Scotland : Scottish Enterprise to target luxury Chinese market

Five of Scotland’s leading textile brands are visiting China this week as part of a long term strategy to target its rapidly expanding luxury consumer market.
Internationally renowned companies Begg Scotland, Holland & Sherry, Johnstons of Elgin, Mackintosh and Todd & Duncan will be participating in the trade mission to identify key market opportunities and how Scottish companies can successfully build a brand presence in China.
All of the companies already do a significant amount of business in Japan and the trade mission, led by Scottish Enterprise’s Textiles team, aims to inform the companies how they can expand their brand presence in the Far East.
China’s fashion and home interiors sector is worth approximately $92 billion and is growing at an annual average of 10% as a result of higher disposable incomes; increased purchasing power by young consumers; and the emergence of an aspirational class in China’s major cities.
One of the markets which is experiencing particularly strong growth is within the luxury retail market, giving Scotland’s leading cashmere and luxury brands an opportunity to reach a new audience for their brands.
During the mission, the Scottish companies will be meeting with top fashion agents and key luxury retailers to identify how they can best target this emerging market.
The companies will also meet with representatives of Scotland’s whisky industry to learn how they successfully increased their share of the consumer market within China from £1 million in 2001 to £58 million in 2006.

Kirsty Scott, Head of the Textiles team at Scottish Enterprise, says: “The decision to target the Chinese market is not a short term one for Scottish companies and will require a significant level of commitment.
Chinese consumers are very brand orientated and there is significant demand for luxury British brands. Scottish companies are looking at how they can build a distinctive brand through not only having the right products but also the right presentation, promotion and market positioning.
“However, with 700 million people expected to have joined the Chinese “consumer class” by 2020, there are significant opportunities for Scottish textiles companies if they can get the right combination.
This mission is designed to give them greater insight into the long term view of the market and also to help them make connections which will help them on their way to developing a strategy to grow their business in China.”