Founded in 1993 by Norman and Michael Stein, Ukhuni have constantly striven to cater their wares to the diverse needs of office-based businesses, designing, manufacturing, delivering and installing a range of innovative, bespoke office furniture and fixtures. To find out how the company are managing in a difficult economic climate and how they aim to grow the business, Enterprise Africa talks to director Michael Stein.
For Michael Stein, beneath the cold bureaucracy of sales, figures and margins, the key tenet underlying the operations of Ukhuni is that ‘If you do the right thing, the business will take care of itself’. By creating a company that strives to deliver impeccable quality and service, is dedicated to safe and sustainable manufacture, staff development and customer satisfaction, the Ukhuni brand is steadfastly becoming discernibly recognisable in terms of both market presence and reputation.
In his own words, Mr Stein states that ‘the more [customers] enjoy dealing with us, the more they will talk about us and keep dealing with us’ and it certainly seems that clients are beginning to flock to Ukhuni. In the last twelve months alone Ukhuni have achieved several unprecedented sales successes. The desking and seating side of the business soared by an incredible 15%, with the company putting out 20,000 individual units. Eighteen months ago, Ukhuni also added office walling solutions to their product line, with this brand new source of income bringing in revenue equating to 8% of the company’s total turnover. Venturing beyond the borders of South Africa, 10% of their revenue stream in 2014 came from the rest of Africa, with a notable deal being struck with Standard Chartered Bank in Nigeria to furnish their office space.
However, akin to all other businesses currently operating in South Africa and indeed the rest of the world, the last few years have presented numerous challenges for Ukhuni. Mr Stein particularly notes how the volatility of the global economy and poor exchange rates have led to many office-based companies striving to conserve their funds, with investment in brand new office furniture and fixtures becoming a low priority. Furthermore, the widespread use of flat screen devices which use minimal space has resulted in a swift return to basic rectangular shaped desks. As such, the call for innovative or bespoke office furniture has waned and opportunities for project differentiation have become increasingly more risky. Factor in the surge of companies capitalising on an opportunity by offering bottom-line-priced goods, the levels of competition and uncertainty in the office furniture market is undeniably palpable.
Yet, unperturbed by the difficulties induced by the economy, Mr Stein divulges that the secret to ensuring the future success of Ukhuni is that ‘You’ve got to show up every day, you’ve got to be at it every single day, good or bad, disappointed or excited, you’ve got to show up and be there for your people and look after your suppliers and be there for your clients. Day in, day out – there’s just no days off’. He notes how even as a start-up business with no cash flow, he and his colleagues continued to come to work, labouring away to build the company into what it is today. Evidently, job dedication and time input are paramount to the company, but Mr Stein’s statement here also alludes to the genuine integrity with which he conducts his business. He goes on to state that ‘the more things we do right, the better it is for everyone in the chain’, attesting to how Ukhuni endeavour to be the best they can be in all aspects of the business.
For one, individuality is of high important to Ukhuni, as they staunchly stake their reputation on complete South African originality. Yet, there are still some ways that the company tries to match those around them, particularly when it comes to selling in a market that is saturated with often interchangeable brands, goods and services. Mr Stein has clear ambitions to contend within the global market and he is constantly observing the behaviours of other international companies so that he may steer his company towards their strategies and standards. Specifically, he notes how contemporarily, there is a direct crossover between lifestyle, fashion and design and so products have to inevitably stand out as attractive to the modern day consumer. Thus, as the old adage goes, ‘sex sells’ and so Mr Stein believes that he really needs to inject some ‘sex appeal’ into Ukhuni’s goods to differentiate them within the market. Consequently, the development of new products and the manipulation and redesign of existing products is a daily feat for Ukhuni, a challenge they clearly relish.
For example, on the design side, Ukhuni take great pride in educating themselves on the exact rationale of how and why their products will benefit and empower their clients. Working with architectural professionals and interior designers, the company are able to completely tailor furnishings to compliment and enhance the environment they will be placed in. Furthermore, Ukhuni have utilised research by Gensler regarding the different types of space that encourage staff productivity, concentration and well-being, so they can even advise on the more psychological aspects of office-furnishing. Mr Stein also discussed with us how he has identified apertures within the office furniture market that Ukhuni can breach through innovative design, particularly noting how in the contemporary era, we are ‘a mobile population’, demanding constant and reliable access to smart devices, power and wireless internet connections. As such, he hopes to converge technology and office furniture, creating the ultimate work station hub that is both aesthetic and functional; computer desks with built in computer screens, electricity outputs and wireless internet.
To produce these astounding pieces and a range of others, Ukhuni will make use of their 8 specialised machines which are calibrated daily for perfect accuracy. In turn, the staff operating these are highly trained and provided opportunities to receive ongoing training throughout their careers. Currently with 350 employees (this number was around 280 this time last year), the average tenure at Ukhuni is 10 years, with a mere 1% in staff turnover occurring per annum. Just recently a young black woman was promoted to the seating department head, with Mr Stein proudly stating that although the company is dedicated to black empowerment, her success was not politically motivated, but rather borne out of her sheer commitment and ambition. Ukhuni have also implemented a specialised staff transport system in which employees can effectively carpool together, saving on travelling fees and reducing the frustrations that can come along with commuting. As such, Mr Stein actively fosters and environment in which those in his employ can go home after work with a sense of pride and achievement, stating that ‘you want to be in bed with people who you can trust and who’ve got your back’ – with the company definitely living up to this ideal. In further discussing his high staff retention rate and their longstanding work dedication, Mr Stein wonderfully asserts that ‘You can fool a customer once, but you certainly couldn’t fool your staff day in day out for 10 years’, showcasing his true intentions of looking after all those in his workforce. Of further importance to the production process is the company’s attention to sustainable manufacture; Ukhuni have established their own recycling company, Thusong, which they also allow other local businesses to use. They have also upgraded their systems to reduce their usage of electricity, water and compressed air by 15%.
Of course, a huge faction of customer satisfaction derives from the production of quality goods, but Ukhuni are also dedicated to ensuring that clients will always receive their orders in as small a time frame as possible. At any given time, the company hold R14,000,000 worth of raw material and unfinished product in their warehouses, with raw materials only ever being sourced from accredited or branded suppliers to ensure continuity of quality. Their factory and warehouse are also equipped with generators in case of power outages and an estimated R300,000 is invested every year to ensure compliance with industry and government legislation that is in place to minimise risks in the workplace. Finally, Ukhuni also have their own fleet of trucks for both local and long haul deliveries so as to minimise reliance on third party courier services.
Evidently, the current procedures and processes within Ukhuni are propelling the business towards success, but what of the future? Mr Stein already has his sights set on the horizon, and is looking to heavily invest in showroom maintenance, intense marketing and social media use and improved logistical services. Since the beginning of 2015, Ukhuni have also been developing a completely new product range, the exact details of which Mr Stein is not yet ready to divulge. As of now, the new wares are undergoing final prototyping and tooling, which will take the best part of 2 – 3 months and the new range will debut in February 2016. He also hopes to continue to grow the business across the whole of Africa, as the advent of a growing middle class constitutes consumers with more disposable income and more complex, modern demands and requirements for their lifestyles and businesses. Furthermore, Mr Stein details that the company have an emerging presence in some European countries such as Switzerland and Germany and are also currently in the preparation stages of negotiating with a large European bank for the export of their branch furniture.
Consequently, the future for Ukhuni looks nothing but bright. Director Michael Stein has a true passion for what he does and a genuine care for both his workforce and his customers. With adventurous plans in place to secure their future success and a strong dedication to staying at the top of their game, the company truly are sitting pretty at the desk of success.