UK fabric companies are experiencing a range of new challenges and opportunities in the Chinese market.
The Chinese market for luxury textiles such as fine wool fabrics has evolved significantly over the past couple of years, and this is creating new difficulties as well as benefits for British fabric companies.
This was evident at the most recent Premium Wool Zone at Intertextile Shanghai Apparel Fabrics, which provides a reliable barometer of the progress being made by UK mills in China, which has become an important market for a growing number of British companies.
At the 2019 Autumn Edition of the Premium Wool Zone, held on 25-27 September, there were 22 exhibitors, from the UK, Italy and France, up from 16 at the 2018 Autumn Edition.
The presence of the British mills was strengthened by a showcase of some of their fabrics for the new season from the UK Fashion & Textile Association (UKFT), which had an attractive booth highlighting the heritage, quality, creativity and craftsmanship of the British textile industry.
Show organisers Messe Frankfurt (HK) Ltd. pointed to a high return rate for Premium Wool Zone exhibitors, and also noted that several companies are now exhibiting at both the Spring and Autumn editions of the show. It added that a vibrant tailoring business in China, with a growing number of tailoring shops sourcing premium fabrics, is helping drive the growth of the product zone.
WTiN spoke to a number of British fabric companies about the latest challenges and opportunities they are experiencing in the Chinese market.
Scabal
Based in Brussels and with its flagship store on London’s Savile Row, the fabric and suit label Scabal has experienced a rapid increase in fabric sales in China over recent years, but is now seeing more steady growth.
“China is a more challenging market for us now,” says Neil Hart, the Scabal global sales director. “2019 has been tougher than previous years, following on from the slowdown which emerged in 2018. The overall economic mood is a bit down.”
He adds that difficulties are also being posed by the entry into the marketplace of a number of other fabric suppliers. “There are so many companies trying to get into this market now, so it has become a bit disturbed.”
However, he says that Scabal does not believe such challenges will create long-term difficulties for its business in China and is still forecasting continued growth in the country, even if that growth is not as spectacular as in recent years.
“The market is in a tough situation but we are taking this as an opportunity to show our strength,” he says. “We are still going to be investing in bunches and collections, and in people. Some of the new so-called cut length suppliers aren’t maybe so strong. Is it a sustainable model? They’ve come into the market with a big statement, but there’s an over-supply now.”
He adds: “These new players are disruptors for now, but we don’t consider them to be long-term competition. I’d question if they have the staying power. They can’t stock all the fabrics needed to meet cut length orders, for example, and it’s a huge initial investment. Some of them will inevitably disappear.”
Hart also points out that such suppliers cannot meet the demand for the type of super luxury cloths that Scabal is synonymous with, such as Super 200’s wool, vicuña and special editions like its Diamond Chip collection.
“These new disruptors are not producing precious fabrics like these. At best they can provide Super 100’s, so they approach a bit on the bottom end of our collection but certainly not at the top end.”
Hart adds that while the overall market is challenging, the demand for super luxury fabrics in China is growing strongly as the number of wealthy consumers in the country increases.
“The top 0.01% are still there in China and if you come up with the right product packaged well there are great opportunities for you, but you have to fight harder to get your message across,” he says.
He adds that sales of super luxury cloths are often also seen outside of the country as Chinese consumers look to purchase a luxury suit elsewhere.
“For the kind of money that a super luxury garment commands, they may want the fabric made up in Europe, rather than in China,” he explains. “And it’s also cheaper for them to buy in Europe. So we benefit from the Chinese consumer, not just in the Chinese market but also abroad.”
Holland & Sherry
Also facing new challenges and opportunities in China is Holland & Sherry, whose registered offices and showroom are on Savile Row in London, with warehouse and pattern weaving facilities in Peebles in the Scottish Borders.
Josh Lane, the company’s regional director for the Far East, says that its sales are still continuing to grow in China and sees challenging but exciting times ahead.
He points to more cautious consumer activity and considered investment purchases, with some price sensitivity issues at the higher end of the price spectrum.
He adds that the influx of more and more tailors is also, perhaps counterintuitively, making it more difficult. “There are a lot of people opening tailoring brands to make money in the short-term. They raise consumer expectations but offer tailored garments made from inexpensive, poor quality cloth that does not perform well. It is a challenge to educate the consumer so that they appreciate the importance of quality cloth within the tailoring process.”
However, Lane says that there are “still a number of good tailoring brands committed to producing high-quality suits using high-quality cloths,” adding that Holland & Sherry is benefiting from the growing demand for British cloths in China and the rise of exciting and dynamic young tailors and clothiers who focus on quality, luxury, service and style.
