Setting sail for global success
CASE STUDY: Ronstan International
Boat and architectural hardware manufacturer Ronstan is the brainchild of boat builder Ron Allatt and toolmaker Stan LeNepveu, who together started the business in 1953. The two successful sailors soon began to receive orders from others for their innovative fittings, and the business grew by word-of-mouth.
Initially the concept of export came about because of seasonal advantages: they wanted to keep their staff over the winter months. Eventually, they secured their first export sale to Canada.
Today, Ronstan sell to dozens of countries and are one of the three biggest supplies in the world for their product type. At the moment, clientele tend to come from developed countries, particularly in Europe and the USA.
“Asia to us is, in general, relatively small because sailing isn’t as much a pastime there,” says managing director Alistair Murray, though he admits that sailing is emerging in markets like Singapore. “In general, I see sailing as a good thing to be associated with. It’s environmentally friendly, it’s family-oriented, it’s fitness; it’s a positive activity and I would hope it has a future.”
He nominates South America as a region of future growth, but also says the company’s diversification into the architectural sector will stand them in good stead. “It’s not as developed as the sailing side. In Asia there are opportunities in both boating and architecture.”
After more than 55 years in operation, Ronstan have racked up a room of accolades ranging from a fistful of Australian Export Awards, to AIMEX’s 2009 Australian Marine Industry Exporter of the Year. They’ve also shared in Australia’s 1983 America’s Cup victory and several sailing medals at a number of Olympic Games, which give them double exposure through construction and competition.
While Murray says they don’t directly use the awards for marketing, they use the attention internally to build morale, and externally to build a reputation. “Its our international orientation I’m most proud of. I enjoy doing business around the world, I like the relationships I’ve built up over the years,” he says.
This carries through to a dedication to the company, which Ronstan’s management team—Murray included—bought after a few ownership changes. And that commitment can be key to success, he adds: “Get your own people on the ground because you never get the dedication from independent people as you do from your own.”
—Adeline Teoh
Alistair’s advice:
- Visit markets before making any decisions or commitments. Trade shows are a great opportunity to see all the leading industry people and products in one place. Make contact prior to the show, set up meetings, go to functions, check out your competition.
- Respond to prospective customers with efficiency, and follow through with every commitment you make. There is so much poor service out there that this is not hard!
- Don’t commit to potential distributors too quickly. Meet a few people, weigh up your options and make decisions when you are ready.
- Don’t underprice. In an effort to be competitive it is easy to commit to business that has too low a margin.
- Aim at the right level. Seeing a purchasing officer will get you nowhere compared to making direct contact with the owner or CEO. The greatest advantage you have, compared to all the local businesses they could deal with, is that you have traveled all the way from Australia to see them.
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