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Ted Baker sales soar 31% on back of flair for fun and fashion Ted Baker sales soar 31% on back of flair for fun and fashion
(3 months later)
Ray Kelvin was 11 when he started helping out at his uncle's clothing shop in Enfield. Aged 33, he opened his own shop selling shirts in Glasgow. Today the fashion entrepreneur presides over one of the great success stories of the British high street, exporting his sharp suits and jewel-coloured dresses to more than a dozen countries and earning revenues of £255m.Ray Kelvin was 11 when he started helping out at his uncle's clothing shop in Enfield. Aged 33, he opened his own shop selling shirts in Glasgow. Today the fashion entrepreneur presides over one of the great success stories of the British high street, exporting his sharp suits and jewel-coloured dresses to more than a dozen countries and earning revenues of £255m.
Ray Kelvin is not a household name, but his quirky brand alter ego has crept into the UK's smartest high streets and swishest department stores – Ted Baker.Ray Kelvin is not a household name, but his quirky brand alter ego has crept into the UK's smartest high streets and swishest department stores – Ted Baker.
If he were real, Ted might manage a wry smile. Sales soared by 31% in the five months to June compared with last year, the company announced on Thursday, pushing its stock price up £2.30 to £17 – just enough to buy an itty-bitty paisley pocket handkerchief in the summer sale. The city is swooning over the retailer's "relentless focus on the product", cost control and on-trend womenswear.If he were real, Ted might manage a wry smile. Sales soared by 31% in the five months to June compared with last year, the company announced on Thursday, pushing its stock price up £2.30 to £17 – just enough to buy an itty-bitty paisley pocket handkerchief in the summer sale. The city is swooning over the retailer's "relentless focus on the product", cost control and on-trend womenswear.
"You won't get many companies doing plus-30% sales growth in this environment, especially when they are predominantly UK focused," Alistair Davies at Oriel Securities said. "It is an excellent trading statement.""You won't get many companies doing plus-30% sales growth in this environment, especially when they are predominantly UK focused," Alistair Davies at Oriel Securities said. "It is an excellent trading statement."
If Ted Baker has thrived, while rivals such as French Connection have lost their way, this is much to do with the idiosyncratic vision of Kelvin, whose business cards describe him as "the closest man to Ted".If Ted Baker has thrived, while rivals such as French Connection have lost their way, this is much to do with the idiosyncratic vision of Kelvin, whose business cards describe him as "the closest man to Ted".
Kelvin, a camera-shy Londoner, says the idea for the brand came to him while he was out fishing. Since setting up that Glasgow shirt business 25 years ago, he has earned an estimated fortune of £96m, according to the Sunday Times rich list, and catapulted into the fashion aristocracy.Kelvin, a camera-shy Londoner, says the idea for the brand came to him while he was out fishing. Since setting up that Glasgow shirt business 25 years ago, he has earned an estimated fortune of £96m, according to the Sunday Times rich list, and catapulted into the fashion aristocracy.
But Kelvin, who avoids having his face photographed by posing behind artfully-placed props, never wanted to give the business his name.But Kelvin, who avoids having his face photographed by posing behind artfully-placed props, never wanted to give the business his name.
"I didn't want to use my real name," he told Vogue in a rare interview last month. "I thought I'd be a failure. I could have gone bankrupt, then my name would have always been associated with a failed company. I'm camera-shy too, that sort of thing isn't what I'm about. Also, I'm ugly – I don't want to see my picture everywhere. I'm funny though, which helps.""I didn't want to use my real name," he told Vogue in a rare interview last month. "I thought I'd be a failure. I could have gone bankrupt, then my name would have always been associated with a failed company. I'm camera-shy too, that sort of thing isn't what I'm about. Also, I'm ugly – I don't want to see my picture everywhere. I'm funny though, which helps."
Kelvin's ironic humour permeates the brand, which has diversified into womenswear, shoes, children's clothes, accessories, perfume, bedding, mobile phones, glasses and now a chain of old-school gents' barbers in London.Kelvin's ironic humour permeates the brand, which has diversified into womenswear, shoes, children's clothes, accessories, perfume, bedding, mobile phones, glasses and now a chain of old-school gents' barbers in London.
"Ted Baker is successful because it has a strong brand identity and brand personality which is rooted in the founder Ray Kelvin's own quirky nature," observes Karinna Nobbs, senior lecturer in fashion branding and retail strategy at the London College of Fashion. "Ted Baker communicates its brand to a very high standard and with a British point of view and sense of humour.""Ted Baker is successful because it has a strong brand identity and brand personality which is rooted in the founder Ray Kelvin's own quirky nature," observes Karinna Nobbs, senior lecturer in fashion branding and retail strategy at the London College of Fashion. "Ted Baker communicates its brand to a very high standard and with a British point of view and sense of humour."
