Written evidence from Simon Carter
1. Background. I founded my business in 1985.
Originally called Simon Carter Accessories, it sold brooches for
men. Early stockists included Harrods and Selfridges. The business
expanded to include cufflinks and watches, and gradually became
a specialist in men's accessories, with cufflinks in particular.
Early products were manufactured in England, including the cufflinks
and brooches, and handmade sunglasses. By the mid 1990s these
industries were becoming increasingly uncompetitive and so production
was moved to China. The business continued to expand through product
licensing. Around 10 years ago the brand name was licensed for
clothing, and this has continued to grow. The name was changed
to reflect the full menswear portfolio, and is now know as Simon
Carter. The brand is stocked in around 35 countries, has two own
run stores in London, and a franchised store in Toronto. Total
retail sales are around £12 million. The brand is positioned
at the middle to top end of the market.
2. Export. From the earliest days in business
the brand has exhibited at trade shows. Initially these were gift
fairs in the UK, then as the business grew, SEHM menswear fair
in Paris (now defunct). This fair was an excellent platform to
reach European buyers. Since it's demise the company now shows
at Pitti L'Uomo in Florence, which is the premier men's clothing
and fashion trade event. From the start in the 1980s, the brand
has attracted enormous interest in Japan. The English heritage
and attitude of the designs, especially the accessories, has made
them popular with the Japanese market. The business became associated
with one importer into Japan, Fujikawa &Co, and they began
to distribute for the Japanese market. We still trade with them
today.
3. Trade Fairs. It became clear in around 1990
that to fully succeed in the Japanese market, we would need to
visit Tokyo and Osaka. However, at that time, the business was
not in a financial position to finance such a sales trip. Fortunately,
there existed a heavily subsidised trade fair run by the British
Knitting and Clothing Export Council. I believe that it received
it's grant from the DTI. It organised two days of selling exhibition
in Tokyo, and two in Osaka, at prestigious central hotels. In
addition, there was excellent pre trip briefing and logistical
support. The event, simply called the British Fashion Fair, had
been running successfully for a number of years and was heavily
subscribed. However, we were fortunate enough to secure a place.
The company took more orders at that one event than all previous
trade shows combined. Many of the customers who placed business
still trade with us today. The criteria of eligibility were fairly
strict, though I now don't recall how much product had to be made
in Britain I believe a certain proportion was required. The subsidy
equalled around 50% of the total invoice and enabled start up
companies, like ours, to try the market. The event was also very
well supported by the commercial section of the British Embassy,
who continue to have an enviable reputation for local knowledge
and support to this day. Funding continued to be available for
a limited number of trips; the exact number I don't recall. The
event suffered massively in the early to mid 1990s as the global
recession, and particularly Japan's economic woes, took its toll
and we withdrew from participating in around 1994. However, we
had established a very successful business from which we expanded
to include a licensing range, mirroring that which had been established
in the UK. Although business in Japan has suffered since 2007,
and the brand is now represented by a new partner, it is now recovering
and prospects for 2011 look good. There is absolutely no doubt
that Simon Carter, as a business and a brand, would not be in
the position of strength that is now without the British Fashion
Fair. At its peak three years ago, exports to Japan accounted
for 20% of the entire turnover of the business.
4. China. At present, the business imports the
majority of the accessories from China. I am on record as having
the opinion that British manufacturing industry-at least in my
sector-really has no one else to blame for itself here. Failure
to invest, adapt, invigorate and understand the needs of customers
are all to blame, with a complacency that is ill judged. Poor
quality is also a major issue. Like any business, it is our aim
to export to China. However, I believe that it is a far harder
market to trade with than many people believe, and comparisons
with Japan are unhelpful. At present, the brand is only represented
in China through branches of Lane Crawford, a Hong Kong based
up market department store. Currently, we are in talks with a
major Japanese trading house, which has global representation,
including China. It is my firm belief that the Chinese market
cannot be successfully entered without a local partner. That may
be a Chinese licensee or distributor, or in our case, a Japanese
master licensee who can carefully control and supervise the brand
in China. It is a vast and exciting market, but IP law is not
as stringently observed as it could be, and brands need to be
prepared to adapt to the Chinese market. This can be terms of
price positioning, styling, and fit. To try to do this directly,
as a small company, without representation "on the ground",
would be extremely hard.
5. The future. At present, I am not aware of
any trade fairs for my sized business, in my sector, that exhibit
in China. It is my belief that the most effective use of government
resources is to support viable, focussed, small to medium companies
through subsidised trade fairs. It is the best way to showcase
product, and meet both customers and prospective business partners.
It is also vital to have continuity with such a programme. One
criticism often levied in the past is that there is no certainty
as to the subsidy for a certain trade fair and the policy seems
to be at the whim of politics. It takes time to establish a market.
Limiting subsidies to two or three showing is never enough. The
role of the commercial department of the Embassies is also essential.
It is perhaps often overlooked, in this age of clear return on
investment, quite how much gravitas our outposts still hold and
their ability to add value to events should not be under estimated.
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