Mcnaughton Holdings, the kilts to furniture fabric maker,
have announced a 300 per cent increase in sales as a result in a surge of
interest from super rich Russian oligarchs and the UK.
On this week’s Dian Skelton blog I will be discussing why
sales have surged for tartan producers and what this means for the industry.
Russia Overtaking
Germany
Dian Skelton is Director at ViewPoint Software Services Limited,
founder of the MostlyManx shop on the Isle of Man and co-owner
of the Laxey Woollen Mills. The Mills specialises in producing Laxey Manx
Tartan which is unique to the Isle of Man.
Mcnaughton Holdings reported a 15 per cent increase in sales
rising from £3.9 million to £4.2 million in the year to January. Of that
increase, exports made up around 44 per cent of sales for both years. The
growth can be attributed to Russia’s demand for high end furniture fabrics for
hotels.
After a long economic downturn, Managing Director Blair
Mcnaughton expressed his delight at seeing a significant growth in the sector.
Commenting on the sales increase last year he said, “Sales in the current year
to date are something like 200% up in Russia. That's a huge market for us.”
Focusing on Niche
Markets
Mr Mcnaughton said that their success has come about after
they decided to focus on niche markets last year having seen several years of
decline prior. Companies like Johnstons of Elgin, who specialise in cashmere
fabric, have also decided to focus on specialist markets with equally positive
results.
Mr Mcnaughton said, “We very quickly realised the only way
to go was by niching ourselves.” He also pointed out that there is a certain amount
of disclosure between Scottish firms whereby they share specific information or
leads that might benefit one another.
Mcnaughton Remains
Bullish
Despite positive sales figures Mr Mcnaughton was bullish
when commenting on the future. “Too many of the
company's overhead costs increased at rates that were greater than the Retail
Price Index with suppliers often attributing the inflation busting increases to
fuel and climate change costs.”
Dian Skelton’s Thoughts
Given Dian’s affiliation with the Laxey Woollen Mills and
Laxey Manx Tartan, she was keen to comment of the story. Dian said that she was
pleased to see such a significant growth in an industry that people don’t really
perceive as being lucrative or attractive.
She also praised the business foresight of companies like
Mcnaughton Holdings for recognising and adapting to changes in the market and
the need to focus on niche clients as a way forward. As a final comment she
said it was also great to see tartan remaining ever popular as a symbol of
tradition.
For more information of ViewPoint Software Services
please visit their Contact Page.
Dian Skelton – Director – ViewPoint
Software Services Limited
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