Fashioning a Way Forward With Links Nov 07

8/14/2019 Fashioning a Way Forward With Links Nov 07

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FA S H I O N I N G

A WAY F O RWA R D

Political IssuesBriefing Document


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Contents

Introduction 4

Executive Summary 5-7

Industry Issues that policy needs to address 8-9

The Industry Context 10-13

The Economic Argument 14-16

Cutting IT Evidence 17-21

Conclusion 22

Documents and Research 23

Cutting IT, Newham College, CIPs,

Boardman House, 64 Broadway,London E15 [email protected]
http://www.newham.ac.uk/mailto:[email protected]:[email protected]://www.newham.ac.uk/


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This briefing seeks to explain the current background to the fashion industry and the opportunitiesto stimulate economic growth particularly in relation to supporting Fashion Designers and Cut,Make and Trim businesses and building the reputation of the UK for innovation in the creativedevelopment and delivery of Fashion on an international platform.

There are four sections to the briefing;The first provides an overview of the issues that policy needs to address, primarily highlighting:

The lack of a single representative voice for the fashion and textile sector within thedevelopment of the Creative Industries. Organisations exist and represent specific aspectsof the sector, however there is no national body representing the entire sector, includingdesign and production, and informing government policy on how the sector is changing.

The lack of robust and accurate comparative data. The mix of statistics does not clearly portraythe true impact that the sector is having on the economics of the UK, Brand Britain, the supplychain or retail. For example there is disparity in figures regarding employment, with theEconomics Estimates Bulletin stating that there are 3,400 employed in designer fashion, whilstthe University of Huddersfield employment figure for design and designer fashion is 115,500.

The need for national research into the sector to gain a true industry picture, and an assessmentof the dynamics that are currently contributing to the fashion industrys growth in certain partsof the supply chain. Disseminated through knowledge transfer and networks to those who haveproved they can implement change, this is essential for long term growth and is something thatshort term funded initiatives cannot achieve.

The impact sustainability and ethical trading has on the supply chain. Product origins and theeconomic opportunities this presents have to be addressed. Standardising the ethical label forexample, given that UK expenditure on clothing is increasing. Reducing carbon footprint isimportant, given that clothing and textiles produced up to 2million tonnes of waste in 2006, themajority going to UK landfill sites.

UK Fashion Design has an international reputation. In developing the UKs Creative Industriesthe value of the internationally high profile that the UK Fashion Design sector already enjoysshould not be underestimated. The fashion industry is already a foundation stone of BrandBritain, and it has significant potential as a major contributor to the development of the UKsCreative Industries agenda.

One of the most crucial considerations for policy is the fragility of the emerging infrastructure thatsees designers and production working more closely together. The industry is evolving with its ownmomentum, driven by consumer and retail demand, the creativity of UK designers and the quality of UK production. More needs to be done to ensure that real change takes place allowing the sectorthe flexibility to respond effectively to the complex marketplace in which it operates.

The second section of this briefing illustrates the significance of Fashion in the UK Economy settingthe Industry context, as it is perceived by those working within it. Taking the design, manufacture,and sale of all apparel products, it is clear that global, European and national markets need to beconsidered together. The designer fashion sector alone had a 22.5% compound growth rate per yearbetween 1990 and 2001.

Whilst the market value of clothing and footwear has increased, the manufacturing output andemployment figures have fallen by 42% - indicating the ongoing decline of traditional manufacturingin the face of stiff competition from overseas. However, it is also clear that with emerging newmarkets comes an opportunity for the UK to capitalise. The industry has already recognised and

adapted to maximise on its strengths which are - Creating innovative, high-quality, high value-added products and services, and bringing them

quickly and effectively to market.

Executive Summary

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There is clearly a great opportunity to capitalise on this current organic growth in the DesignerFashion sector, with its demands for high quality, low quantity - with precise and innovativeinterpretation from design to finished product.

The third section looks at the economic argument to support growth within the Fashion and Textilesector and considers the findings of various reports.

These estimate the value of designer sales, in order to assess their impact on the UK clothingindustry and look at the rate at which the designer sectors UK employment has grown - by 19%per year, whilst clothing industry employment has fallen (42%). Between 2000-2006 it can bedemonstrated that clothing retail sales by value rose by 32% while retail in general only increasedby 23%. Moreover, textile clothing rose in volume by 51% compared to retail which rose by 29.9%.

Although indicative of the trend for cheap clothing, these figures should not be ignored butincorporated into an overall policy to maximise the economic value of this sector.

Brands and licensing also have a significant impact within the sector and co-ordinating the strategiesfor these with established fashion designers could be used to promote growth in the UK economy.

The final section of this briefing details the work of the Cutting IT initiative and presents theresearch, activity and findings developed within this project.

Cutting IT drew together 13 partners from many areas of the fashion industry. Between them theydrew in expertise and delivery that has been representative of the sector as a whole. This hasallowed the development of strategies that support skills and business development andprogression; from managing the expectations of young people aspiring to work in the sector, toresolving aging workforce issues faced by certain areas of the industry, to supporting theintroduction of innovative manufacturing techniques for the Cut, Make and Trim sector, and breakingdown traditional communication barriers within the sector.

The work of Cutting IT focused on developing strategies and pilots to address four key areas1. Training and Skills2. Workforce and Business Development3. Mentoring and Networks4. Production, including Lean Manufacturing

Having achieved the targets and goals from a funding perspective, one of the most positiveoutcomes of the initiative has been the networks and collaborations created. The funding hasallowed the promotion and support of partnership working essential for sustainable, effectivedelivery but also a strong legacy. These networks and partnerships offer a substantial resourcefor the future.

