0:00:02 > 0:00:05Lord Digby Jones is a champion of British business.
0:00:05 > 0:00:08British manufacturing's got so much to be proud of.
0:00:08 > 0:00:12We make furniture, we make shoes,
0:00:12 > 0:00:14we make high-performance motor cars,
0:00:14 > 0:00:17we make volume motor cars, we sell them around the world.
0:00:17 > 0:00:22But it's a constant battle to keep one step ahead of our global rivals.
0:00:23 > 0:00:27Manufacturing the right product in the right market
0:00:27 > 0:00:30at the right time, it matters enormously.
0:00:30 > 0:00:36To survive, British firms will have to be at the top of their game.
0:00:36 > 0:00:38You're not trying to say, "I'm the cheapest,"
0:00:38 > 0:00:40you're trying to say, "I'm the best."
0:00:40 > 0:00:45Now, that is what manufacturing in the UK in the 21st century's about.
0:00:45 > 0:00:49And Digby's determined to play his part.
0:00:49 > 0:00:52In a career that's taken him from his parents' corner shop
0:00:52 > 0:00:53to the House of Lords,
0:00:53 > 0:00:57he's helped transform some iconic British companies.
0:00:59 > 0:01:04Now, in a new challenge, can he help three ambitious companies
0:01:04 > 0:01:07from the worlds of furniture, fashion,
0:01:07 > 0:01:10and electronics to succeed?
0:01:10 > 0:01:13We don't do cheap any more. We can't.
0:01:13 > 0:01:16We actually do quality, brand, and innovation.
0:01:16 > 0:01:19That's what's going to make the profit that pays the tax,
0:01:19 > 0:01:22that builds the schools and hospitals.
0:01:22 > 0:01:25He's demanded access all areas.
0:01:25 > 0:01:28- Wow. This is pretty big.- Yes!
0:01:28 > 0:01:31He's not afraid to ask the tough questions.
0:01:31 > 0:01:34What part of this do you not understand?
0:01:34 > 0:01:37Ding-dong! Alarm!
0:01:37 > 0:01:38Tonight...
0:01:40 > 0:01:43..can Digby help a Scottish textiles mill take on the world?
0:01:46 > 0:01:49I'm here to see if our collection is of any interest
0:01:49 > 0:01:51to the Chinese market.
0:01:51 > 0:01:54But are they willing to follow his advice
0:01:54 > 0:01:56and strike out into the unknown?
0:01:56 > 0:01:58Digby's come in as a consultant.
0:01:58 > 0:02:00In some respects, it's easy to be a consultant.
0:02:00 > 0:02:04You can offer up advice, but you can then walk away
0:02:04 > 0:02:06and there's no recriminations.
0:02:06 > 0:02:08Digby's convinced he's right...
0:02:10 > 0:02:13..and the rewards could be huge.
0:02:13 > 0:02:15It's going to involve risk.
0:02:15 > 0:02:19And, at some point, you're going to have to start walking down that plank
0:02:19 > 0:02:20and you're going to have to jump.
0:02:20 > 0:02:26It won't always be easy, and there are difficult decisions ahead.
0:02:26 > 0:02:31That's why it's time to call in Digby Jones: The New Troubleshooter.
0:02:40 > 0:02:43Hawick in the Scottish Borders.
0:02:43 > 0:02:48They've been making quality knitwear here since the late 1700s.
0:02:51 > 0:02:53Today, one of the town's few remaining woollen mills
0:02:53 > 0:02:56is Hawick Knitwear.
0:03:03 > 0:03:06Many of the employees are long-serving...
0:03:06 > 0:03:08Well, I've done this job for about 20 years,
0:03:08 > 0:03:11and I still think I'm learning the job.
0:03:11 > 0:03:14..and highly-skilled.
0:03:14 > 0:03:16It takes quite a lot of time to actually get used to
0:03:16 > 0:03:18putting the material on to the machines.
0:03:18 > 0:03:21It can be tiring, like, by the end of the shift,
0:03:21 > 0:03:25but when you see the finished garments, you take a lot of pride.
0:03:26 > 0:03:28The company has private shareholders...
0:03:28 > 0:03:31- What time do you finish tonight? - Six.
0:03:31 > 0:03:34..including its boss, who was born and raised in Hawick.
0:03:34 > 0:03:39The decisions he makes effect the lives of hundreds of local people.
0:03:39 > 0:03:42It's imperative for the community
0:03:42 > 0:03:46that businesses like this indeed prosper, and grow,
0:03:46 > 0:03:50and attract young school-leavers back into the business.
0:03:57 > 0:04:00For now, the business is doing well.
0:04:00 > 0:04:02But fashions change, so new orders,
0:04:02 > 0:04:05and its future, are never guaranteed.
0:04:05 > 0:04:08This business is consumer-driven.
0:04:08 > 0:04:12When people don't want to buy a product that's been properly made,
0:04:12 > 0:04:14with provenance, in the UK,
0:04:14 > 0:04:17and in Scotland in particular, then we're out of business.
0:04:25 > 0:04:29Lord Digby Jones believes that British manufacturers
0:04:29 > 0:04:32must fight to establish their place in a global market
0:04:32 > 0:04:36dominated by cheaper Asian competition.
0:04:37 > 0:04:42The UK textile industry is on the front line of that battle.
0:04:43 > 0:04:46Today, the industry faces enormous challenges.
0:04:46 > 0:04:50Let's think about a strategic plan for five years out.
0:04:50 > 0:04:52Let's think about the tactics to get you there,
0:04:52 > 0:04:55and then have you got the resources
0:04:55 > 0:04:57and have you got the skill to get there?
0:04:57 > 0:05:01These are challenges which face businesses in Britain every day.
0:05:03 > 0:05:07There's a bit of apprehension. We're a major employer in the area.
0:05:07 > 0:05:11I mean, with 235 people, it's feeding a lot of families.
0:05:11 > 0:05:14I think the worst thing he could say is that we're wasting our time
0:05:14 > 0:05:18and we should close up shop and source from offshore,
0:05:18 > 0:05:21like so many other brands are doing.
0:05:24 > 0:05:27But Digby is backing Made In Britain.
0:05:27 > 0:05:30Over the coming months, he intends to spend time
0:05:30 > 0:05:32in every part of the business,
0:05:32 > 0:05:35trying to equip Hawick Knitwear with the tools to survive
0:05:35 > 0:05:41and prosper in the ruthless world of the international textiles trade.
0:05:41 > 0:05:44I am to knowledge of textiles and woolly jumpers
0:05:44 > 0:05:46what Attila the Hun was to architecture, actually.
0:05:46 > 0:05:50I mean, I'm not exactly a world fashion guru.
0:05:50 > 0:05:53If you look at my portly frame, you'll probably understand why.
0:05:53 > 0:05:56But, in terms of the manufacturing process,
0:05:56 > 0:05:59and in terms of them being at the value-added, branded end
0:05:59 > 0:06:04of the manufacturing chain, on those issues, I'm on very firm ground.
0:06:11 > 0:06:15Digby doesn't want to sit down with the bosses just yet.
0:06:16 > 0:06:20First, he wants to get to know the business from the factory floor,
0:06:20 > 0:06:24in the company of manufacturing director Ian McLeod.
0:06:26 > 0:06:31- When you come in here, that, to me, that's manufacturing.- I know.
0:06:31 > 0:06:36You're taking ordinary raw material and, by the end of it,
0:06:36 > 0:06:40you've got something that's a sweater. And I...I love it.
0:06:40 > 0:06:43I just love...making things. I love it.
0:06:43 > 0:06:45Come on. Now where are we off to?
0:06:45 > 0:06:49Digby's visited hundreds of factories over the years.
0:06:49 > 0:06:51He's learnt that every manufacturer
0:06:51 > 0:06:54is only as good as the men and women on their production line.
0:06:57 > 0:06:59- Hello.- This is Digby Jones. - I'm Digby, good to see you.
0:06:59 > 0:07:02- Robbie's a frameworker working with us.- You're Robbie?
0:07:02 > 0:07:04You've been here a while? How many years you been...?
0:07:04 > 0:07:08- 1965, I started.- 1965? So, you've been here man and boy?
0:07:08 > 0:07:11- Near enough, like. - And are you a Hawick lad?- Yeah.
0:07:11 > 0:07:15- You've seen a few changes in Hawick? - A lot of changes.
0:07:19 > 0:07:21In the mid-1960s,
0:07:21 > 0:07:24when Hawick's woollen industry was at its height,
0:07:24 > 0:07:26it employed 5,500 people,
0:07:26 > 0:07:29a third of the town's population.
0:07:33 > 0:07:37Today, that number has shrunk to just 1,200.
0:07:38 > 0:07:41This is where the panels are joined together.
0:07:41 > 0:07:42It's a really skilled operation,
0:07:42 > 0:07:46- and it takes about a year to train somebody on this.- Right.
