Professional Documents
Culture Documents
Manufacturing
A report on Protecting Existing Resource
and Encouraging Growth and Innovation
Report commissioned by the British Fashion Council,
UK Fashion & Textile Association, Creative Skillset and Marks & Spencer
Research by Oxford Economics and Glasgow Caledonian University
Steering Group
Executive Summary
Key Findings
1 Introduction
CASE STUDY 1: Mulberry
2 Background Context
CASE STUDY 2: John Smedley
3 Survey Results
CASE STUDY 3: Sourgrape
4 Modelling Results
10
14
16
28
30
34
36
5 Conclusions, Challenges
& Recommendations
42
6 Methodological Appendix
46
7 Acknowledgements
50
Steering Group
Commissioning Partners
Contributors
Wendy Malem
Creative Skillset
Creative Skillset (CS) is the UK wide skills body
for the Creative Industries, which includes fashion
and textiles. CS work with industry and education
organisations on research, quality accreditation,
raising investment for training and helping our industries
ensure 21st century qualifications are fit-for-purpose.
The UK fashion and textiles industry is a leader in a
fiercely competitive global market. To remain in this
position the UK needs to invest in a highly-skilled
workforce. Creative Skillset works with businesses
of all sizes to make this happen.
Dr Kion Ahadi (Head of Research and Evaluation) and
Jayne West (Partnership Manager: Fashion & Textiles)
from Creative Skillset both provided expert input into
the research as members of the steering committee.
UKFT
The UK Fashion & Textile Association (UKFT) is the
most inclusive and influential British fashion and
textile network, representing over 2,500 companies
throughout the UK and promoting the industry
in the UK, at EU level and globally.
John Miln is CEO of UKFT, sits on the steering
committee and has spent his entire career in textiles
and apparel working in global multinationals.
Susie Palmer
Susie Palmer is the owner of Palmer Productions,
a consultancy business that specialises in product
development, production and process management
of luxury products, particularly specialising in
leather goods.
Daliah Simble
Daliah Simble is an Industry Consultant and has
over 20 years experience in the fashion production
and product life cycle sector.
Previous roles include Head of Sourcing &
Production at Roland Mouret, Consultant Director of
Production and Sourcing at Liberty, Production and
Development Manager at Frost French, Merchandise
Manager at French Connection Head Merchandiser
at Nicole Farhi and Production Manager at Monsoon.
Introduction:
Caroline Rush
Chair of steering committee
Executive Summary
This report is motivated by a desire to provide
a more substantive evidence base of the
economic contribution and prospects of
the UKs high-end manufacturing sector.
To this end, the projects steering group
identified a list of 137 businesses which specialise
in high-end manufacturing. This group forms
the basis of quantitative estimates presented
in this report, whilst findings have also been
informed by the results of a survey of designers
and brands by CS and qualitative analysis by GCU.
The 137 businesses identified are those that produce
goods for designer businesses and high-end brands
across ready-to-wear, woven or leather accessories.
Over 180 businesses were surveyed as part of
this report.
The steering groups view is that supporting high-end
manufacturing is essential to a vibrant high-end
designer fashion sector in the UK. A strong designer
fashion sector creates a global reputation for
excellence that benefits all British fashion businesses
as they develop export markets.
Key findings
The development of this report
has highlighted the extent of
fragmentation within the industry,
the lack of central knowledge,
accessible information and
platforms for both designers and
manufacturers to engage with.
Manufacturing benchmarking
is required
The reality is that with no benchmarking
for British fashion manufacturing, there
is currently no defined number of high-end
manufacturers based in the UK. This
report has therefore focused on the data
from a sample set of manufacturers as
being indicative of the trends in high-end
manufacturing
Key Industry
Facts & Figures
26bn
800,000
1.3tn
Introduction
5,000
9bn
1,600
4
5
11
13
C A SE S TUDY 01/
MULBERRY
Mulberry
The company was founded in 1971 and
opened its first factory in Somerset
in 1973, quickly establishing itself as a
British lifestyle brand. Initially famed
for its leather poacher bags, it has
more recently become popular due
to the success of the Bayswater bag,
the Alexa bag named after Alexa
Chung and the Cara bag designed in
collaboration with Cara Delevingne.
Today the brand is truly international, competing
on Bond Street with the likes of Burberry and
Ralph Lauren, it is keen to stress its Britishness.
In 2006, the company launched an apprenticeship
programme to encourage young local people to
learn production skills and provide training and
employment in the local community. Apprentices
that graduate from the programme are oered
a job at the factory in Somerset. They currently
employ 700 craftsmen and women, manufacturing
handbags, travel bags and mens satchels.
