Micheal Awolabi, CEO Il bagno

Interview

SEZNO BENSON

Micheal Owolabi

CEO Il Bagno Group

We have watched the amazing growth of your design and lifestyle company. When and how did it all start?

The IL Bagno dream started in the 2003. I was in a transition period in my career and at a point was focused on building my family home, I found out that there was a gap in the market for quality fittings in general but especially bathroom fittings. The search for quality took me all the way to South Africa and I thought that it was weird for a country so large not to have good solutions. In faraway South Africa, the seeds of my business was born. I have not looked back since. I came back to Nigeria and in May 2004, we opened our doors

Why the names IL Bagno and Black Pelican ?

We decided from the start to have a holding structure and therefore formally registered our company as Black Pelican Limited. We set out to be an exceptional company and to provide exceptional service and since pelicans are usually white, we decided we would be the black pelican in a sea of white pelicans. Today, Black Pelican has 5 trade names for our 5 business divisions ; the largest of which is ‘IL Bagno’ (the others are BPL Wellness; Bagno Technik; Bagno Logistix and Bathrooms Direct). IL Bagno simply means ‘the bathroom’ in Italian and it highlights our initial focus on bathrooms. It was different, unusual and sums up the essence of what we were trying to do back in 2004 when we started.

You are a lawyer and was once a banker ? Which assets from those have you brought into your current business.

I have graduate and post graduate degrees in Law but went straight into banking from Law School. I had always wanted to

be an investment banker. Whilst in university, I had read tales of wealthy investment bankers from Europe to America. Books like ‘Barbarians at the Gate’ detailed the exploits of Michael Milken, Ivan Boesky, Henry Kravis and Ron Perelman. My head with filled with dreams of great wealth, exciting days and sleepless nights. So my sojourn in banking was quite deliberate, law was just a platform for achieving it. Banking helped shape my perspective about business and taught me corporate structuring and how to see and assess opportunities. I learnt how to manage people, negotiate complex transactions and make decisions quickly. My background in law is invaluable in understanding corporate agreements, negotiation and risk management. These skills have helped significantly in my business journey.

We’re aware that you work closely with your wife, how does that work for both of you ? Who’s the regular boss ?

This is one question I get asked a lot. The answer is simple; my wife is the regular boss for sure. Whilst she is a loving, smart and beautiful Christian woman, she has nerves of steel and is quite firm. I therefore find it more expedient to give up quickly during conflicts. LOL On a more serious note, working with her has helped grow the business exponentially. She steadies the ship and manages risk and finances much better than I can. I can easily bet the house on a single good idea whilst she takes a more conservative, step by step approach. Her sensible way sometimes frustrates my killer instincts but I quickly concede that her careful instinct is often correct and we therefore make a great team. My wife is calm and methodical and is an inspiration to me in many areas of life and business. She is also a more approachable people person and that balances my tougher exterior (Bathrooms, Wellness, Marble& tiles, Doors & windows, Gym Equipment, Kitchens & appliances, Lighting, Switches & Sockets, Furniture, Healthcare, Garage solutions, Railings and Industrial and Personal safes) . Our biggest partners include Laufen, Duravit, Technogym, Poliform and Oikos. We are quite focused on providing solutions and are careful not be simply push products to clients. In looking for partner brands, we pay close attention to what unique solutions each brings to the table and insist that they must be top 3 in their chosen area. We insist that our partners are best in class

How has the Nigerian market responded to your portfolio?

I believe our strong suit as a business is that we are a total interior solutions business; we are the only business in the industry that offers end-to-end solutions in the interior space, from a wide of range of products to warehousing and logistics as well as installation. We are quite fortunate that the market has accepted us the way it has. The last 16years have indeed been exciting but there is

so much more to do.

With so many wealthy Nigerians wanting to buy in London, Milan, Dubai, how have you managed to capture and maintain your clientele.

The real challenge is getting the customers to understand the value proposition inherent in buying locally. Starting from an excellent customer experience that appreciates that the customer is king to a guarantee of the highest product quality, timely delivery, installation and after sales service. The wealthy and exposed Nigerian will always buy locally if they can avoid the stress of the ports and are not exploited. The task of showing this is our everyday challenge and we have been fairly successful at demonstrating that value to so many

«we are the only business in the industry that offers end-to-end solutions in the interior space.»

Which brands do you have within your companies ? Tell us more precisely about these brands and their products.

We like to see ourselves as solution providers. We are 1 company with 5 trade names and 75 brands offering 13 solutions

What’s your experience in difference between the Lagos market and Abuja?

Two areas of difference is in taste and shopping style. So, while

a typical Lagos homeowner leans more towards modern contemporary styles, the northern market tend to appreciate classic furniture more. Also, the typical Lagos client will approach us during project planning and may not visit the design center but conduct their business with us by email; the Abuja client will buy closer to when they need it and therefore appreciate a healthy stock position. They are also far more likely to visit in person. We therefore have to approach each market differently and that also explains why our Abuja design center is larger than the one in Lagos.

Where do you spend more of your time ?

I spend my time mostly in Lagos as my family is based in Lagos and London but find myself travelling between Lagos, Abuja and Europe all year. I go where I am needed

In which areas would you want to implement improvements in your businesses ?

We are always growing and essentially improving, so we tend to innovate as we go. From IT solutions to Supply chain practices, we are always trying to improve based on best practices in relation to our market. A key area I would like to focus on is e-commerce.

What are the challenges?

The challenges of living and working in Nigeria are well known. Finding top talent in the age of Canadian emigration, infrastructure constraints (transport network, power, security) and port delays/congestion, cost of capital, high import duties in addition to FX fluctuations make for a cocktail of very interesting and sometimes crippling challenges. Navigating these is the difference between success and failure of any business in Nigeria

What are your feelings about Nigerians with similar businesses finding opportunities to collaborate instead of seeing everything as competition?

The challenge with collaborations in Nigeria is that it is often difficult to find companies and people with similar ideals and value systems. Once one finds like-minded partners, exploring synergies make for a higher likelihood of success. We all should do this more often. The perception that we are competing against each other must be balanced against the size of the market we operate in. There is still so much to be done.

Have you done previous collaborations or are planning to do so?

We have done several formal and informal collaborations and partnered with businesses within and outside the industry. Once there is a common objective and similar value system, we are usually keen to engage

Now we’re slowly evolving from the recent pandemic how do you see the luxury, design and lifestyle business over the next 12 to 18 months?

Time and again, the luxury and lifestyle business has had to reinvent itself many times especially after market corrections like the stock market crash of 2008 and the more recent crash of 2020 caused by the pandemic. We are called to do so again. More and more businesses in our sector will focus on the details like how products can serve clients and help to keep them safe, how to digitally engage with the market and of course be generally more customer-focused when it comes to marketing because there has been a shift in customer orientation and there is a need to present solutions that make a difference. Some areas will clearly be more affected than others but we will soon recover

And to close, what are the cogent reasons why you have chosen to partner long term with us at GMT Africa?

I think the two most important reasons for partnering with GMT Africa will be your reputation and your reach. Like I mentioned, our selection process for brand partners is a very thorough one that focuses on how our businesses can align. From research and conversation, we understand that our businesses look to reach the discerning clients who understand luxury lifestyle and that’s an alignment right there.