“Our heavier heritage cloths are selling well,” he reveals. “Initially people here wanted Italian fabrics that were super soft and light, but they have realised they are not always so practical. Also consumers now want fabrics with performance, so there is more of a trend towards fabrics which are classic in style with a modern twist, robust and very durable.”
As examples of cloths from Holland & Sherry meeting this demand Lane points to Eco-Traveller, a dry 230gms 100% wool travel cloth; City of London, a 420gms worsted business suiting fabric; InterCity, a similar heritage collection in 370gms; and SherryStretch, the company’s first suiting collection blending wool with Lycra.
“These fabrics are doing well as they are more affordable, can be worn every day, and the patterns are quite classic, especially in the heavier weights,” he says.
He adds that there is stronger interest in tweeds now in China due to the trend towards more textured fabric. “Holland & Sherry stocks a vast array of tweeds, from the very traditional Harris Tweed, at 470 to 500gms, to our very own Sherry Tweed at 340 to 360gms, and Moorland Tweeds, from 370 to 550gms.”
Holland & Sherry is also leveraging its Scottish heritage in the Chinese market. “We’ve had some success here with our Scottish angle, which is popular as the consumers are increasingly familiar with iconic Scottish images such as Scotch whiskey and tartan fabrics.”
Lane adds that while the bulk of Holland & Sherry’s sales in China are being generated by its suiting fabrics, the company’s jacketing cloths are also popular here, despite many consumers still being cautious about purchasing a jacket.
“We have always been strong on jacketings, but it takes a lot of experience and confidence for a Chinese consumer to spend money on a less formal option and they are often not sure which jacket/trouser combinations to go for.”
To assist with this, Holland & Sherry presents many of its jacketing samples alongside pre-matched trouserings to show what combinations can work.
Huddersfield Fine Worsteds
Another regular exhibitor in the Premium Wool Zone is Huddersfield Fine Worsteds (HFW). The company has been experiencing strong growth in China, at around 30% per year. Bob McAuley, the HFW president, says that its sales are still increasing, “but not at the same rate as two or three years ago. However, our business is still relatively small in China so it’s easier for us to grow.”
He reveals that Fresco Lite remains HFW’s best-selling fabric in China. The suiting cloth is a new version of its iconic Fresco, which is also popular in China. Launched in February 2017, Fresco Lite is a 280gms fabric designed to possess a lightweight smooth handle while retaining all the performance and wrinkle resistance of the original Fresco cloths.
Many of HFW’s heavier weight British fabrics are also selling well in China. “We are benefiting from the trend towards these types of fabrics,” says McAuley. “Some of our classic British cloths are 340gms so they’re heavier than most Italian fabrics. The heavier weight helps in the construction of a suit.”
He says that HFW is also receiving more requests for ladieswear fabrics, including some with Lycra for extra stretch.
To further establish itself in the Chinese market HFW is continuing to work with master tailors to help educate customers about bespoke suits. “We recently began working with an Italian tailor who lives in China and speaks Chinese,” says McAuley.
“As a master tailor he represents us at trunk shows and other special events here. His demonstrations about tailoring help position HFW as a knowledge provider on all aspects of custom clothing, not just the cloth. We still see a huge demand for education in China – there are a lot of people still entering the business here.”
Huddersfield Cloth
A fabric merchant established in 2007, Huddersfield Cloth is also benefiting from the growing desire for British fabrics in China.
“We are a small, niche merchant offering products exclusively made and finished in Huddersfield,” says Richard Ryley, the Huddersfield Cloth general manager. The company runs its own bunches as well as co-branding with another Huddersfield-based merchant, Schofield & Smith, with which it works closely together.
At Intertextile Shanghai, Huddersfield Cloth relaunched its Howick collection, named after an old textile village in New Zealand. The new range, targeted specifically at the Chinese market, features 100% superfine Merino wool fabrics in 45 classic and fancy designs with a weight of 290gms.
“The cloths in our new Howick collection are durable but slightly finer with a new spec, in brighter colours than you’d normally see, making a great everyday suit at an affordable price,” says Ryley.
“All the cloths are designed with the Chinese consumer in mind. The process started at last September’s Intertextile Apparel. Using CAD designs, we gave our Chinese agents the chance to provide their input and they also came up with some of the original ideas. We then started producing the fabrics in June.”
With an emphasis on British design and quality, Huddersfield Cloth is seeing growing interest in China. “There are certainly opportunities for British fabrics here and this trend is definitely helping us,” says Ryley. “Our agent and sales team have very broad coverage here and we can only see this market continuing to grow. The issue is actually keeping pace with that demand and ensuring we have enough stock.”
He adds: “With the British fabric handle we’ve got something designed to last – it gets better with age. With the finishing it all comes down to the use of soap, water and traditional scouring methods, which really do give the fabrics a body and something that will last.”
Source: www.wtin.com