0:07:46 > 0:07:49Years ago, the operators were called greasy linkers,
0:07:49 > 0:07:52but obviously, as times change, the girls didn't like
0:07:52 > 0:07:55being referred to as greasy linkers,
0:07:55 > 0:07:57so they're now called first make-up operators.
0:08:04 > 0:08:08Many of the roles in the factory demand finger-tip precision,
0:08:08 > 0:08:12techniques that are passed down through the generations.
0:08:17 > 0:08:20Malcolm Macdonald learnt his trade from his father.
0:08:20 > 0:08:24He's a milling man, one of the few remaining in Hawick.
0:08:24 > 0:08:28His skills are integral to the prized feel of the town's knitwear.
0:08:28 > 0:08:30- What does it look like? - When I take it out,
0:08:30 > 0:08:34I have to judge how soft that garment is going to be.
0:08:34 > 0:08:37I want to see the nice hair on the top, that's what we call the mill.
0:08:37 > 0:08:40Its always tempting to put more and more mill on
0:08:40 > 0:08:43- to make them even softer and softer. - So if there was no mill,
0:08:43 > 0:08:46you wouldn't have enough, and if there was too much...
0:08:46 > 0:08:48- It'd be ruined. - ..it'd be ruined, yeah.
0:08:48 > 0:08:52Digby passionately believes that training is crucial
0:08:52 > 0:08:54to maintaining a healthy business.
0:08:54 > 0:08:56And are you going to teach someone else?
0:08:56 > 0:08:58I would hope to teach somebody else.
0:08:58 > 0:09:00It's a job where you need a lot of experience.
0:09:00 > 0:09:04You have to realise, if you were the boss of a factory,
0:09:04 > 0:09:08you're trusting me to wash thousands of pounds' worth of garments.
0:09:08 > 0:09:12- And you've got to feel it and sense it?- You can't learn this job through mistakes.- No.
0:09:17 > 0:09:20But, with the tour almost at an end,
0:09:20 > 0:09:23there's still a surprise in store...
0:09:23 > 0:09:26Not everything the company produces bears its name.
0:09:26 > 0:09:29This is for Famous Grouse.
0:09:31 > 0:09:34Anywhere, does it say you made it?
0:09:34 > 0:09:36- It says "Made in Scotland." - It says "Made in Scotland," yeah,
0:09:36 > 0:09:38- but it wouldn't identify you. - No, it doesn't.
0:09:38 > 0:09:41This particular product doesn't identify us.
0:09:44 > 0:09:47Of the 300,000 sweaters made here annually,
0:09:47 > 0:09:50three quarters are for other brands.
0:09:50 > 0:09:55Hawick Knitwear relies heavily on this so-called private label work.
0:09:55 > 0:09:58It's their bread and butter.
0:09:58 > 0:10:00We do make for our own brand.
0:10:01 > 0:10:06- Here's one.- These are actually 100% British wool.
0:10:06 > 0:10:09- You're making this, you're selling on your brand...- Yes.
0:10:09 > 0:10:11..and, at the same time,
0:10:11 > 0:10:14good profit to be made, good sales to be had
0:10:14 > 0:10:19by making quality stuff for another brand,
0:10:19 > 0:10:23- which, to me, that's whisky.- Yeah. - Big predicament, actually.
0:10:23 > 0:10:27Digby knows developing the Hawick Knitwear own brand
0:10:27 > 0:10:30is key to the company's long-term survival.
0:10:30 > 0:10:33I hope you're going to say that one of your ambitions
0:10:33 > 0:10:36is to grow the own brand stuff rather than private label stuff,
0:10:36 > 0:10:38- would that be right?- Definitely.
0:10:38 > 0:10:41We kind of started from scratch three years ago,
0:10:41 > 0:10:44we didn't really have a Hawick Knitwear brand, as such.
0:10:44 > 0:10:47When we were 100% private label,
0:10:47 > 0:10:50you're at the beck and call of the buyers that you're dealing with,
0:10:50 > 0:10:52and if the buyer changes, or the strategy changes,
0:10:52 > 0:10:54- you've lost your customer. - No control of your destiny.
0:10:54 > 0:10:58You can do everything right, but you still lose the business.
0:10:59 > 0:11:03If the company is to compete against the commercial might of Asia
0:11:03 > 0:11:07and safeguard the future of its 235-strong workforce,
0:11:07 > 0:11:09then action is needed.
0:11:13 > 0:11:16Maximising the brand in a globally competitive marketplace,
0:11:16 > 0:11:20they need to take a few big decisions, I think.
0:11:20 > 0:11:23A lot of it will come down to the shareholders, actually,
0:11:23 > 0:11:25whether they're prepared to put a bit of money into it.
0:11:25 > 0:11:27Can I see some areas where I think I could give them
0:11:27 > 0:11:30some advice? Definitely.
0:11:30 > 0:11:32Do I think they're going to take it?
0:11:32 > 0:11:37I-I think it'll be a bit of a battle to get them to...go forward
0:11:37 > 0:11:40more quickly than they're comfortable with.
0:11:48 > 0:11:51So, growing its own brand Hawick Knitwear
0:11:51 > 0:11:54is the key to a brighter future.
0:11:58 > 0:12:01Having seen how its sweaters are made,
0:12:01 > 0:12:05Digby now wants to find out how they're sold.
0:12:09 > 0:12:14The task of getting own brand product into the UK's shops
0:12:14 > 0:12:17rests with its two sales managers.
0:12:17 > 0:12:20Anything in particular that has been selling?
0:12:20 > 0:12:23- The men's cashmere jumpers. - Right. Rather than ladies'?- Yes.
0:12:23 > 0:12:27Derek McCulloch's patch covers Northern England and Scotland.
0:12:27 > 0:12:29You've been a big help.
0:12:29 > 0:12:32Today, he's visiting retail customers in Edinburgh.
0:12:34 > 0:12:38When I took over the area, there were roughly about 20 accounts.
0:12:38 > 0:12:41We're now sitting at well over 110 accounts for Scotland
0:12:41 > 0:12:44and the north of England area that I actually do.
0:12:44 > 0:12:46So the growth we've had has absolutely been fantastic,
0:12:46 > 0:12:50and the turnover has probably gone up 20 times.
0:12:54 > 0:12:58The company's most profitable outlet is this store,
0:12:58 > 0:13:00a stone's throw from the castle.
0:13:00 > 0:13:03Benny and Arthur have ambitions to double sales
0:13:03 > 0:13:06of the Hawick Knitwear brand in the next three years.
0:13:06 > 0:13:11Digby wants to find out if that's at all realistic.
0:13:11 > 0:13:14What's your footfall every day?
0:13:14 > 0:13:16- Couple of hundred. - So, 200 would walk in,
0:13:16 > 0:13:20- how many of those would make a purchase?- Hopefully at least 100.
0:13:20 > 0:13:24And 40% of those are from outside Europe.
0:13:24 > 0:13:28By far the largest proportion of its non-European customers
0:13:28 > 0:13:30are from China.
0:13:30 > 0:13:33Hello, I'm Digby. You're...?
0:13:33 > 0:13:37So much so that this shop has hired Chinese-speaking sales assistants.
0:13:37 > 0:13:43Do you speak Mandarin to a customer once a day, once a week?
0:13:43 > 0:13:47- 30 or 40 people a day like that. - A day? Would be speaking Mandarin?
0:13:47 > 0:13:49Yeah, yeah.
0:13:49 > 0:13:54The scale of Chinese enthusiasm for the Hawick Knitwear brand
0:13:54 > 0:13:57has come as a surprise, even to Digby.
0:13:57 > 0:14:00Would Chinese be the biggest overseas customer?
0:14:00 > 0:14:03Yes. Well, I think so.
0:14:03 > 0:14:06If we are having a travel group from China,
0:14:06 > 0:14:09they will roughly buy £1,000 or something,
0:14:09 > 0:14:13- so that's a big market and big sales.- Yeah, yeah.
0:14:16 > 0:14:19The shop visit has convinced Digby
0:14:19 > 0:14:21that a strategy for building the brand
0:14:21 > 0:14:25is staring Benny and Arthur in the face.
0:14:25 > 0:14:28Big, big Chinese presence in the customer base,
0:14:28 > 0:14:33so when a Chinese tourist takes something from there,
0:14:33 > 0:14:35takes it home, and thinks, "I'll have another one of those,"
0:14:35 > 0:14:38they won't come back to Edinburgh to get it. So how are they going to get it?
0:14:38 > 0:14:42I hope, eventually, they're going to walk into a Hawick store
0:14:42 > 0:14:45in Shanghai. Now, wouldn't that be fabulous?
0:14:45 > 0:14:47So, export, export, export!
