Brand & Beyond
Deep Dive into Leading Brands & Their Creators
Featuring Dulith Herath
Featuring, Fouzul Hameed on Marketer Calibre as he dives deep into the story of how he created the 'Hameedia' brand. Fouzul Hameed is the Managing Director of the Hameedia Group.
Fouzul counts over 3 decades of experience in Men's Fashion. He is a U.S certified Image Consultant and a prominent figure in the Fashion Industry in Sri Lanka
"Creating Gentlemen"
Question Focus - Personal Growth
Sohan
Can you share something about the ‘young Dulith’ that you haven't shared publicly before?
Dulith
(Pauses, and gives a reminiscing smile)
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You see Sohan, when I was little I was quite imaginative and fantastical. I could be sitting in the backseat of my father's car and just get into a world of my own. One time I would be a super hero, one time I would imagine I am a leader in a corporate office. My team is discussing with me about an issue and I'm advising them trying to resolve it. (Laughs)
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​​Sohan
(Laughs) Wow, how old were you at that time?
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Dulith
(Laughs) Less than ten if I remember right
Sohan
Thanks Dulith, you've seemed to have had a very adventurous childhood. Moving on, from working for brands like Microsoft and Dell, what made you step into the unknown world of entrepreneurship? How confident were you?
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Dulith
(Leans back) Very confident Sohan. You see my entrepreneurial traits came out when I was just a kid in school. In the early days computers were not as affordable and accessible as today. So I used to assemble parts, and sell it to my friends at a more affordable price. That business was quite successful where I was even able to part finance my first car, a Mazda Gemini (Smiles with nostalgia). So these kind of experiences created a trail of bread crumbs that I could always trace back.
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So picture this, my dream/achievements were a destination I wanted to reach, I had the map and I knew the road I should take but notice a short cut, that's what I took. I was pretty confident, to take that turn and get there faster (Laughs). However, I was just 23 at that time and was able to take that risk. Today, I don't think I have the same appetite (Smiles with a sense of accomplishment).​​
Question Focus - Brand Origin
​Sohan
(Smiles) That's an interesting allegory Dulith. So moving forward, could you share how your brands, Kapruka and Java Lounge came into being?
Dulith
(Smiles intently) You see Sohan when I was studying in the US, right in front of my eyes I saw how e-commerce brands such as Amazon was growing at an exponential rate. Intuitively I saw the potential for e-commerce in Sri Lanka. So that's how Kapruka came to be the first e-commerce enterprise in Sri Lanka. And well Java Lounge (Laughs heartily) could be considered a by product of Kapruka. The late nights and coffee, instinctively drew me to start a coffee chain serving the 'Best Coffee' and that's how Java Lounge was born, becoming one of the oldest coffee houses in Sri Lanka.
Sohan
That's incredible. Thank you for sharing Dulith. So moving on, from hosting Kapruka from your home internet to recruiting your first employee, purchasing your first delivery motorcycle, to being the first listed E-commerce enterprise in Sri Lanka, what would the young Dulith say to the present Dulith when he sees his achievements to date?
Dulith
(Smiles humbly) He will say well done! Strangely I don't think he would have any constructive advise to give. ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​
Question Focus - Marketing Strategy
Sohan
That's great! So moving into marketing strategy segment. Could you give a brief overview of the marketing strategy that you incorporated for Kapruka?
Dulith
Our primary customer is the upper-middle class, and upper-class. We focus primarily on Digital, Sohan. I chose that because, firstly I like to measure things and digital enables it. We focus a lot on Google Ads and Facebook Ads. Secondly, it gives me the flexibility to shut it down as soon as I see it's not performing to standard. That approach, has made me a little uneasy with executions such as billboards, radio slots and TV ads. Also Sohan we don't compete on price. It's an industry norm that e-commerce customers are not brand loyal, and are more price conscious. Somehow, Amazon cracked that with Prime and that's one other reason we don't compete on price and why we don't have deals on Kapruka. Because it's a rabbit hole, if you get into that bandwagon there is no turning back. Instead we focus on giving a high quality products at the right price, with timely delivery, a great service and returns with no questions asked.​​
Sohan
That's quite a prudent strategy to not compete on the best price Dulith. For instance we see in the retail industry, specifically supermarkets and even hospitality, customers are hardly brand loyal and its most often the card offer that drives decision making, which is not sustainable.
Dulith
That's right Sohan. That's why most E-commerce brands tend to have good top line figures, but absolutely nothing at the bottom line. We are happy with our approach, it has enabled us to remain profitable and also thereby list it.
Question Focus - Brand Strategy
Sohan
Excellent insight Dulith, Thank you for sharing. Moving on, So, during these years, you have emerged as the face of your brand. how did you position your image, thereby positively impacting the brand?
Dulith
Interesting question Sohan, you see ironically I'm the type of person who shouldn't be the face of my brands. I'm an introvert, I love to be left alone. In the early days I was extremely anxious around people and I couldn't even have a Skype call without practicing. At times even now I have social anxiety (Laughs) But now I think I have overcome it to an extent and I put myself out there since I believe I have the skill to talk and inspire others. So that's what snowballed to what it is today and that connected me with my brands.
