Scottish textile companies are expanding their retail presence as part of a strategy to increase their global competitiveness, a survey revealed with almost half of all companies in the country having their own retail operations compared with just 25 per cent in 2005.
The major activity of textile companies in Scotland appears to be manufacturing with 8 out of 10 companies involved in production but the survey found that companies were moving into higher value activities, with two thirds of them also involved in design activity.
“As competition continues to intensify within the global textiles sector, Scottish textiles companies have recognised the need to build their own brand presence and sell directly to consumers,” said Kirsty Scott, head of Scottish Textiles team at Scottish Enterprises.
“Rather than completely moving away from manufacturing, we are beginning to see more and more companies getting involved in a whole range of activity and operating across the entire industry value chain from manufacturing to design, wholesale and retail,” he said.
”This will give them the competitive advantage required to continue to adapt their business to meet global demands,” said Scott.
Companies such as Lochcarron, Johnstons Cashmere and Mackintosh have all announced new plans to expand into retail, said a report by fibre2fashion.com
Lochcarron opened its first branded retail outlet next to its manufacturing facility in Selkirk which is soon to be followed by a new store in Mayfair in London, while Johnstons of Elgin is investing £1.5 million in a new Retail and Heritage Centre.
Mackintosh already has flagship stores in London and Tokyo but is planning to expand their overseas presence with plans for new stores in New York and Moscow and other key cities in Europe and Asia over the next three to five years.
“Increasing our retail presence is a vital part of our strategy to build a global brand and increase awareness of our expanding product range over the coming years,” said Daniel Dunko, Managing Director of Mackintosh.
”Our stores in London and Tokyo have proven to be highly successful and we want to build on this to expand into new overseas markets,” he said.
The 2007 Scottish Textiles Industry Survey also highlighted that there was a growing optimism in the sector as it continued to stabilise.