Adapting to change, plus becoming economically and commercially more efficient are essentialqualities for most working within the fashion industry today. As a significant catalyst for changeCutting IT has created a legacy that continues in the work of all involved in the project and offers amajor contribution to the economic development of the fashion industry in years to come.

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Key areas that should be looked at by Government from the Cutting ITperspective are:

The UK textile and clothing manufacturing industry is small in comparison to the global industry,accounting for approximately 0.37% of UK GDP, 2.6% of UK manufacturing (valued at 6.5 billionin 2005) and employing approximately 170,000. There is however, a lack of robust industry dataon the fashion industry. For example there is no data to establish the value of incrementalsales from the fashion designer sector into the retail, shoe and sunglasses, accessories,telecommunications or magazine sector and limited statistics that show the size of the growingfashion retail sector, which is a significant wealth generator and employer in fashion in the UK.

There is very little robust sector specific UK wide, social or economic research into the changes

within the sector and its potential therefore the government has very little evidence to supportthe observations that practitioners in the sector are making, regarding potential for innovationand increased economic or GDP contribution.

There is no single organisation representing the sector and supporting its development byidentifying issues or opportunities and lobbying for policy support. The perception is that theBritish Fashion Council (BFC) does this it doesnt. Other organisations such as the BritishClothing Industry Association (BCIA), British Apparel and Textile Confederation (BATC) andThe Textile Institute and the Association of Suppliers to the British Clothing Industry (ASBCI)represent specific aspects of the sector but none draw together the components to accuratelyreflect or convey the issues affecting the changing face of the UK designer fashion industry.

The fashion and textile design and manufacturing sector is an insular industry with littlecollaboration between industry and education. Historically the sector is very secretive andprotective of information so it is hard for start up businesses to access information to helpensure success. Although understandable in an industry where copyright protection and brandintegrity are so vital, this culture of self imposed isolation contributes to high numbers of failureamongst SMEs.

There is no central resource for accessing information about the sector a common issuefor most of the creative industries and still unresolved in the fashion sector which does nothave a sector wide representative body at a national level. Also, representation is neededat international level fashion is a global business.

Many new designers still leave College and University with level 4 qualifications but no practicalproduction or business skills to turn their creative designs into successful businesses and littleappreciation of the importance of these skills in the fashion industry.

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Industry Issues that policyneeds to address


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BRAND BRITAIN The sector is not being supported or perceived yet as part of Brand Britain, currently being

presented as a concept by Lord Digby Jones (Minister of State, Foreign and CommonwealthOffice and DBERR). Despite huge international profile for Designer Fashion, its links withmanufactured goods in the value added sector is not being exploited to the benefit of fashionand textile manufacturing and the development of apprenticeships in the UK. There is still anemphasis on science and innovation without any connection to the creative industries that arefundamental to science and innovation delivery.

Copyright law is relevant to original designs but the businesses place a strong reliance ontrademarks, on rapid and regular production, new designs and lines and on production andmarketing measures to make copying more difficult, this issue has not been resolved throughcurrent intellectual property protection and more needs to be done to protect brands.

Despite the overall decline in the fashion and textile manufacturing sector some companiesare performing well and many CMT units are booming as they strengthen their relationshipswith British designers. This area of the industry is showing strong signs of potential growth.

Design and production are crucial sides of the same coin but the traditional perception of large scale manufacturing still persists and manufacturing has never been closely linked to thesurvival of fashion designers. This is reflected in the Standard Industrial Classification Codes with the two areas being analysed separately. Now marketing (showcasing), design andproduction are embedded in each others survival and, like the film industry, can make asignificant contribution to the economy if they are supported together and if their jointcontribution to the UK GDP is considered.

ETHICAL TRADING Shortening supply chain and reducing a retailer or designers carbon footprint is a huge benefit

in this era of ethical business practice. Improving quality can contribute to the sustainability of garments and the likelihood of recycling

or long term use, in contrast to the throwaway attitude to clothing in recent years. The latest figures from DEFRA state that in 2006, UK clothing and textiles produced up to

two million tonnes of waste, 3.1million tonnes of CO2 and 70million tonnes of waste water.Clothing imports into the EU as a whole now account for 42% of the global market. HuddersfieldUniversity figures for 2006 show UK expenditure on clothing as 45billion, and clothing imports11.9billion, this expenditure is growing.

Workers in developing counties who are producing for high street chains should beprotected and labeling in the UK should convey a garments production origins in more detail.The equivalent of agricultures Fairtrade mark would help, as would standardisation of theterm ethical.

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SUPPLY AND PRODUCTION There are increasing sustainable development issues which suggests that some major

changes in materials, products and production methods may be on their way particularlywith trends towards fast fashion, rapid turnaround of goods or reduced lead times andcarbon footprint issues.

Retailers are increasingly getting involved in sourcing and product development, which meansthe requirements of the supply chain are changing.

There is a shift in the supply chain that supports the revitalisation of CMT units, previouslyin decline and some manufacturers, traditionally set up to produce low cost high quantity arenow turning to high cost low quantity production working closely with designers and retailers,effectively turning their businesses around.

The UK CMT sector is using innovative lean manufacturing methods (well established inmainstream manufacturing in other sectors) for the first time to great effect.

