Hawick Knitwear Digby Jones: The New Troubleshooter

Lord Digby Jones is a champion of British business.

British manufacturing's got so much to be proud of.

We make furniture, we make shoes,

we make high-performance motor cars,

we make volume motor cars, we sell them around the world.

But it's a constant battle to keep one step ahead of our global rivals.

Manufacturing the right product in the right market

at the right time, it matters enormously.

To survive, British firms will have to be at the top of their game.

You're not trying to say, "I'm the cheapest,"

you're trying to say, "I'm the best."

Now, that is what manufacturing in the UK in the 21st century's about.

And Digby's determined to play his part.

In a career that's taken him from his parents' corner shop

to the House of Lords,

he's helped transform some iconic British companies.

Now, in a new challenge, can he help three ambitious companies

from the worlds of furniture, fashion,

and electronics to succeed?

We don't do cheap any more. We can't.

We actually do quality, brand, and innovation.

That's what's going to make the profit that pays the tax,

that builds the schools and hospitals.

He's demanded access all areas.

-Wow. This is pretty big.

-Yes!

He's not afraid to ask the tough questions.

What part of this do you not understand?

Ding-dong! Alarm!

Tonight...

..can Digby help a Scottish textiles mill take on the world?

I'm here to see if our collection is of any interest

to the Chinese market.

But are they willing to follow his advice

and strike out into the unknown?

Digby's come in as a consultant.

In some respects, it's easy to be a consultant.

You can offer up advice, but you can then walk away

and there's no recriminations.

Digby's convinced he's right...

..and the rewards could be huge.

It's going to involve risk.

And, at some point, you're going to have to start walking down that plank

and you're going to have to jump.

It won't always be easy, and there are difficult decisions ahead.

That's why it's time to call in Digby Jones: The New Troubleshooter.

Hawick in the Scottish Borders.

They've been making quality knitwear here since the late 1700s.

Today, one of the town's few remaining woollen mills

is Hawick Knitwear.

Many of the employees are long-serving...

Well, I've done this job for about 20 years,

and I still think I'm learning the job.

..and highly-skilled.

It takes quite a lot of time to actually get used to

putting the material on to the machines.

It can be tiring, like, by the end of the shift,

but when you see the finished garments, you take a lot of pride.

The company has private shareholders...

-What time do you finish tonight?

-Six.

..including its boss, who was born and raised in Hawick.

The decisions he makes effect the lives of hundreds of local people.

It's imperative for the community

that businesses like this indeed prosper, and grow,

and attract young school-leavers back into the business.

For now, the business is doing well.

But fashions change, so new orders,

and its future, are never guaranteed.

This business is consumer-driven.

When people don't want to buy a product that's been properly made,

with provenance, in the UK,

and in Scotland in particular, then we're out of business.

Lord Digby Jones believes that British manufacturers

must fight to establish their place in a global market

dominated by cheaper Asian competition.

The UK textile industry is on the front line of that battle.

Today, the industry faces enormous challenges.

Let's think about a strategic plan for five years out.

Let's think about the tactics to get you there,

and then have you got the resources

and have you got the skill to get there?

These are challenges which face businesses in Britain every day.

There's a bit of apprehension. We're a major employer in the area.

I mean, with 235 people, it's feeding a lot of families.

I think the worst thing he could say is that we're wasting our time

and we should close up shop and source from offshore,

like so many other brands are doing.

But Digby is backing Made In Britain.

Over the coming months, he intends to spend time

in every part of the business,

trying to equip Hawick Knitwear with the tools to survive

and prosper in the ruthless world of the international textiles trade.

I am to knowledge of textiles and woolly jumpers

what Attila the Hun was to architecture, actually.

I mean, I'm not exactly a world fashion guru.

If you look at my portly frame, you'll probably understand why.

But, in terms of the manufacturing process,

and in terms of them being at the value-added, branded end

of the manufacturing chain, on those issues, I'm on very firm ground.

Digby doesn't want to sit down with the bosses just yet.

First, he wants to get to know the business from the factory floor,

in the company of manufacturing director Ian McLeod.

-When you come in here, that, to me, that's manufacturing.

-I know.

You're taking ordinary raw material and, by the end of it,

you've got something that's a sweater. And I...I love it.

I just love...making things. I love it.

Come on. Now where are we off to?

Digby's visited hundreds of factories over the years.

He's learnt that every manufacturer

is only as good as the men and women on their production line.

-Hello.

-This is Digby Jones.

-I'm Digby, good to see you.

-Robbie's a frameworker working with us.

-You're Robbie?

You've been here a while? How many years you been...?

-1965, I started.

-1965? So, you've been here man and boy?

-Near enough, like.

-And are you a Hawick lad?

-Yeah.

-You've seen a few changes in Hawick?

-A lot of changes.

In the mid-1960s,

when Hawick's woollen industry was at its height,

it employed 5,500 people,

a third of the town's population.

Today, that number has shrunk to just 1,200.

This is where the panels are joined together.