14
15
Background
Context
25%
20%
Share of Employment
15%
10%
5%
16
20
06
4
20
0
20
02
0
20
0
19
98
19
96
19
94
19
92
19
90
19
88
19
86
19
84
19
82
Share of GDP
19
90
0%
Source: ONS
17
Other products
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
20
13
20
10
20
05
20
0
Millions
19
95
100
80
Manufacturing
60
40
20
18
20
13
20
11
20
09
20
07
20
05
20
03
20
01
19
99
19
97
Fashion Manufacturing
19
95
19
100%
90%
Rest of Europe
80%
Africa &
Middle East
70%
60%
UK
10
Latin America
8
50%
6
4
2
30%
20%
20
08
20
06
4
20
0
20
02
0
20
0
19
98
19
96
19
94
19
92
19
90
19
88
19
80
19
86
19
84
North America
19
82
40%
Source: ONS
130
Rest of Asia
120
110
10%
100
90
This chart illustrates that the UKs share of global clothing and footwear
manufacturing output declined from 4.2% in 1990 to 1.8% in 2008, the
Rest of Europes declined from 35.9% to 21.1% whilst Chinas market share
increased from 5.4% to 30.2% over a similar timescale.
20
12
20
10
20
08
20
06
4
20
0
20
02
0
20
0
19
98
19
96
19
94
19
90
20
08
20
06
4
20
0
20
02
0
20
0
19
98
19
96
19
94
19
92
20
80
19
92
China
19
90
0%
21
11
http://www.telegraph.co.uk/news/politics/david-cameron
/8997011/David-Cameron-industry-is-returning-to-Britain.html
Information
The ability to find good quality, benchmarked
manufacturers other than through word of mouth
is a significant challenge to brands wanting to
produce product in the UK.
Labour Force
The UK has a specific set of challenges based
around skills and retention of talent. Manufacturers
consistently stressed the lack of skilled labour
within the UK and their reliance upon, a first
generation immigrant workforce that was mainly
drawn from Eastern Europe and India. Some of the
manufacturers interviewed invested in skills and
training, others had tried the existing apprenticeship
framework, but found it challenging with no
guarantee that the training would result in a worker
staying within the factory. An ageing workforce
and the inability to attract domestic talent into
jobs was cited as a key problem.
Training was recognised as a challenge for small
units due to time and resource to train sta and
for medium sized units with capacity to train,
a challenge due to lack of support to make the
training cost eective or to take the risk on reduced
productivity for longer term gain. In a couple
of years three to four of our workforce will be
retiring thats around 25%. Everyones worked here
for twenty years, some more. Our cutters are past
retirement age. If we advertise at the job centre
theres no one who wants it or no one suitable.
We cant really aord trainees. Thats the biggest
challenge people Owner / Managing Director
or British Menswear and Accessories Manufacturer.
Image
The image of UK fashion manufacturing was noted
as a barrier to attracting young talent. The units
are characterised as being small, many micro
businesses, with little HR support or programmes
around professional development, coupled with
working environments that require investment.
When discussing environment and investment, the
response from the majority of units was that they
focused on survival. Increasing rents, rates and utility
costs were noted as driving high overheads and in
some cases driving units out of existing locations.
International Competition
In terms of competition from other manufacturers,
the main risk identified was from Europe. Designers
and manufacturers noted that skills to create
and develop product in Europe was more readily
accessible, that short runs were more often
possible, pricing was cheaper and with more
flexible payment terms. The average cost savings
for like for like product in Europe was identified as
20%. Italy was identified as a leader in terms of
manufacturing desirability and quality, with Spain
and Portugal also attracting significant business. In
short, the quality advancements in manufacturing
in Europe is directly contributing to the erosion of
British manufacturing, demonstrating the need
for investment in technology and innovation to
stay competitive. Investment they have better
skills, better equipment, better technology
Production and Sourcing Director of British
Luxury Womenswear Brand.
Further afield, China and India oer good quality
products at competitive price points and with
growing flexibility around the way they work.
Where UK manufacturers used to be able to
compete for domestic business based on location
and flexibility around minimum orders, with these
now being oered by both European and Asian
units at more aordable prices, the reasons to
work with local units are decreasing.
23
Domestic Opportunity
24
25
25
1,423
744
London, City
513
Milan
459
Rome
1.4%
1.1%
1.5%
1.1%
362
Glasgow
0.7%
Birmingham
356
Madrid
353
Share of GDP
277
Barcelona
Lisbon
Portugal
Spain
EU27
388
Manchester
Italy
UK
Source: Eurostat/ Haver Analytics
Porto
244
178
* Defined as revenue raised from taxes on land, buildings and other structures
26
27
C A SE S TUDY 02 /
J O HN SMEDLE Y
John Smedley
John Smedley Ltd remains a family owned British
business, managed by the 8th generation. 100% of
their fine Merino, cashmere and Sea Island cotton
knitwear is manufactured in the UK. They are able
to put Made In Great Britain on every garment
they make.
28
www.johnsmedley.com
29
Survey Results
This chapter documents the result of the
survey work undertaken by Creative Skillset
on behalf of the research working party in
November 2014. The survey covered a total of
40 businesses12 from start-ups to established
brands, the vast majority of whom had at
least some operational presence in the UK.