Flexible and quick response production is feasible for CMT units, particularly those adoptinglean manufacturing techniques, and improves the ability of UK designers to produce garmentsfast according to the demands of the retail sector, this allows buyers to respond quickly torapidly shifting market trends.

NEW BUSINESS SURVIVAL Students traditionally are highly qualified in creative skills, however the fashion industry is

changing eg with greater globalisation and international markets. There is a need to addressthese changes, utilising and encouraging collaboration and recognising the varied roles

created by these changes within the industry, for example sourcing and distributing goods. Fashion is promoted as a high profile designer led sector, overlooking a vast array of potential

careers within the sector resulting in a number of employment and skills gaps for employersacross the sector.

Generic business support is important but specialist fashion expertise is vital for thedevelopment of SMEs in this sector where 90% of textile clothing businesses employ lessthan 50 people.

Mentoring is demonstrably beneficial, however there is no infrastructure for nationallyaccessible, consistent, standardised high quality delivery.

Graduates often arrive into the sector with unrealistic expectations and a lack of practicalproduction and business skills to support career development

WORKING WITH BUYERS/RETAILERS London has built a reputation as a hot bed for unconventional cutting edge, street design,

which attracts students to its top colleges from all over the world. Their products result inadmiration and influences global fashion, however a greater commercial support at the earlystages of these individual businesses would lead to greater credibility with international buyersand would retain the talent in the UK.

The numbers of independent retailers and designers selling through their own retail outlets hasincreased in recent years.

Once established, growth for most fashion designers is dependent on effectively cracking theinternational market, for which finance is essential. But most financiers see this as high riskinvestment due to its seasonality, the lack of business expertise in the SMEs in the sector and

the huge up front costs to produce collections.

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SIGNIFICANCE TO THE UK ECONOMY The UK fashion industry comprises of the design, manufacture and sale of high value designerproducts, as well as wider ranging lower value apparel products. Though there are somecommonalities amongst the two markets in terms of the issues they face and their contributionsto the economy, there are also some differences worth noting.

Designer Fashion IndustryThe designer fashion market has become a highly significant component of the fashion sector in theUK economy, for London in particular. Designer fashion has outperformed the UKs standard apparelmarket considerably with regard to international trade.

In 2003, The Department of Trade and Industry and the British Fashion Council commissioned A Study of the UK Designer Fashion Sector . For the purpose of their study designer fashion wasdefined as:Individuals or teams that combine creativity and originality to produce a clothing collectionwith a specific or signature identity exemplified by, but not restricted to, the type of company that participates at international trade shows such as London Fashion Week and its equivalents.Fashion designers may produce diffusion lines in addition with their flagship collections and range from established designers with an international reputation or brand to cutting edge newcomers.

The report highlighted the following trends: Only 6% of designers employ 25 or more people, while 60% of designers employ 5 or fewer

staff, and just under 20% are sole traders employing no staff; Most employment created by designer fashion comes through indirect staffing, with some 45%

of designers contracting between 1 and 10 outworkers and almost 25% contracting more than 25; The designer fashion sector has grown from 75million in 1990 to 700million in 2001 (inclusive

of wholesale, retail, and licensed income). This is a compound growth rate of 22.5% per year,significantly greater than the UK clothing market at large;

The sale of designer fashion manufactured in the UK provides for the employment for 8,500people, the equivalent of 6% of UK clothing employment at large;

Although designer fashion accounts for less than 1% of the volume of the UK clothing market,it is worth 3.5% of the value of the UK clothing market;

Together with classic and contemporary brands and stand-alone designer businesses, theserepresent 14% of the UK market;

Designers and brands together generate 2billion of exports, which is 75% of all UKclothing exports.

The Wider Textile and Clothing Industry - ApparelMaking it Happen, The National Strategy for the UK Textile and Clothing Industry produced in2000 by the Textile and Clothing Strategy Group (TCSG) reported that the textile and clothing industrymakes a major contribution to the UK economy. Statistics gathered by University of Huddersfieldshow that since the TCSG report, the sector has dropped from the 9th to the 10th largest manufacturingsector in the UK, with employment dropping to 114,000 across the country in June 2006 from 277,000in 2001. Manufacturing has a significant presence in the North and East parts of London, as well as inthe East Midlands, Yorkshire, the Scottish Borders and Northern Ireland.

According to Key Note, a UK market intelligence company which compiles industry trends, the UKclothing and footwear market was worth 44billion at Retail selling prices in 2004, increasing to48billion in 2006. The market has grown strongly in the early 2000s, exceeding the overall increasein consumer expenditure. Key Note forecasts slower growth for the market between 2005 and 2007but with an acceleration towards the end of the forecast period.

The Industry Context

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Apparel manufacturing experienced a sharp contraction in output (GVA) of 45% between 1998and 2003, with employment falling even more steeply by 60%. The contraction in employmentwas heavily concentrated in the sewing machinist occupation, the largest single occupation inthe industry, as labour intensive processes were transferred offshore.

Wholesale activities grew by 9% (GVA) during the same period with employment in this sub sectorrising by 8% possibly the result of wholesalers taking advantage of the low cost imports from overseas.

Research by Huddersfield University shows that there was a continued but less severe decline inoutput (GVA) of 28% between 2002 and 2005, with employment from 2001 to 2006 falling by 42%in the same period.

