In a stroke of entrepreneurial genius, former hair salon owner James Patten took his business online in 2005.
This was right before Australia was gripped by the internet shopping boom which would change the international retail landscape forever.
At the time, moving away from bricks-and-mortar to launch RY – now the nation’s largest online retailer of luxury cosmetics and hair and beauty products – was still a bold move, and there were plenty of people who said it would never work.
“They said people would never buy shampoo online, but they are,” says James, who launched the web venture with business partner, Bradley Carr.
“If I were to share one thing from our experience with others, it would be to follow your inspiration and don’t believe what other people tell you.
“Research your market and empower yourself with knowledge,” he says.
RY now turns over $12 million annually, employing more than 30 staff and marketing and shipping goods worldwide from the Gold Coast to a customer base of more than 300,000 members.
Recently placed in this year’s Power Retail Top 100 awards, RY is the only online retailer of its kind, stocking high-end international cosmetic, beauty and skincare brands alongside a wide range of professional haircare lines and electronics.
In 2016, the company has come full circle, opening its first physical store in April at Southport’s The Brickworks, as part of an exciting new strategy to provide a multi-format shopping experience for customers.
The early days of RY now form the stuff of urban legends, with business conducted from a single rented laptop perched on top of a tumble dryer in the back of a suburban salon.
Back then, James had recently left behind his former life as a child actor in the UK for the promise of new opportunities in Australia.
Advised hairdressing was a growth industry in the country, he purchased his own salon, Recreate Yourself at Burleigh Heads, and began considering the possibilities for more efficient ways to move stock of professional styling products.
“The business has gone off on a trajectory that I probably didn’t expect when I first bought the salon,” says James.
“I’d worked in the UK and in America and I had started to see online shopping take a hold there, but it hadn’t really taken off in such a big way in Australia, so I was thinking this could be an opportunity to get in at the beginning of something good.
“I didn’t have a degree in business, but we now have the degree in making mistakes and then not making those same mistakes again,” he says.
The business partners followed the lead of large cosmetic companies around the world and began marketing salon-quality products direct to customers online.
“In the beginning, there was some resistance from suppliers, many of whom were niche brands and were not sure they wanted to lose that line of contact with their product between the salon and the consumer. We overcame this by always focusing on providing a quality customer experience, and that has driven RY to this day,” says James.
James says striving to deliver outstanding customer service not only motivates staff, but has also differentiated RY from its competitors as one of the few online companies of its kind to employ qualified hairdressers, beauticians and makeup artists.
“We work hard to build trust and maintain that personal connection with our customers, so whether they are in Queensland or on the other side of the world, they feel comfortable purchasing from us because they know that help or expert advice is only a click or a phone call away. The website has a live chat facility and there is also a free phone call service for our Australian customers,” he says.
This year’s opening of the flagship bricks-and-mortar store on the busy Ferry Road in Southport, signals further diversification for the progressive retailer, which prides itself on keeping abreast of industry trends.
“It is important to us to be driven by what the customer wants, and we are seeing that the customer doesn’t really differentiate between bricks-and-mortar and online anymore. We need to provide all those options to facilitate a total retail experience for the customer that allows them to shop the mediums they want,” says James.
“In an ever-evolving digital world, online shopping is definitely here to stay. But while we will remain committed to the growth of our online presence, we will continue to seek out high-end shopping locations where we will strategically place our new physical boutiques.”
More than just a beauty store, the impressive Gold Coast retail space offers in-house services including professional make-up application and tutorials, expert colour matching and on-site hair and beauty services, while also stocking a wide range of luxury cosmetics, skincare, haircare and electrical products from more than 200 international brands.
“The ongoing success of RY is based on giving our customers the highest standard of service and the best products available from an international marketplace. That level of excellence continues through into our physical store space,” says James.
“We know our customers enjoy the ease and convenience of shopping online, but they also enjoy being able to walk into a beautiful boutique and see, touch and try the product before they buy.
“Now our Gold Coast customers can have the best of both worlds. We are also expecting the make-up services and tutorials to be extremely popular,” he says.
RY plans to roll out a further 30 stores across the country by 2018, targeting boutique retail stores in high street locations in Sydney, Melbourne, Brisbane and Byron Bay.
James says the growth and diversification of e-commerce over the past decade, coupled with the broad reach of social media channels, has opened up the cosmetics industry to smaller niche brands, with RY committed to exposing quality local start-ups.
“When we started the business, there were a lot of the traditional big players in the market. The international cosmetic houses had a strong hold on the market and so it was extremely difficult to break in as a smaller operator,” he says.
“The biggest and most exciting thing that has happened since then has been the rise of small start-up brands that have become famous on Instagram and other social media platforms. We are seeing niche Australian brands claim their slice of the retail pie and the opportunity has never been greater for young, up-and-coming brands.
“RY is excited to support quality local or up-and-coming brands and as Australia’s largest online beauty retailer, we can provide great leverage for those brands,” he says.
While the laidback lifestyle and stunning natural beauty of the Gold Coast underpins its appeal as RY headquarters, James says the region holds untapped potential beyond the traditional government focus on tourism and development.
The good thing about being online is that we can have a great lifestyle and incorporate that into having a great business that sells nationally and internationally. Through investment in IT and technology, the Gold Coast has an opportunity to be an IT hub, with local tech companies in a perfect position to drive the economy forward.
RY is also known for its community conscience, with their recent #openyoureyes to domestic violence campaign raising funds for local charity, Rize Up Australia.
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