It's a really skilled operation,

-and it takes about a year to train somebody on this.

-Right.

Years ago, the operators were called greasy linkers,

but obviously, as times change, the girls didn't like

being referred to as greasy linkers,

so they're now called first make-up operators.

Many of the roles in the factory demand finger-tip precision,

techniques that are passed down through the generations.

Malcolm Macdonald learnt his trade from his father.

He's a milling man, one of the few remaining in Hawick.

His skills are integral to the prized feel of the town's knitwear.

-What does it look like?

-When I take it out,

I have to judge how soft that garment is going to be.

I want to see the nice hair on the top, that's what we call the mill.

Its always tempting to put more and more mill on

-to make them even softer and softer.

-So if there was no mill,

you wouldn't have enough, and if there was too much...

-It'd be ruined.

-..it'd be ruined, yeah.

Digby passionately believes that training is crucial

to maintaining a healthy business.

And are you going to teach someone else?

I would hope to teach somebody else.

It's a job where you need a lot of experience.

You have to realise, if you were the boss of a factory,

you're trusting me to wash thousands of pounds' worth of garments.

-And you've got to feel it and sense it?

-You can't learn this job through mistakes.

-No.

But, with the tour almost at an end,

there's still a surprise in store...

Not everything the company produces bears its name.

This is for Famous Grouse.

Anywhere, does it say you made it?

-It says "Made in Scotland."

-It says "Made in Scotland," yeah,

-but it wouldn't identify you.

-No, it doesn't.

This particular product doesn't identify us.

Of the 300,000 sweaters made here annually,

three quarters are for other brands.

Hawick Knitwear relies heavily on this so-called private label work.

It's their bread and butter.

We do make for our own brand.

-Here's one.

-These are actually 100% British wool.

-You're making this, you're selling on your brand...

-Yes.

..and, at the same time,

good profit to be made, good sales to be had

by making quality stuff for another brand,

-which, to me, that's whisky.

-Yeah.

-Big predicament, actually.

Digby knows developing the Hawick Knitwear own brand

is key to the company's long-term survival.

I hope you're going to say that one of your ambitions

is to grow the own brand stuff rather than private label stuff,

-would that be right?

-Definitely.

We kind of started from scratch three years ago,

we didn't really have a Hawick Knitwear brand, as such.

When we were 100% private label,

you're at the beck and call of the buyers that you're dealing with,

and if the buyer changes, or the strategy changes,

-you've lost your customer.

-No control of your destiny.

You can do everything right, but you still lose the business.

If the company is to compete against the commercial might of Asia

and safeguard the future of its 235-strong workforce,

then action is needed.

Maximising the brand in a globally competitive marketplace,

they need to take a few big decisions, I think.

A lot of it will come down to the shareholders, actually,

whether they're prepared to put a bit of money into it.

Can I see some areas where I think I could give them

some advice? Definitely.

Do I think they're going to take it?

I-I think it'll be a bit of a battle to get them to...go forward

more quickly than they're comfortable with.

So, growing its own brand Hawick Knitwear

is the key to a brighter future.

Having seen how its sweaters are made,

Digby now wants to find out how they're sold.

The task of getting own brand product into the UK's shops

rests with its two sales managers.

Anything in particular that has been selling?

-The men's cashmere jumpers.

-Right. Rather than ladies'?

-Yes.

Derek McCulloch's patch covers Northern England and Scotland.

You've been a big help.

Today, he's visiting retail customers in Edinburgh.

When I took over the area, there were roughly about 20 accounts.

We're now sitting at well over 110 accounts for Scotland

and the north of England area that I actually do.

So the growth we've had has absolutely been fantastic,

and the turnover has probably gone up 20 times.

The company's most profitable outlet is this store,

a stone's throw from the castle.

Benny and Arthur have ambitions to double sales

of the Hawick Knitwear brand in the next three years.

Digby wants to find out if that's at all realistic.

What's your footfall every day?

-Couple of hundred.

-So, 200 would walk in,

-how many of those would make a purchase?

-Hopefully at least 100.

And 40% of those are from outside Europe.

By far the largest proportion of its non-European customers

are from China.

Hello, I'm Digby. You're...?

So much so that this shop has hired Chinese-speaking sales assistants.

Do you speak Mandarin to a customer once a day, once a week?

-30 or 40 people a day like that.

-A day? Would be speaking Mandarin?

Yeah, yeah.

The scale of Chinese enthusiasm for the Hawick Knitwear brand

has come as a surprise, even to Digby.

Would Chinese be the biggest overseas customer?

Yes. Well, I think so.

If we are having a travel group from China,

they will roughly buy £1,000 or something,

-so that's a big market and big sales.

-Yeah, yeah.

The shop visit has convinced Digby

that a strategy for building the brand

is staring Benny and Arthur in the face.

Big, big Chinese presence in the customer base,

so when a Chinese tourist takes something from there,

takes it home, and thinks, "I'll have another one of those,"

they won't come back to Edinburgh to get it. So how are they going to get it?