National Issues and StrategyIt is well documented that the fashion manufacturing industry in its traditional form is in decline,primarily due to increased globalisation that has brought about stiff competition with overseasproducers, which pay lower wages. Efforts to compete directly with low labour cost manufacturerswould likely prove fruitless, and given the recent increase in liberalisation in world trade even furthercompetition from overseas economies is imminent.

The 2005 Cox Review of Creativity in Business: building on the UKs strengths report rightlyrecognises this increase of overseas competition as a serious threat, but also goes on to note:The upside is that these rapidly expanding economies will stimulate global economic growthand will themselves provide major new markets. Moreover, the review revealed that there is stilla window of opportunity perhaps five or ten years- while the new economies develop the

kinds of creative skills necessary to compete across the board. To take advantage of theseopportunities and create a viable, attractive future for the UK economy, UK companies and industries will need to produce innovative, high-quality, high value-added products and services,and bring them quickly and effectively to market.

Similarly, in the National Strategy for the UK Textile & Clothing Industry , the TCSG asserts that:The industry must respond quickly to these changing circumstances. If it does so, it will slow the pace and scale of its contraction and increase the chances of maintaining the critical massnecessary for the continuation of a viable UK textile and clothing industry.

The report suggests specifically that the key to future competitiveness for UK apparel manufacturinglies in focusing on: Design and product innovation; Marketing and branding; Speed of response; Capital Investment.

To achieve in these areas the national strategy recommends the following: Manufacturer or retailer co-operation for more efficient supply chains; More effective use by the industry of UK design talent; Better use of expertise and resources available in university and colleges; Effective promotion of the industrys reputation for quality and excellence; Enhancing innovation by collaboration; Improving and formalising training and career development; Strengthening marketing skills; Improving the image of the industry.

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Londons Fashion industry alone employs just under 21,000 people in 3,125 businesses in the textilesand clothing sector across London. Fashion plays an important role in Londons economy and itsdiversity, by employing markedly from the Black, Asian, and Minority Ethnic (BAME) communitiesparticularly in the sub sectors of wholesale and manufacture.

According to The Production Industries in London Strategy and Action Plan 2005 2008 produced by the LDA, manufacturing industries account for around 6% of total employment inLondon. All of Londons manufacturing sectors have lost jobs over the past two decades, withlosses of 59,000 amongst the textiles, clothing and furnishings sectors. In terms of the remainingworkforce, the report claims, the weakest of Londons large sub-sectors is textiles and clothing,where productivity is below the national average.

In the 2004 GLA report, Londons Creative Sector , it is made clear that despite weaker productivity,London is actually the region in which the clothing industry has declined the least. This is alot to do with the growth of the designer fashion sector, which - as Italys success testifies -requires a very different type of manufacturer; one that can produce a very precise kind of cloth

for a very small range of outputs but with great flexibility and precision, to produce the preciseeffect that the designer requires for one particular item.

This slowing of decline is also verified by a recent Experian survey, which showed that of the 25out of 34 industries reporting a decline in corporate failures, the textile and clothing sector hadthe brightest start to 2007 with a significant 30% drop in businesses going bust.

Redefining the sector

The 2005 Creative Trends article Measuring Trends in Creativity: A Case study in the UKs DesignerFashion Sector, published in June 2005 identifies the issues around sector definitions, clearlystating that many of the Regional Culture Data Frameworks recommendations, notably the adoptionof a more comprehensive supply-chain approach to documenting the cultural sector, make furtherdemands upon the existing official structural classifications and the databases underpinning them.Even where all elements in the supply chain are well documented, there are still questions aboutthe validity of this approach. For example, should wholesale and retail distribution of creativeindustry products be regarded as part of the Cultural Cycle?

In conclusion, the article suggests that the official data has marked limitations in documenting thecreative industries and does not realistically or adequately capture the more interesting and dynamicelements of an industry like Designer Fashion. This is disappointing in a context where centralgovernment has placed increasing emphasis upon evidence-based policy to support the developmentof the creative industries, and where the British Designer Fashion sector has lamented the lack of central support in comparison with the French or Italian industries. It is suggested that a morecustomised approach to collecting data about the creative industries is needed if the results are tousefully inform the further development and profile of these sectors. Unfortunately this does notappear to have been addressed in the 2007 revision of the SIC codes in question.

The possibility still remains that if the production and CMT element of the sector were calculatedinto the economic impact of the design sector, then the contribution from this creative industrywould be substantial. To do this, the categories of designer fashion, manufacturing of apparel etcwould need to be re-allocated and the statistics used together. Without this type of considerationin place there is no current means of capturing the true export value of designer fashion, whichmeans that this contribution is not effectively recorded in the Creative industries EconomicEstimates, Statistical Bulletins.

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The fundamental lack of understanding of the workings of the fashion industry is also apparent inThe Creative Industries Economic Estimates Bulletin which states that its statistics differ significantlyfrom those produced alongside National Statistics Input-Output analysis, which is based on productsrather than industries, for the following reason:

The most significant difference occurs from the input-output analysis not taking account of the fact that large proportions of data produced under the standard classification systems are not the result of creative activity. This causes some overestimation, for example since Clothing isused in place of Designer Fashion.

A worrying statement when clearly neither clothing nor designer fashion could be produced withoutcreativity, nor an element of production, something that is clearly not regarded as a creative activity

where statistics are concerned.