Question Focus - Brand Strategy
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Sohan
(Smiles with appreciation) Thanks for being vulnerable Dulith. I'm sure it would inspire a lot of introverts to put themselves out there. So moving forward, could you share as to what has been the biggest driving force for your brands?
​​Dulith
For me Sohan, it has to be my team. The secret formula is to have a team that is super motivated. For instance take SpaceX. The employees are are fully taken up by their mission for Mars. They just don't work for the pay, but are committed to the mission.
I believe we have done that very successfully at Kapruka. Also the next CEO we will be appointing joined us as an Intern. (Gleams with pride).
Sohan
That's great. congratulations! So in terms of competition. How do you differentiate your brands in the market?
Dulith
Our primary differentiation is quality, and like I mentioned earlier our customer is the upper-middle class and upper-class. For instance at Kapruka, the average basket value is Rs. 8,000, whereas the industry average is Rs. 2,000. And 40% of our business comes from Sri Lankan's living overseas. In terms of Java Lounge, we don't have a franchise model as we want to ensure quality and consistency. Secondly, a Java Lounge will only be in select locations and will always be spacious. Thirdly, we strictly stick to a café menu and avoid deviating into a restaurant. These strategies have enabled us to differentiate and be zero debt, we didn't borrow a cent but built it with its own profits.
Question Focus - Innovation & Growth
Sohan
That's incredible (Smiles). So moving to 'Innovation & Growth', Dulith is known to be an entrepreneur that thinks innovation. Back in the day linking Sri Lankans to Amazon and eBay, to serving Starbucks coffee, and to innovations such as 'Kapruka cross border' and, 'Partner Central'. What are your future aspirations for the brand?
Dulith
(Voice sounds a mix excitement and exhilaration) Grow 'cross border' for sure Sohan. This service is taking Sri Lankan brands to the global stage, and it has tremendous potential. For example, we are the e-distributor for Dilmah, Link Samahan and most of the key brands. If I simplify it, lets say a brand wants to sell in Walmart. Brand's don't directly contact the supermarket but approach them through a distributer. So in the case of Amazon, we have positioned ourselves as the go to e-distributor. We own the inventory. We buy for instance a whole 40-foot container with our dollars, and park it in the US and distribute including handle the logistics, warehousing, returns etc. Presently we sell in the US, Canada and UK.
Sohan
​That's an amazing service and opportunity you are creating for Sri Lankan brands Dulith, thank you. Moving forward would you have a sentimental story that brings out how your brand transformed from an idea to an actual story?​
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Dulith
(Goes into deep thought) Yes, it was the day I listed Kapruka on the CSE. And you see Sohan on the day of the IPO the stock price rose by around 80%, and when I walked down World Trade Center and looked up on that big LED screen, seeing Kapruka as the highest performer in the market, was very sentimental. Here's something I started in the garage and now it's here. So that's a memory that will always be close to my heart (Smiles with a spark in the eye)
Question Focus - Product Strategy
Sohan
That certainly would be a memorable story. So in the context of Java Lounge, it's clear that your physical product is food & beverages. But what is the actual product you are selling?
Dulith
(Smiles) Our actual product is a meeting place, it's the ambiance, the vibe, the music, the lights, the parking etc. You See Sohan, If you really look at the history of coffee houses, It's the fundamental building block of entrepreneurship. During the great Depression, the drinking culture changed to a coffee culture and the first coffee houses opened around Seattle and Chicago. This enabled different types of people to meet. They had their coffee and discussed ideas. That's how some of these great business came into being and propelled America into where it is today. So yes, my product too is a place where people can meet and build some great things.
Sohan
That's an interesting piece of history Dulith. So moving forward, (laughing) What's your favorite from the Java Lounge menu?
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Dulith
Americano, either cold or hot (laughs)
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Question Focus - Life Philosophy
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Sohan
If your life had a soundtrack, what would be the signature song of your life?
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Dulith
(Laughs out loud) You got some interesting questions Sohan. I think it would be, man on the moon, by REM
Sohan
If your life was a character novel, what would it be?
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Dulith
(Laughs) I can't think of a character in a novel, but but I'd like to consider myself an extremely small version of an Elon Musk. I too am an engineer at core and I love to innovate.
Question Focus - Vision and the future outlook
Sohan
Imagine one of your future generations discovers your brand's time capsule. What unique message would you like to include in it?​
Dulith
I would say, to be a nice human being (Smiles) For instance how the time barrier was removed to make our meeting more comfortable.
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Sohan
Simple yet powerful message, yes appreciate it. So Dulith, looking to future, what legacy would you like to leave behind?
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​Dulith
I aspire to be the first unicorn of Sri Lanka. You see Sohan, No one can say Sri Lanka is too small for unicorns to emerge. Look at Israel, no natural resources, almost landlocked, just 9 million people and their GDP is around $550 Billion as opposed to ours which is around $80 Billion. So we definitely have the potential.
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Sohan
Certainly Dulith, Sri Lanka definitely has the potential. So as we have reached the end of our interview, I would like to wish you all the best to achieve your dream. Thank you for your time!
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Dulith
Wish you the same Sohan!