Menswear Style Podcast

Simon Cotton, CEO of Johnstons of Elgin / Luxury Knitwear

May 28, 2020 Menswear Style Episode 62
Menswear Style Podcast
Simon Cotton, CEO of Johnstons of Elgin / Luxury Knitwear
Show Notes Transcript

With a history of working in the textiles industry and other manufacturing industries, Simon Cotton is proud to be currently heading up the most exciting company in the UK textile industry. Johnstons of Elgin partner with most of the world's top luxury fashion brands as well as produce under their own label. The company is a truly vertical producer taking raw fibre through to finished product, allowing them to achieve the very highest quality for the most discerning customers across the world.

Johnstons of Elgin has over two hundred years of tradition and experience in textile manufacturing. Since 1797 the company has produced the finest woven products from the finest of fibres. The original mill, on the banks of the river Lossie in the historic town of Elgin, remains the headquarters of their renowned brand. From luxurious cashmere scarves and throws, to historic Estate tweed, the experience and craftsmanship rooted in their history has been passed down the generations. Visitors to the mill see experienced craftsmen producing luxury pieces using traditional methods. Their knitwear mill in Hawick, in the Borders, sits in the heart of the Scottish knitting industry. An important part of the local community for over thirty years, the long history of knitwear production in that part of Scotland, ensures their knitted garments are made with the utmost skill and expertise. A unique family business with tradition and heritage at its core, Johnstons of Elgin promises to continue pushing the boundaries of textile and knitwear manufacturing, while always remaining true to its history.

In this episode of the MenswearStyle Podcast we interview Johnstons of Elgin CEO, Simon Cotton, about the company's manufacturing as a private label to luxury brands as well as their own brand. Best known as a manufacturer, they've been establishing their own brand name with brick and mortar store openings and a focus on digital over recent years. Our host Peter Brooker and Simon discuss how cashmere is produced, the day-to-day of a Chief Executive, the benefits of holding a royal warrant and how the current global Coronavirus pandemic has affected their retail and manufacturing operations.

