Background
Founded in 2014, Papaya Trading is a wholesale furniture business based just outside Kirkby Lonsdale. The company specialises in manufacturing and importing high-quality indoor oak furniture and garden furniture. With a broad customer base ranging from small family-run shops and garden centres to major retailers like Wayfair, Papaya Trading has established itself as a key player in the UK furniture wholesale market.
The Challenge
Over the past few years, Papaya Trading has experienced significant growth. However, with its warehouse and showroom based in Cumbria, the business faced logistical challenges breaking into the lucrative market in the South of England. With bulk orders ranging up to £750,000 in value, Papaya needed a way of transporting samples to potential clients to let them see the product up close without having to travel to Cumbria. The business also needed a reliable method of delivering orders to their new customers in the South.
The Solution
To overcome these challenges, co-owner of Papaya Trading, Sarah Crombie, decided to purchase a new van and contacted Cumbria Business Growth Hub about grant funding support. Sarah applied for a capital grant supported by the Rural England Prosperity Fund, provided through Westmorland & Furness Council. Following a straightforward application process, Papaya Trading was awarded £16,180, covering 40% of their costs.
The grant enabled Sarah to purchase a specialist Maxi Mover furniture delivery van. The vehicle, which cost around £50,000, is designed with special suspension and low loading capability. It also features a side door for convenient access, meaning the van can function as both a furniture showroom on wheels and a delivery van.
Sarah Crombie said: “The grant covered 40% of the cost, which was massive for us. We simply couldn’t have afforded it otherwise. It’s been a game-changer for our business.”
Impact
Since acquiring the van in September, Papaya Trading has already seen significant benefits. The ability to showcase furniture samples to customers directly is expected to contribute to a £1 million increase in turnover. The van has also been used for deliveries and is expected to deliver further benefit during peak-season in April and May.
“The van has transformed the way we do business,” Sarah notes. “Instead of waiting for customers to come to us, we can now take our products straight to them. It’s making a huge difference to our sales and customer relationships.”
The increase in turnover has enabled the business to start recruiting additional staff to manage the new growth. This includes an extra driver to manage increased deliveries, a product specialist to assist with sourcing and buying, and a full-time marketing professional. With a current team of 6.5 employees, the company anticipates growing to 9 or 10 staff members in the near future, further strengthening its market position.
Lesley Robinson, Head of Business Support at Cumbria Chamber of Commerce commented: “We’re thrilled to see the real impact that our grant funding has had on Papaya Trading. Supporting businesses like this to expand, create jobs, and strengthen their market position is exactly what Cumbria Business Growth Hub is here to do. We’d encourage any business looking for support to check out our website: www.cumbriagrowthhub.co.uk.”