Size matters

Alfred Johnson
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Small, large, local, boutique, international or independent, no interior design firm has escaped entirely unscathed from the tumultuous conditions of the past two years.

Many of the larger firms have been able to fall back on the security of a global network or a recognised brand – major sources of comfort for prospective clients. Smaller, more local firms have had no such safety net.

There has traditionally been room for everyone on the market. Smaller, locally-headquartered boutique firms have had their own, distinct target audience, as have the larger, more international ‘brands’.

“I feel that there is work for all sorts of designers, big and small. I don’t believe they actually compete at all. The target audience is completely different and the variables that determine the choice of designer are numerous,” said principal, Studio M, Abboud Malak.

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The smaller-scale, more personalised and detail-orientated jobs that boutique firms excel at are often not of great interest to larger firms, suggested Alfred Johnson, principal, Imagination. “The benefit of being a local boutique firm is that we get awarded commissions that require a boutique design approach, which may not appeal to larger international firms.

“Our design aesthetic delves deeper into each brief and every aspect of the space, which often results in the most unusual interior language written on the toughest of design canvases. Furthermore, all our clients receive a personalised approach to their space,” he detailed.

But traditional market patterns have been disrupted by unstable market conditions. The large-scale projects that used to sustain the bigger design firms are becoming increasingly scarce – meaning that everyone is currently competing for the small to medium-sized jobs.

“Limited work and heavy competition are creating a difficult environment and pushing fees down. I think the impact has been the same for both large and small design firms. As a matter of fact, we’re finding ourselves competing with the larger firms for the small- to medium-sized projects. Creative output now is price driven and not design driven,” said Malak.

However, this does not represent the sounding of the death knell for smaller firms. Operationally nimble, these firms are more agile and often, as a result, better able to adapt to changing market conditions. Many smaller firms pride themselves on the relationships that they are able to develop with their clients – which in times of trouble translate into loyal, guaranteed, repeat business.

“The clients we have are repeat clients and mostly loyal to our firm,” confirmed Ellen Bishop, owner, Bishop Design Associates. “I believe that smaller firms have proved that they can weather the storm, probably due to more manageable operational costs. They also have to spend less time strategising their future plans and then awaiting approvals from the hierarchy of a larger firm before action is taken. We feel that most boutique practises have been successful in taking the correct measures and appropriate actions faster to sustain themselves through the recession.”

Locally-headquartered firms also have the benefit of being familiar with the market – particularly when compared to the newly-launched satellite offices of international companies, which need time to adapt to their surroundings. “I think being present here allows a designer access to the right clients, to select the right contractors, source the correct materials for this climate and environment, and get a better sense of the city and what makes it unique. I think this is the only way to get very site-specific, innovative work,” said Malak.

“Being present in this market will certainly make a design firm more agile and a lot more responsive during the post-contract phase, particularly when it comes to unforeseen site conditions, variations, and designer-driven changes.”