Finding a point of difference in a specialist market can present as many challenges as solutions in a sector dominated by larger, well-funded competitors.
Finding a point of difference in a specialist market can present as many challenges as solutions in a sector dominated by larger, well-funded competitors.
And, despite having supplied fine paper to the local market for 30 years, husband and wife team, Bob and Ann Poolman, found themselves in just that position when they established the Annie P brand four years ago.
Mr Poolman started the business, now called Annie P Paperie, 30 years ago under the name Art Papers, selling imported fine artistic papers and supplies.
Ms Poolman said that, although Art Papers had “the best of everything” for Perth artists, the market was simply too small.
And in order to compete with their long-established major competitor (which has multiple stores across the city), the company needed to find a point of difference to separate it from its competitors.
Tapping into Ms Poolman’s life-long passion for art and design, the company decided to produce its own range of design papers for invitations, corporate events and the like.
In 2002, Ms Poolman’s first collection was released under the brand of Annie P.
“Everyone loved them, and they gave Art Papers the point of difference we needed to continue in business,” Ms Poolman told WA Business News.
But with the business designing and printing its own quality art papers for sale through its retail store in Claremont, the Poolmans faced a cost/production volume imbalance.
“We realised that sales from our shop alone would not be enough to achieve an economic print run,” Ms Poolman said.
To combat this problem, the company sought to widen its distribution.
The Poolmans selected suitable retailers throughout Australia to stock their papers, researched ideal locations and looked for other boutique paper houses similar to theirs.
“[We didn’t want] saturation marketing, but a select group who would embrace our papers and our company philosophy of exciting designs from a boutique design house,” Ms Poolman said.
Six months after launching its first collection, Annie P Paperie began supplying major art paper stores and chains in Melbourne, Sydney and Brisbane. The reputation of the product soon began filtering to other states, and in just under four years the company had reached 50 stores throughout Australia.
Ms Poolman said that, after they had achieved local success, the company then set its sights on expanding its export business.
“We already had a shop in Singapore selling our papers, so we decided to approach the UK,” she said.
In June 2004, the couple travelled to the UK and Ireland via Denmark. While in Copenhagen, they decided to seek out a retail shop to stock their papers.
“Bob went about doing it the ‘proper’ way in calling Austrade to make an appointment, but they were unable to respond in the time frame; so I went out with samples to cold call,” Ms Poolman said.
She came across an art supply store in Copenhagen that was in a similar position to Art Papers and had decided to branch out into A4 papers, particularly for wedding invitations.
“They loved our designs – a great compliment from one of the design capitals of the world. We started exporting to them in September 2004 and consistently since,” Ms Poolman said.
Following their success in Denmark, the company was approached by a Swedish paper retailer, which had seen Annie P’s products displayed on its Denmark stockist’s website.
The company has also signed a deal with US paper retailer, Kate’s Paperie, which will begin stocking Annie P papers in three of its New York stores later this year.
The wider distribution of products helped Annie P Paperie achieve more cost-efficient production volumes, while still maintaining the boutique, exclusive element to the brand.
Exports now account for about 25 per cent of the company’s annual turnover.
The Poolmans also decided to revamp their retail business to coincide with the expansion.
In June of this year, the Stirling Highway shop was completely stripped, redecorated and rebranded as Annie P Paperie.
“The look of the shop was dated, but it is very important to have a retail outlet for consumer feedback and market research. And, after all, it would be terrible if Annie P papers could not be purchased in our home city,” Ms Poolman said.
And although the company will continue to sell its papers in WA exclusively through the Claremont store, Ms Poolman said she was considering the possibility of developing the new retail store into a possible model for a franchise concept.
