Electronic Retailer - June 2011 - 28

THE EVOLUTION OF A GLOBAL BUSINESS

spearheading his own DR distribution business in Europe. The company specialized in importing and distributing products from North American marketers. In 1993, he relocated to Canada where he handled international sales for Toronto-based Interwood Marketing, which he regards as one of the pioneers in international distribution for direct response. It was during his tenure at the company that Tukulj met Bill and Denise Hay, the founders and owners of Thane International, a leading U.S. direct marketing company based in La Quinta, Calif. Thane had already been an Interwood client for a couple of years when Tukulj began speaking with the couple about a new business venture. In 1997, the Hays and Tukulj partnered to form Thane Direct in Canada, which served as the international arm of the flagship company. While Thane had established itself in the U.S. DR market,

“TV is the medium that drives people to the internet. In the old days, 100 percent of our orders would come through the phone, but now, almost half of the orders come through the internet.”
it lacked a strong presence in the global marketplace. According to Tukulj, “When we set up the international division of Thane, we essentially were tasked with growing the business outside of the United States. The first thing we did was work very extensively through the independent third-party distribution network that I helped set up during the five years I spent at Interwood.” Tukulj adds that he realized the company needed to tactically establish itself in the top international markets. Thus, Thane Direct Inc. gradually began setting up its own subsidiaries, acquiring its own media and becoming vertically integrated in many of the largest and strategically important markets around the globe.

Charting an International Course
As Tukulj worked to get Thane Direct up and running, he encountered various hurdles along the way. He explains that the direct response business “was relatively unknown outside of the United States and Europe.” That meant going out and finding the right distribution, fulfillment and telemarketing partners, which, in many cases, proved difficult because they were scarce during that time. In some cases, this forced Thane to bring backend services in-house. Media presented the company with another obstacle. “Media availability was limited,” he notes. “So, we had to break ground, explaining the ABCs of direct response to many television executives.” What’s more, Tukulj says it was most challenging to locate the right talent and management. Little by little, however, the
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process became less taxing once Thane Direct began to gain a foothold in the international arena. “The strategy was very successful and the shareholders, including the Hays, also realized that the major growth opportunities for the company lay outside of the United States. We completed that strategic transition in 2005 when we moved Thane’s headquarters from La Quinta to Toronto,” he affirms. “The company transformed itself from a U.S. company with an international division to an international company with a U.S. division.”

electronicRETAILER | June 2011

5/26/11 2:49:17 PM

Electronic Retailer - June 2011

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