A good example sees the 2006 Economic Estimates Bulletin report stating that employment fordesigner fashion 2005 is only 3,400, with other figures for the same period from the Design Councilat 5,884 (number of fashion and textile design businesses) and figures from the University of Huddersfield at 115,500 (design and designer fashion employment in the sector), demonstratingclearly the potential inaccuracy of the data being used. Another is the way that seamstresses appearto be pooled together under the Visual Arts classification 74.87/2 where their main function isregarded as Creation as opposed to standard manufacturing (classification 18.24). Again twodifferent classifications are being used here: SIC (standard industrial classification) and SOC(standard occupational classification), although there appears to be some overlap.

To this end, it is essential that the industry has a stronger voice and speaks with one voice ona policy level, to ensure that Government have a clear and accurate image of the needs andcontribution of a clearly defined sector and understand how they can adapt policy accordingly.

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The growing potential for the UK fashion industry is emphasised in A Study for the UK Designer Fashion Sector for the DTI and the BFC in 2003. One of the aspects of the study was to estimate thevalue of designer sales, in order to assess their impact on the UK clothing industry. Designer salesare made in the UK, in export markets and through licensing. Independent designer businessesturnovers are a mix of sales made: direct to retailers/franchisees at wholesale (manufacturer) prices; direct to the end consumer through their own shops at retail prices; via licence deals for which they obtain a small % of total sales value, which itself could be either

at wholesale or retail prices.

In 1991, a survey of the UK Fashion Designer Industry was undertaken by Kurt Salmon Associates forthe BFC. It concluded that, in 1990 UK designers total worldwide turnover was 75million. Using the

same methods, that figure is estimated in 2003 at 700million, a compound growth of 22.5% per year.

In 1998 the DTI commissioned a report, which included an evaluation of the UK designer industry for1996. It valued the UK designer industry at 600million at manufacturers (wholesale) prices anddirectly compared it to the 185million in the 1991 KSA study. The consultants re-calculated this onthe same basis as 2001 and 1990 and derived a figure of around 500million.

Throughout the nineties, clothing inflation had been negligible and then negative, as shown in MintelResearch deflators index, which uses government statistics for clothing and footwear.This index shows that: prices did not rise at all between 1992 and 1999; prices fell by 3.4% between 1999 and 2002.This means that real growth was pretty much the same as money growth. Designer prices had almostcertainly outstripped average clothing prices, i.e. risen.

However, the significant increase in designer sales suggests that the designer industry, regardless of where the product is being made has easily outstripped the UK clothing market and generated bigsales increases for UK plc.

Since this period the figures from the University of Huddersfield show that between 2000-2006textiles and clothing retail sales by value rose by 32.1% compared with retailing in general, whichrose by 23.4%. Compare with volume textiles clothing rose by 51.3% compared to retail in general 29.9% indicative of the trend for cheap clothing and its impact on the high street.

The point about sales and where the product is made is important. UK designers direct sales aremade both in the UK and offshore. Licensed sales are almost certainly made offshore. There areinferences that can be drawn from these sales estimates concerning the employment created in theUK by designers. It is likely that half of UK designer sales are produced in the UK. Only 20% of totalUK clothing sales are produced in the UK. In 2003 it is estimated that designer sales in total provideemployment to around 6000 sewing machinists and another 2500 overhead or administrationworkers. This compares with the estimate made for 1990 of employment in the UK created bydesigners of 1200. This means that the designer sector UK employment had grown by 19% per yearwhilst clothing industry employment had fallen. Designer created employment accounted for aminimum of 6% of the UK clothing workforce in 2003.

As already mentioned, according to the most recent figures (04-05) from The Design Council thereare 5,884 fashion and textile design businesses in the UK, and the University of Huddersfield figure

for employment for design and designer fashion was 115,500 in 2005, an increase based on theirdata, of 43% since 1997.

The Economic Argument

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The value of the designer sector to the clothing industry and to the UK plc or Brand Britain as it iscurrently described, is perhaps best explained by its record in exports as detailed in A Study for theUK Designer Fashion Sector in 2003. First, for independent designer businesses: Export sales at a mix of wholesale and retail prices are 390million; This is 14% of all UK clothing export sales, a significant value from a small group of people.

But export success is not confined to designers managing their own businesses. Many work inUK classic and contemporary brands. Using this broader base of designers and brands together,the business income attributable to them is 3.9billion. The export sales of the broader base of designers and brands is 2billion (almost 75% of all UK clothing exports). Designers and brandsare vital to the UKs international trade in clothing.

Although sales are not directly relatable to UK employment, it is worth noting that: worldwide income of UK designers and brands is 3.9billion; worldwide exports of UK designers and brands are 2billion; worldwide sales of product bearing the name of UK designers is estimated at 1225million.

That of brands is estimated at 4800million.

Together, sales of merchandise bearing either a UK designer or UK brand name are around 6billion.

The objective set in the terms of reference for the 2003 study was to assess the impact of theUK designer industry on the wider textile and clothing industry . There is no doubt that for thedecade since 1990: UK designer sales have risen world wide significantly; UK designer sales have taken a larger share of the UK clothing market; UK designers creation of UK manufacturing employment has risen, whilst general clothing

industry employment for product manufactured in the UK has fallen.

It is worth noting that UK clothing designer names also spin off business into other creativeindustries, such as home textiles and porcelain. This is real business, although it may substitute thedesigner range for the classic brand (i.e. Jasper Conran for Wedgwood). However, whilst designerbusinesses in clothing have definitely succeeded, classic brands have faltered, although there areno estimates for 1990 to compare with 2001. However, the combination of UK designers and brandshave become a more important part of: The UK clothing market; The UK clothing export industry.The impact of both has been positive, and in a world industry where middle and lower priced productis being manufactured offshore, is an important route to safeguard UK manufacturing employment inthe clothing industry.

