BEST MOMENTS
"You could say it was in my blood and I was born into it"
"We went back to who we were, offering people value for money"
"The advice I was given was to benefit them not to benefit me"
"However terrible something is there is always a silver lining"
"You cannot live with being unpopular with your bank"
“I made a mistake, we all make mistakes, it doesn't mean you should be criticised for the rest of your life because you had a moment of bad judgement"
"Business is about detail, you're not going to be a success overnight"
VALUABLE RESOURCES
Business, Wealth and Mindset podcast series
ABOUT THE GUEST
Gerald Ratner is a British businessman and motivational speaker. He was formerly chief executive officer of the major British jewellery company Ratners Group (now the Signet Group). He achieved notoriety after making a speech in which he jokingly denigrated two of the company's products. He currently speaks around the world at corporate and promotional events.
Ratner joined the family business in 1966 and built up an extremely successful chain of jewellers during the 1980s, of which he was CEO. The shops shocked the formerly staid jewellery industry by displaying fluorescent orange posters advertising cut-price bargains and by offering low price ranges. The Ratners Group consisted of Ratners, H. Samuel, Ernest Jones, Leslie Davis, Watches of Switzerland and over 1000 shops in the US including Kays.
The speech
The shops and their wares were extremely popular with the public, until Ratner made a speech addressing a conference of the Institute of Directors at the Royal Albert Hall on 23 April 1991. During the speech, he commented:
We also do cut-glass sherry decanters complete with six glasses on a silver-plated tray that your butler can serve you drinks on, all for £4.95. People say, "How can you sell this for such a low price?", I say, "because it's total crap."
He compounded this by going on to remark that one of the sets of earrings was "cheaper than an M&S prawn sandwich but probably wouldn't last as long." Ratner's comments have become textbook examples of why CEOs should choose their words carefully.
In the furore that ensued, customers stayed away from Ratner shops. After the speech, the value of the Ratner group plummeted by around £500 million, which very nearly resulted in the firm's collapse. Ratner hired a chairman in an attempt to stabilise the situation, but was subsequently fired by the new company leader in November 1992. The group then changed its name to Signet Group in September 1993.
Today, Ratner's speech is still famous in the corporate world as an example of the value of branding and image over quality. Such gaffes are now sometimes called "doing a Ratner", and Ratner himself has acquired the sobriquet "The Sultan of Bling".
Ratner has said in his defence that his remarks were not meant to be taken seriously. He also largely blamed the aggressiveness and deliberately wrongful interpretation of several media outlets for the severe consumer reaction.
He set up a health club in Henley-on-Thames in 1996, which was sold for £3.9m in 2001. Ratner now runs, in collaboration with SB&T International Ltd, an export manufacturing company based in India and the online jewellery business Gerald Online.
In 2013, during a visit to India for the inaugural eTailing India Expo, Ratner announced that he would be entering the Indian market.
ABOUT THE HOST
Alex is a prize-winning chartered accountant with experience in financial markets from
trading finance, capital hedging, structural foreign exchange and interest
rates to operational risk from the world’s top financial and advisory
institutions including Deloitte, RBS and JPMorgan Chase
Alex has
been involved in property development programmes across different types since
2008, building and managing a portfolio that includes standard buy-to-lets,
student accommodation and other houses in multiple occupancy (HMOs).
He
specialises in raising finance, providing potential investors, investors and
joint venture partners with ad hoc (to their specific requirements), hands-free
and hassle-free property investments solutions as well as coaching and mentoring
Alex aspires to share business and financial knowledge with upcoming entrepreneurs and
experienced business minds to learn and master the concepts and mindsets
required to succeed, stand out, have the edge and make a difference.
Alex is
also a keen traveller, cyclist and photographer.
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Twitter - @alex_sapala
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