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Hello, and welcome to another episode of the men's wear style podcast. I'm your host, Pete broca. How we're doing this episode we're gonna be talking to Simon cotton chief executive of Johnston's of Elgon. Johnston's about Oregon has over 200 years of tradition and experience in textile manufacturing since 1797. The company has produced the finest woven products from the finest of fibres. Over the years, they have expanded their business and extended the mill, but they've also built a community, which time and again has proved to be their greatest asset. To date, they employ 900 people in this country alone and Simon has graciously taken our time of the day to talk about the company and how it's dealing with the pandemic, along with other things. So that interview coming up shortly in the meantime, make sure you're checking out the website menswear style dot coat UK, that's where we put all the show notes, all the links to everything that we talked about in the show. Also you have lifestyle features, travel features, what's going on with the brands right now during this crazy time, so make sure you're checking that out. And if you want to get in touch with me here at the show, maybe you want to be a guest maybe you want to come on and talk about your brand. It's info at menswear. style.co.uk Okay, here is that interview with Simon cotton chief executive of johnstons. It's my great pleasure to introduce to the podcast Simon cotton chief executive of Johnston's of Elgon. How it is today, Simon. Very good. Thank you. Excellent whereabouts in the world are you? I'm up in Elgon. I'm just five minutes away from our mill which is closed at the moment. So I'm working from home. But I am in a beautiful part of the country overlooking the barley fields and a small Scottish castle. So it's not a bad location. It sounds since very picturesque. And for the people that can't obviously see the recording. There's a nice sliver of sunlight coming in through your window and if sitting is a glorious day as clearly always as a glorious day up here in Marion, Scotland. So Simon, maybe if you can just give us a thumbnail sketch of view. I know Johnston's of Elgon has got a huge history so I won't ask you to kind of go into the entire backlog but maybe what you do within the company and how the company is in its current state. So I'm the chief executive I have been for six years. So our operation consists of to manufacture two major manufacturing plants and a couple of satellites where we make woven products and knitted products so we have the woven products up in Elgon, the knitted products down in hike. And we also have our own retail our own coffee shops and but the majority of our business is manufacturing for some of the world's top luxury brands. So we are we are largest as a private label supplier to luxury brands. about one third of our business is our own brand. I see. And so for the people that are uninitiated what luxury brands would these be? Well, we don't talk about them. They talk about us. But if you imagine the the best brands that you will see on Bond Street or any other world's top shopping streets, we're probably supplying around about two thirds of those interesting, amazing and where do we source the Kashmir? Is it local to Elgon? No Kashmir, Kashmir, you get a tiny tiny amount from every Kashmir ago. So you get about 200 grammes on average for Kashmir goats. So we need our there needs to be a huge grazing area for Kashmir. So it is generally grown in Mongolia and Inner Mongolia region of China, a little bit in places like Afghanistan as well. And it is a vast, vast area that Kashmir herding happens over tends to be very poor land that's not suitable for much else with really extreme winters which make the fibre the under down which is what we want to become very, very thin, very fine, very soft, and give the animal a lot of protection during the winter. And it's cold in the springtime. So as as the fibre starts to float, the animal wants to lose that the herders will comb that fibre from the animal and it will can retain the guard hair. So it's a very long traditional process has been going for hundreds of years within a lot of cases traditional nomadic herding practices behind it so it's not something we could do in scale here in Scotland. That has been attempted before the climate tends to be Believe it or not a little bit warm here. And actually, you do need those extreme temperatures of down to minus 30. Or you need very, very, very good genetics, there are some attempts, or there are some really good work being done with a small herd in England and also one in New Zealand now to develop those genetics that you could do it even without the extreme temperatures. That's interesting. And so just dial me back a little bit. So you've been with the company six years, how did you get ingratiated into Johnston's evolving? Yeah, well, I like to tell what taught it sorry that it was it was a little like getting Willy Wonka's golden ticket, because I mean, in textile manufacturing is kind of a dream job. I'd been in textiles for 11 years previously, with a company called Russell Corporation who make Russell athletic and some other brands as well. So very much at a different end of the of the market, much more sportswear, promotional wear, corporate, where that type of thing. So I've done that for 11 years, I had managed companies making kitchen sinks for five years. And I've done a lot of international work, brand development, work marketing, product development, that that kind of thing. So I had done a lot of things that we do in Johnson's, but there's no job that's really similar to it, to be honest, in terms of the the variety and the breadth of things that you need to you need to be able to do. Interesting. And so the the term chief executive, can you just give us a little insight into what it is that you do with Johnson's amalgam now? Yeah. I look after the team who looks after the various bits of the business. So my top team consists of operations directors for the two for the two Mills, our finance director, our sales director, our retail director, a, a marketing director, and our creative director, so sorry, and an HR director, probably the most important right at this moment. But yes, it's a it's it's really about coordinating that team, making sure all our various operations are going in the right direction, and looking after the strategic development of the business. So I need to ask the elephant in the