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Read and analyse the case study on Bluefin, an eCommerce company…
Read and analyse the case study on Bluefin, an eCommerce company specialising in Sports and Wellness in the UK. The case study includes three articles, below.
#1
‘We were the fastest growing e-commerce business in the UK last year’
Story by Barney Cotton August 23, 2021
Founded in 2013 by Will Vaughan, Bluefin has been in the top 15 fastest growing firms in the UK for the past two years. Over its eight-year existence, the company has experienced double revenue growth year-on-year and has grown to have over 45 staff based across the world. Business Leader spoke to sport and wellness e-commerce brand to find out about their exponential growth.
This year, total income is set to exceed £40m for the firm based in Hebden Bridge in West Yorkshire.
Entrepreneurial spirit
“I like to go to the gym and I used to play rugby; so I have always been around that type of environment. However, the real reason I got into this industry was through my interest in e-commerce. I was selling a wide range of items on online marketplaces – primarily on eBay. I acquired some Argos returns fitness equipment. One of the products that did really well was a vibration plate – a weight loss and toning piece of equipment. I bought 30 units and sold them all in a day.”
Following this initial step into the world of retail and global business, Vaughan was hooked: “I then found a manufacturer in China, for this specific product, and spent all my savings on them – about £40,000. I bought 600 units and sold them all in a couple of weeks. Everything just snowballed from there and I set up Bluefin Trading. I carried out a lot of product research myself and reached out to a lot of manufacturers in China and started selling fitness equipment.”
Relentless growth
In less than a decade, Bluefin has become an industry leader and one of the UK’s fastest growing firms.
“Over the past eight years, we have grown to become a global e-commerce brand. Our main marketplaces are within the EU, Australia, US – and here in the UK. We predominately sell through Amazon, which is around 50% of our business and the other 50% is through our website and other smaller channels. In that time, we have gone from zero to 45 staff, and from no turnover to this year, where we’re on track to hit over £40m in revenue.
“We are fully self-backed, received no outside investment and have grown organically. Under the Bluefin Trading group, we have three main brands that drive our growth. Our success has partly been down to spreading risk across multiple brands.
“The one that drives the most revenue is Bluefin Fitness. That’s a direct-to-consumer home gym fitness equipment brand selling rowing machines, treadmills, bikes, and a wide range of similar products. The other brand that’s incredibly fast growing, which we set up about three years ago, is Bluefin Paddleboards – an inflatable paddle board brand. That brand has gone from nothing to the market leader in the EU within three years. The third brand is our latest venture, Bluefin Hoverboards”
Vaughan set up the company HQ on the picturesque hills of West Yorkshire, on his own farmland, where half his staff are based. However, due to Bluefin’s international presence, there are also staff members based in China, Spain, across the North West and other freelancers around the world.
However, having such relentless growth creates challenges for companies in this scale-up space.
Will comments: “We grew very quickly and we reached a point where we had a very stretched team. To overcome this, I realised that we needed to optimise what we had already achieved and build the team internally. Rather than just driving forward, we built an incredibly strong foundation for future success. We did this to avoid crumbling from the inside, like some companies do when in the growth phase. I built a senior management team that could take some of the weight off my shoulders.
“What we’ve got now is a senior management team of six that deploy the Bluefin vision. They implement the strategy that I’ve created, which has allowed us to continue growing. I’m hoping over the next four years we can create £150m- revenue, global company.”
Building international relationships
Due to the international nature of the business, Vaughan and his senior management team have had to develop relationships with manufacturers, suppliers, distributors, and customers across the world. Much like how the company overcame the troubles of fast growth, Bluefin adapted their supply chain and how they operate.
“At the very start, we utilised sourcing agents to build a relationship with the company. They go and negotiate with the supply chain for you. We did that for about three years and then realised we can cut out the middleman and build a team that will go directly to the suppliers.
“Fast forward three years, we’ve got three guys on the ground out there that have helped us grow. I’d advise anyone to find a good sourcing agent and then meet suppliers at trade shows and build relationships with them. You can then utilise that relationship to benefit your own business. You can create good payment terms, and with us, that has allowed us to sell a stock before we have to pay the supplier. That’s one of the reasons why we managed to grow so well – building those strong commercial relationships is vital.”
With the majority of the company’s revenue coming from overseas, Bluefin has had to build, expand and adapt to different international markets to maintain its consistent levels of growth.
Vaughan explains how the company has repeated its process for growth in each country: “We didn’t start selling internationally until about three or four years ago. The first launch we did in Germany and it was really simple. We used the same recipe that we did in the UK. We hired copywriters to translate our entire website listings to German. We then did the same in France, Spain, the Netherlands and beyond. And then, you realise the US is the biggest market globally for e-commerce. So, we then got started over there.