0:14:56 > 0:14:59With an emerging middle class of 300 million,
0:14:59 > 0:15:02Digby believes China is a market
0:15:02 > 0:15:05that ambitious companies can't ignore.
0:15:08 > 0:15:12It's time to deliver that message to Benny and Arthur.
0:15:14 > 0:15:18The emerging markets make so much sense for Britain to export
0:15:18 > 0:15:21value-added branded quality, innovative, goods.
0:15:21 > 0:15:23Where would you grow your market best?
0:15:23 > 0:15:27Where there's a ready and willing desire to buy your product,
0:15:27 > 0:15:29- and that's China.- Yeah.
0:15:29 > 0:15:32They are your purchaser. They are your customer base.
0:15:32 > 0:15:36It has "What part of this do you not understand?" written all over it.
0:15:36 > 0:15:38- Well, it's down to resources and money.- Sure.
0:15:38 > 0:15:40No, of course, I see that.
0:15:40 > 0:15:42We need to target what resources we have
0:15:42 > 0:15:45in the most cost-effective way possible in the short-term,
0:15:45 > 0:15:50until we can get the business a bit more on a solid footing.
0:15:50 > 0:15:54You could invest in China for ten years and get nothing back.
0:15:54 > 0:15:58We've chosen, rightly or wrongly, to focus on the low-hanging fruit
0:15:58 > 0:16:02and try and pick up some success in Northern Europe
0:16:02 > 0:16:04and the UK, initially.
0:16:04 > 0:16:08Company boss Benny favours a cautious approach to expansion.
0:16:08 > 0:16:14Digby wants to know if brand manager Arthur feels the same way.
0:16:14 > 0:16:17What do you think about that? Is he right?
0:16:17 > 0:16:20No, I think the emerging middle classes
0:16:20 > 0:16:23are looking for something with provenance and a bit of quality,
0:16:23 > 0:16:27so I think it's time for us to have a look at China again.
0:16:27 > 0:16:29But at the moment you're not trying?
0:16:29 > 0:16:32Partly, I guess, it's my background as an accountant.
0:16:32 > 0:16:34It's about weighing up the risks and the rewards.
0:16:34 > 0:16:38The old cliche, if you get a salesman to run the business,
0:16:38 > 0:16:41you end up actually with no business.
0:16:41 > 0:16:44And if you get an accountant to run the business,
0:16:44 > 0:16:46you end up with a pile of cash, and no business.
0:16:46 > 0:16:49Well, I like to think it's somewhere in between!
0:16:49 > 0:16:53But, I would have suggested that, five years out,
0:16:53 > 0:16:55looking back on this business,
0:16:55 > 0:17:00Hawick Knitwear should be an identifiable brand
0:17:00 > 0:17:03in the department stores of Beijing and Shanghai.
0:17:03 > 0:17:07And export isn't the only area in which Digby's visit to the shop
0:17:07 > 0:17:09has had an impact.
0:17:09 > 0:17:13One thing I did think, looking at your shop this morning,
0:17:13 > 0:17:16I thought it looked good. From outside, it basically said,
0:17:16 > 0:17:19"This is going to do what it says on the tin."
0:17:19 > 0:17:22I think it's nice, clear, concise signage. It's prominent.
0:17:22 > 0:17:25I mean, it was just right. So why doesn't your factory look like that?
0:17:25 > 0:17:27HE LAUGHS
0:17:27 > 0:17:30It did not exactly overwhelm me with a sense of civic pride.
0:17:30 > 0:17:33With the greatest respect, our factory is what it is,
0:17:33 > 0:17:37- it's a 1930s building... - But you could tart it up a bit!
0:17:37 > 0:17:41It would've been nice, for instance, you know, "Hawick Knitwear," say,
0:17:41 > 0:17:46- "the home of..." something, or, "Welcome to..."- Yeah.
0:17:46 > 0:17:50What I think your problem is, you're not putting your party frock and going off to the dance enough.
0:17:50 > 0:17:53Yeah, we need to get the name out there, I absolutely agree.
0:17:53 > 0:17:57Next, with his visit to the factory in mind,
0:17:57 > 0:18:01Digby tackles his final concern - a workforce for the future.
0:18:01 > 0:18:04I am passionate about training,
0:18:04 > 0:18:06and you must be very key in your local community for this.
0:18:06 > 0:18:10Yeah, I think we will probably be one of the biggest investors
0:18:10 > 0:18:12in modern apprentices in the community.
0:18:12 > 0:18:15What are you going to do about Malcolm getting a trainee?
0:18:15 > 0:18:19We know that Malcolm, all being well, will be here for the next ten years, or whatever it is...
0:18:19 > 0:18:21What do you do when he goes on holiday?
0:18:21 > 0:18:25We've got this other guy, Russell, who is equally as skilled.
0:18:25 > 0:18:28But one was on holiday and one was absent in the same week,
0:18:28 > 0:18:30- not three weeks ago.- And you can stand it for a week, can't you?
0:18:30 > 0:18:33We can stand it for a week, but it creates a problem,
0:18:33 > 0:18:36- because you've got a bottleneck. - Write it down. Do something about it!
0:18:36 > 0:18:40- Quite right, too.- Have you got a chequebook in there as well, Digby?
0:18:40 > 0:18:42Don't tell me you can't afford it!
0:18:42 > 0:18:44Where do we want to spend our money?
0:18:44 > 0:18:46Do we want to invest in five new trainees,
0:18:46 > 0:18:49or spend £100,000 tarting up the mill?
0:18:49 > 0:18:53- I'm going to say you want to do both. - We want to do both, of course we do.
0:19:00 > 0:19:02The journey home,
0:19:02 > 0:19:06and a chance for Digby to reflect on the day's events.
0:19:06 > 0:19:09One of the problems with especially smaller businesses,
0:19:09 > 0:19:14is because they're being quite successful in their niche,
0:19:14 > 0:19:19in a smaller market, they think, "Why do I need to risk all this?
0:19:19 > 0:19:20"Why do I need to push out?"
0:19:20 > 0:19:24But, of course, if you don't go forward,
0:19:24 > 0:19:27you always relatively go backwards.
0:19:27 > 0:19:31We know we should be targeting the Chinese market,
0:19:31 > 0:19:35but it's about deciding how much money we invest
0:19:35 > 0:19:36in trying to develop that market,
0:19:36 > 0:19:40and how quickly we can see some results and benefits from it.
0:19:42 > 0:19:45I think they are quite conservative, with a small 'c',
0:19:45 > 0:19:48and they do find change difficult.
0:19:48 > 0:19:53But, if business exports, you widen your market that you sell to,
0:19:53 > 0:19:59the world, and, because you're out there operating in a wider market,
0:19:59 > 0:20:02you become more productive, you become more competitive,
0:20:02 > 0:20:04you learn new tricks, you bring them home,
0:20:04 > 0:20:08you clean up on the opposition, and you succeed.
0:20:19 > 0:20:22To prove that breaking into China is possible,
0:20:22 > 0:20:26Digby has arranged for Arthur to attend a networking event...
0:20:26 > 0:20:27Ni hao ma!
0:20:30 > 0:20:33..speed dating style!
0:20:33 > 0:20:34You're my first date!
0:20:34 > 0:20:36That's great.
0:20:36 > 0:20:38- I love your dress.- Oh, thank you.
0:20:38 > 0:20:41I'm here to see if our branded collection
0:20:41 > 0:20:45- is of any interest to the Chinese market.- OK.
0:20:45 > 0:20:47This is our men's...
0:20:47 > 0:20:49The day offers British companies a chance to meet
0:20:49 > 0:20:53some of the most influential figures in Chinese retail.
0:20:53 > 0:20:56Is this popular in China? Cashmere?
0:20:56 > 0:21:00Arthur has just 20 minutes to pitch to each of the Chinese delegates.
0:21:00 > 0:21:03We also do a ladies' cashmere dress.
0:21:03 > 0:21:06- Very nice. - I think it would fit you.
0:21:06 > 0:21:07Oh, thank you!
0:21:11 > 0:21:12This is ladies' cashmere.
0:21:14 > 0:21:17So soft, very nice, it's a beautiful collection.
0:21:17 > 0:21:21- Good, thank you very much. - Very colourful.- Thank you.
0:21:21 > 0:21:22BELL RINGS
0:21:25 > 0:21:28To enter the Chinese market is risky,
0:21:28 > 0:21:31so it's very important for you to choose the right partner.
0:21:32 > 0:21:33OK!
0:21:34 > 0:21:38Despite the challenges, these meetings confirm
0:21:38 > 0:21:42that the Chinese market represents a huge opportunity.
0:21:42 > 0:21:46THEY SPEAK IN DIALECT
0:21:46 > 0:21:48- Can we buy five samples? - Yes, of course.
0:21:48 > 0:21:50We can buy it today.
0:21:50 > 0:21:52Thank you for my first order!
