Small firms are surviving by offering unique clothing.
SMALL FIRMS THRIVE OFFERING MORE UNIQUE CLOTHING
Claudio Belotti knows he cut the denim that became the jeans Meghan Markle wore on one of her first outings as the fiancée of Britain’s Prince Harry.
That’s because he cuts all of the fabric for Hiut Denim Co., a seven-year-old company that makes jeans in Cardigan, Wales. Belotti is a craftsman with 50 years of experience that gives his work a personal touch — something that’s not quite couture but not exactly mass-produced either.
“There’s a story behind each one,” Belotti said. “You’re paying for the skill.”
Customer demand for something unique is helping small companies like Hiut buck the globalization trend and set up shop in developed countries that had long seen such work disappear. While international brands like H&M and Zara still dominate the clothing market, small manufacturers are finding a niche by using technology and skill to bring down costs and targeting well-heeled customers who are willing to pay a little more for clothes that aren’t churned out by the thousands half a world away.
Profits at smaller national clothing firms grew 2 per cent over the last five years, compared with a 25 per cent decline at the top 700 traditional multinationals, according to research by Kantar Consulting.
Their success comes from promoting their small size and individuality, said Jaideep Prabhu, a professor of enterprise at Cambridge University’s Judge Business School.
“It’s a different kind of manufacturing,” he said. “They are not the Satanic mills. These are very cool little boutiques.”
Hiut, which makes nothing but jeans, employs 16 people in Cardigan and makes 160 pairs a week. Women’s styles range from C$245 to C300; men’s go for a little more. Each is signed by the person who sewed it, known in the company as a “Grand Master.” By contrast, Primark says it sources products from 1,071 factories in 31 countries and keeps costs down by “buying in vast quantities.” The most expensive pair of jeans on the company’s website sells for C$30.
Many of these small manufacturers also try to stand out by embracing social issues, from reducing waste to paying a living wage.
Hiut, for example, highlights its efforts to put people back to work in a small town that was devastated when a factory that employed 400 people and made 35,000 pairs of jeans a week shut down. Underscoring the years of craftsmanship that go into each pair of jeans, the company offers “free repairs for life.”
This kind of customer service helps form a “personal relationship” between a brand and the shopper that is valuable, says Anusha Couttigane of Kantar Consulting.
Customers notice. Laura Lewis-Davies, a museum worker who from Wales, says she wants to support independent businesses when she can and bought a pair of Hiut jeans after seeing a story about Markle wearing the brand.
“Well-crafted things bring more joy,” she said. “I’d rather buy fewer things but know they’re good quality (and) made by people who are working in good conditions for a fair salary.”
The rise of small clothing makers reflects a broader shift in consumer preferences away from big brands — as evident, say, in the boom in craft beers. In fashion, technology is fuelling the trend.
The internet provides a cheap way to reach customers, while off-the-shelf artificial intelligence programs allow companies to accurately forecast demand and order materials so they can make small batches and avoid unwanted stock. That makes it possible to produce clothes that are more customized.
“Data is the backbone for this and the trigger,” said Achim Berg, a senior partner at McKinsey & Co. in Frankfurt who advises fashion and luxury goods companies. “It’s not custom-made, but it gives the consumer the opportunity to be more individual.”
A survey of 500 companies by McKinsey and The Business of Fashion, an influential industry news website, identified personalization as this year’s No. 1 trend. Consumers are willing to hand over personal information to get more customized products and services, according to a 2016 survey by Salesforce.com, which provides online sales and marketing tools for businesses.
Established brands have recognized the trend and offering to customize products, too. Adidas, for example, offers the chance to mix and match colours and materials on things like the sole and laces on some of its shoes.
Jenny Holloway, who employs 100 people at Fashion Enter in London, said she’s not interested in making as many garments as possible and selling them as fast as she can.
“I’d like to say we’ve done a massive business plan and we refer to it. We don’t,” Holloway said. “We sit down and have a cup of tea and we have a chat and we evaluate how things sit with us. How does that client fit our ethics? ... It isn’t about money and making that big buck. It’s about sustainability.”
HOW DOES THAT CLIENT FIT OUR ETHICS?