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The textile industry has seen the same changes as most other industries in the past two decades, with globalisation and technology presenting opportunities and threats in equal measure.
It is by grasping these opportunities, in particular with regard to marketing, that we have seen some of the new kids on the block becoming rising stars and some old giants becoming complacent and waning. I cannot count the number of times that textile clients have said to me “we don’t need to bother much with a website, our customers are not ready to buy on-line”, or “I want my catalogue to be like XYZ Leisure Garments, they seem to be doing alright”. Lagging behind, or imitating market leaders is not the way to prosper in textiles, or in any other industry.
Sometimes, the only differentiator between two companies from a buyer’s point of view is their marketing. Both might have great brands, 1001 product lines in 200 colours, next day before breakfast delivery and, of course, rock-bottom prices. So how is the buyer to decide where to place his order? He will not have the time or inclination to analyse small differences between the competing suppliers and will form an opinion based on what he can see. This is where a good marketing strategy and well-designed marketing material comes to the fore.
It is a fact that 69% of UK companies currently spend nothing on design – that’s right – absolutely nothing, and yet over a 10-year period companies who do invest in design for marketing outperformed the FTSE by more than 200 per cent.
It is no wonder that in December 2006, Secretary of State for Trade and Industry, Alistair Darling, challenged business to use design to increase UK competitiveness against the rise of low-wage, rapidly expanding developing economies. And David Kester, Chief Executive of the Design Council, said recently:
"Britain faces a massive threat from rapidly developing economies. Countries such as India and China recognise that design helps business to diversify into high value economic activity, and they are encouraging creativity. “Britain has to become more impatient to deliver progress, as we are not reacting quickly enough to the challenge. The Design Council is continuing to work with business and the public sector to embrace design, but there is a long way to go before its potential to significantly contribute to economic competitiveness is fully exploited. Britain has great creative capabilities, but it's currently sitting on an under-utilised asset.We need to act now, before it is too late.”
Leaders in government are realising that Britain must move fast on this and they are beginning to encourage, and incentivise, investment in design. The SBS and Business Links are likely to have funding available in 2007 to back up Darling’s findings. In the past, business owners may have thought of design as an expensive luxury, as opposed to one of the essences of a successful business. Design affects the way in which the buying public perceives a company, its products or services and influences their decision to buy, as much as other factors such as price. In fact, the price customers are prepared to pay is directly affected by design because design adds value.
You might argue that in the commodity based industry that workwear and leisurewear has become, price has a greater importance than any other factor and it’s certainly true that margins are not what they used to be. However, time and again, we have seen companies who are prepared to be bold and give an open creative brief succeed where those who play ‘safe’ and watch every penny, fail.
In our world of choice, design is sometimes the only differentiating factor between a host of very similar items. One only has to look at the huge success of the Swedish company Ikea to see how good design puts ordinary products in the shade, even for basic commodity purchases. If a mug that costs pence to make can be sold by the million because it is stylishly designed, the volumes of resulting sales at a premium price will more than compensate for the initial design investment.
The same goes for your catalogue and website design. As the old saying goes, you have only one chance to make a first impression, so take advice on how your next production can be designed to lead the field.
Alpha Design and Marketing is a marketing and PR company, specialising in textiles. Elaine Nester is the founding md and can be contacted on 01743 236631, or via email at elainenester@adm-group.co.uk
Visit www.adm-group.co.uk for more information.
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