room question. How is the pandemic affecting Johnston's Elgon now, and what's the state of play there? Yeah, we closed down operations earlier in March. So we had to, I should say, That's not a COVID related call thing. We closed down operations earlier in March. So we have been locked down in hibernation whatever term we want to use, really, since. Since the 20th of March, we closed retail and the 23rd of March, we closed our manufacturing operations. So we're well into that process. Now. out of our 1000 employees around about 960 are furloughed, and at home at the moment, and of the remaining 14 most of those are at home as well. working from home like myself. I see. And I guess it's it's a worrying time for everyone. And is there any kind of light at the end of the tunnel? Is there anything that you guys can be doing in the meantime, taking stock, paying more attention to digital campaigns, etc? Yeah, I mean, we are big digital businesses is doing very well. We're still communicating with customers, we're still, obviously there's certain things that we need to do around maintenance, etc. But most of the operations depend on on having manufacturing running. So you know, until manufacturing, running again, it will be very quiet. Doesn't necessarily feel very quiet at the moment, because there is a lot of strategic planning going on. There's a lot of preparations needing to be done for whenever the eventual return to work is. And we're doing a few bits and pieces, like for example, where we're now getting into a situation where we can make samples again, and we can do things like that we're doing a little bit of scrub manufacturer for local NHS, facilities, primary care facilities, things like that. So there is a there's a lot of activity, but it's not the normal activity that we would do you know, we've not got any, we've not got any weaving going at the moment. We haven't got any knitting going at the moment. And yeah, it's a very, very different business for the time being. Yeah, I know about interesting. And talk to me a little bit please about the the website and also you had the flagships or a store in London on Bond Street, and how, how is that performing? Or, you know, up until this this pandemic, how is that going on in London for you? Yeah, lung has been very good for us. It was a it was a step at the time because I mean, we best been known as a manufacturer and we've been developing the brand as a real brand, very hard over the last five, six years. We established Bond Street a few years ago. And it was it was considered a risk at the time buyers. What was really gratifying was that people who knew or said, Well, why is it taking you so long? Because we have been, you know, known as the the best kept secret in British textile manufacturing. You know, we've redone the brand behind the brands for many, many years. And it was really gratifying that everybody responded to it very well and said, Well, actually, you know, you guys should be here. So that was nice. Yeah. And I guess I mean, before that you have concessions, I don't know if that's the right word in fortnum, Mason, liberty, and etc. So it must have been something of a leap of faith to get some bricks and mortar in London under your own name. Yes, it's helped. It's helped us It helps people understand what the whole brand does, because a lot of our customers come into us on a specific category. So actually, it was the first time we could showcase everything we do, which is everything from socks through two jackets through two coats through to knitwear through to obviously what we're probably best known for, which is accessories. So it was a chance for everybody to see that in one place. And that was, has been very helpful because companies like Harrods and Selfridges have been very good in terms of developing with us and helping us develop into a more rounded brand and have given us space and given us support in London, and I think, you know, that has helped with that relationship. Yeah, I'm just as we're talking nosing around your website for the 10th time today. How much input do you have on the e commerce side? You know, by doing that, you're going to throw off all our metrics, we're going to be measuring why this person is spending so much time on the website. Yeah, where's the funnelling come from you and the e commerce side of our business and we're very fortunate we've got a really exceptional team, most of whom are based up here in Elgon, and it's not the obvious place to have a top class ecommerce team, but but they've been with us for a good length of time. And they've, they've got tremendous skills. We're seeing great growth on that before the crisis, actually, we've had an extremely good time during the crisis, as you can imagine, because people can get our products from shops, in many cases now. But obviously, on certain things, you know, we're, we're very closely associated as a brand with with comfort with home with loungewear. And all those things are quite pertinent at the moment, you know, so if you really want us to cocoon yourself up in Kashmir, well, while the world goes by, we can cater for that. We're also very, very well used for gifting. And a lot of what people have been doing is going out and sending, you know, a cashmere blanket to to a friend who's isolated or a pair of cashmere socks. And it's been nice to be able to put some things in place to support that and make it easier and maybe a bit more affordable as well. Good. I need some friends like that. I'm just mentally going through my Rolodex of friends thinking who's gonna send me a cashmere fro no one is, but the word cocoon or cosseted in cashmanager. Sounds like a beautiful way to spend a Sunday afternoon. You've got a you've got so many great garments on the website. I'm wondering do I don't know if you know this, but is there a certain portfolio that gets a lot more attention than something else? They like the home interiors, versus accessories etc. You know, the interesting thing is everybody has their own view of what we do. And everybody tends to come into one area and fall in love in that area and assume that's all we do. So you know, we do have people who, who just come in every year and they buy their new cashmere scarf, and they're very happy with that. And really don't look at the rest. We've got other people who are really loyal to us on knitwear. We've got people who have their entire homes, kitted out with Johnson's throws and fabric and rugs and all the rest of the stuff, which is which is lovely. And