Entrepreneur has a lesson in luxuriating

By KATIE TAYLOR FOR MAILONLINE
Updated:

 

The luxury goods sector was one of the first casualties of the recession and has been slow to recover.

Daniel Thomas

Dream: Daniel Thomas owns a hot tub and spa business

But changing the way luxury products are sold has been a key to success for Daniel Thomas, who has used a mix of ecommerce and competitively priced products from China to establish his DanZ hot tub and spa retail business.

Launched in 2006, the business turned over £350,000 last year and is on track to achieve a significantly higher sum this year.

Earlier this year, Daniel, 22, from Nottingham, took on his first two employees. His philosophy, he says, was to find a profitable market and provide better value for money than his competitors.

By selling online he eliminated many costs borne by his High Street competitors. And he used existing Chinese supply channels, established during his earlier business ventures, which included selling mobile phone covers, golf carts and TV equipment on eBay, to source the products.

He says: 'Our top model retails for £4,750. The same product in a High Street showroom would sell for £7,800.

'With those savings we can attract customers with the money to spend on a luxury hot tub who want a better deal – and those who have always wanted one but felt they couldn't afford it.'

Daniel does not believe he poses a threat to traditional upmarket retailers whose customers want to see the most prestigious products in showrooms before they buy.

'What we have done is open up a luxury market to a new sector of customers,' he says.

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