How Eadie Lifestyle adapted and thrived after Australian Bushfires
Founded in 2012, Eadie Lifestyle is a consumer goods company spanning across Australia, New Zealand, Southeast Asia, and North America, specialising in the finest hand crafted home and apparel products. They experienced a nightmare all retailers fear, the struck of fire that destroyed the Eadie space, including warehouse, showroom, and offices.
During eTail Connect Australia 2023, Trudie Cox (founder of Eadie Lifestyle) and Chrissie Young (Head of Marketing at Eadie Lifestyle) spoke with us during their session "KEYNOTE FIRESIDE CHAT: Eadie Lifestyle burnt to the ground - Rising from the ashes & rebuilding after devastating loss". Post event, we dived deeper down into how opportunities that came from the fire was uncovered, enabling them to rise from the ashes (literally!). With problems arising due to the loss of revenue, employee and partners management, and supply chain and delivery disruptions, what actions have they taken to protect themselves when the unforeseeable happens again?
How did you manage retention strategies for your team or did you have many leave for other opportunities?
We were fortunate to retain all our staff. The time invested in our team, and relationships built prior to the fire was invaluable for keeping the communication open post fire. Any fears they may have had about what would happen to the business quickly disappeared when they realised we were committed to immediately rebuilding and all roles were needed for this. We were also consistently checking in with the team individually to see how they were feeling and if they were any issues that needed to be addressed.
What have been some of the key milestones on your path to rebuild?
Prior to the fire, our warehouse, showroom and offices in Newcastle were all in the same location. Opening our new bigger and better warehouse was a proud and emotional moment. We built a warehouse from scratch that suited our operational needs perfectly. As was the case with the opening of our new Newcastle showroom. We were able to start from the beginning and create the kind of experiential Eadie space that truly reflected our brand.
Also, keeping the revenue stream continuing parallel to the rebuild. With some creative thinking, we were able to transform our temporary office space into a temporary warehouse and dispatch the small amount of stock we received due to delayed shipments, after the fire. It was not easy to dispatch under those conditions, and the stock was minimal, but it gave us a lifeline both financially and operationally that enabled us to stay relevant in our Customer's eyes. We didn't disappear.
Have you managed to acquire new customers while also retaining them during this time?
The time spent building our B2B relationships definitely helped us during this time. Our stockists were still carrying our existing product so we received invaluable exposure through our retailers. We also had our Melbourne showroom open with the full range on display. We focused on driving new B2C business into our Melbourne showroom and the Victorian team really nurtured both our existing and new B2B & B2C customers through video appointments from the showroom.
What is your view on being vulnerable to your team as a leader, especially after the crisis?
As the CEO, I needed to stay strong and focused. Having said that, it was important that I was sensitive to what my team had been through and acknowledge the trauma that we had all experienced. Vulnerability was needed to a point but there was also that level of keeping it all together that was always on my mind. It wasn’t until months later that I really stopped to deal with my own feelings and reaction to it all.
Vulnerability is an equalizer and a connector. We all feel vulnerable at times, so by me showing my vulnerability (which was not a conscious thing per say, it was a very authentic reaction) I hoped it kept us connected and unified as a team, whilst also consciously trying to deliver the strength of leadership that made my team feel they were secure, considered and in good hands.
Did you implement any unique or innovative initiatives to retain customers when you couldn’t fulfill their orders?
We chose from the day the fire happened, to be honest and transparent and found that our customers were empathetic, completely understanding of the situation and happy to wait until we were restocked and could fulfill their orders. We have always put our relationships with our customers front and centre, and as a result we were able to make a few withdrawals without too many consequences because we had worked so hard over the years making the deposits.
It’s possible the timing helped. Coming out of Covid people were so used to long delays with their orders. If it had happed pre Covid, there may have been more frustration on the customer's part.
How can we avoid spam or being overloaded with people trying to sell business products?
That’s a hard one. When I receive an email wanting to book in a demo, I always ask them to email the information through and say I’ll be in touch if it might be useful for the business. When I won’t commit to a demo, some don’t even bother to respond.
Is there anything you wish you had done prior that would have helped in your DR response?
Anything we should do now. Be immaculate with your inventory records and management. We weren't too bad (self taught and not as on top of it as we would have liked), but we could have been better, which would have made the exercise of determining what SKUs to reorder and what ones not to, a much easier exercise. Besides our people, inventory is the biggest investment in a model like ours.
Are their any lessons for health & safety of your team, stock, data and inventory that you should manage differently now compared to before fire?
Our OHS Policy is much tighter than before the fire. We have lived through disaster, and whilst rare, know we are not immune from it and take it much more seriously than before. We are IMMACULATE with our inventory management and have daily checks and balances in place to ensure our inventory is up to date at any time. Whilst we use cloud based data programs, we ensure we are continually cleaning our data and keeping it organised and current. All of these things really do assist in expediting recovery in a time of crisis.
Do you think that having a premium product and customer community kept the business alive?
Absolutely. Our brand was built on relationships, both with our artisans and customers. The loyalty of our customers and the unique, handcrafted nature of our product offering was fundamental to keeping us afloat. This alongside the incredible commitment of our team locally and artisans in India.
What was the experience of managing 3rd party vendors and service providers due to the fire. Were there any learnings or changes to contract terms?
The day the fire happened, we contacted any third party vendors whose services we needed to pause until our stock was remade/replaced. We were honest and did everything to preserve cashflow at that time, including requesting them to forgo any associated fees until we got back on our feet, to which they all agreed. We have worked hard to build unique and close relationships with our suppliers.
They are like family to us. Those strong relationships proved to be invaluable in our recovery. They expedited and prioritised our production runs, extended payment terms where possible, and gave us moral support and genuine care that kept us going. Our suppliers are an extension of our team, our family. We have worked hard to nurture those friendships and those efforts were returned in spades.
Any advice for business owners regarding insurance?
Engage a Broker that is proactive in giving advice (not just an order taker, taking directions from you) and one you trust, respect and feel can ask anything of. I certainly wasn't an expert in the world of insurance, the consequences that a lack of knowledge can present and the lengths insurance companies will go to NOT to support you in your greatest time of need.
I trusted my Broker to have my back and took their lead. I was wrong. If a Broker isn't presenting numerous options based on various scenarious that could relate to your business, find another broker quickly. You pay them a fee to advise you, just like any other business specialist/advisor. Make sure you are with the best. Know their history and outcomes when it comes to crisis and claims. The insurance companies eat naivety for breakfast.
Trudie Cox, Founder of Eadie Lifestyle Chrissie Young, Head of Marketing
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