No change
0-2.5%
2.5-10%
25%
8%
10%-30%
14%
30%-60%
60%-90%
19%
14%
90%-100%
19%
0%
12
20%
40%
60%
80%
100%
Source: Creative Skillset
31
Other
Improve
skills
Broaden
product
range
Better
payment
terms
Shorter
lead times
More direct
marketing
Improve
quality
Improve customer
relationship
Innovation/
improve technology
Offer smaller runs/
lower minimums
More competitive
prices
0%
10%
20%
30%
40%
32
50%
60%
*Businesses were asked to specify up to three factors so shares do not sum to 100%.
33
C A SE S TUDY 03/
SO URGR APE
Sourgrape
34
35
Modelling
Results
1,76bn
Turnover
8,750
Employed
732m
GVA
37
Millions
Baseline
Upside scenario
Headcount Employment
1,200
12,000
1,000
10,000
800
8,000
600
6,000
400
4,000
200
2,000
0
2013
2014
2015
2016
2017
2018
0
2013
2014
2015
2016
2017
2018
38
39
C A SE S TUDY 0 4/
PRIVATE WHITE
Private
White V.C.
The Private White V.C. brand pays
homage to its namesake WWI hero;
Private Jack White. The clothing line
has a subtle nod to Jacks military
legacy, with many items based on
classic wartime pieces, updated
with added functionality and detail
for the modern man. All clothing
is expertly constructed by hand
in the Private White V.C. Factory,
Manchester, where garments are
designed and developed using only
the finest regionally sourced fabrics,
trims and materials. Materials are
sourced locally where possible with
the majority of cloth being supplied
from the mills in the surrounding area.
40
41
Conclusions,
Challenges &
Recommend
ations
Challenges
Through both designer and manufacturer interviews
this report was able to highlight common challenges
faced by the high-end designer sector and create
some actionable recommendations for industry
bodies and the steering group to take forward.
Manufacturers are seen as the invisible members
of the supply chain, despite playing a significant
role. This invisibility has several consequences:
1. Designers are unable to find them
2. They are fragmented with no community
to share knowledge or resources
3. Business support is viewed as inaccessible
4. Manufacturers feel that they do not have
a voice to drive change
42
43
Recommendations
A two stage action plan is required
to 1st protect the existing resource
followed by a 2nd stage to improve
and capture untapped potential
through increasing capacity and
eciency to better compete
internationally. Bringing together the
steering group to create this report has
been a credible first step in addressing
the fragmented nature of the industry,
support and knowledge available.
In comparison to the Governments
of our main competitors, the British
Government appears to have taken
little direct action to support the
viability of clothing manufacturing
in this country. I am sure that there
may be a number of small, local
initiatives that Government could
point to. But there is certainly no
clear and coherent plan of action.
Managing Director
British Premium and Luxury Manufacturer
Government Support
For UKFT
Recognition
In addition to The Alliance Project, which is
significantly changing the landscape in the
North of England and DISC which has made some
headway in London, recognition should be given to
the numerous individuals that are in their own way
championing British made product. Kate Hills Make
it British event has been a great start in showcasing
a broad range of manufacturing businesses and
products made in the UK.
14
http://www.nycedc.com/program/
fashion-manufacturing-initiative-fmi
45
Methodo
logical
Appendix
This section builds on Section 2.2 by
providing additional detail regarding
our methodological approach.
46
47
improve competitiveness
in the UK
in the UK
48
49
Ada + Nik
HF Design
Mulberry
Alex Monroe
House of Fraser
Mustard Ties
Alice Cicolini
ISSA
Nicholas Kirkwood
Andrew Majtenyi
J.JS LEE
Norman Walsh UK
Astrid Andersen
James Long
palmer//harding
Joanne Stoker
Paul Smith
John Smedley
Piers Atkinson
Web www.britishfashioncouncil.com
Burberry
Karen Millen
Plus Samples
Tel
Chapman Bags
Kit Neale
Christopher Raeburn
Larisa Judina
Richard Nicoll
Christopher Shannon
Ryan LO
Ciment Pleating
Lee Roach
Selfridges
Classic Cuts
Simone Rocha
Danielle Romeril
Macandi
Sophia Webster
David Koma
Margaret Howell
Sourgrape
E. Tautz
Maria Grachvogel
Teatum Jones
Ella London
Marios Schwab
The Apparel
Emilio de la Morena
Mary Katrantzou
Topshop
Erdem
Matthew Miller
Tower Garments
Fernando Jorge
Matthew Williamson
Tura Leather
Folk
Forma Leather
Vivienne Westwood
Giles
Mimi Berry
YMC
Grenson
Monica Vinader
Zo Jordan
Henrietta Ludgate
MPLG
50
Further Information
020 7759 1999
51
52
britishfashioncouncil.com