The South African who built an electronics retail giant that became a family legacy

Allan Hirsch and his wife founded Hirsch’s, an electronics and appliance retailer, with just R900 in savings, and the company has grown to operate out of 19 branches and concept stores in South Africa’s major metros.

The retailer has become somewhat of a family legacy, with son Richard Hirsch taking over the CEO position from Allan in 2020 and daughter Luci Hirsch currently holding the brand manager role.

Allan still serves as chairman, while his wife, Margaret Hirch, is the brand’s executive manager.

Allan Hirsch was born in Johannesburg before his family moved to KwaZulu-Natal, where he grew up. He was one of the first students to attend Umhlali Primary School in Ballito on the North Coast.

Speaking to the Umhlanga Magazine, Hirsch said he struggled through high school with generally poor grades. He decided to drop out of high school in standard seven to become an apprentice appliance technician.

He worked at Fuschware under an apprenticeship for half a decade, where he learnt all he could about appliance and refrigerator repair, before starting work for a Durban North-based company repairing appliances.

Hirsch met his wife Margaret at a party in his early 20s, and they married a few years later.

Margaret encouraged Allan to see an educational psychologist, who informed him that he had dyslexia, which contributed to his poor performance in high school.

He described the news as an “incredible relief”, realising that he wasn’t “stupid” in school. He added that the news helped boost his self-esteem.

It was around this time when Hirsch and his wife decided to start their own business: Hirsch’s.

They opened a tiny showroom, which they described as being no larger than a bathroom, on Umhlanga Rocks Drive in Durban with just R900 in savings.

Hirsch spent R300 on rent, R300 on an electricity deposit, and the remaining R300 on marketing before opening day, meaning they started operating the business while flat broke.

“We sold stoves and fridges while Allan did repairs in the area,” the couple told Umhlanga Magazine.

Speaking to Witness Mdaka on the It’s More Than Money podcast, Allan explained that Margaret would also focus on the invoices and paperwork.

“We’d bring the kids in and put them in cots in the workshop while I did repairs. It was good days I must say,” he said.

He also explained that a few people he had worked with at a previous company approached him for jobs in his new venture.

“On the Monday they said they want to work for me. I had to pay them that Friday. I had no money, I knew I had to work like hell to get the money in to pay them, and I did, and the next Friday, and the next Friday,” he said.

Hirsch said he assigned each worker a responsibility, whether driving or stripping appliances.

“I told them: When I’m out and a customer comes in, you’ve got to learn to speak to them nicely. I taught them basics that represent me when I wasn’t there,” he said.

“For example, when you return a customer’s washing machine or fridge, it’s got to be as clean as it was when they bought it. Don’t send it back dirty. They’ll think we’re dirty.”

Allan and Margaret saw a significant opportunity when microwaves first hit the market and started offering cookery demonstrations to showcase the appliances’ ease of use and time-saving benefits.

“They loved it! They also loved the fact that we went out of our way to make their lives easier. The name ‘Hirsch’ became synonymous with service excellence,” the couple added.

The business grew from strength to strength over the years, from an initial investment of R900 to a company valued at over R1 billion.

Speaking about how Hirsch’s remains relevant in the modern age, Allan explained that it’s important to get advice from those in the know and remember that the customer comes first.

“Customer comes first. Keep the money in the business. Look after your team members,” he added.

He also believes brick-and-mortar retailers like Hirsch’s are still very relevant in the South African market.

“It depends what industry you’re in, but in our industry, definitely,” he said.

“You can buy a fridge online. You can buy a washing machine online. When you come in and the sales person asks you what your specific requirements are, they guide you to a project that you want. You don’t get that online.”

Moreover, he questioned what happens when something goes wrong with a product purchased online.

“That’s where our strength is. The business is built on service. So, in our particular industry, I really believe that brick-and-mortar is going to be here forever.”