Right Product, Right Market, Right Time?

Digby Jones is a well-known business consultant who has gone from helping out in his parent’s corner shop to the House of Lords. Hawick Knitwear called on Digby to help to push their clothing manufacturing company forward. The company is crucial to the local area in providing jobs and supporting the local economy.

Hawick Knitwear has grown in the past few years from a mere 20 accounts in Scotland and Northern England to over 110 accounts in 2013. The company produce a staggering 300,000 sweaters each year, of which 3/4 are for other brands. The remaining 1/4 are labelled with Hawick Knitwear branding, a brand which only began properly three years ago.

Digby has recommended that Hawick Knitwear try to move into a new emerging market, he has suggested China. Currently, Hawick have a shop which attracts a large Chinese customer base, which reflects that China would be a good market for the Scottish knitwear company to venture into. The Chinese market appreciate a brand which shows heritage and culture so the knitwear brand which is entirely produced in Scotland has the potential to be successful in China.

Another market which has been highlighted to Hawick Knitwear’s directors as being a potential to move into is Japan. This is because there have already been British clothing companies which have moved into the Japanese market and have succeeded. This means that the market is relatively easy to get in to and does not require a substantial investment as the Chinese market would.

To export in to another market, it is advised that the product range is too large for buyers to make an initial purchase therefore a smaller portfolio of products needs to be made in order to begin the transition into this new Asian market. The team at Hawick Knitwear streamlined the products into those which they knew would appeal to the Japanese market.

After consideration with the shareholders though, Hawick Knitwear chose to hold off the idea of moving into Asian markets for the near future merely due to the investment that would need to be put in to the project. They prioritised working towards improving the company’s stature within the United Kingdom and Northern Europe and set a target of doubling the size of the company over the next few years.

Another point that Digby focused on was working to improve the working environment at the factory. Many of the workers in the factory have been there for many years and said that they have seen many refurbishments of the factory but none to the scale that they underwent after Digby’s recommendation. Digby pointed out that an improved environment can lead to increased productivity, morale and loyalty which in turn will greatly help the company and therefore prove a worthwhile investment.

After further consideration and another meeting with Digby, Hawick Knitwear made the decision to primarily focus on the UK and Northern Europe markets but also to work on moving into the Asian market, beginning with Japan. They have set the target of putting half a million pounds into Asian markets over a two year period.