Shires Equestrian Flashcards
What is the name of the chairman/founder of Shires?
Malcolm Ainge
What other roles does Malcolm Ainge have in the equestrian community?
He is the Vice Chairman of BETA
Member of the WWF
When was Shires Equestrian set up?
In 1968
How has the British leatherwork industry changed?
Previously, leatherwork in the UK was done in the West Midlands and then exported around the world. This trade was transported to India. It started off with a poor reputation but has improved.
Indian people were taught how to make equestrian equipment by British soldiers during the occupation.
Because of this change, the pollution that comes from the leather production has been exported from Britain to India - the WWF is trying to change that, or reduce it.
Where is the Shires factory now based?
Leominster - they have been based there in the UK for the past 22 years.
It is a family business and they manufacturer most of the products themselves.
What other factories does Shires operate?
They have an operation in China set up in 1999 which employs 250 people.
They also have a joint venture in China that employs 150 people.
How many retailers does Shires supply to in the UK and USA?
UK - 850
Turnover: £18million
USA - 450
Turnover: £3million
When did Shires get its Royal Warrant from the Queen? What does this mean for the business?
Shires has to have been supplying the royal stable for 5 years to be considered. They are renewed every 5 years, but have to pay £1000 for membership
Shires gained their Royal warrant in 2010.
The restrictions for holders get tougher every year, e.g. disposal of waste and their effect on the environment
Where have Shires always struggled to find customers? Why?
In Europe, due to the number of already existing more trusted competitors
What other brands has Shires set up?
Bridleway - aimed to counteract against internet shopping for independent retailers
Have also set up a clothing brand and a footwear brand.
What is BETA?
British Equestrian Trade Association
Over 40 years old
A governing body that looks after retailers, manufacturers, and consumer interests. They take a survey every 5 years to gauge the changes in the trends of the equestrian market. Last one was taken in 2019.
- There are now 1.8 million regular riders
- In 2014, the number of Britain’s horse-owning households was 446,000. The downward trend has continued, with the figure now standing at 374,000.
2015:
- 2.7 million people ride at least once a year
- 74%:26% female: male ratio
- 994000 horses in the UK
- 6 years average ownership
How could Brexit affect Shires products?
If high tariffs are places on British products being exported to Europe, Britain may respond, which could have a negative effect on Shires as they will need to increase their prices to cover their costs.
Describe Malcolm Ainge’s career
- started out in the 1960s working for a country saddler
(very successful business, could take up to £10k on a good Saturday) - became manager of the equestrian department
- decided to start Shires in 1968 after turning down a job from John Charlton in Australia (who later set up one of Shire’s leading competitors)
Why is Shires not so successful in the USA?
Donald Trump’s trade tariffs have increased from 3% to 27.5%, making it much harder for Shires to breakeven and then be profitable whilst maintaining a fair price for their American customers. Other, larger, more trusted brands have a high percentage of market share. The American equestrian consumers also largely prefer mail order companies, while Shires traditionally depend on brick and mortar stores.