0:21:52 > 0:21:55- Thank you very much, yes. - Thank you.
0:21:55 > 0:21:56BELL RINGS
0:21:57 > 0:21:59I'm Arthur.
0:21:59 > 0:22:02The value of textile exports from Scotland to China
0:22:02 > 0:22:07has trebled since 2000. Last year, they were worth over £9 million.
0:22:08 > 0:22:13But the Chinese consumer appears to prize one thing above all others -
0:22:13 > 0:22:15brand.
0:22:15 > 0:22:18Chinese customer become more sophisticated,
0:22:18 > 0:22:20so they want to know the story of the brand,
0:22:20 > 0:22:25and the heritage will definitely be appreciated by Chinese customers.
0:22:25 > 0:22:27And especially "Made in UK" itself
0:22:27 > 0:22:29has become something of a phenomenon in China.
0:22:31 > 0:22:35See, in China, luxury brands like Fendi, Giorgio Armani, Zegna,
0:22:35 > 0:22:39Hugo Boss, these are the brands that invest a lot of money in China
0:22:39 > 0:22:43- to build their brand image. - OK, interesting.
0:22:43 > 0:22:44BELL RINGS
0:22:46 > 0:22:48I have a small gift for you.
0:22:48 > 0:22:50- Oh, thank you very much! - To give to you.
0:22:50 > 0:22:53From Scotland.
0:22:53 > 0:22:54Which is malt whisky.
0:22:54 > 0:22:56Whisky! Wow.
0:22:56 > 0:22:57- Whisky?- Yeah.
0:22:57 > 0:22:59- Oh, whisky!- Yes.- Yeah.
0:23:03 > 0:23:05BELL RINGS
0:23:06 > 0:23:08Been a fairly intense day,
0:23:08 > 0:23:12but it was really good to get an idea of where they're coming from.
0:23:12 > 0:23:15There were two or three really interesting contacts that I made,
0:23:15 > 0:23:19but I think to get into some of the major distribution channels,
0:23:19 > 0:23:21a lot of work has to be done on the branding.
0:23:28 > 0:23:31With a strong brand key to unlocking the Chinese market,
0:23:31 > 0:23:35Digby has arranged for Benny and Arthur to meet him
0:23:35 > 0:23:36at a Scottish manufacturer
0:23:36 > 0:23:39whose brand is recognised all over the world.
0:23:41 > 0:23:46Dewar's Whisky is sold in 114 different countries.
0:23:46 > 0:23:48I think the Scottish whisky industry
0:23:48 > 0:23:50has had tremendous success lately,
0:23:50 > 0:23:54so it'll be interesting to find out how they've achieved that success.
0:23:55 > 0:23:57But the day won't all be work.
0:23:57 > 0:24:01I think there might be an opportunity to have a dram, yes.
0:24:01 > 0:24:05I'm Scottish and it's after 11 o'clock in the morning!
0:24:05 > 0:24:08The Scottish whisky industry generated over £4 billion
0:24:08 > 0:24:13in export revenue last year, over ten times more than textiles.
0:24:15 > 0:24:20One thing, even if subliminally, you do when you drink a drop of whisky
0:24:20 > 0:24:23is you're taking in and associating with all of this,
0:24:23 > 0:24:28with the whole essence of heritage and culture in Scotland.
0:24:29 > 0:24:32If you go to Hawick in Border country,
0:24:32 > 0:24:36famous all over the world for textiles,
0:24:36 > 0:24:40then they start ahead of the game in the export market.
0:24:42 > 0:24:46But they're not exploiting the opportunity as best they could.
0:24:46 > 0:24:51And I hope today they will get a bit more emboldened by what they see
0:24:51 > 0:24:54and also pick up some tricks of the trade.
0:25:05 > 0:25:09Branding is more than just advertising and marketing.
0:25:09 > 0:25:12It's been called the sum of a product's attributes.
0:25:12 > 0:25:17Its personality, its name, its history and how it's made.
0:25:19 > 0:25:20This is the Pitilie Burn.
0:25:20 > 0:25:22The water we use to make the Aberfeldy single malt.
0:25:22 > 0:25:25We actually take it from an underground source,
0:25:25 > 0:25:27about a mile and a half up the hill.
0:25:27 > 0:25:32We do something very similar. We use our own underground water source for
0:25:32 > 0:25:36washing the cashmere and lamb's wool sweaters, and it's what gives
0:25:36 > 0:25:40Scottish knitwear the luxury soft feel it has in the marketplace.
0:25:42 > 0:25:45The parallels between the two businesses are clear.
0:25:45 > 0:25:47This looks like paradise to me, George!
0:25:47 > 0:25:49It's really the heart of the distillery.
0:25:49 > 0:25:51Here, we're going to create the flavours
0:25:51 > 0:25:53and characters we want in our whisky.
0:25:55 > 0:25:57Here we have the road going there, houses.
0:25:57 > 0:26:00This is the heartbeat of the community.
0:26:00 > 0:26:04Just like in Hawick, your factory is the heartbeat of Hawick.
0:26:04 > 0:26:09And that's why manufacturing is so important, so important.
0:26:09 > 0:26:12All manufacturing is about taking raw materials -
0:26:12 > 0:26:15in this case, malted barley and water -
0:26:15 > 0:26:18and adding value to them through the production process.
0:26:19 > 0:26:21But branding can supercharge that.
0:26:21 > 0:26:24If you look at the colour, you can see it's quite light in colour,
0:26:24 > 0:26:26for whisky that's well over 20 years old.
0:26:26 > 0:26:29It helps a product to be desirable.
0:26:29 > 0:26:30To stand out.
0:26:30 > 0:26:34And it persuades us to pay premium prices for it.
0:26:34 > 0:26:35GLASSES CLINK
0:26:43 > 0:26:46Dewar's has made a film to promote its brand.
0:26:46 > 0:26:49The company's Global Brand Manager, John Burke,
0:26:49 > 0:26:51is hosting a private viewing.
0:26:54 > 0:26:57When you buy a bottle of Scotch whisky,
0:26:57 > 0:27:00you buy a hell of a lot more than liquor in a bottle.
0:27:00 > 0:27:03You're buying heritage, you're buying culture,
0:27:03 > 0:27:06you're buying the blood of one small nation.
0:27:06 > 0:27:09It's a slick and seductive piece of marketing
0:27:09 > 0:27:13that imbues the product with almost mystical properties.
0:27:13 > 0:27:14..by those who don't have it.
0:27:16 > 0:27:20John has agreed to share the methods used to create a global brand
0:27:20 > 0:27:22and apply them to Hawick Knitwear.
0:27:22 > 0:27:24What you just saw there with the film,
0:27:24 > 0:27:27the first thing we do when we're working on a brand project is
0:27:27 > 0:27:32we go back to the intrinsic truths in the brand,
0:27:32 > 0:27:37and we're really trying to find what is really unique about this.
0:27:37 > 0:27:39When you think about your brand,
0:27:39 > 0:27:44what are the things that are unique and different about Hawick Knitwear?
0:27:44 > 0:27:48You may turn your papers over and the time starts now!
0:27:48 > 0:27:50Typically, sweaters used to be hand-washed,
0:27:50 > 0:27:53but we can machine-wash and tumble-dry our sweaters.
0:27:53 > 0:27:56We've pioneered that, we've pioneered other things,
0:27:56 > 0:28:00like the sort of linking processes we put on to some of our sweaters.
0:28:01 > 0:28:03John has heard something
0:28:03 > 0:28:07that could take the Hawick Knitwear brand worldwide.
0:28:07 > 0:28:09So that word "pioneering", it could be a value,
0:28:09 > 0:28:12or it could be an idea in your brand,
0:28:12 > 0:28:14if you're the people who have the courage
0:28:14 > 0:28:16to step out in front of the industry and take the risks,
0:28:16 > 0:28:19then you should earn rewards and value from that risk.
0:28:19 > 0:28:22I mean, for sure, all our products are made in Scotland
0:28:22 > 0:28:27by ourselves, and that's something we can absolutely 100% guarantee.
0:28:27 > 0:28:29So that, for me, when I hear that,
0:28:29 > 0:28:34I say you're a brand with integrity, because you've chosen to do that.
0:28:34 > 0:28:36You could have saved money and done it elsewhere
0:28:36 > 0:28:38but you chose to do it all under your own roof.
0:28:38 > 0:28:39A few others have, kind of...
0:28:39 > 0:28:42If you looked at that word "integrity", if that's
0:28:42 > 0:28:46a characteristic of your brand then "pioneering" with "integrity",
0:28:46 > 0:28:47again, all of a sudden
0:28:47 > 0:28:50you're starting to sound quite different as a brand.
0:28:50 > 0:28:54So there's some stuff there that... I'm already getting quite excited.
0:28:54 > 0:28:56I can see you getting excited, actually, John!