I hope, eventually, they're going to walk into a Hawick store

in Shanghai. Now, wouldn't that be fabulous?

So, export, export, export!

With an emerging middle class of 300 million,

Digby believes China is a market

that ambitious companies can't ignore.

It's time to deliver that message to Benny and Arthur.

The emerging markets make so much sense for Britain to export

value-added branded quality, innovative, goods.

Where would you grow your market best?

Where there's a ready and willing desire to buy your product,

-and that's China.

-Yeah.

They are your purchaser. They are your customer base.

It has "What part of this do you not understand?" written all over it.

-Well, it's down to resources and money.

-Sure.

No, of course, I see that.

We need to target what resources we have

in the most cost-effective way possible in the short-term,

until we can get the business a bit more on a solid footing.

You could invest in China for ten years and get nothing back.

We've chosen, rightly or wrongly, to focus on the low-hanging fruit

and try and pick up some success in Northern Europe

and the UK, initially.

Company boss Benny favours a cautious approach to expansion.

Digby wants to know if brand manager Arthur feels the same way.

What do you think about that? Is he right?

No, I think the emerging middle classes

are looking for something with provenance and a bit of quality,

so I think it's time for us to have a look at China again.

But at the moment you're not trying?

Partly, I guess, it's my background as an accountant.

It's about weighing up the risks and the rewards.

The old cliche, if you get a salesman to run the business,

you end up actually with no business.

And if you get an accountant to run the business,

you end up with a pile of cash, and no business.

Well, I like to think it's somewhere in between!

But, I would have suggested that, five years out,

looking back on this business,

Hawick Knitwear should be an identifiable brand

in the department stores of Beijing and Shanghai.

And export isn't the only area in which Digby's visit to the shop

has had an impact.

One thing I did think, looking at your shop this morning,

I thought it looked good. From outside, it basically said,

"This is going to do what it says on the tin."

I think it's nice, clear, concise signage. It's prominent.

I mean, it was just right. So why doesn't your factory look like that?

HE LAUGHS

It did not exactly overwhelm me with a sense of civic pride.

With the greatest respect, our factory is what it is,

-it's a 1930s building...

-But you could tart it up a bit!

It would've been nice, for instance, you know, "Hawick Knitwear," say,

-"the home of..." something, or, "Welcome to..."

-Yeah.

What I think your problem is, you're not putting your party frock and going off to the dance enough.

Yeah, we need to get the name out there, I absolutely agree.

Next, with his visit to the factory in mind,

Digby tackles his final concern - a workforce for the future.

I am passionate about training,

and you must be very key in your local community for this.

Yeah, I think we will probably be one of the biggest investors

in modern apprentices in the community.

What are you going to do about Malcolm getting a trainee?

We know that Malcolm, all being well, will be here for the next ten years, or whatever it is...

What do you do when he goes on holiday?

We've got this other guy, Russell, who is equally as skilled.

But one was on holiday and one was absent in the same week,

-not three weeks ago.

-And you can stand it for a week, can't you?

We can stand it for a week, but it creates a problem,

-because you've got a bottleneck.

-Write it down. Do something about it!

-Quite right, too.

-Have you got a chequebook in there as well, Digby?

Don't tell me you can't afford it!

Where do we want to spend our money?

Do we want to invest in five new trainees,

or spend £100,000 tarting up the mill?

-I'm going to say you want to do both.

-We want to do both, of course we do.

The journey home,

and a chance for Digby to reflect on the day's events.

One of the problems with especially smaller businesses,

is because they're being quite successful in their niche,

in a smaller market, they think, "Why do I need to risk all this?

"Why do I need to push out?"

But, of course, if you don't go forward,

you always relatively go backwards.

We know we should be targeting the Chinese market,

but it's about deciding how much money we invest

in trying to develop that market,

and how quickly we can see some results and benefits from it.

I think they are quite conservative, with a small 'c',

and they do find change difficult.

But, if business exports, you widen your market that you sell to,

the world, and, because you're out there operating in a wider market,

you become more productive, you become more competitive,

you learn new tricks, you bring them home,

you clean up on the opposition, and you succeed.

To prove that breaking into China is possible,

Digby has arranged for Arthur to attend a networking event...

Ni hao ma!

..speed dating style!

You're my first date!

That's great.

-I love your dress.

-Oh, thank you.

I'm here to see if our branded collection

-is of any interest to the Chinese market.

-OK.

This is our men's...

The day offers British companies a chance to meet

some of the most influential figures in Chinese retail.

Is this popular in China? Cashmere?

Arthur has just 20 minutes to pitch to each of the Chinese delegates.

We also do a ladies' cashmere dress.

-Very nice.

-I think it would fit you.

Oh, thank you!

This is ladies' cashmere.

So soft, very nice, it's a beautiful collection.

-Good, thank you very much.

-Very colourful.

-Thank you.

BELL RINGS

To enter the Chinese market is risky,

so it's very important for you to choose the right partner.

