Canadave
One Too Many
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Here's an article from todays Toronto Star -
Nov. 6, 2005. 08:18 AM
MICHAEL STUPARYK/TORONTO STAR
Alex Tilley, at the flagship Tilley Endurables Inc. store in Don Mills, has turned a pastime into an international business with annual sales of more than $30 million.
Quality equals loyalty equals success
SHARDA PRASHAD
BUSINESS REPORTER
With a modest goal of earning $5,000, Alex Tilley began selling hats in 1980 to supplement the income he earned as a part-time art dealer.
Twenty-five years later, outdoor wear chain Tilley Endurables Inc. brings in more than $30 million annually in sales.
Yet, oddly, he begins a tour of his flagship Don Mills store in the women's washroom, where he points out that the $1,000 "imported-from-Japan" toilet is the same one he has in his home.
The way he sees it, what's good for Tilley is good for his customers. That's why his world-famous hats, classic shorts, pocketed vests and clothing line come with lifetime guarantees.
The company has strived to put the customer first since its inception because Tilley believes loyalty is the key to business success.
"I've been loyal to Volvo cars for 30 years and believe quality products create repeat customers," says Tilley, whose last five cars have been Volvos.
The formula is simple: Quality equals loyalty equals success.
Each year, fewer than 2 per cent of hats are returned ?É‚Äò and even then it's ones that have already been worn for 15 years. Tilley says no one has yet abused the policy.
Tilley, who insists he is no business expert, acquired his sense of how to interact with customers during a string of early jobs: The Sudbury native worked as a bank teller at TD Financial Group, a customer service representative at Bell Canada and a printing press salesman.
As an MBA student at York University, Tilley did attempt to gain formal business knowledge, but says he "flunked out."
Nonetheless, the experience was grand, the charismatic Tilley recalls. He was elected class president and had the privilege of being classmates with John Hunkin, the future chief executive of CIBC. The two even drove to class together.
Tilley, 67, has occasionally pondered manufacturing in China because he could reap higher profit margins without increasing prices. But he's yet to find Chinese manufacturers that can match the quality of Canadian ones.
Besides, he's proud of the Tilley product labels, which say they are sewn with "Canadian pernicketiness."
With the exception of socks that are made in the United States, all Tilley merchandise is manufactured in Canada. Ultimately, it's the Canadian-made quality that has made hat sales soar in the United States and United Kingdom. Maybe China will be just a passing thought, he muses.
The iconic Canadian Tilley hat, which comes in 13 sizes and has annual sales of more than 280,000, has been worn by Pierre Trudeau, Mick Jagger, Paul Newman and Prince Phillip and has made this MBA drop-out multiple millions. The hats range in price from $55 to $95, with an average of about $68.
The company has 300 employees and Tilley-branded products are sold in more than 26,000 stores in 18 countries around the world. Even though 70 per cent of Tilley sales are in Canada, more hats are sold overseas than in Canada.
Tilley says he will continue to focus on selling hats, rather than clothing, overseas because that's what the company does best. Part of giving global customers what they want is developing an understanding of their "pernicketiness."
Working with local retailers, Tilley's team has found U.K. customers have a strong preference for olive-coloured Tilley hats, and Americans prefer hats with a wider brim.
As the company grew from a hobby business to a mail-order business to a full-fledged global family empire, it wasn't always smooth sailing.
In the late 1980s, Tilley was running low on cash and decided to gamble. In return for home and store renovations, he gave part ownership of the store to home renovator Dennis Hails.
That relationship quickly soured and a court battle ensued in the early 1990s.
Tilley calls the period the worst of his life.
Finding an all-in-the-family succession plan has also proven difficult. Daughter Alison joined the company as vice-president of marketing ?É‚Äò and heiress apparent ?É‚Äò in 1999. But she had a change of heart after meeting her Hawaiian husband and opting for life in the South Pacific.
Tilley would like to keep the business in the family, but he's running out of options. Perhaps a grandchild will take over one day but, in the meantime, he's happy to carry on.
Realizing daily business operations are not his strength, Tilley hired a team of experts, including chartered accountant Mary-Coleen Shanahan, the current president and CEO.
As chairman and founder, Tilley is responsible for design, client service and the Tilley catalogue. Shanahan looks after daily operations and strategic planning.
Besides global growth, Shanahan's other priority is growing the clothing line in Canada. For instance, she sees an opportunity among travellers because the clothes dry overnight and don't require ironing ?É‚Äò and because airlines are reducing allowable luggage weight.
"She's smarter and faster than me," says Tilley, who retains ultimate decision-making authority because his name is on everything the company sells.
Shanahan's presence allows Tilley to spend most of his time away from company headquarters, either in his fully-equipped office up north, or travelling to test new products and look for new materials and designs ?É‚Äò and spending more time with his girlfriend.
From testing products, to approving catalogues, to being the face of Tilley Endurables, success is all about giving clients what they want.