0:28:56 > 0:29:00Would that resonate with someone in China?
0:29:00 > 0:29:02The answer is yes. What we're talking about here,
0:29:02 > 0:29:04in terms of pioneering and integrity,
0:29:04 > 0:29:06they're enduring human values.
0:29:06 > 0:29:10You need to do more work to get these things deeper and more unique,
0:29:10 > 0:29:14but once you crack that unique DNA of your business, that creates
0:29:14 > 0:29:18the brief for advertising, it will create the brief for new products
0:29:18 > 0:29:20that you'll create, and then you have a brand.
0:29:23 > 0:29:25A powerful brand identity
0:29:25 > 0:29:28will distinguish Hawick Knitwear from the competition.
0:29:29 > 0:29:31Not only arming them with a weapon
0:29:31 > 0:29:33with which to attack new markets,
0:29:33 > 0:29:37but insulating the business against the threat
0:29:37 > 0:29:39of low-cost imports from Asia.
0:29:41 > 0:29:44It's a lesson that the British textiles industry
0:29:44 > 0:29:45has learned the hard way.
0:29:49 > 0:29:54Of the 29 clothing businesses based in Hawick in the late 1960s,
0:29:54 > 0:29:56fewer than half now remain.
0:29:58 > 0:30:01The Scottish textile industry is full of very passionate people,
0:30:01 > 0:30:05people who understand what it is like to be standing
0:30:05 > 0:30:10at the door of a factory and seeing the door closed on them.
0:30:10 > 0:30:14And towns like Hawick in particular would feel a dramatic loss
0:30:14 > 0:30:16every time there's a mill closure.
0:30:16 > 0:30:21It's part of not only their heritage, it's part of their today.
0:30:21 > 0:30:26Companies are balancing what they do between what they need to do to stay
0:30:26 > 0:30:30alive, and what they would like to do to try and diversify their business.
0:30:32 > 0:30:35When weighing up the pros and cons of Digby's advice,
0:30:35 > 0:30:38Benny's responsibilities - to his workforce
0:30:38 > 0:30:42and to his co-shareholders, who have to back the plans too -
0:30:42 > 0:30:44are very much on his mind.
0:30:46 > 0:30:47Digby's come in as a consultant,
0:30:47 > 0:30:51and I think in some respects, it's easy to be a consultant.
0:30:51 > 0:30:52You can offer up advice,
0:30:52 > 0:30:55but you then walk away and there's no recriminations.
0:30:55 > 0:30:57I'm the MD running the business
0:30:57 > 0:31:01and we need to ensure the business is here in ten, 20, 50 years' time.
0:31:02 > 0:31:06Rather than boom or bust and plough everything into developing China
0:31:06 > 0:31:10and nothing comes of it, we'd rather take things at a much steadier pace.
0:31:18 > 0:31:21Digby knows that pushing out into new markets
0:31:21 > 0:31:23can be risky and expensive,
0:31:23 > 0:31:26but he's still convinced it's the right thing to do.
0:31:27 > 0:31:30If you want something cheap, go somewhere else and buy it.
0:31:30 > 0:31:33But if you want something that no-one else produces,
0:31:33 > 0:31:36something you actually can aspire to, come to Britain.
0:31:37 > 0:31:41That is what manufacturing in the UK in the 21st century is about.
0:31:41 > 0:31:44Get it made here and it'll go round the world.
0:31:46 > 0:31:50Benny's continued hesitance over China is concerning Digby.
0:31:50 > 0:31:53He thinks some expert advice
0:31:53 > 0:31:56could convince Hawick Knitwear to take the plunge.
0:31:56 > 0:31:59And as one of the best-connected figures in British business,
0:31:59 > 0:32:03he knows just the man to offer it.
0:32:03 > 0:32:05HE SPEAKS ITALIAN
0:32:05 > 0:32:09Paul Alger, Director of International Business Development
0:32:09 > 0:32:12for the UK Fashion and Textile Association.
0:32:13 > 0:32:15These organisations, they're very important
0:32:15 > 0:32:18to smaller businesses in a sector.
0:32:18 > 0:32:21You're putting lots of money, time, resource, effort, reputation,
0:32:21 > 0:32:26talent, into an overseas push, and it is frightening.
0:32:26 > 0:32:28So today, to pick their brains, I think,
0:32:28 > 0:32:31is a very important part of what we're trying to achieve.
0:32:36 > 0:32:39Digby wants to establish if the company's current range
0:32:39 > 0:32:41reflects the core values of its brand.
0:32:43 > 0:32:46So he's asked Arthur to pitch the latest collection to Paul.
0:32:46 > 0:32:48Thanks for giving us some time.
0:32:48 > 0:32:52For the next ten minutes, sir, the floor is yours.
0:32:52 > 0:32:56We are a knitwear company based in Hawick.
0:32:56 > 0:32:59We do cashmere, it's all hand-finished,
0:32:59 > 0:33:01it's all top-notch product.
0:33:01 > 0:33:02Lamb's wool.
0:33:05 > 0:33:07Vs and crews, we also do zips.
0:33:09 > 0:33:13We do many textures. This is just a very basic cable.
0:33:14 > 0:33:17This is a new fibre we're running.
0:33:17 > 0:33:18It's luxurious country.
0:33:18 > 0:33:21So these collections have sold very well in the UK
0:33:21 > 0:33:27and we're very keen to replicate the success in other markets.
0:33:29 > 0:33:31Thank you very, very much.
0:33:33 > 0:33:36Paul has immediately spotted a problem with the pitch.
0:33:36 > 0:33:38And a solution.
0:33:39 > 0:33:43My initial perception of this is there's a lot of merchandise here
0:33:43 > 0:33:45and it's all very good.
0:33:45 > 0:33:46My concern is perhaps that
0:33:46 > 0:33:49you've got such a breadth of collection here
0:33:49 > 0:33:54that most buyers will not want to buy into the whole of the range.
0:33:54 > 0:33:56I think I can see what I would refer to
0:33:56 > 0:33:58as a "heritage" range in there,
0:33:58 > 0:34:02which I think is perhaps the most interesting from my perspective,
0:34:02 > 0:34:03certainly for the Asian markets.
0:34:03 > 0:34:06- Sure.- So I'm loving the cables,
0:34:06 > 0:34:09I'm loving all of these types of garments.
0:34:09 > 0:34:13I find this rugged country look is very successful
0:34:13 > 0:34:16and I would say that's perhaps your point of difference.
0:34:16 > 0:34:21I think what we're concerned with here is the Hawick Knitwear brand,
0:34:21 > 0:34:23particularly the export brand,
0:34:23 > 0:34:25and I would say, based on what I'm seeing here,
0:34:25 > 0:34:29I think your really strong story is the fact that it's made in Scotland
0:34:29 > 0:34:32- and the heritage side...- Focused?
0:34:32 > 0:34:34Focused, I think.
0:34:34 > 0:34:38Then the discussion takes a surprising turn, away from China.
0:34:39 > 0:34:41This is the look that I see
0:34:41 > 0:34:44whenever I go around big department stores in Japan.
0:34:44 > 0:34:47The Japanese are absolutely desperate to pick up
0:34:47 > 0:34:50quality British product. So the fact that it's made
0:34:50 > 0:34:55in Scotland will absolutely speak volumes to them.
0:34:56 > 0:34:59Unlike China, the route into the Japanese market
0:34:59 > 0:35:02is relatively well-trodden by the UK clothing industry.
0:35:03 > 0:35:05So are you saying, Paul,
0:35:05 > 0:35:09despite Japan being a fairly mature market, you still think
0:35:09 > 0:35:12there is mileage in us for taking this to Japan?
0:35:12 > 0:35:17Absolutely. We must never forgot the importance in fashion of Japan.
0:35:17 > 0:35:23It's a nation of 122 million people who have a great degree of interest
0:35:23 > 0:35:26and knowledge in provenance and good-quality products.
0:35:26 > 0:35:30So if I had enough money to buy one air fare to the Far East,
0:35:30 > 0:35:33would it be to Tokyo or Beijing?
0:35:33 > 0:35:35I'd be sending you off to Tokyo,
0:35:35 > 0:35:38but very much with the whole of Asia in mind.
0:35:38 > 0:35:41I think Japan is low-hanging fruit.
0:35:41 > 0:35:44It's quick and it's easy.
0:35:44 > 0:35:47China is going to take a bit longer, but make no mistake,
0:35:47 > 0:35:49if you haven't got a market in Japan
0:35:49 > 0:35:52then China becomes quite difficult, because they look to see
0:35:52 > 0:35:56what's successful in other markets that they go to,
0:35:56 > 0:36:00and Japan, for Asia at least, is the main international shop window.
0:36:00 > 0:36:01OK, interesting.
0:36:05 > 0:36:07Paul's advice is a surprise to Digby, too.