OK!

Despite the challenges, these meetings confirm

that the Chinese market represents a huge opportunity.

THEY SPEAK IN DIALECT

-Can we buy five samples?

-Yes, of course.

We can buy it today.

Thank you for my first order!

-Thank you very much, yes.

-Thank you.

BELL RINGS

I'm Arthur.

The value of textile exports from Scotland to China

has trebled since 2000. Last year, they were worth over £9 million.

But the Chinese consumer appears to prize one thing above all others -

brand.

Chinese customer become more sophisticated,

so they want to know the story of the brand,

and the heritage will definitely be appreciated by Chinese customers.

And especially "Made in UK" itself

has become something of a phenomenon in China.

See, in China, luxury brands like Fendi, Giorgio Armani, Zegna,

Hugo Boss, these are the brands that invest a lot of money in China

-to build their brand image.

-OK, interesting.

BELL RINGS

I have a small gift for you.

-Oh, thank you very much!

-To give to you.

From Scotland.

Which is malt whisky.

Whisky! Wow.

-Whisky?

-Yeah.

-Oh, whisky!

-Yes.

-Yeah.

BELL RINGS

Been a fairly intense day,

but it was really good to get an idea of where they're coming from.

There were two or three really interesting contacts that I made,

but I think to get into some of the major distribution channels,

a lot of work has to be done on the branding.

With a strong brand key to unlocking the Chinese market,

Digby has arranged for Benny and Arthur to meet him

at a Scottish manufacturer

whose brand is recognised all over the world.

Dewar's Whisky is sold in 114 different countries.

I think the Scottish whisky industry

has had tremendous success lately,

so it'll be interesting to find out how they've achieved that success.

But the day won't all be work.

I think there might be an opportunity to have a dram, yes.

I'm Scottish and it's after 11 o'clock in the morning!

The Scottish whisky industry generated over £4 billion

in export revenue last year, over ten times more than textiles.

One thing, even if subliminally, you do when you drink a drop of whisky

is you're taking in and associating with all of this,

with the whole essence of heritage and culture in Scotland.

If you go to Hawick in Border country,

famous all over the world for textiles,

then they start ahead of the game in the export market.

But they're not exploiting the opportunity as best they could.

And I hope today they will get a bit more emboldened by what they see

and also pick up some tricks of the trade.

Branding is more than just advertising and marketing.

It's been called the sum of a product's attributes.

Its personality, its name, its history and how it's made.

This is the Pitilie Burn.

The water we use to make the Aberfeldy single malt.

We actually take it from an underground source,

about a mile and a half up the hill.

We do something very similar. We use our own underground water source for

washing the cashmere and lamb's wool sweaters, and it's what gives

Scottish knitwear the luxury soft feel it has in the marketplace.

The parallels between the two businesses are clear.

This looks like paradise to me, George!

It's really the heart of the distillery.

Here, we're going to create the flavours

and characters we want in our whisky.

Here we have the road going there, houses.

This is the heartbeat of the community.

Just like in Hawick, your factory is the heartbeat of Hawick.

And that's why manufacturing is so important, so important.

All manufacturing is about taking raw materials -

in this case, malted barley and water -

and adding value to them through the production process.

But branding can supercharge that.

If you look at the colour, you can see it's quite light in colour,

for whisky that's well over 20 years old.

It helps a product to be desirable.

To stand out.

And it persuades us to pay premium prices for it.

GLASSES CLINK

Dewar's has made a film to promote its brand.

The company's Global Brand Manager, John Burke,

is hosting a private viewing.

When you buy a bottle of Scotch whisky,

you buy a hell of a lot more than liquor in a bottle.

You're buying heritage, you're buying culture,

you're buying the blood of one small nation.

It's a slick and seductive piece of marketing

that imbues the product with almost mystical properties.

..by those who don't have it.

John has agreed to share the methods used to create a global brand

and apply them to Hawick Knitwear.

What you just saw there with the film,

the first thing we do when we're working on a brand project is

we go back to the intrinsic truths in the brand,

and we're really trying to find what is really unique about this.

When you think about your brand,

what are the things that are unique and different about Hawick Knitwear?

You may turn your papers over and the time starts now!

Typically, sweaters used to be hand-washed,

but we can machine-wash and tumble-dry our sweaters.

We've pioneered that, we've pioneered other things,

like the sort of linking processes we put on to some of our sweaters.

John has heard something

that could take the Hawick Knitwear brand worldwide.

So that word "pioneering", it could be a value,

or it could be an idea in your brand,

if you're the people who have the courage

to step out in front of the industry and take the risks,

then you should earn rewards and value from that risk.

I mean, for sure, all our products are made in Scotland

by ourselves, and that's something we can absolutely 100% guarantee.

So that, for me, when I hear that,

I say you're a brand with integrity, because you've chosen to do that.

You could have saved money and done it elsewhere

but you chose to do it all under your own roof.

A few others have, kind of...

