What a difference a year makes…
Last year by this time, ICP had received its financing yet had also lost a number of clients over the years of restructuring and attacks by fake-rated competition. This had for effect to erode our market share, toplines and significant profitability.
Circle back to end of 2006, coming into the 2007 season, we had received financing and the key to the market is to hold share while restructuring a number of teams. We brought in some new people, some of which were transitory in nature (to help rebuild up to a point) and others which we knew were part of our new DNA for a longer term.
We spent the entire year 2007 doing what we had not done for years…delivery of superior merchandise, thanks in large part to experienced stewardship of operations by Roy Cai. Having revamped our branding and product strategy in 2006, this past year was going to be the one where our strategy was validated..or not. Well the verdict is in and you can see it by the number of new clients being announced almost each week. While true that we continue to report losses, these are all necessary investments in our future strategy as we retooled the company towards growth and secured relationships with Class “A” vendors and customers.
Not only are our clients now going deeper with ICP product ranges, we are now adding significant distribution muscle with companies like Wal-Mart USA, Ibersolar, Costco, Cabela’s and others, due to sales management skills of Tom Clark and Pascal Petit. And all this in a year where we also had to sell off a factory as part of our new “Apple” strategy of reducing capital assets while investing in intellectual property.
Here we are at the beginning of 2008 and things are indeed looking good to validate our strategy indeed. We cannot expect these client additions to have immediate effect, yet their cumulative bandwidth will forever change the landscape of the marketplace. It will be a telling year where we continue to innovate (thanks to the addition of new capable product managers under the product development guidance of Steve Carkner, co-inventor of the Blackberry patents for power management) and invest in innovative marketing under tutorship of Laurent Lafite.
The key to all of this..the right people. At its peak, ICP Solar had the “right people” and its testament to our company that some of our strongest competition went to school at ICP itself. Kudos to them for their achievements for we will accept part of the credit indeed! However, this is a new game and one in which only the most innovative, honest and forward-looking company and products will win. The time of “me too” has passed. Consumers are now more knowledgeable and won’t take labels as meaning anything. They want delivery. They want something which will enhance their carbon footprint and lifestyle. They want hope.
The end result? Each and every customer with whom we invested in new programs this past year reported double digit growth in their sales with our products. So the success is proven, all we have to do is add new clients, which is exactly what you are all seeing. And its not just that ICP Solar products outsell competitive items which are located on the same shelf. Its that the retailers who did not realize the turned away customers who come to depend on brands to trust them, particularly in areas where there is little consumer knowledge (and sometimes similar store clerk ignorance), are now turning to our Sunsei(R) and Coleman(R) products because of their reputation for quality and delivery.
Many shareholders have been wondering why our stock price took such a tumble since mid-December. Frankly, there is no fundamental change in our business which would justify this. Our strategy has been outlined from the beginning and we had no reason to hide it. Finance, restructure and relaunch. 2007 was going to be an investment year, 2008 and beyond would reap the rewards.
So to all those investors who are riding the wave (perhaps unfortunately in the wrong direction), I ask all those who are being patient with us to ponder the following: Wal-Mart doesn’t just partner with anyone. Unlike some other retailers selling solar chargers whose scruples are solely determined by their quest for bottom line, this partner has a sustainability initiative which is from the top down and far too dear for them to mess with inferior solar panels or unscrupulous companies. They actually care about their customers. As more and more retailers are looking into the mirror to decide what they really want their brand to mean in the renewable energy field, its no wonder that ICP Solar is recapturing those that left and bringing new ones on board at a faster rate than in any of the previous 5 years combined.
One thing I can say without breaching any “forward looking rules”…the best is yet to come!
Sass