Geoffrey Gudewill: Axicon is an importer and wholesale distributor of giftware and fashion jewelry. Among the many products we offer are candles, incense and oil burners, frames, figurines, and seasonal merchandise. It was founded in 1978 by Jim Munns, and I bought the company from him in 1995.

Gifts & Dec: What is your background?

GG: I'm a native of Victoria, British Columbia, and I graduated from the University of Western Ontario with an MBA in 1983. I worked for ten years as a management consultant in Canada, the U.S., and the Middle East.

Gifts & Dec: What attracted you to the gift industry?

GG: I wanted to get into business for myself, but I didn't want a business that would be tied to a local market or economy. The gift industry is unique because it has worldwide connections on the sourcing end, while most of the sales are here.

Gifts & Dec: Does Axicon do any manufacturing?

GG: We do some assembly but never manufacturing. Starting in the early '80s we began to design and assemble our natural stone jewelry line. Sourcing the components in different places is less expensive.

Gifts & Dec: How do you decide what products to bring to market?

GG: Trend-watching. We check every media source to determine what people will want and how to capitalize on it. We also use focus groups. Of our 5,000 SKUs, about 1,000 of them account for 80 percent of sales. The challenge is finding out which 1,000 they are going to be.

Gifts & Dec: Where do you source?

GG: We source from a dozen countries. In the last eight years China has emerged as our preferred source. They have the best combination of quality, reliability, and price. The Chinese produce a wide range of product, much of it high-end. You don't know a product's made in China until you read the label.

Gifts & Dec: And other countries?

GG: Product from India, Thailand, Africa, or the Philippines is great, but you can immediately tell where it's from. We do import from India, Africa, and Central Asia, and would like to do more, but it's difficult to find product from those countries that dovetails with current market trends. As beautiful and unique as it is, if it doesn't fit, it doesn't move.

Gifts & Dec: How large is Axicon?

GG: Currently we have 20 employees working in a 20,000-square-foot office and warehouse. Our annual sales are around $3 million.

Gifts & Dec: What has been the company's greatest challenge?

GG: We haven't grown as quickly as we thought. There are barriers to growth in this industry. The cost of the marginal unit is very high relative to the initial unit, compared to a manufacturing environment like the automotive industry. Another challenge is lack of customer loyalty. It's all product based. If you have the right product they'll be at your doorstep, if not, they'll be at someone else's doorstep.

Gifts & Dec: It's not price driven?

GG: It's more product- than price-based. Retailers' most valuable asset is shelf space and whether it's moving at 100 percent or 50 percent margin, the important thing is that it's moving.

Gifts & Dec: Away from the office, what do you do in your spare time?

GG: I'm the father of three children, all youngsters, so I do a lot of parenting. I also play golf and I garden.

Gifts & Dec: How is Axicon celebrating its anniversary?

GG: We've introduced a bimonthly newsletter we send out to our 8,000 retailers. We celebrated our anniversary in that, as well as by offering special discounts in each issue.