0:36:09 > 0:36:13We were talking in Edinburgh about China a lot,
0:36:13 > 0:36:16but we didn't mention Japan once. And I didn't.
0:36:16 > 0:36:20And today it's very clear from Paul that that's where they should start.
0:36:20 > 0:36:23China was brought on to our radar.
0:36:23 > 0:36:26Japan has been brought on to our radar,
0:36:26 > 0:36:29and these may become target markets.
0:36:31 > 0:36:34Arthur is keen to adopt Paul's suggestion -
0:36:34 > 0:36:37a slimmed-down collection aimed at Japan.
0:36:39 > 0:36:41I think for the Far Eastern markets
0:36:41 > 0:36:44to have a heritage, capsule collection,
0:36:44 > 0:36:47I think that's a good idea.
0:36:47 > 0:36:49So we need to consider our spend
0:36:49 > 0:36:52but I'm sure we can get budget to go to Japan,
0:36:52 > 0:36:55and our first stop should be Tokyo.
0:37:02 > 0:37:04Now what I want to see is action.
0:37:04 > 0:37:08Do it professionally. Do it competently. But do it.
0:37:13 > 0:37:16At the factory, Arthur is reporting back to Benny,
0:37:16 > 0:37:20who's finally come around to Digby's way of thinking.
0:37:20 > 0:37:22Our intention is to continue to grow the business
0:37:22 > 0:37:25but to do that we need to find new markets.
0:37:25 > 0:37:27Unless you invest in them and try to get in there,
0:37:27 > 0:37:30you will never have any success.
0:37:30 > 0:37:33so we need to allocate some resources to Japan and China.
0:37:35 > 0:37:39With Benny on side, one crucial hurdle remains.
0:37:39 > 0:37:41The shareholders.
0:37:43 > 0:37:46We have a strategy review for the brand and, at that meeting,
0:37:46 > 0:37:50we will just decide what is the priority one in overseas markets
0:37:50 > 0:37:53and how much allocation of resources do we give it.
0:37:55 > 0:37:59With an Asian export drive now definitely on the cards,
0:37:59 > 0:38:03Arthur is forging ahead with a company rebrand.
0:38:03 > 0:38:06The Dewar's visit was great.
0:38:06 > 0:38:08To be talked through the rebranding process
0:38:08 > 0:38:11by taking your business apart, seeing where it's came from,
0:38:11 > 0:38:14and that becomes the essence of your branding.
0:38:15 > 0:38:16It will go on the website,
0:38:16 > 0:38:20on our letterheads, above the door outside the company.
0:38:22 > 0:38:26As part of this rebrand, the mill is getting a make-over.
0:38:28 > 0:38:32I've worked here for nine years. There's been the odd job done.
0:38:32 > 0:38:36But nothing as dramatic as what it is at the minute.
0:38:36 > 0:38:40Walking in in the morning, you really notice a big difference.
0:38:40 > 0:38:43I think when people come in and they see it's a tidy area
0:38:43 > 0:38:46and it's a clean area, that it does sort of raise spirits a little bit.
0:38:46 > 0:38:48Certainly brightens up the place.
0:38:48 > 0:38:50New carpets. Flooring all painted.
0:38:50 > 0:38:54It is nice when visitors or customers come in.
0:38:54 > 0:38:57It's nice and bright and clean, tidy, it makes a difference.
0:39:00 > 0:39:04Even the company's logo, the most tangible part of its brand identity,
0:39:04 > 0:39:06is biting the dust.
0:39:07 > 0:39:09Arthur's commissioned a branding consultancy
0:39:09 > 0:39:11to come up with a new one.
0:39:12 > 0:39:15Our logo has been described as "workmanlike".
0:39:15 > 0:39:19It's quite hard for what is a very soft product.
0:39:19 > 0:39:21So we are excited about having something
0:39:21 > 0:39:23that reflects more our story.
0:39:25 > 0:39:28Emboldened by Digby, Benny is now keen to push out
0:39:28 > 0:39:30into the Far Eastern markets.
0:39:32 > 0:39:34But he needs the backing of the Ruia Group -
0:39:34 > 0:39:37Hawick Knitwear's majority shareholders.
0:39:41 > 0:39:44He's arrived in Bolton for a strategy meeting.
0:39:46 > 0:39:48The Ruia Group have been really supportive,
0:39:48 > 0:39:51so after today's meeting, I'm hoping we'll have everything agreed
0:39:51 > 0:39:55and will know how we're going to go about targeting these markets.
0:40:03 > 0:40:06Benny has decided that he wants the meeting to take place
0:40:06 > 0:40:09away from the cameras.
0:40:09 > 0:40:10The stakes are high.
0:40:12 > 0:40:15The Ruia Group's views could have a huge influence
0:40:15 > 0:40:18on his new-found enthusiasm for Asia.
0:40:32 > 0:40:35Digby believes that skilling up the next generation
0:40:35 > 0:40:38is crucial to the future of British manufacturing.
0:40:39 > 0:40:43Here you are, Ali, that's your wellies for the day.
0:40:43 > 0:40:47Today, 19-year-old Ali Colville is trying his hand
0:40:47 > 0:40:50at one of the most skilled jobs in the entire factory.
0:40:52 > 0:40:55First step, loading up the machines.
0:40:55 > 0:40:58I think you've been up through the night practising!
0:40:58 > 0:41:01I don't ken how to use my washing machine at hame!
0:41:01 > 0:41:04You have to try and get an equal amount in each bit
0:41:04 > 0:41:05or it'll no' spin.
0:41:07 > 0:41:10Right, that's us. Hit that button.
0:41:10 > 0:41:12As well as using soap to clean the garments,
0:41:12 > 0:41:16the milling man adds a complex cocktail of chemicals.
0:41:16 > 0:41:20Sodium sulphate, formic acid and hydrogen peroxide.
0:41:21 > 0:41:24This makes the sweaters washing-machine friendly.
0:41:24 > 0:41:26It's a hi tech job, this.
0:41:26 > 0:41:29- I ken, aye. It's like being back in chemistry at school.- Aye.
0:41:31 > 0:41:35The work requires a delicate blend of knowledge and intuition.
0:41:37 > 0:41:39I thought it would just be throwing stuff in the wash
0:41:39 > 0:41:41and then pulling them out not long after
0:41:41 > 0:41:44and then putting other ones in, so it's so much more than I expected.
0:41:46 > 0:41:47Would you like to do this as a job?
0:41:47 > 0:41:51See, it's no' boring. You're kept on your toes all day.
0:41:51 > 0:41:54If you're trained as a milling man, you've got a job for life.
0:41:54 > 0:41:58It's time to open up one of the machines.
0:41:58 > 0:42:00Judgment time for Malcolm and Ali.
0:42:04 > 0:42:07You can see yourself, see the wales coming down here,
0:42:07 > 0:42:10and you want a small gap between them.
0:42:10 > 0:42:12Lovely, that's us done our job right.
0:42:16 > 0:42:19I think every department should have a young person in it.
0:42:19 > 0:42:22If anything should happen or anybody should leave,
0:42:22 > 0:42:24it takes so long to train somebody!
0:42:26 > 0:42:27That's up to the bosses!
0:42:36 > 0:42:39After three hours of intense discussion
0:42:39 > 0:42:42with his fellow shareholders, Benny finally emerges.
0:42:43 > 0:42:45A decision about the future direction
0:42:45 > 0:42:48of the Hawick Knitwear brand has been made.
0:42:51 > 0:42:55Digby's suggestions were part of the strategy discussion,
0:42:55 > 0:42:59but primarily we want to focus on continuing to grow the brand
0:42:59 > 0:43:00in the UK and Northern Europe,
0:43:00 > 0:43:04which we think are core markets for the brand,
0:43:04 > 0:43:08and we will see if we pick up any business in the Far East
0:43:08 > 0:43:13without investing a great deal of time or money in it in the short term.
0:43:14 > 0:43:16Disaster for Digby.
0:43:16 > 0:43:18In a matter of hours,
0:43:18 > 0:43:22much of the progress made over the last few months has unravelled.
0:43:22 > 0:43:25Word of the company's u-turn on Asia has reached him.
0:43:32 > 0:43:34He's summoned Benny and Arthur to a meeting.
0:43:38 > 0:43:42But a cosy fireside chat is the last thing on Digby's mind.
0:43:50 > 0:43:53Talk is cheap. I learnt a long time ago, with politicians,
0:43:53 > 0:43:56don't listen to what they say, watch what they do.
0:43:56 > 0:43:58And if I apply that to you, I'm watching what you do,
0:43:58 > 0:44:00which is, you're not doing it.
0:44:00 > 0:44:03We think these emerging markets are really where the future is
0:44:03 > 0:44:07and these could be £5-10 million markets for the business.
