Prize fighter

With the CRN Retailer of the Year award now under its belt, MicroAnvika has proved yet again that Ketan Patel and Ramesh Gohil know how torun their business. Nicholas Blincoe visits the Tottenham Court Roadstore.

Everyone at Micro Anvika, the CRN Independent Retailer of the Year, is sure that the award went to the right company. Ketan Patel only wonders why it hasn't won before: "We've been going for thirteen years." He is only slightly mollified when it is pointed out that Micro Anvika may have been around for ever but CRN hasn't.

In fact, CRN was quick to recognise Micro Anvika's unique place in the market. Almost two years ago, CRN visited the company and was impressed to learn that what was basically nothing more than a store was turning over u14 million a year. The only caveat this reporter could suggest was that Micro Anvika's success had led them into a cul-de-sac. Dominating the computer market of Tottenham Court Road was an awe-inspiring feat but the director's attachment to the road seemed to leave no room for further expansion. Predictably, this reporter was wrong. Since that initial report, turnover has grown to u20 million. And, as the bullish marketing director Ramesh Gohil says, "My principle is: why do u50 million when you can make the same profit from u20 million?"

Micro Anvika was founded in 1984 with capital of u8,000 and has never borrowed a penny. Gohil, clearly Micro Anvika's resident philosopher, has an ideological dislike for borrowing. But, as he says, the company is cash rich. They are always looking for new developments and possibilities and if something comes along, he says: "We'll be there with our money."

Patel and Gohil attribute their success to a genuine belief in technology.

The single most surprising fact about Micro Anvika is that although the company only comprises four sites - a warehouse and three stores all within yards of each other - they have an Epos system powerful enough to run a national chain and live telestream links that constantly relay this information around the company. Ketan Patel is both proud and amused that laying their new ISDN cables brought local traffic to a standstill. As he says, "We use technology, we don't just sell it."

Ramesh Gohil expands on the point: "We have to think big ... and we spend 24 hours a day looking for loopholes, asking if we've missed something, looking for ways to improve the business. Anyone can shift boxes, anyone can do business. But it has to be done with a certain philosophy. It has to be about more than money."

Which isn't to say the company doesn't care about money. Rather that they want to be around for the longest of hauls. In the first CRN site report, Gohil expressed admiration for the philosophy behind Japanese companies because they were willing to plan for the long-term rather than the quick buck. Gohil is not only quick with philosophical observations.

He is also good for a snappy quote. In his last CRN interview he invited Dixons to move onto Tottenham Court Road so, as he said: "we can kick their arse". The quote caused some consternation, and amusement, among Micro Anvika's business contacts. This time around, Ketan Patel is anxious that Gohil be more diplomatic about Dixons. Gohil nods agreement, but adds: "The offer is still open."

Walking between points in the Micro Anvika empire, Patel points at an empty store front, and admits: "I did kind of hope Dixons might take that on." The shop was once the site of a Powerstore with a Vobis outlet inside.

Although Patel grins and says: "We saw them off", he isn't entirely happy that Vobis has moved on. High profile openings brought new people to Tottenham Court Road ... and new customers for Micro Anvika. Is it possible, then, that the directors' ambitions for Micro Anvika are limited by their attachment to Tottenham Court Road? Gohil does say that they will open another branch soon: "Somewhere towards the City." But he adds: "Opening stores isn't a problem. We could open 20 tomorrow." The problem is opening the right kind of store and finding the staff.

In the past year, Micro Anvika's staff has almost doubled from 34 to 64. In part, this is because the warehouse and offices have expanded considerably.

Where they once held u1.2 to u1.4 million of stock, the number is now more like u2 million. The staff increase is also due to the fact that a new, double-fronted store has opened lower down Tottenham Court Road.

Micro Anvika's staff are all knowledgeable and, importantly, confident in their knowledge and their position in the company. They do not wear uniforms, the only dress code is smart casual, but the staff look and sound authoritative. Gohil and Patel keep the staff up-to-date by insisting they attend a meeting about new products and initiatives every Friday.

At the new store, the atmosphere is quiet ... at least compared to the original shop which is bustling every day of the week. Patel explains that this is deliberate. Although the two stores are so close to each other, they both carry the same stock (a smaller outlet further up the road stocks Mac products). The difference is the atmosphere: the new store is intended to be more relaxed, the older store more intense and techie.

Patel says that despite it appearing to be calm, the new store out-performs the old.

Micro Anvika has succeeded by exploiting Tottenham Court Road to the hilt without compromising on margins. The company capitalises on the road's reputation for technology and innovation, while eschewing the bargain basement ethos of some of the road's retailers. It is a neat act but not a simple one. Everything has been researched and planned in detail.

Winning the Independent Retailer Of The Year Award shows the company has the admiration of the industry. But there are other, more subtle, signs of Micro Anvika's standing. Ketan Patel points out a new Panasonic laptop he calls the legbreaker. It is small and light but incredibly tough with heavy-duty, re-inforced panels and a chunky handle. Patel describes how Panasonic came to them for ideas and this was the result: "Great for journalists. You can drop it, stand on it. It could even stop a bullet." He punches the screen to prove his point. You have to say ... he's got a lot of clout.

MICRO ANVIKA

Store Type: Independent retailer

Store Location: Three stores clustered about Tottenham Court Road, including a Macintosh specialist

Interviewees: Micro Anvika executive officer Ketan Patel and director Ramesh Gohil

Business Breakdown: A total of 70% of the business comes through the stores, 30% is "the armchair market" (the directors dislike the term mail order)

Customer Profile: SoHo market, techies and a surprising amount of celebrities, including John Thaw, Stephen Fry and Stanley Kubrick

History: The directors learnt their trade selling from concessions and stores along Tottenham Court Road

Future: After being named CRN Independent Retailer Of The Year, what has life left to offer?