GNS Ceramics now offers coverage throughout the eastern seaboard of Australia. Richard Murphy and Jono Stokes tell us how they did it

National ambitions and local expertise fuels growth at GNS

After celebrating its 50th anniversary back in 2016, GNS Ceramics decided to go to the next level and began making expansion plans. Co-managing directors, Richard Murphy and Jono Stokes tell Tile Today how they did it.

The main image shows an Australian kitchen using larger tiles to emphasise and delineate open space. GNS sees strong markets for subway tiles (inset top) and 150mm square tiles (inset bottom) as well.

It might be natural to assume that when a company reaches a significant milestone such as its 50th year in business that the owners and management team might take the time to reflect and “rest on its laurels”. This is not the case at GNS. Instead it set out on a course of the action that would make it the largest tile wholesaler on the eastern seaboard.

What was the process involved in the expansion? For example, what was the time frame and how did some of the planning and execution come about? The planning for our expansion began in 2016 after celebrating 50 years of tile wholesaling. During this time, we had built a substantial customer base, our inventory had grown into the widest in Australia and we had developed a firm philosophy of commitment and service to our customers. We felt it was the right time to expand. This decision was further enhanced with encouragement from many of our trusted customers who in themselves served multiple markets throughout Australia. This was reinforced by several of our factories who were looking for a reliable sole distributor for their products, who could handle the large volumes they produce.

The process began with research, site visits and discussions. After this, we felt there was an opening in the Victorian market for a stable, reliable, independent wholesaler. We drew up an initial three-year business plan, and early in 2017, we opened a sales office that included a small storage facility in Melbourne. From this start, the business has forged ahead, growing year on year and it has recently started to service the South Australian and Tasmanian markets.

Due to continued sales growth over the last three years, we have just moved to a much larger warehouse facility to handle the increased volume. This has enabled us to increase our stockholding and maintain our commitment and high level of support to our customer base.

In mid-2019, with our operations in Victoria settling in, we started to consider the next largest market in Australia – Queensland. Our

The GNS Sydney office shows a display of some of the tiles the company can supply

research indicated this market had different characteristics from Victoria and therefore required a different approach. We were aware of its geography, and its many established wholesalers in the marketplace, and as a result the business plan we had used in Victoria was not suitable for Queensland. So, to launch ourselves into this market, we decided to investigate the purchase of an existing business. After due diligence, in March 2020, we purchased DW Custer and are well on our way to introducing exciting ranges of products into this market.

How does the expansion better position GNS as a business in the current market? The internet has reduced the size of Australia, obviously not in land mass, but in the way we connect and operate our business. Physical and geographic boundaries are less restrictive now. Consumers expect that products are widely available and within a quick timeframe.

The emergence of e-commerce has further fuelled expectations and this is no different in the tile industry. To meet these challenges, we need to be ready with a supply of new and innovative products that can be dispatched to key locations across Australia. GNS does not focus on being a tile retailer – we rely on our customers to do what they do best. We aim to be their logistical support, serving as the pivotal link between manufacturers and the market with our centrally managed, geographically positioned distribution centres along the east coast of Australia. This unique position allows us to hold large stock holdings providing easy access for our customers.

Our expansion program is still a work in progress as we continue to build for the future. This will include continued refinements of our IT capabilities and improved distribution, logistics and administration. Our sales and distribution hubs will continue employing local staff who bring knowledge and understanding of their locality. As always, a consistent focus on customer service will be the mainstay of these endeavours. To reinforce this outcome, we have dedicated product managers in each state, providing local input into our national product selection process.

Whilst our expansion has increased our customer base and stock holdings, our goals have not wavered or changed. We aim to continue to provide new and interesting products and continuously improve our service, commitment, and reliability to our customers wherever they may be across Australia.

How do you see tile trends developing in the upcoming seasons? One timeless aspect of tile trends is that “colours” continue to evolve. The attention to greys is receding and greige (grey/beige) is emerging as the latest colour to be exciting customers. Soft greens, blues, browns and dusty pinks are trending complementary colours, and accents of green, teal and blue continue to be popular. As consumers continue to develop eclectic mixes for their tiled spaces, they are also becoming more adventurous with colour. Marble and stone designs are increasing in the number of colours available on

tiles, creating visually stimulating designs that perfectly mimic the natural world.

Whilst the trend for larger tile sizes continues, with 600 x 1200mm now generally accepted in the market, there also seems to be an interest in the opposite direction. Sizes such as 150 x 150mm and 200 x 200mm are proving popular. The universally well-liked subway tile continues to dominate the market for small wall decorations.

How do you think the industry is evolving because of the coronavirus? It is early days so we can only surmise what it is going to be like when we reach the other side of COVID-19. We suspect that internet and social media platforms will continue to provide alternative avenues to traditional bricks and mortar shopfronts and this is likely to continue long after the current lockdown has been lifted.

In the medium-term, the reduction in international travel will potentially limit the amount of overseas product entering the market. Furthermore, the restrictions on movement in other countries may cause additional issues amongst global supply chains. The distinct possibility of a recession is likely to prove difficult for many and no doubt, some businesses will fail in its wake.

It will be a time when all of those in the tile industry will benefit from working together, supporting each other and maintaining strong relationships up and down the supply chain.

The Melbourne warehouse

Progress

Established in 1966, GNS Ceramics is regarded as wa major importer and wholesaler exclusively servicing retail outlets throughout NSW and the ACT. From 2017, the company expanded its coverage to include retail outlets throughout the south eastern region of Australia.

Its acquisition of Brisbane-based wholesaler, DW Custers has allowed GNS to supply tiles throughout the eastern seaboard.

Since its inception, GNS’s philosophy to “commitment and service” has remained a guiding principle for the company, and has led it to establish a solid capital base, build significant stock levels, and have the freedom to seize opportunities in the tile industry.

GNS believes it serves a crucial link between manufacturers and the market, connected through retail outlets. The company’s strengths are developing mutually beneficial relationships with its customers and suppliers, paying close attention to market trends and being progressive in its outlook.

To keep up to date on the latest trends, the GNS team constantly scans what is happening around the world to identify emerging designs, while working closely with its existing manufacturers to offer a comprehensive range.

The company’s attention to detail has helped establish its reputation for professionalism and reliability. GNS prides itself on friendly customer service and a responsive sales team. Its warehouses operate night and day, to provide prompt and efficient supply. n

Jono Stokes is the chief operations officer, overseeing purchasing, finance & operations at GNS Ceramics. He represents the third generation of the family that owns GNS Ceramics with his earliest memories a young child where he accompanying his father on a buying trip to Japan in search of mosaics.

In 2004, Jono officially joined the company and has worked in a variety of roles including customer service, sales and accounts. He was appointed joint managing director in 2012.

RIchard Murphy is the chief operations officer, overseeing sales and marketing at GNS Ceramics. He has an extensive background in applied sciences, logistics, sales and marketing, and he has been involved in the ceramic tile industry for nearly 28 years. During this time, Richard has held diverse leadership and management roles with a number of importing and wholesaling companies. He joined GNS Ceramics in 2004 and became joint managing director alongside Jono Stokes in in 2012.