If you looked at that word "integrity", if that's

a characteristic of your brand then "pioneering" with "integrity",

again, all of a sudden

you're starting to sound quite different as a brand.

So there's some stuff there that... I'm already getting quite excited.

I can see you getting excited, actually, John!

Would that resonate with someone in China?

The answer is yes. What we're talking about here,

in terms of pioneering and integrity,

they're enduring human values.

You need to do more work to get these things deeper and more unique,

but once you crack that unique DNA of your business, that creates

the brief for advertising, it will create the brief for new products

that you'll create, and then you have a brand.

A powerful brand identity

will distinguish Hawick Knitwear from the competition.

Not only arming them with a weapon

with which to attack new markets,

but insulating the business against the threat

of low-cost imports from Asia.

It's a lesson that the British textiles industry

has learned the hard way.

Of the 29 clothing businesses based in Hawick in the late 1960s,

fewer than half now remain.

The Scottish textile industry is full of very passionate people,

people who understand what it is like to be standing

at the door of a factory and seeing the door closed on them.

And towns like Hawick in particular would feel a dramatic loss

every time there's a mill closure.

It's part of not only their heritage, it's part of their today.

Companies are balancing what they do between what they need to do to stay

alive, and what they would like to do to try and diversify their business.

When weighing up the pros and cons of Digby's advice,

Benny's responsibilities - to his workforce

and to his co-shareholders, who have to back the plans too -

are very much on his mind.

Digby's come in as a consultant,

and I think in some respects, it's easy to be a consultant.

You can offer up advice,

but you then walk away and there's no recriminations.

I'm the MD running the business

and we need to ensure the business is here in ten, 20, 50 years' time.

Rather than boom or bust and plough everything into developing China

and nothing comes of it, we'd rather take things at a much steadier pace.

Digby knows that pushing out into new markets

can be risky and expensive,

but he's still convinced it's the right thing to do.

If you want something cheap, go somewhere else and buy it.

But if you want something that no-one else produces,

something you actually can aspire to, come to Britain.

That is what manufacturing in the UK in the 21st century is about.

Get it made here and it'll go round the world.

Benny's continued hesitance over China is concerning Digby.

He thinks some expert advice

could convince Hawick Knitwear to take the plunge.

And as one of the best-connected figures in British business,

he knows just the man to offer it.

HE SPEAKS ITALIAN

Paul Alger, Director of International Business Development

for the UK Fashion and Textile Association.

These organisations, they're very important

to smaller businesses in a sector.

You're putting lots of money, time, resource, effort, reputation,

talent, into an overseas push, and it is frightening.

So today, to pick their brains, I think,

is a very important part of what we're trying to achieve.

Digby wants to establish if the company's current range

reflects the core values of its brand.

So he's asked Arthur to pitch the latest collection to Paul.

Thanks for giving us some time.

For the next ten minutes, sir, the floor is yours.

We are a knitwear company based in Hawick.

We do cashmere, it's all hand-finished,

it's all top-notch product.

Lamb's wool.

Vs and crews, we also do zips.

We do many textures. This is just a very basic cable.

This is a new fibre we're running.

It's luxurious country.

So these collections have sold very well in the UK

and we're very keen to replicate the success in other markets.

Thank you very, very much.

Paul has immediately spotted a problem with the pitch.

And a solution.

My initial perception of this is there's a lot of merchandise here

and it's all very good.

My concern is perhaps that

you've got such a breadth of collection here

that most buyers will not want to buy into the whole of the range.

I think I can see what I would refer to

as a "heritage" range in there,

which I think is perhaps the most interesting from my perspective,

certainly for the Asian markets.

-Sure.

-So I'm loving the cables,

I'm loving all of these types of garments.

I find this rugged country look is very successful

and I would say that's perhaps your point of difference.

I think what we're concerned with here is the Hawick Knitwear brand,

particularly the export brand,

and I would say, based on what I'm seeing here,

I think your really strong story is the fact that it's made in Scotland

-and the heritage side...

-Focused?

Focused, I think.

Then the discussion takes a surprising turn, away from China.

This is the look that I see

whenever I go around big department stores in Japan.

The Japanese are absolutely desperate to pick up

quality British product. So the fact that it's made

in Scotland will absolutely speak volumes to them.

Unlike China, the route into the Japanese market

is relatively well-trodden by the UK clothing industry.

So are you saying, Paul,

despite Japan being a fairly mature market, you still think

there is mileage in us for taking this to Japan?

Absolutely. We must never forgot the importance in fashion of Japan.

It's a nation of 122 million people who have a great degree of interest

and knowledge in provenance and good-quality products.

So if I had enough money to buy one air fare to the Far East,

would it be to Tokyo or Beijing?

I'd be sending you off to Tokyo,

but very much with the whole of Asia in mind.

I think Japan is low-hanging fruit.

It's quick and it's easy.

China is going to take a bit longer, but make no mistake,

if you haven't got a market in Japan

then China becomes quite difficult, because they look to see

what's successful in other markets that they go to,

and Japan, for Asia at least, is the main international shop window.

