within entirely different industries.
What do you think about the new deal between Trilogy and The Producers? I think this is a great idea and I welcome it. This industry, more so than others, doesn’t always like to see others doing well, but I wish Matthew and his team all the best.
What have you learned from this turnaround? The biggest lesson we have learned is to believe more in our decisions and what we have to offer.
Is such a partnership an indication of which direction the distribution sector is heading in? I am certain of it. Deals like this make commercial sense for the industry.
“2009 has been by far the most successful year in the history of Creative Distribution.” Gareth Dain, Creative
We have become more confident as a company, and so others are more confident in us. What attitude have you adopted to tackling the busy Christmas period? To make the right purchases and sales decisions between now and the end of the year.
The veteran distributor goes from strength to strength with the range of peripherals vendors it handles. James Batchelor grills sales director Steve Walsh about the company’s next step… How has the last 12 months been for you? What have you learned in 2009? The year has been pretty much as we expected really. Trading has been up on last year so we are grateful for that. The lesson learned is to never rely on anything. You can’t sit back expecting things to happen - you have to get out there and make them happen.
What are your objectives for 2010? We would hope to see our growth get back to the levels of previous years. If it isn’t and we end up with a repeat of 2009, then at least we will be here next Christmas, which sadly I suspect will not be the case for many others.
ability to pay for increased stock. We would like higher credit insurance, but at the moment we are only able to get 50 per cent of the amount we had this time last year. Obviously, the agreement between Trilogy and The Producers is pretty big news for the sector. Do you think more companies will start buddying up in the near future? I’m sure they will. It’s an everevolving business – that’s why it such an interesting area to work in. I say good luck to anyone who has the balls – and spare cash – to try something new.
“This is an ever-evolving business. I say good luck to anyone trying something new.”
Which of your products has particularly impressed you with its performance? We have seen our greatest success this year on rapid expansion of our Speedlink console accessory range and the arrival of the long-awaited line-up from Roccat for serious gamers.
Steve Walsh, Meroncourt What are the biggest challenges your company faces this holiday? The same ones we have faced all year: making sure our customers have the
Is there anything you would change about distribution in general? I’m happy with how we are currently dealing in the market and think we do a great job for our partners and customers. What everyone else does is interesting but I don’t let myself get diverted too far away from Meroncourt’s planning – it’s where we have to focus.