Harley’s fashions its new export plan

Unlike its international reputation for producing top-of-the-range Scottish knitwear, the export plans of Harley of Scotland are anything but woolly. Having successfully targeted such remote consumer markets as Japan as long ago as 1971, the Peterhead-based designer knitwear specialist is acutely aware of the complex dynamics of the export fashion business, and has been working for the last couple of years on a far-reaching re-alignment of the company’s overseas marketing strategy.

Designer knitwear from Harley of Scotland The company possesses a well-respected Scottish pedigree which has been instrumental in opening up new markets. In the 1920’s, company founder Peter Harley had built a thriving business drawing on the traditional knitting skills of North east fishing villages, and Harley of Scotland went on to become a highly-respected brand in the international tourist and giftware markets for producing classic Scottish knitwear which was both elegant and practical under its “Nor’easterly” brand.

Hardly surprisingly, North America in particular has proved to be a fertile sales territory for the company, with export sales in recent years climbing to an impressive 60% of total turnover. But the 21st century combination of a weak dollar and the collapse in the North American transatlantic tourism market has forced many Scottish businesses to re-examine their core markets, and in Harley’s case, this has led to a fundamental re-alignment of the company’s overseas marketing strategy.

“After a great deal of analysis and consideration, we decided to broaden our sales approach in three main ways – by targeting new geographic markets, including Europe, by adding high-fashion lines to our classic collections, and by introducing a formalised Harley brand where we previously mainly supplied on a private label basis,” says sales and marketing manager Susannah Buchan.

Valuable support

Although these are radical and far-reaching commercial decisions, the main challenge, Harley’s acknowledge, is to sustain a healthy balance while the new business strands are phased in. This transition phase has called for detailed strategic planning, with active ongoing support from BGI partner Scottish Enterprise Grampian (SEG).

“The support we have received from Scottish Enterprise has been absolutely crucial to a company of our size,” admits Susannah. “Because we are expanding into so many completely new markets, we have had to develop so many new marketing materials – including sales aids and a completely re-vamped website to support our moves into fashion design.”

“Through SE, we also took part in the Market Awareness Programme (MAP), which was of phenomenal benefit both personally and professionally.”

Harley’s signature look is Fair Isle knitwear with a distinctive depth and subtlety of tone. “We use up to six contrasting colours in our knitwear, which is twice what many other producers use, and that gives our fashion pieces a real depth which is appreciated in sophisticated fashion markets like Italy,” notes Susannah.

The company attributes its success to three key ingredients – the use of natural fibres, its Scottish heritage, and quality manufacture at every stage of the operation. “We are one of the few knitwear companies in Scotland to have a seamless knit capability, and we also work closely with our neighbours Smiths of Peterhead, who are that rare breed of accomplished supersoft spinners, on developing boucle yarns and unusual multitextural fibre compositions,” notes Susannah.

“Japan and Italy in particular are heavily into pure Shetland wool lambswool, so we tend to play the natural Scottish card quite strongly.”

Reacting to demand

The first new export business strand is already up and running – fashion ladies’ knitwear for the German and Austrian mail order and internet markets. Next in line are two brand new menswear collections – men’s countrywear and a specialist fashion product - for the Japanese and Italian markets, to be phased in during 2007.

Building up international trade in fashion knitwear undeniably has its glamorous side – attending a trade fair in Florence sounds not unenjoyable, for example - but in practice much of the groundwork entails business disciplines which are highly familiar to other, more mundane industry sectors.

There’s responsiveness to customer demand – “we have to react really quickly when we are asked to produce samples – that’s an essential for the Japanese market.” The quality of in-market representatives – “very important”. And harnessing the power of the web –“although our website is still really a brochure site, without any e-commerce elements, we are already getting on-line orders directly from our customers, bypassing the traditional route of trade shows completely.”

All in all, Harley of Scotland look to be in very good shape for a sprightly 80-year-old! For all its overseas ambitions, the company, wary of the vagaries of exchange rates, is determined not to neglect its domestic markets. At the same time, its Northern European business is developing nicely, reports Susannah, and is eminently capable of further growth.

Click here to visit the Harley of Scotland website.