Nov. 6, 2005. 08:18 AM
MICHAEL STUPARYK/TORONTO STAR
Alex Tilley, at the flagship Tilley Endurables Inc. store in Don Mills, has turned a pastime into an international business with annual sales of more than $30 million.
Quality equals loyalty equals success
SHARDA PRASHAD
BUSINESS REPORTER
With a modest goal of earning $5,000, Alex Tilley began selling hats in 1980 to supplement the income he earned as a part-time art dealer.
Twenty-five years later, outdoor wear chain Tilley Endurables Inc. brings in more than $30 million annually in sales.
Yet, oddly, he begins a tour of his flagship Don Mills store in the women's washroom, where he points out that the $1,000 "imported-from-Japan" toilet is the same one he has in his home.
The way he sees it, what's good for Tilley is good for his customers. That's why his world-famous hats, classic shorts, pocketed vests and clothing line come with lifetime guarantees.
The company has strived to put the customer first since its inception because Tilley believes loyalty is the key to business success.
"I've been loyal to Volvo cars for 30 years and believe quality products create repeat customers," says Tilley, whose last five cars have been Volvos.
The formula is simple: Quality equals loyalty equals success.
Each year, fewer than 2 per cent of hats are returned ?É‚Äò and even then it's ones that have already been worn for 15 years. Tilley says no one has yet abused the policy.
Tilley, who insists he is no business expert, acquired his sense of how to interact with customers during a string of early jobs: The Sudbury native worked as a bank teller at TD Financial Group, a customer service representative at Bell Canada and a printing press salesman.
As an MBA student at York University, Tilley did attempt to gain formal business knowledge, but says he "flunked out."
Nonetheless, the experience was grand, the charismatic Tilley recalls. He was elected class president and had the privilege of being classmates with John Hunkin, the future chief executive of CIBC. The two even drove to class together.
Tilley, 67, has occasionally pondered manufacturing in China because he could reap higher profit margins without increasing prices. But he's yet to find Chinese manufacturers that can match the quality of Canadian ones.
Besides, he's proud of the Tilley product labels, which say they are sewn with "Canadian pernicketiness."
With the exception of socks that are made in the United States, all Tilley merchandise is manufactured in Canada. Ultimately, it's the Canadian-made quality that has made hat sales soar in the United States and United Kingdom. Maybe China will be just a passing thought, he muses.
The iconic Canadian Tilley hat, which comes in 13 sizes and has annual sales of more than 280,000, has been worn by Pierre Trudeau, Mick Jagger, Paul Newman and Prince Phillip and has made this MBA drop-out multiple millions. The hats range in price from $55 to $95, with an average of about $68.
The company has 300 employees and Tilley-branded products are sold in more than 26,000 stores in 18 countries around the world. Even though 70 per cent of Tilley sales are in Canada, more hats are sold overseas than in Canada.
Tilley says he will continue to focus on selling hats, rather than clothing, overseas because that's what the company does best. Part of giving global customers what they want is developing an understanding of their "pernicketiness."
Working with local retailers, Tilley's team has found U.K. customers have a strong preference for olive-coloured Tilley hats, and Americans prefer hats with a wider brim.
As the company grew from a hobby business to a mail-order business to a full-fledged global family empire, it wasn't always smooth sailing.
In the late 1980s, Tilley was running low on cash and decided to gamble. In return for home and store renovations, he gave part ownership of the store to home renovator Dennis Hails.
That relationship quickly soured and a court battle ensued in the early 1990s.
Tilley calls the period the worst of his life.
Finding an all-in-the-family succession plan has also proven difficult. Daughter Alison joined the company as vice-president of marketing ?É‚Äò and heiress apparent ?É‚Äò in 1999. But she had a change of heart after meeting her Hawaiian husband and opting for life in the South Pacific.
Tilley would like to keep the business in the family, but he's running out of options. Perhaps a grandchild will take over one day but, in the meantime, he's happy to carry on.
Realizing daily business operations are not his strength, Tilley hired a team of experts, including chartered accountant Mary-Coleen Shanahan, the current president and CEO.
As chairman and founder, Tilley is responsible for design, client service and the Tilley catalogue. Shanahan looks after daily operations and strategic planning.
Besides global growth, Shanahan's other priority is growing the clothing line in Canada. For instance, she sees an opportunity among travellers because the clothes dry overnight and don't require ironing ?É‚Äò and because airlines are reducing allowable luggage weight.
"She's smarter and faster than me," says Tilley, who retains ultimate decision-making authority because his name is on everything the company sells.
Shanahan's presence allows Tilley to spend most of his time away from company headquarters, either in his fully-equipped office up north, or travelling to test new products and look for new materials and designs ?É‚Äò and spending more time with his girlfriend.
From testing products, to approving catalogues, to being the face of Tilley Endurables, success is all about giving clients what they want.
