Irish Fairy Door Company moves to licensing model
Shift to licensing deal with Allied Imports contributed to loss of €422,011 last year
The company’s newest product comes in direct response to Covid-19 – the Fairy Glisten Hand Sanitising Unit.
The company behind the Irish Fairy Door brand has moved to a new licensing model, with the shift contributing to a loss of €422,011 last year. Irish Fairy Door Company director Niamh Barry confirmed on Thursday that the business had agreed the new licensing deal with Dublin-based Allied Imports.
“We have transitioned to a licensing model with Allied Imports and, as such, we have changed our supply chain, staffing, and sales and marketing models to reflect this, all of which carried costs for 2019,” said Ms Barry.
“We have been working with them over the past six months to develop lots of brand new products which are really exciting,” Ms Barry said.
Sales of the company’s core product, the Irish Fairy Door, comprise 40 per cent of the company’s revenues.
Ms Barry acknowledged that the Covid-19 pandemic had hit sales.
“Covid-19 has had a massive impact on our bricks-and-mortar toy store sales – most stores were closed for the initial part of lockdown and then on limited opening hours.”
However, the company’s newest product comes in direct response to Covid-19 – the Fairy Glisten Hand Sanitising Unit.
Ms Barry said: “We really felt that we needed to add a little magic to hand sanitising. It’s such a huge part of everyday life for children today. So much has changed for them.”
Numbers directly employed by the company last year fell from 11 to four, with Ms Barry explaining that the new licensing model allowed for fewer staff.
“Moving to an outsourced and licensing model with Allied Imports means that we don’t carry the staff as full-time employees and instead have a number of outsourced and contract recruitment models that give us the talent we need, when we need it.”
She added that the business expected revenues and staffing levels, both full-time and contracted, to increase significantly this year.
The Irish Fairy Door Company, which was established in 2014, had a shareholders’ deficit of €1.4 million at the end of last year.
Ms Barry said: “Like all small business, there have been many ups and downs along the way. Some really high ups and some really low downs.
“It really is about adapting. Innovation continues to be the key. Being able to pivot when you need to, being brave when you need to be and following your gut are possibly the most important things when it comes to owning and operating a small business. If Covid has taught us anything, it is that.”