The UK is a relatively high cost economy. Clothing manufacture is labour intensive. The supply of clothing is global, and will get more so as tariff and quota barriers decrease. Mass market clothingmanufacture will continue to gravitate to low labour cost countries. The historic decline of UKclothing manufacturing over the last 30 years, the rise of imports, and the recent spate of closuresof large manufacturing units bear this out.

The TCSG has recognised this, and correctly said that the niche selling proposition for the UKclothing industry lies in creativity, design and high quality niche product manufacturing in a fastresponse fashion environment.

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In this context, the performance of the UK designer sector has been excellent, growing in termsof designers turnover from:

1990 75million1996 500million2001 700million.

This represents compound growth per annum of 22.5% and as clothing inflation has been virtuallyzero, real growth is the same percentage. Designer clothing sales that are produced in the UK,provided employment for 8500 people (2003). This is 6% of the clothing industry workforce, and isquite out of proportion (greater) than the designer share of the market. When classic brands and topend contemporary brands are added to the designer figures, they account for 14.1% of the UK retailclothing industry.

These brands employ or use designers. The brands and independent designer labels also accountfor 75% of UK clothing exports worth 2billion a year. For retailers to be encouraged to buy moreBritish rather than international designers, this requires an environment where UK designers workcommercially to the retailers timetable.

In preparing this policy briefing document it is obvious that there is a desperate need for the findingsin the many reports cited at the end of this document, to be brought up to date and for an accurateand overarching picture of the issues and needs of the sector to be drawn.

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The UK fashion, design and production industry is undergoing a period of change and restructure.Within the past year there has been a tangible shift in both attitude and behaviour from all the mainplayers within the industry: designers, manufacturers, CMT units and retailers led in part by variousdifferent factors: Consumer demand Sustainability developments New funding regimes Government policy Changing skills agendas Changing partnerships Economics global, national and regional

On a more regional level, there are pockets of development that are leading the way. For example: Newcastle College have structured their Foundation Degree in Fashion and Textiles to bemodular, reflecting industry needs, and where anyone needing specific skills can apply tospecific modules of learning, emphasising the support of skills development.

In the Midlands there is a consortium of four apparel manufacturing companies that represent7000 employees who have developed a level 2 accredited, in-house training programme that isrecognised in all four companies, improving the standard and the flexibility of employmentoptions within the Midlands.

The London manufacturing and design sector has developed collaborative and effectivepartnerships, which are affecting change - supported in part through the EQUAL funding with theinvestment of 4.5million through the Cutting IT project.

These in roads and best practice need to be recognised and supported nationally in order to makeany long lasting impact. The end goal is a more robust sector, commercially, creatively and with aninternational focus.

Manufacturing, retail and design have all created new niche markets and there are lots of examplesof individual success stories where adapting to change, and becoming economically andcommercially more efficient are available.

Having said this, there is a real and desperate need for the sector to influence policy decisionswithin the creative economy. Fashion textile and apparel is currently measured almost entirely onits designers. With just these figures it is a multi million pound industry. However, production hasbecome integral to the changes and therefore cannot be ignored.

Long term sustainability of the sector has to be through successful partnerships and collaboration,throughout all levels from haute couture to the new generation designers and from the patterncutters through to the manufacturer owners. Business Support Organisations would needrepresentation too. Other creative sectors have examples of good practice in effective partnershipsthat can be drawn on.

Cutting IT has been able to research and innovate with the funding received in such a way as togather comprehensive data and information not only historically but on new initiatives and activities.Through challenging the current perceptions of the industry both internally and externally, theproject has made some in roads to changing the attitudes and culture of the industry. However,Cutting IT is a short term project with a long term goal which can only be continued through politicalsupport and effective partnerships.

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Cutting IT Evidence


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The project worked in 4 key areas:

1. SKILLS AND TRAININGKey Issues: Access to appropriate, flexible training was limited within the sector, with the issue not around

creative learning but practical skills development across all age groups. A lack of skilled workers was significantly affecting recruitment and business survival within

the sector. Need for increased employer engagement in the creation of relevant, flexible, sector specific

and appropriate training and skills development. Need for review and rationalisation of the curriculum and funding structure of fashion design

courses nationally with employer and education provider buy in.

ActivityDevelopment of new qualifications based on a modular framework bite sized, accessible andappropriate training packages. These are employer led and designed in collaboration with theindustry, training providers and partners. Two strands of activity have evolved.1. The first, at national further education level, involves activity by the Lead Provider Network, a

partnership led by the Sector Skills Council Skillfast-UK and including the Learning and SkillsCouncil (LSC) and lead training providers nationally, representing fashion based curriculumdelivery. The Lead Provider Network has driven forward the modular based training, Framework forAchievement model, sharing resources and best practice throughout the sector. The current activityinvolves national curriculum reviews, with rationalisation to reflect current sector requirementswith employer engagement and LSC buy in, and responding to the Leitch Review recommendations.This will now be rolled out as a model to develop activity within the HE environment.