OK, interesting.

Paul's advice is a surprise to Digby, too.

We were talking in Edinburgh about China a lot,

but we didn't mention Japan once. And I didn't.

And today it's very clear from Paul that that's where they should start.

China was brought on to our radar.

Japan has been brought on to our radar,

and these may become target markets.

Arthur is keen to adopt Paul's suggestion -

a slimmed-down collection aimed at Japan.

I think for the Far Eastern markets

to have a heritage, capsule collection,

I think that's a good idea.

So we need to consider our spend

but I'm sure we can get budget to go to Japan,

and our first stop should be Tokyo.

Now what I want to see is action.

Do it professionally. Do it competently. But do it.

At the factory, Arthur is reporting back to Benny,

who's finally come around to Digby's way of thinking.

Our intention is to continue to grow the business

but to do that we need to find new markets.

Unless you invest in them and try to get in there,

you will never have any success.

so we need to allocate some resources to Japan and China.

With Benny on side, one crucial hurdle remains.

The shareholders.

We have a strategy review for the brand and, at that meeting,

we will just decide what is the priority one in overseas markets

and how much allocation of resources do we give it.

With an Asian export drive now definitely on the cards,

Arthur is forging ahead with a company rebrand.

The Dewar's visit was great.

To be talked through the rebranding process

by taking your business apart, seeing where it's came from,

and that becomes the essence of your branding.

It will go on the website,

on our letterheads, above the door outside the company.

As part of this rebrand, the mill is getting a make-over.

I've worked here for nine years. There's been the odd job done.

But nothing as dramatic as what it is at the minute.

Walking in in the morning, you really notice a big difference.

I think when people come in and they see it's a tidy area

and it's a clean area, that it does sort of raise spirits a little bit.

Certainly brightens up the place.

New carpets. Flooring all painted.

It is nice when visitors or customers come in.

It's nice and bright and clean, tidy, it makes a difference.

Even the company's logo, the most tangible part of its brand identity,

is biting the dust.

Arthur's commissioned a branding consultancy

to come up with a new one.

Our logo has been described as "workmanlike".

It's quite hard for what is a very soft product.

So we are excited about having something

that reflects more our story.

Emboldened by Digby, Benny is now keen to push out

into the Far Eastern markets.

But he needs the backing of the Ruia Group -

Hawick Knitwear's majority shareholders.

He's arrived in Bolton for a strategy meeting.

The Ruia Group have been really supportive,

so after today's meeting, I'm hoping we'll have everything agreed

and will know how we're going to go about targeting these markets.

Benny has decided that he wants the meeting to take place

away from the cameras.

The stakes are high.

The Ruia Group's views could have a huge influence

on his new-found enthusiasm for Asia.

Digby believes that skilling up the next generation

is crucial to the future of British manufacturing.

Here you are, Ali, that's your wellies for the day.

Today, 19-year-old Ali Colville is trying his hand

at one of the most skilled jobs in the entire factory.

First step, loading up the machines.

I think you've been up through the night practising!

I don't ken how to use my washing machine at hame!

You have to try and get an equal amount in each bit

or it'll no' spin.

Right, that's us. Hit that button.

As well as using soap to clean the garments,

the milling man adds a complex cocktail of chemicals.

Sodium sulphate, formic acid and hydrogen peroxide.

This makes the sweaters washing-machine friendly.

It's a hi tech job, this.

-I ken, aye. It's like being back in chemistry at school.

-Aye.

The work requires a delicate blend of knowledge and intuition.

I thought it would just be throwing stuff in the wash

and then pulling them out not long after

and then putting other ones in, so it's so much more than I expected.

Would you like to do this as a job?

See, it's no' boring. You're kept on your toes all day.

If you're trained as a milling man, you've got a job for life.

It's time to open up one of the machines.

Judgment time for Malcolm and Ali.

You can see yourself, see the wales coming down here,

and you want a small gap between them.

Lovely, that's us done our job right.

I think every department should have a young person in it.

If anything should happen or anybody should leave,

it takes so long to train somebody!

That's up to the bosses!

After three hours of intense discussion

with his fellow shareholders, Benny finally emerges.

A decision about the future direction

of the Hawick Knitwear brand has been made.

Digby's suggestions were part of the strategy discussion,

but primarily we want to focus on continuing to grow the brand

in the UK and Northern Europe,

which we think are core markets for the brand,

and we will see if we pick up any business in the Far East

without investing a great deal of time or money in it in the short term.

Disaster for Digby.

In a matter of hours,

much of the progress made over the last few months has unravelled.

Word of the company's u-turn on Asia has reached him.

He's summoned Benny and Arthur to a meeting.

But a cosy fireside chat is the last thing on Digby's mind.

Talk is cheap. I learnt a long time ago, with politicians,

don't listen to what they say, watch what they do.

And if I apply that to you, I'm watching what you do,

which is, you're not doing it.

