Today's Q&A session features Jack Georges, founder of Jack Georges, Inc., a leader in the leather goods industry. Jack's journey, marked by determination and innovation, has established him as a pioneer in leather craftsmanship. From his early days influenced by his family's legacy in the business to braving new beginnings in the United States, Jack's story is not just about creating a brand but a narrative of resilience, adaptability, and unwavering commitment to quality.
Jack: Certainly. Growing up, my family, especially on my mother's side, was deeply involved in the leather shoe business. My father, too, joined the trade. This early exposure was like being in a doctor's family where you naturally learn about medicine. I was constantly around discussions on dealing with suppliers and the intricacies of leatherwork. This environment laid the foundation for my understanding of the industry.
Jack: In '76, as a young boy of 18, I left my war-torn homeland alone. It was a challenging journey, marked by uncertainty and risks like getting lost at sea. Arriving in the U.S. was a pivotal moment. I faced the fear of failure and the pressure of not embarrassing my family. My father's view of me as an adult, despite my youth, played a significant role in how I conducted myself. This period of my life was about adapting, learning, and slowly making my way up in the business world.
Jack: I started working at a company where I quickly moved up the ranks, becoming their first supervisor at the age of 20. My willingness to put in the hours and dedication paid off. I was involved in various roles, from production management to traveling abroad for raw material procurement. In '82, I was sent to Asia, marking my early forays into international business. These experiences were invaluable and led to my role as an executive vice president. It was a journey of learning and growth despite having minimal formal education.
Jack: In '87, I decided to leave my job, which coincided with the end of my personal engagement. It was a crucial moment. I was free from personal commitments, allowing me to pursue my dream without the burdens of a mortgage or family responsibilities. This freedom was instrumental in my decision to start my own company. I embarked on this journey with dedication, traveling across the U.S. to personally open every account and build relationships.
Jack: From the start, I knew you can't make the best quality, and I didn't want to be the cheapest so to succeed. I focused on being different. For example, when I approached Neiman Marcus, I pitched my products as unique and exclusive to Dallas. This strategy of offering something distinctive and exclusive was how I entered new distribution areas. My approach was to target every account based on what they offered, ensuring our products stood out.
Jack: I developed a process to categorize accounts from A to D. 'A' accounts were those who gave us business, paid on time, and were prestigious – like Madison ave stores in New York City. They received our utmost attention. On the other hand, 'D' accounts were challenging ones with payment or other issues. We treated all our customers with respect, regardless of their size, focusing on those who supported us and our brand.
Jack: The key to our longevity has been our ability to adapt to the changing market. Initially, our focus was on Made in the USA products and exploring international materials and craftsmanship. However, the real shift came with the change in product style—from formal to casual—and leveraging the uniqueness of our products. We've always been about being different and exclusive, which opened doors for us in prestigious outlets. Today, the challenge is keeping up with the digital marketplace, from online advertising to ensuring a strong online presence. Adapting to these changes while maintaining our core values of quality and integrity has been crucial.
Jack: Our growth, especially from the late '80s to the late '90s, was driven by strong relationships with our retailers and an expanding product line. We've always valued customer relationships, categorizing them to provide personalized service. Also, maintaining our production in the USA while expanding our product range to include both traditional and modern designs has been a significant growth factor. We’ve focused on creating timeless products that evoke a sense of nostalgia and personal connection, which has helped in maintaining a loyal customer base.
Jack: The biggest challenge today is the shift from multi-retailer channels to direct-to-consumer models. Competing with giants like Amazon requires a careful balancing act. We're focusing on retaining the quality and integrity that built our brand while adapting to the demands of the digital marketplace. It's about striking the right balance between traditional and modern marketing strategies, and ensuring we stay profitable without compromising our core values.
Jack: The motivation comes from a blend of personal pride, a sense of responsibility, and the joy of work. The company bears my name, which continually reminds me of the importance of maintaining integrity in every decision. Looking ahead, my goal is to continue nurturing the brand's legacy, ensuring quality and integrity while adapting to the ever-evolving market demands.
Chris: Thank you for sharing such valuable insights into your journey. We're excited to see where the next five years take you and Jack Georges. Thanks again for joining us today.