2. The second tier of activity involves development and delivery of new sector specificqualifications and vocational training including;a) 14 24 age group Specialised 14-19 Diplomas in Manufacturing, Apparel, Creative and Media developed

through Skillfast-UK, as part of the national 14- 19 policy agenda. Pre-Apprentice/Apprentices piloted with Savile Row. The pre-apprentice programme

provides skills development bridging opportunities and support employment issues linkedto an aging workforce. Developed to take low skilled workers and the unemployed to theskills levels where employment and further training through apprenticeships are viableoptions for employers.Working in partnership with employers and training providers to ensure viability of government strategy for apprentice programmes. The Savile Row model has been replicatedwith Jewellery Sector (Holts Jewellery) and is being developed for the theatrical costume andshoe sectors.Fashion Futures - a programme of Saturday and summer schools targeting 14 -19s bridgingthe gap between industry and education, developing awareness of the skills requirementsand the diversity of employment options available within the sector, also supportingstrategies to engage or re-engage talented young people to continue learning.

b) 24+ age group A programme of short, bite sized industry relevant courses has been developed that

includes training for all, regardless of previous experience, from small sole traders tolarge-scale production or retail organisations. The emphasis on training is dominated bythree key areas:

1) Practical construction skills eg pattern cutting, grading, tailoring etc;2) ICT and IT skills eg Prima Print, Kaledo, CAD/CAM, etc;3) Business development and understanding, eg supply chain management, marketing,branding etc;

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Using the unique NewCAD units (currently OCN accredited and soon to be on the NQF)the units are flexible according to the needs of the industry whilst maintaining fundingthrough the LSC.There has be a concentration on Framework For Achievement modular courses in bitesized, accessible and flexible formats that have developed year on year the demandoutweighing supply.Cutting IT has funded the development of new learning hubs at London Apparel and theFashion and Textile Museum increasing access with sustainability via accredited courses.

The development of new learning, employer led training has been incredibly successful however it hasnot been taken in isolation. Progression, career development and continual professional developmenthave all been taken into account through the other main areas of the Cutting IT programme.

2. BUSINESS AND WORKFORCE DEVELOPMENTThe Key Issues Lack of access to existing resources, support and information, in particular opportunities

for career and skill progression, career development or business expansion. Ensuring access to sustainable business and workforce development resources. Few focused or effective sector specific networks to support the above and encourage

collaboration between design, production, manufacturing and retail.

ActivityProgression and career development:All training created in consultation with employers was regarded as an entry point into a careerwithin the sector and therefore the entry and exit routes to all personal and business developmentwas analysed during the development of any activity. Eg the 14-19 year training led into on goingeducation whether skill based, HE or FE, or into employment as either an apprentice or employee.This approach led to a clearer image of progression through the sector, making potential careerpaths more obvious. Skillfast-UK are combining this with their work profiling specific jobrequirements across the whole sector, incorporating both design and production elements of thesector, to open up access and increase understanding for both established companies andindividuals and those entering the industry for the first time.

Business DevelopmentBusiness development for recent graduates was highlighted as an immediate issue within the sectoras a high number of graduates are still leaving their courses without the skills needed to succeed intheir chosen careers. This was addressed with the sector specific short courses outlined above.These have been developed in conjunction with access to networks or peers, through seminars,training and online, and individuals are encouraged to collaborate with others improving peer topeer support. This technique was particularly successful with design businesses improving theirchances of thriving and assisting them through the historically difficult establishment phase.

Where manufacturers and production units were concerned access for any business developmentorganisation attempting to offer business growth and skills support, was much harder. Historicallythis sector has not engaged with public funded bodies of any kind. Skillfast-UK research confirmedthat this group would not, as a rule, undergo training or development programmes. Over the lastthree years however, a lot of negotiation and work has been undertaken with manufacturing units tobuild trust and demonstrate the positive impact that business development intervention can have ontheir potential for survival. This is culminating in the introduction of lean production (see below)

amongst many fashion and textile manufacturers and production units with mutually beneficialrelationships being established between manufacturer and buyers (retail) and betweenmanufacturers and designers (in-house collections). This change in culture and attitude has beenunder way for some time, however, Cutting IT has been fortunate to support London Apparel andFashion-Enter to ensure specific activities focused on this change in culture.

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4. LEAN MANUFACTURINGThe Key Issues Small production units dominate Londons clothing manufacturing industry. Difficult to reach audience with a distrust of government or agency support. Two barriers to commercial success are:

- the need to encourage and support structural and cultural change;- and to access business support organisations who can offer tangible economic benefits

for increased long term financial viability.

ActivityExtensive background networking and negotiating with different groups of manufacturers ison-going. Cutting IT has also worked with a pilot group of manufacturers with further interesting

developments, such as: The Production and Innovation Centre (PIC), which is training sample machinists to be multi-skilled in a lean manufacturing environment. This supports both designers and manufacturersto break down communication barriers and improve collaboration and business effectiveness;

London Apparel supports manufacturers through structural change, offering training andmentoring. This is coupled with referrals for sample or production runs from designers who havealso worked with the PIC unit.

Access to manufacturers and production units has been improved through the development of theManufacturers Online Showcase creating a comprehensive online register of over 50 manufacturingbusinesses within the sector, improving access for designers, meaning new business opportunitiesand collaborations for the production units and increasing awareness of UK production.

Initiatives include introducing lean manufacturing in partnership with the Manufacturing AdvisoryService (MAS), and the development of courses such as Perfect Production and Creative Thinking totrain-up and then demonstrate the advantages of using multi-skilled sample machinists in the leanmanufacturing environment of the PIC. This approach is encouraging structural and cultural changeto adapt to the changing needs of designers, retail, production and manufacturing within the sector.