We think these emerging markets are really where the future is

and these could be £5-10 million markets for the business.

But in the short term, we need to find our feet as a brand,

so we're going to continue pushing the brand

in the UK and Northern Europe.

And, indeed, Arthur's just back in the last couple of weeks

from Norway and France.

That, I have to say, is not the happiest news I've ever heard.

Yup. But it's a bit further afield.

Norway's got, what, seven million people? And China's got 1.3 billion.

-Yeah, I know.

-And you hightail off to Oslo!

Arguably, I will come back with more orders

in the first quarter of next year from Norway

than I would come back with from China, but...

Ooh! Now that's a bet to have! That is a bet to have!

I think, if the business was a bit more mature,

and had sounder foundations, we would be targeting it now,

but we just have to, I think, take cautious steps.

Yes, and by the way, overtrading or overextending yourself

is the route to perdition, not success. I do understand that.

It is just that, what you actually make is just,

if you'll forgive the pun, tailor-made to get into Asia.

You've got something special.

I think you're right.

Only this week we've had a few orders from Japanese consumers

buying our product from the website.

So they're finding us,

it's typically British heritage-type product.

Yeah, and Paul at UKFT was saying Japan is aching for what you do.

They're crying out for your stuff at the moment.

I would like to think so, yes.

Our medium-term goal

is to double the size of the turnover in the next three years.

-Of course. Well, you won't do that without Asia.

-Yup.

Because if you want to be in business and you want

to capitalise on your best assets, it's going to involve risk.

At some point you're going to have to start walking down that plank

and you're going to have to jump.

It's been an uncomfortable meeting,

and it's left Benny and Arthur with plenty to ponder.

He seems to think we are prevaricating on things.

We're absolutely not. We are evaluating these things

and we take it all absolutely on board.

He's obviously got some strong points of view on Asia

and these key emerging markets,

and I think they are absolutely valid points that he raises.

I actually think there's more positive wish to change things

than I feared, but the lack of action - actual, real,

identifiable action -

as opposed to planning and thinking about it,

I am still very worried about that.

Back at the factory, there has been a surprising development.

Digby's forthright views on risk and reward have hit home.

Japan - with its promise of relatively quick returns

for limited investment - is back on the agenda.

Benny has grasped the nettle,

despite the shareholders' reservations.

Their views in terms of brand strategy are very important.

But I think, as managing director of the company, it would be foolish

just to discard Digby's views.

So I think Arthur's ideas of the capsule collection for Japan

is certainly worth following through.

What we need to do is get a Celtic capsule collection,

which is going to appeal to markets who are looking

for British-made products with provenance and heritage and history.

Arthur is acting on UKFT export guru Paul Alger's advice,

working alongside Hawick Knitwear's in-house designers

to slim down its range for the Japanese market.

What we're going to do is select about ten styles

for the autumn/winter '14 selling season,

which really starts in two weeks' time,

so I think we need to move fairly quickly on it.

And then the tweed overcheck, that's your sort of country gent look.

That's a winner.

Maybe the Aran cable?

The design team are enthused by the challenge

of creating the new collection.

I know the Japanese market likes things a bit bolder sometimes

so you've got your real, traditional, bright,

Scottish Christmas wear, there.

We've done capsule collections for private label customers before,

but this is really the first one under the Hawick Knitwear label,

so it's really exciting for us.

Especially from a design point of view,

because you have to consider what those markets are looking for.

-Mm-hm.

-I think the Japanese would love that.

-Mm-hm.

Arthur is keen to underpin the new range

with a strong and coherent brand identity.

Mohair tweed, dyed and spun in Donegal, Ireland,

shipped to Hawick to be knitted,

-Harris Tweed woven in the Hebridean islands. What a story!

-Perfect!

With the design phase now complete, it's time to try and whip up

interest from Japanese buyers.

But this won't involve a 12,000-mile round trip.

Instead, it's a short hop across the Irish Sea.

Trade shows are a great gateway into the international market.

It gets us in front of customers from all over the world.

There's quite a few Japanese, maybe some Chinese,

a lot from North America and Canada,

and, of course, all over Europe as well.

What do you think of that, Alessandro?

We've put some Harris Tweed patches on a lamb's wool product.

Is this something that excites you?

We have a few pieces here from the Celtic collection,

more as talking points with customers than anything else,

but we're just seeing if there's an appetite for this sort of thing.

The feedback from Japanese buyers is positive.

In the four months since his first visit,

Digby has been helping Hawick Knitwear define its brand

and chase new markets abroad.

Now he's back, for the final time.

So, over the past few months we've actually shown them best practice

and stimulated thought processes in many different directions.

Now I want to sit down with Arthur and Benny

and I want to say, "Right, I've tried to get you to understand

"how the world is changing. You've got to go with it."

Now, what are they going to do to help themselves

and show that it's all been worth it?

Cheers.

Lick of paint.

Before sitting back down with the bosses,

Digby wants to take one last look around the factory.

He's already clocked the paint job outside.

