Gifts and gadgets etailer Firebox announced record profits for
the year ending 31st January 2010. For the first time in its
12-year history Firebox’s profits have surpassed the £1
million mark. Revenue also rose, up 11.4 percent from £11.4
million in 2009, to £12.7 million last year.
Firebox.com attributes its recent success to the relaunch of its
website during the year and a range expansion that broadened the
company’s appeal to a larger audience. Among the changes to the
website was the overhauling of the company’s gift finder tool,
which is now a colourful and dynamic page-customers can see their
choices narrow as they apply more selection fields, making for a
highly visual customer experience.
For a brand that was traditionally associated with gadgets and
“boys’ toys”, managing director Christian Robinson
says that the business now wants to be known as a destination
simply for “amazing gifts”. Recent trading results
are proof that Firebox is moving in the right direction; it just
enjoyed its best Mother’s Day ever, with year-on-year order
volumes up by 30 percent in March and in April. It is this
repositioning of the brand and opening up Firebox to a larger and
more diverse audience, says Robinson, that forms the fundamental
part underpinning Firebox’s future.
Home and away
A big push for Firebox this year will be an investment in
marketing to further drive brand awareness and customer
acquisition in the UK. “In dotcom terms we’ve achieved a
lot with relatively little growth capital,” says Robinson,
who adds that now that the business is growing faster than ever
and making record profits, it is able to invest more. Some of the
spend will go on above-the-line advertising including a TV
campaign in the run up to Christmas 2010.
Firebox has always shipped overseas, and has operated a dedicated
US operation since 2008. On whether European expansion was on the
agenda, Robinson confirmed that Firebox is “reviewing
opportunities” to expand into Europe with local-language
sites, but that the UK is the main focus this year.
Overall, Robinson says that signs are very positive for Firebox,
and that he is optimistic for the year ahead. “We’ve
reached our first milestone of £1 million in profits, the
next achievement will be £20 million in sales,” with
its current prospects, Robinson believes that Firebox can double
the size of the business during the next two years.
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