This tongue-in-cheek style comes across at Ted Baker's flagship London store, located on a quiet cobbled street in Covent Garden near discreet designer shops, rather than alongside M&S and Boots on the crowded main drag. Lurid pink wellies or bow ties in school-uniform stripes shout out for attention, alongside fashionable pastel jackets, sequinned skyscraper heels and holiday T-shirts.This tongue-in-cheek style comes across at Ted Baker's flagship London store, located on a quiet cobbled street in Covent Garden near discreet designer shops, rather than alongside M&S and Boots on the crowded main drag. Lurid pink wellies or bow ties in school-uniform stripes shout out for attention, alongside fashionable pastel jackets, sequinned skyscraper heels and holiday T-shirts.
And unlike the identical white box shops of its rivals, every Ted Baker store is different. The Ted Baker shop that opened in Kuwait last month – making eight in the Middle East – is all buttoned-up Britishness with an arched eyebrow. A union flag made from London bricks, bakelite telephones and changing room cubicles with suburban front doors contribute to the sense of a brand striving to show it doesn't take itself too seriously. This fabled attention to detail explains why the brand is so successful in foreign markets, thinks Nobbs. "It is performing especially well in the traditionally difficult to crack northern American markets."And unlike the identical white box shops of its rivals, every Ted Baker store is different. The Ted Baker shop that opened in Kuwait last month – making eight in the Middle East – is all buttoned-up Britishness with an arched eyebrow. A union flag made from London bricks, bakelite telephones and changing room cubicles with suburban front doors contribute to the sense of a brand striving to show it doesn't take itself too seriously. This fabled attention to detail explains why the brand is so successful in foreign markets, thinks Nobbs. "It is performing especially well in the traditionally difficult to crack northern American markets."
Sales were up 59% in the US and Canada last year, and 65% in Asia, albeit from a low base. Last year Ted Baker opened six stores abroad, including Beijing, Tokyo and New York's Fifth Avenue, bringing its global tally to 110 outlets.Sales were up 59% in the US and Canada last year, and 65% in Asia, albeit from a low base. Last year Ted Baker opened six stores abroad, including Beijing, Tokyo and New York's Fifth Avenue, bringing its global tally to 110 outlets.
But the bulk of the business is still in the UK, with 181 shops and concessions. Given the difficulties on the high street, this makes last year's 11% sales growth all the more remarkable – not least because Ted Baker does not sell its products at throwaway, Primark-style, prices. It is £29 for a plastic i-pod case and £99 for a floaty summer top – albeit one made with organic cotton and recycled polyester.But the bulk of the business is still in the UK, with 181 shops and concessions. Given the difficulties on the high street, this makes last year's 11% sales growth all the more remarkable – not least because Ted Baker does not sell its products at throwaway, Primark-style, prices. It is £29 for a plastic i-pod case and £99 for a floaty summer top – albeit one made with organic cotton and recycled polyester.
"The Ted Baker customer wants good quality pieces which can be worn for more than one season," says Nobbs. "The fashion is not directional or edgy but it is confidently on trend and this is valued by its loyal customers." The typical shopper is aged 20-40, she says, although products such as the "ikon shopper" – £29 bow-festooned bags in a variety of sweetshop colours – are used by all ages."The Ted Baker customer wants good quality pieces which can be worn for more than one season," says Nobbs. "The fashion is not directional or edgy but it is confidently on trend and this is valued by its loyal customers." The typical shopper is aged 20-40, she says, although products such as the "ikon shopper" – £29 bow-festooned bags in a variety of sweetshop colours – are used by all ages.
"It is a bit daring, not very classic," 31-year old screenwriter Mihaela Manea says as she leaves Ted Baker's Covent Garden store with a bold floral print dress and two pairs of trousers snapped up in the sale."It is a bit daring, not very classic," 31-year old screenwriter Mihaela Manea says as she leaves Ted Baker's Covent Garden store with a bold floral print dress and two pairs of trousers snapped up in the sale.
At the start of this year, sales of womenswear – overseen by director Catherine Scorey – overtook menswear for the first time, delighting city analysts.At the start of this year, sales of womenswear – overseen by director Catherine Scorey – overtook menswear for the first time, delighting city analysts.
"It is becoming more of a womenswear business than a menswear business," says Freddie George at Cantor Research. "The menswear side is more quirky, it is more geared to a particular type of customer, whereas the womenswear has a mainstream-type appeal so it is a broader market.""It is becoming more of a womenswear business than a menswear business," says Freddie George at Cantor Research. "The menswear side is more quirky, it is more geared to a particular type of customer, whereas the womenswear has a mainstream-type appeal so it is a broader market."
"They are doing well, there is no question," he says."They are doing well, there is no question," he says.
However, George reckons the shares are overvalued, riding on the coat tails of a bull market. "At the moment the stock seems to be going onwards and upwards but there has to be a point [when] it is going to come off quite aggressively at some stage."However, George reckons the shares are overvalued, riding on the coat tails of a bull market. "At the moment the stock seems to be going onwards and upwards but there has to be a point [when] it is going to come off quite aggressively at some stage."
For now, the sound of ringing tills is keeping everyone happy. Kelvin muses about opening a hotel in that Vogue interview. "There's nothing in the plan, but who knows? I just want to continue this journey and do more of the same, but better."For now, the sound of ringing tills is keeping everyone happy. Kelvin muses about opening a hotel in that Vogue interview. "There's nothing in the plan, but who knows? I just want to continue this journey and do more of the same, but better."
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