But improvements don't stop at the front door.

If you actually keep constantly improving the environment,

you'll find your productivity goes up, the morale goes up

-and employee loyalty goes up.

-Yep.

You've got to do it again and again. You mustn't do it just once.

No, you're right.

As a passionate believer in apprenticeships and training,

there is one development that's guaranteed to please Digby.

-And here's my friend!

-Hello, sir.

Haven't seen you for a while. And you're Ali.

So, Ali's spending some time with Malcolm just to learn the skills.

-We haven't met before.

-No.

-Are you enjoying it?

-Yeah. It's good.

-It's all been an insight into what exactly is going on.

-Yeah.

There's no books on this job.

-No, exactly.

-There is no "learn how to be a milling man" book.

-Exactly.

-It's experience.

And the most important part of it is when you get old and grey,

well, when you get old, if your skill dies with you, what do we all do?

It's so important, so I take my hat off to you, mate.

I really wish you well. And well done.

See you later!

Digby wants to ensure that when it comes to expanding into Asia,

the range is right for the job.

One of the important things

that Paul at UK Fashion and Textile said to us was...

"Really play to your market that you're after".

And so this is about concentrating on the heritage values of Hawick,

what I would call the brand values,

Scotland, country, all that stuff.

So how have you responded to that?

We're combining the Harris tweed fabric,

and our Celtic collection is where we're going

with the Scottish theme at the moment,

because your Harris tweed fabric is bang on trend just now.

And the Asian buyer likes this bit, do they?

Yeah, I think they'll completely get that.

Significant progress has been made.

But Digby is determined that Benny and Arthur

don't take the foot off the pedal.

So you're selling domestically. Well, that's 62 million people.

I would say to you, let's add on Northern Europe.

Let's make it 100 million people.

-There are 1.3 billion Chinese on their own.

-Yep.

There are over 100 million Japanese.

You're fishing in a bigger pond and you've got much more room to grow.

You know my views, and I'm up for you doing it in the morning.

But what gets measured gets done.

Benny, you would please me hugely

if you gave me some concrete...benchmarks

against which I could believe you.

I'd be disappointed if we're not doing half a million pounds

in these markets in two years' time.

-From a standing start?

-Yes. It's ambitious given where we are,

but Arthur's got half a dozen leads there.

Ambitious? It's not ambitious enough! LAUGHTER

See, this is it, conservative with a small 'c'.

We will have a Japanese partner of some description on board

by the end of this calendar year.

There you are. You heard it here first.

There's a commitment. OK?

So by the end of 2014,

-we're going to have a Japanese partner in this business?

-Yes.

-And by the end of 2015, so that's two full years...

-Yep.

..you're going to be pushing half a million quid's worth into Asia.

That's certainly the target. Yep.

Digby knows that achieving this goal will be impossible

unless the company can better utilise its brand.

Believe me, as you move into a globally competitive market,

exploiting your brand...

it's...it's essential.

We have uncovered a rich heritage of pioneering processes

and technical innovation,

so what we want to do is incorporate more of that

into the branding as well.

And Arthur's got some examples there of some of the initial mock-ups.

Success for Digby.

It's still early days, but if Benny and Arthur stick to their guns,

then they are well on their way to devising a brand

that could help secure the long-term future of the business.

Some good ideas there, though.

Yeah, I think we were thinking of

the coat-of-arms type idea, something along those lines.

Well, the coat-of-arms idea,

that will sell in Japan enormously, won't it?

You've got a one-off opportunity here, you are developing

something which no-one else in the world has, which is your brand.

That is the future for us.

The future actually is going to be about how far you can take it.

Gauntlet thrown down,

it's finally time for Digby and Hawick Knitwear

to go their separate ways.

The whole process engaging with Lord Digby Jones

has been a remarkable journey for us.

It's quite easy to just concentrate on how we see ourselves,

so I think it's been really good for him to bring an outside view.

Yes, I think they're a bit too conservative with a small 'c',

but you can't blame them, because over the last generation

they've seen a lot of their compatriots go to the wall,

and they don't want to join them.

'Asia is a huge market and it could instantly double turnover.

'Digby has raised it up our agenda.'

We're in a much stronger position now to understand the market,

and we will pursue the Far East market

more aggressively than when we first started the process.

Digby is heading back down south,

confident the rebrand will give the company

a genuine shot at Far Eastern success

and all the benefits that brings.

Globalisation ain't going away.

You have got the whole of that Asian market

both as an opportunity and a threat.

Now it's up to these guys.

Do they reach out, take that opportunity, never let it go

and turn it into something where the jobs here are so safe,

where the skills can be increased,

where the kids feel they've got a future?

'That's their challenge.

'And they go with my best wishes

'for what I hope will be a wonderful future.'

Next time...

-Wow! This is pretty big.

-Yes.

..Digby helps one business

rescue Britain's last chest freezer brand from extinction.

My kingdom...that isn't making anything yet.

There is a danger

that they've bitten off a little bit more than they can chew.