“What we do is really simple. Our team are sat in the office, selling our product range online, and we let a third party manage the operations side – it’s not rocket science. We just opened up for the US as a market and the biggest hurdle is supply chain operations. After the US, we are looking at Canada and Japan.”
Brexit blues
With the business trading internationally, Will says that Brexit has negatively affected many businesses at the same time within his sector.
Vaughan comments: “The price of everything went up for people in all industries – and then it became difficult to get stock of crucial items. As most of our EU business is in Germany and France, we have had to employ a new supply chain specialist, because now you cannot cost effectively send a product from UK to Germany or France. Prior to Brexit, we could.
“So, we’ve had to set up a new warehouse, a new partner in the Netherlands, and retain our current warehouse in the UK. It has been insanely difficult. We thought we had something implemented in place which meant we could fulfil cross border order but pay quite a bit more in duty and shipping rates. However, we did that, but all the couriers were not geared up for the paperwork for the cross-border requirements.
“We’re now in a place where we we’ve got the right amount of stocks in the correct locales, and we’re ready to scale again.
#2
Hebden-Bridge sports and fitness supplier goes from
strength-to-strength with HSBC UK
A Hebden Bridge-based sports and fitness equipment company has secured a significant multimillion pound finance package from HSBC UK to support growth and international trading over the next year.
By Abigail Kellett Wednesday, 15th December 2021
Will Vaughan, Founder of Bluefin Trading Limited
Bluefin Trading Limited, a retailer of home fitness, wellbeing, water sports and outdoor equipment, will use the finance package from HSBC UK to support the continued import and export of its product ranges in Europe and beyond.
Despite challenging trading conditions, the business has already seen recent significant expansion, increasing from 25 employees in 2020 to 55 employees in 2021, due to a digital transformation aiding national and international trading processes. The funding enabled the business to boost imports of stock in preparation for Black Friday weekend, as well as further develop a rapidly growing e-commerce platform ahead of an anticipated boost in international sales in the run up to Christmas.
As a result of the HSBC UK funding, the business is now forecasting 70 per cent growth in turnover over the next 12 months.
Will Vaughan, Founder of Bluefin Trading Limited, said: “Our business continues to grow consistently year-on-year, despite challenging market conditions.
“We’ve digitally transformed Bluefin and rapidly advanced our trading process at a national and international level, making us incredibly well-placed to deliver excellent results during the critical Christmas trading period. We thank HSBC UK for enabling us to extend our trade facilities and offer its international expertise as we continue to scale-up the business to develop exciting new opportunities for our employees and customers.”
Stephen Smith, Relationship Director at HSBC UK, added: “We’re pleased to support Bluefin Trading and fund the latest trading facility of a business that has seen significant growth and maintained a robust consumer base in the face of global change. We look forward to seeing this multi-award-winning business continue to expand and evolve domestically and internationally.”
#3
Home Fitness Equipment Market – Growth, Trends, Covid-19 Impact, and
Forecasts (2022-2027)
Market Overview
The home fitness equipment market was valued at USD 16,423.69 million in 2020, and it is projected to register a Compound Annual Growth Rate (CAGR) of 2.75% during the forecast period, 2021-2026.
The COVID-19 pandemic has reshaped the landscape of fitness and has led to the at- home fitness industry skyrocketing. Home fitness has become a notable opportunity,
with the boom in the online sales of home gym equipment. In addition to the serious implications on people’s health and healthcare services, the COVID-19 pandemic has had a significant impact on businesses and the economy. Thus, it also had an impact on the home fitness equipment market globally. With the continuation of quarantines and social distancing norms, gyms remain closed, which is likely to highly boost the culture of home-workout and, in turn, boost the demand for fitness equipment for homes.
Additionally, around the world, many gyms and fitness studios are closed due to the COVID-19 pandemic. However, fitness enthusiasts are not letting their fitness goals fall by the wayside because they are stuck at home. In fact, this is an opportunity for equipment manufacturers to tap into the market as an increased number of people are now motivated to develop a home fitness routine that can extend beyond social distancing mandates. Precautionary healthcare, coupled with increasing preference for customized workout regimes (including workout timing) and a comfortable home-friendly environment, is increasing the demand for home fitness equipment, as the customers are keen to exercise daily.
Growth in home fitness equipment in the recent past was also the result of the inconvenience of commuting to a gym to use the machines, trainer fees, and membership fees, primarily in developing countries. The space limitation, primarily
for bulk fitness equipment, such as massage chair, exercise bike, exercise treadmill, and cross, is a major factor that limits the growth of the home fitness equipment market. This has stimulated start-up gyms, fitness centers, and health clubs around the world.
Which of the four drivers of globalisation has been the most influential in the expansion of Bluefin and to what extent do you think it is a globalised business?
ADDITIONAL REQUEST:
I can’t fully grasp the competition drivers within this context. Can you include the steps you have used to come to your conclusions?
Thank you.