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Clearly this Policy Briefing has limitations, it does not profess to be an absolute assessment of thesector that is an exercise that should be undertaken in a very thorough manner, extending beyondthe lines of enquiry in the preparation of this briefing. However there are a number of issues whichrepeatedly arise, particularly in respect of the value chain, networks, relationships, the lack of clustering, lack of information, the paucity of public sector grant aid, markets and customers,qualifications and levels, financial investment, as well as the comparison of primary data withsecondary sources.

It is essential that the sector is better understood by those aiming to develop policy to steer itseconomic survival and development as a major element of the Creative Industries agenda.

Research into the sector at a national level is a logical step and would be welcomed by many.

Engaging participation and cooperation may be improved by advertising the benefits gained for thesector by participating and engaging with the networks of Business Support Organisations workingwithin the sector and by developing Knowledge Transfer Network activity, to encourage and ease thesharing of information within the sector. This could be undertaken by advertising prior to contactingparticipants for research purposes and by widely publishing the findings, publicising initiatives thatare developed as a result of the research.

Further studies in detail on a regional basis engaging RDAs and encouraging creative clusters wouldstrengthen the data and begin to generate benchmarks that can then be applied on a national basis,steering funding for the future, avoiding overlap and improving clarity and accessibility.

Furthermore any network and relationship analysis would provide a useful comparative picture of the industry and could indicate the best way forward for developing a mechanism or organisationthat provides a voice to the sector as a whole. There is clearly substantial evidence to suggest thatthis is now essential to ensure the designer fashion sector survival in certain areas, particularlywith the growing number of SMEs and self employed within the fashion industry, the high numberof hard to reach communities working in the sector, the problematic and complicated dynamicsassociated with employment and skills gaps, and the intricacies of dealing with suppliers andcustomer relationships.

It is also the case that this research based approach enables the SIC and SOC codes to be fleshedout with the sector and utilised to greater effect, providing an accurate statistical evidence base tosupplement the large quantity of anecdotal evidence.

There is no doubt that there are many positive impacts to be gained from investment into thisvibrant industry for both the Creative Industries agenda and the UK economy. Serious considerationof the policies that will support and exploit the potential of the fashion industry is essential if theundisputed design talent, innovation and production creativity that the UK is known for is to be fullyexploited to the benefit of the Brand Britain of the future.

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DOCUMENTS AND RESEARCHEVIDENCE FOR THE KEY AREAS:

Skills and Training NewCAD Modernising Curriculum and

Qualifications (2004) Framework for Achievement - a framework of

qualifications defined by only two dimensions - the levelof the qualification, and its size- www.qca.org.uk

Leitch Report Dec 06 - Prosperity for all in theglobal economy - world class skills

Lead Provider Network (Skillfast-UK) Sector Qualifications Strategy 2006 (Skillfast-UK) Business Case for IT Final Report Survey and Case

Studies - Skillfast-UK, Sector Skills Council for Apparel,Footwear, Textiles and Related BusinessesMark Clayton, March, 2005

14-19 Diplomas (Skillfast-UK) Sector Skills Agreements (Skillfast-UK) Pre-Apprentice in Tailoring Savile Row Bespoke Ltd

Report Sept 06 (Newham College) Newham College /Cutting IT Course Evaluation

and Findings

Fashion Awareness Direct course evaluation reports

Business and Workforce Development Sector Skills Agreements as above Matrix and mapping report final Jan 07 (Newham

College Cutting IT) Knowledge Transfer Creative Industries Development

Plan (Technology Strategy Board) Fashion Sector Investment Plan (City Fringe Partnership) National Skills Academy Bid (Newham College and

Skillfast-UK) The Stakeholder Forum (Cutting IT) Measuring Trends in Creativity: A Case Study in the UKs

Designer Fashion Sector Creative Trends 2005(Malcolm Newbery)

Staying Ahead The Economic Performance of the UKsCreative Industries 2007 (DCMS)

Industry Summit Briefing Paper April 2007, CreativeEconomy Green Paper (DCMS)

Textile and Clothing Strategy Group (TCSG) Report of 2000: - A National Strategy for the UK Textile andClothing Industry.

2005 Cox Review of Creativity in Business:building on the UKs strengths

Essential Facts: The Nature of Designer Fashion and ItsMarkets, Report of 2003 - Professor Simon Roodhouse(Bolton Institute of Higher Education)

DTI and British Fashion Council report of 2003 -A Study of the UK Fashion Design Sector

2004 GLA report, Londons Creative Sector

Mentoring Skillfast-UK Design Net original proposal 2006 Newham College- CoVE mentoring report Newham College mentoring and matrix report Jan 07 Clutterbuck Associates research Stakeholder Forum meeting minutes Fashion Awareness Direct evaluation reports

Production lean manufacturing London Apparel reports various Manufacturing Sector Support Programme (MSSSP)

(City Fringe Partnership) Fashion Enter Manufacturers online showroom

evaluation and findings Manufacturing Advisory Service The Production Industries in London Strategy and

Action Plan 2005 2008 The LDA Well Dressed? The Present and Future Sustainability

of Clothing and Textiles in the UK (The Institute of

Manufacturing)

Other resourcesDEFRA The Office of National Statistics The Design Council Malcolm Newbery The Malcolm Newbery Consultancy Professor John Pearson Huddersfield University London College of Fashion Sustainability research team Experian
http://www.qca.org.uk/http://www.qca.org.uk/


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D e s i gn

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