0:44:07 > 0:44:10But in the short term, we need to find our feet as a brand,
0:44:10 > 0:44:12so we're going to continue pushing the brand
0:44:12 > 0:44:14in the UK and Northern Europe.
0:44:14 > 0:44:16And, indeed, Arthur's just back in the last couple of weeks
0:44:16 > 0:44:18from Norway and France.
0:44:18 > 0:44:22That, I have to say, is not the happiest news I've ever heard.
0:44:22 > 0:44:24Yup. But it's a bit further afield.
0:44:24 > 0:44:28Norway's got, what, seven million people? And China's got 1.3 billion.
0:44:28 > 0:44:30- Yeah, I know. - And you hightail off to Oslo!
0:44:30 > 0:44:32Arguably, I will come back with more orders
0:44:32 > 0:44:35in the first quarter of next year from Norway
0:44:35 > 0:44:37than I would come back with from China, but...
0:44:37 > 0:44:41Ooh! Now that's a bet to have! That is a bet to have!
0:44:41 > 0:44:44I think, if the business was a bit more mature,
0:44:44 > 0:44:49and had sounder foundations, we would be targeting it now,
0:44:49 > 0:44:52but we just have to, I think, take cautious steps.
0:44:52 > 0:44:57Yes, and by the way, overtrading or overextending yourself
0:44:57 > 0:45:00is the route to perdition, not success. I do understand that.
0:45:00 > 0:45:04It is just that, what you actually make is just,
0:45:04 > 0:45:08if you'll forgive the pun, tailor-made to get into Asia.
0:45:08 > 0:45:09You've got something special.
0:45:09 > 0:45:11I think you're right.
0:45:11 > 0:45:13Only this week we've had a few orders from Japanese consumers
0:45:13 > 0:45:15buying our product from the website.
0:45:15 > 0:45:17So they're finding us,
0:45:17 > 0:45:19it's typically British heritage-type product.
0:45:19 > 0:45:23Yeah, and Paul at UKFT was saying Japan is aching for what you do.
0:45:23 > 0:45:27They're crying out for your stuff at the moment.
0:45:27 > 0:45:28I would like to think so, yes.
0:45:28 > 0:45:30Our medium-term goal
0:45:30 > 0:45:32is to double the size of the turnover in the next three years.
0:45:32 > 0:45:35- Of course. Well, you won't do that without Asia.- Yup.
0:45:35 > 0:45:38Because if you want to be in business and you want
0:45:38 > 0:45:42to capitalise on your best assets, it's going to involve risk.
0:45:42 > 0:45:45At some point you're going to have to start walking down that plank
0:45:45 > 0:45:47and you're going to have to jump.
0:45:50 > 0:45:52It's been an uncomfortable meeting,
0:45:52 > 0:45:55and it's left Benny and Arthur with plenty to ponder.
0:45:57 > 0:45:59He seems to think we are prevaricating on things.
0:45:59 > 0:46:02We're absolutely not. We are evaluating these things
0:46:02 > 0:46:05and we take it all absolutely on board.
0:46:06 > 0:46:08He's obviously got some strong points of view on Asia
0:46:08 > 0:46:10and these key emerging markets,
0:46:10 > 0:46:15and I think they are absolutely valid points that he raises.
0:46:15 > 0:46:19I actually think there's more positive wish to change things
0:46:19 > 0:46:25than I feared, but the lack of action - actual, real,
0:46:25 > 0:46:26identifiable action -
0:46:26 > 0:46:30as opposed to planning and thinking about it,
0:46:30 > 0:46:32I am still very worried about that.
0:46:45 > 0:46:49Back at the factory, there has been a surprising development.
0:46:50 > 0:46:54Digby's forthright views on risk and reward have hit home.
0:46:55 > 0:46:58Japan - with its promise of relatively quick returns
0:46:58 > 0:47:01for limited investment - is back on the agenda.
0:47:03 > 0:47:04Benny has grasped the nettle,
0:47:04 > 0:47:07despite the shareholders' reservations.
0:47:07 > 0:47:11Their views in terms of brand strategy are very important.
0:47:11 > 0:47:14But I think, as managing director of the company, it would be foolish
0:47:14 > 0:47:16just to discard Digby's views.
0:47:16 > 0:47:20So I think Arthur's ideas of the capsule collection for Japan
0:47:20 > 0:47:23is certainly worth following through.
0:47:23 > 0:47:27What we need to do is get a Celtic capsule collection,
0:47:27 > 0:47:30which is going to appeal to markets who are looking
0:47:30 > 0:47:35for British-made products with provenance and heritage and history.
0:47:36 > 0:47:41Arthur is acting on UKFT export guru Paul Alger's advice,
0:47:41 > 0:47:45working alongside Hawick Knitwear's in-house designers
0:47:45 > 0:47:48to slim down its range for the Japanese market.
0:47:49 > 0:47:53What we're going to do is select about ten styles
0:47:53 > 0:47:56for the autumn/winter '14 selling season,
0:47:56 > 0:47:59which really starts in two weeks' time,
0:47:59 > 0:48:03so I think we need to move fairly quickly on it.
0:48:03 > 0:48:08And then the tweed overcheck, that's your sort of country gent look.
0:48:08 > 0:48:10That's a winner.
0:48:10 > 0:48:13Maybe the Aran cable?
0:48:13 > 0:48:15The design team are enthused by the challenge
0:48:15 > 0:48:18of creating the new collection.
0:48:18 > 0:48:21I know the Japanese market likes things a bit bolder sometimes
0:48:21 > 0:48:24so you've got your real, traditional, bright,
0:48:24 > 0:48:27Scottish Christmas wear, there.
0:48:27 > 0:48:31We've done capsule collections for private label customers before,
0:48:31 > 0:48:36but this is really the first one under the Hawick Knitwear label,
0:48:36 > 0:48:38so it's really exciting for us.
0:48:38 > 0:48:40Especially from a design point of view,
0:48:40 > 0:48:44because you have to consider what those markets are looking for.
0:48:45 > 0:48:48- Mm-hm.- I think the Japanese would love that.- Mm-hm.
0:48:48 > 0:48:51Arthur is keen to underpin the new range
0:48:51 > 0:48:55with a strong and coherent brand identity.
0:48:55 > 0:48:59Mohair tweed, dyed and spun in Donegal, Ireland,
0:48:59 > 0:49:02shipped to Hawick to be knitted,
0:49:02 > 0:49:07- Harris Tweed woven in the Hebridean islands. What a story!- Perfect!
0:49:10 > 0:49:14With the design phase now complete, it's time to try and whip up
0:49:14 > 0:49:16interest from Japanese buyers.
0:49:18 > 0:49:21But this won't involve a 12,000-mile round trip.
0:49:28 > 0:49:31Instead, it's a short hop across the Irish Sea.
0:49:38 > 0:49:41Trade shows are a great gateway into the international market.
0:49:41 > 0:49:43It gets us in front of customers from all over the world.
0:49:43 > 0:49:46There's quite a few Japanese, maybe some Chinese,
0:49:46 > 0:49:49a lot from North America and Canada,
0:49:49 > 0:49:51and, of course, all over Europe as well.
0:49:51 > 0:49:54What do you think of that, Alessandro?
0:49:54 > 0:49:58We've put some Harris Tweed patches on a lamb's wool product.
0:49:58 > 0:50:00Is this something that excites you?
0:50:00 > 0:50:03We have a few pieces here from the Celtic collection,
0:50:03 > 0:50:07more as talking points with customers than anything else,
0:50:07 > 0:50:11but we're just seeing if there's an appetite for this sort of thing.
0:50:12 > 0:50:16The feedback from Japanese buyers is positive.
0:50:43 > 0:50:45In the four months since his first visit,
0:50:45 > 0:50:49Digby has been helping Hawick Knitwear define its brand
0:50:49 > 0:50:50and chase new markets abroad.
0:50:52 > 0:50:54Now he's back, for the final time.
0:50:55 > 0:50:59So, over the past few months we've actually shown them best practice
0:50:59 > 0:51:03and stimulated thought processes in many different directions.
0:51:03 > 0:51:05Now I want to sit down with Arthur and Benny
0:51:05 > 0:51:09and I want to say, "Right, I've tried to get you to understand
0:51:09 > 0:51:12"how the world is changing. You've got to go with it."
0:51:12 > 0:51:14Now, what are they going to do to help themselves
0:51:14 > 0:51:16and show that it's all been worth it?
0:51:24 > 0:51:25Cheers.
0:51:33 > 0:51:34Lick of paint.
0:51:36 > 0:51:38Before sitting back down with the bosses,
0:51:38 > 0:51:43Digby wants to take one last look around the factory.
0:51:43 > 0:51:45He's already clocked the paint job outside.
0:51:45 > 0:51:48But improvements don't stop at the front door.