it is that I guess it is a brand which you you can form a relationship with you know, I mean, we we're very proud of the people that we have the craftsmanship, the stories that we can tell. And I think people connect with that and then want to get more into the brand and explore more areas with them. Yeah. Interesting. And I guess with the commerce side naturally then comes social media and how to leverage that to bring and generate traffic to the site. Do you indulge yourself with influencers at all? Does that have any bearing on the business? We do? Yeah. We've had some great interactions with influencers and I think influencers are generally very keen to be associated with with a manufacturer, you know, a lot of what they are interested in the industry is that manufacturing process, you know, they like to see raw cashmio being turned into a finished garment and to seal the manufacturing processes. So what we try to do is bring them up, show them around the mill, let them experience a little bit of memory and hospitality and so forth, and try and let them form a real relationship. We're not so interested in paying somebody to wear something or, you know, just just trying to associate a name we want, we want influences who have a genuine and authentic interest in what we do. And we're quite lucky that many of them do that. On the social media side, we've got a, we've got a brilliant person in house who deals with all of that. And it really helped because because a lot of what we do, post about and talk about is what's going on in the mill, you know, it's it's real stories, it's really important that that is somebody in house that they can they can glean all that information and understand what's going on. It's not something we could do outside. Yeah. Interesting. And I'm just also curious does because of the the history of johnstons of Elgin, do you have a royal warrant at all? We do we have the Royal warrant for estate tweets from Prince Charles called it's called a Jew kharrazian in Scotland. Yeah, and I'm curious about royal warrants, because it came up in a conversation earlier with a friend. What, what kind of cachet does that give a business? if any? No, it's a great Association. I mean, obviously, um, it's an eclectic group of brands that go in there, but they're all ones who've been selected by the royal family, as as you know, the best of the best. So it's something we're, we're very proud to be associated with is something that is increasingly recognised, I think it has taken on even more prominence as people try and cut their way through the sways of brands who are who are making claims you are, you know, you're trying to put on a story. And the market is crowded, I mean, there's there's so many brands out there that having something which really signifies that you are recognised by somebody independent and you can get much more independent than the royal family is, is very nice. And it does work particularly in Asian markets. Also in the American market, it's very helpful. And who would you say is the biggest demographic outside of the UK for you. Also the UK our biggest market is Japan. In Japan, we are very much associated with the Kashmir store. And and Japanese ladies love to wrap themselves up in in Johnson and Kashmir tartan store, a very traditional product for us. But one that, you know, is it's a very, very luxurious item. And we we have sold an awful lot of them into the Japanese market. And we are very, very appreciative of that custom. It's become quite an iconic product, you know, so the every every year, the well to do Japanese ladies will will go out and select the next product the next design for the season which is which is very, very gratifying for us. And it's almost the mark of the seasons when you start seeing the Kashmir stores coming out in Japan it says as iconic as the cherry blossoms in the spring. Oh, that's so sweet. God bless. That's really nice. I have a question. It's probably going off the grass a bit. But have you ever entertained the idea of or have you ever done as a brand suits and suiting I know you do the jackets, the shirts and coats, but have you ever done suits. We did a little bit of it. We decided it really wasn't suiting as we are a much more casual, relaxed brand. That's what our fibres suit. Our yarn production is a woollen yarn manufacturing process. So we do have a product that we make in house is naturally a more and more fibrous, more More, more fluffy yarn, then you would you would use for suits. So it's not a native product to us, we would use somebody else's yarn for that. And also we started to enter at the time when really the move towards casualization was was taking off. And of course there's brilliant British suiting brands and brilliant brilliant Italian suiting brands. But there is less and less demand out there as people go more casual in the workplace. So it was kind of the wrong time to be going in that direction. So we're really retrenched around, you know, gorgeous knitwear. Very comfortable clothing, relaxed jackets, relaxed fit trousers, you know, a much more casual or smart casual look interesting well Listen, Simon, thanks for taking time out of your day to walk me through the brand and the various facets and the various sections of Johnston's of Elgon. I find it fascinating I find the website beautiful the products look immense and I'm actually hovering over the the the book section as well as we speak. So again, it's gonna screw with your statistics a little bit of where this is coming from, but the analysts are gonna go crazy. I do like the fabrics of Scotland's got a foreword by Her Royal Highness. I'm all over that. I'm getting involved. We all have to send you a copy. That'd be great. tangentially Simon. I have to end this question because I wrote it down at the top before any other questions as a proud Scot is your favourite film Highlander or Braveheart? Haha. I'm not sure how much real Scottishness is in either the grey part. Yeah, good choice. All right, brilliant. Well, Simon, thanks again for your time. Bye for a lot. Take care. Bye. Take me away. Simon cotton, they're given the agony of choice Highlander. abreva. Which would you go? Anyway, that's it from me. Thank you, Simon for coming onto the show. Thank you for listening for sharing writing those lovely reviews on iTunes. It means a lot to us. In the meantime, stay safe and remember, it's only fashion people and you're never fully dressed without a smile.

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