0:51:48 > 0:51:52If you actually keep constantly improving the environment,
0:51:52 > 0:51:56you'll find your productivity goes up, the morale goes up
0:51:56 > 0:51:57- and employee loyalty goes up.- Yep.
0:51:57 > 0:52:00You've got to do it again and again. You mustn't do it just once.
0:52:00 > 0:52:02No, you're right.
0:52:02 > 0:52:05As a passionate believer in apprenticeships and training,
0:52:05 > 0:52:08there is one development that's guaranteed to please Digby.
0:52:08 > 0:52:10- And here's my friend!- Hello, sir.
0:52:10 > 0:52:13Haven't seen you for a while. And you're Ali.
0:52:13 > 0:52:16So, Ali's spending some time with Malcolm just to learn the skills.
0:52:16 > 0:52:18- We haven't met before.- No.
0:52:18 > 0:52:20- Are you enjoying it?- Yeah. It's good.
0:52:20 > 0:52:23- It's all been an insight into what exactly is going on.- Yeah.
0:52:23 > 0:52:25There's no books on this job.
0:52:25 > 0:52:27- No, exactly.- There is no "learn how to be a milling man" book.
0:52:27 > 0:52:29- Exactly.- It's experience.
0:52:29 > 0:52:34And the most important part of it is when you get old and grey,
0:52:34 > 0:52:40well, when you get old, if your skill dies with you, what do we all do?
0:52:40 > 0:52:43It's so important, so I take my hat off to you, mate.
0:52:43 > 0:52:46I really wish you well. And well done.
0:52:46 > 0:52:47See you later!
0:52:49 > 0:52:53Digby wants to ensure that when it comes to expanding into Asia,
0:52:53 > 0:52:55the range is right for the job.
0:52:57 > 0:53:00One of the important things
0:53:00 > 0:53:04that Paul at UK Fashion and Textile said to us was...
0:53:04 > 0:53:08"Really play to your market that you're after".
0:53:08 > 0:53:14And so this is about concentrating on the heritage values of Hawick,
0:53:14 > 0:53:17what I would call the brand values,
0:53:17 > 0:53:21Scotland, country, all that stuff.
0:53:21 > 0:53:23So how have you responded to that?
0:53:23 > 0:53:25We're combining the Harris tweed fabric,
0:53:25 > 0:53:28and our Celtic collection is where we're going
0:53:28 > 0:53:30with the Scottish theme at the moment,
0:53:30 > 0:53:34because your Harris tweed fabric is bang on trend just now.
0:53:34 > 0:53:36And the Asian buyer likes this bit, do they?
0:53:36 > 0:53:39Yeah, I think they'll completely get that.
0:53:41 > 0:53:44Significant progress has been made.
0:53:44 > 0:53:46But Digby is determined that Benny and Arthur
0:53:46 > 0:53:48don't take the foot off the pedal.
0:53:51 > 0:53:54So you're selling domestically. Well, that's 62 million people.
0:53:54 > 0:53:57I would say to you, let's add on Northern Europe.
0:53:57 > 0:53:59Let's make it 100 million people.
0:53:59 > 0:54:03- There are 1.3 billion Chinese on their own.- Yep.
0:54:04 > 0:54:05There are over 100 million Japanese.
0:54:05 > 0:54:10You're fishing in a bigger pond and you've got much more room to grow.
0:54:10 > 0:54:13You know my views, and I'm up for you doing it in the morning.
0:54:14 > 0:54:17But what gets measured gets done.
0:54:17 > 0:54:21Benny, you would please me hugely
0:54:21 > 0:54:25if you gave me some concrete...benchmarks
0:54:25 > 0:54:27against which I could believe you.
0:54:27 > 0:54:30I'd be disappointed if we're not doing half a million pounds
0:54:30 > 0:54:32in these markets in two years' time.
0:54:32 > 0:54:35- From a standing start?- Yes. It's ambitious given where we are,
0:54:35 > 0:54:37but Arthur's got half a dozen leads there.
0:54:37 > 0:54:40Ambitious? It's not ambitious enough! LAUGHTER
0:54:40 > 0:54:43See, this is it, conservative with a small 'c'.
0:54:43 > 0:54:47We will have a Japanese partner of some description on board
0:54:47 > 0:54:49by the end of this calendar year.
0:54:49 > 0:54:51There you are. You heard it here first.
0:54:51 > 0:54:53There's a commitment. OK?
0:54:53 > 0:54:55So by the end of 2014,
0:54:55 > 0:54:58- we're going to have a Japanese partner in this business?- Yes.
0:54:58 > 0:55:03- And by the end of 2015, so that's two full years...- Yep.
0:55:03 > 0:55:07..you're going to be pushing half a million quid's worth into Asia.
0:55:07 > 0:55:09That's certainly the target. Yep.
0:55:10 > 0:55:13Digby knows that achieving this goal will be impossible
0:55:13 > 0:55:16unless the company can better utilise its brand.
0:55:18 > 0:55:21Believe me, as you move into a globally competitive market,
0:55:21 > 0:55:23exploiting your brand...
0:55:23 > 0:55:25it's...it's essential.
0:55:25 > 0:55:31We have uncovered a rich heritage of pioneering processes
0:55:31 > 0:55:33and technical innovation,
0:55:33 > 0:55:36so what we want to do is incorporate more of that
0:55:36 > 0:55:38into the branding as well.
0:55:38 > 0:55:42And Arthur's got some examples there of some of the initial mock-ups.
0:55:46 > 0:55:49Success for Digby.
0:55:49 > 0:55:53It's still early days, but if Benny and Arthur stick to their guns,
0:55:53 > 0:55:56then they are well on their way to devising a brand
0:55:56 > 0:55:59that could help secure the long-term future of the business.
0:56:01 > 0:56:02Some good ideas there, though.
0:56:02 > 0:56:04Yeah, I think we were thinking of
0:56:04 > 0:56:07the coat-of-arms type idea, something along those lines.
0:56:07 > 0:56:08Well, the coat-of-arms idea,
0:56:08 > 0:56:10that will sell in Japan enormously, won't it?
0:56:15 > 0:56:18You've got a one-off opportunity here, you are developing
0:56:18 > 0:56:21something which no-one else in the world has, which is your brand.
0:56:21 > 0:56:23That is the future for us.
0:56:23 > 0:56:27The future actually is going to be about how far you can take it.
0:56:30 > 0:56:32Gauntlet thrown down,
0:56:32 > 0:56:35it's finally time for Digby and Hawick Knitwear
0:56:35 > 0:56:37to go their separate ways.
0:56:39 > 0:56:41The whole process engaging with Lord Digby Jones
0:56:41 > 0:56:45has been a remarkable journey for us.
0:56:45 > 0:56:48It's quite easy to just concentrate on how we see ourselves,
0:56:48 > 0:56:54so I think it's been really good for him to bring an outside view.
0:56:54 > 0:56:58Yes, I think they're a bit too conservative with a small 'c',
0:56:58 > 0:57:01but you can't blame them, because over the last generation
0:57:01 > 0:57:04they've seen a lot of their compatriots go to the wall,
0:57:04 > 0:57:07and they don't want to join them.
0:57:07 > 0:57:11'Asia is a huge market and it could instantly double turnover.
0:57:11 > 0:57:13'Digby has raised it up our agenda.'
0:57:13 > 0:57:17We're in a much stronger position now to understand the market,
0:57:17 > 0:57:20and we will pursue the Far East market
0:57:20 > 0:57:23more aggressively than when we first started the process.
0:57:25 > 0:57:27Digby is heading back down south,
0:57:27 > 0:57:30confident the rebrand will give the company
0:57:30 > 0:57:33a genuine shot at Far Eastern success
0:57:33 > 0:57:36and all the benefits that brings.
0:57:36 > 0:57:38Globalisation ain't going away.
0:57:38 > 0:57:43You have got the whole of that Asian market
0:57:43 > 0:57:46both as an opportunity and a threat.
0:57:46 > 0:57:49Now it's up to these guys.
0:57:49 > 0:57:54Do they reach out, take that opportunity, never let it go
0:57:54 > 0:57:57and turn it into something where the jobs here are so safe,
0:57:57 > 0:58:00where the skills can be increased,
0:58:00 > 0:58:03where the kids feel they've got a future?
0:58:03 > 0:58:05'That's their challenge.
0:58:05 > 0:58:07'And they go with my best wishes
0:58:07 > 0:58:10'for what I hope will be a wonderful future.'
0:58:22 > 0:58:24Next time...
0:58:24 > 0:58:26- Wow! This is pretty big.- Yes.
0:58:26 > 0:58:28..Digby helps one business
0:58:28 > 0:58:32rescue Britain's last chest freezer brand from extinction.
0:58:33 > 0:58:38My kingdom...that isn't making anything yet.
0:58:38 > 0:58:39There is a danger
0:58:39 > 0:58:42that they've bitten off a little bit more than they can chew.