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0:11
Hello, and welcome to
0:11
another episode of the men's
0:13
wear style podcast. I'm your
0:13
host, Pete broca. How we're
0:16
doing this episode we're gonna
0:16
be talking to Simon cotton chief
0:20
executive of Johnston's of
0:20
Elgon. Johnston's about Oregon
0:24
has over 200 years of tradition
0:24
and experience in textile
0:28
manufacturing since 1797. The
0:28
company has produced the finest
0:33
woven products from the finest
0:33
of fibres. Over the years, they
0:37
have expanded their business and
0:37
extended the mill, but they've
0:40
also built a community, which
0:40
time and again has proved to be
0:45
their greatest asset. To date,
0:45
they employ 900 people in this
0:50
country alone and Simon has
0:50
graciously taken our time of the
0:54
day to talk about the company
0:54
and how it's dealing with the
0:57
pandemic, along with other
0:57
things. So that interview coming
1:01
up shortly in the meantime, make
1:01
sure you're checking out the
1:03
website menswear style dot coat
1:03
UK, that's where we put all the
1:06
show notes, all the links to
1:06
everything that we talked about
1:09
in the show. Also you have
1:09
lifestyle features, travel
1:11
features, what's going on with
1:11
the brands right now during this
1:14
crazy time, so make sure you're
1:14
checking that out. And if you
1:18
want to get in touch with me
1:18
here at the show, maybe you want
1:20
to be a guest maybe you want to
1:20
come on and talk about your
1:22
brand. It's info at menswear.
1:22
style.co.uk Okay, here is that
1:28
interview with Simon cotton
1:28
chief executive of johnstons.
1:40
It's my great pleasure to
1:40
introduce to the podcast Simon
1:43
cotton chief executive of
1:43
Johnston's of Elgon. How it is
1:47
today, Simon. Very good. Thank
1:49
you. Excellent whereabouts in the world are you? I'm up in Elgon. I'm just five
1:51
minutes away from our mill which
1:55
is closed at the moment. So I'm
1:55
working from home. But I am in a
1:59
beautiful part of the country
1:59
overlooking the barley fields
2:02
and a small Scottish castle. So
2:02
it's not a bad location.
2:05
It sounds since very
2:05
picturesque. And for the people
2:08
that can't obviously see the
2:08
recording. There's a nice sliver
2:10
of sunlight coming in through
2:10
your window and if sitting is a
2:14
glorious day as clearly always
2:14
as a glorious day up here in
2:17
Marion, Scotland. So Simon,
2:17
maybe if you can just give us a
2:23
thumbnail sketch of view. I know
2:23
Johnston's of Elgon has got a
2:26
huge history so I won't ask you
2:26
to kind of go into the entire
2:31
backlog but maybe what you do
2:31
within the company and how the
2:36
company is in its current state. So I'm the chief executive I
2:38
have been for six years. So our
2:44
operation consists of to
2:44
manufacture two major
2:47
manufacturing plants and a
2:47
couple of satellites where we
2:50
make woven products and knitted
2:50
products so we have the woven
2:54
products up in Elgon, the
2:54
knitted products down in hike.
2:57
And we also have our own retail
2:57
our own coffee shops and but the
3:03
majority of our business is
3:03
manufacturing for some of the
3:06
world's top luxury brands. So we
3:06
are we are largest as a private
3:11
label supplier to luxury brands.
3:11
about one third of our business
3:15
is our own brand. I see. And so for the people
3:16
that are uninitiated what luxury
3:21
brands would these be? Well, we don't talk about them.
3:23
They talk about us. But if you
3:26
imagine the the best brands that
3:26
you will see on Bond Street or
3:30
any other world's top shopping
3:30
streets, we're probably
3:33
supplying around about two
3:33
thirds of those
3:36
interesting, amazing and where
3:36
do we source the Kashmir? Is it
3:42
local to Elgon? No Kashmir, Kashmir, you get a
3:45
tiny tiny amount from every
3:49
Kashmir ago. So you get about
3:49
200 grammes on average for
3:52
Kashmir goats. So we need our
3:52
there needs to be a huge grazing
3:58
area for Kashmir. So it is
3:58
generally grown in Mongolia and
4:03
Inner Mongolia region of China,
4:03
a little bit in places like
4:06
Afghanistan as well. And it is a
4:06
vast, vast area that Kashmir
4:11
herding happens over tends to be
4:11
very poor land that's not
4:15
suitable for much else with
4:15
really extreme winters which
4:18
make the fibre the under down
4:18
which is what we want to become
4:23
very, very thin, very fine, very
4:23
soft, and give the animal a lot
4:27
of protection during the winter.
4:27
And it's cold in the springtime.
4:31
So as as the fibre starts to
4:31
float, the animal wants to lose
4:36
that the herders will comb that
4:36
fibre from the animal and it
4:42
will can retain the guard hair.
4:42
So it's a very long traditional
4:47
process has been going for
4:47
hundreds of years within a lot
4:50
of cases traditional nomadic
4:50
herding practices behind it so
4:54
it's not something we could do
4:54
in scale here in Scotland. That
4:58
has been attempted before the
4:58
climate tends to be Believe it
5:00
or not a little bit warm here.
5:00
And actually, you do need those
5:04
extreme temperatures of down to
5:04
minus 30. Or you need very,
5:08
very, very good genetics, there
5:08
are some attempts, or there are
5:11
some really good work being done
5:11
with a small herd in England and
5:15
also one in New Zealand now to
5:15
develop those genetics that you
5:18
could do it even without the
5:18
extreme temperatures.
5:20
That's interesting. And so just
5:20
dial me back a little bit. So
5:24
you've been with the company six
5:24
years, how did you get
5:26
ingratiated into Johnston's
5:26
evolving?
5:30
Yeah, well, I like to tell what
5:30
taught it sorry that it was it
5:33
was a little like getting Willy
5:33
Wonka's golden ticket, because I
5:36
mean, in textile manufacturing
5:36
is kind of a dream job. I'd been
5:41
in textiles for 11 years
5:41
previously, with a company
5:44
called Russell Corporation who
5:44
make Russell athletic and some
5:47
other brands as well. So very
5:47
much at a different end of the
5:50
of the market, much more
5:50
sportswear, promotional wear,
5:53
corporate, where that type of
5:53
thing. So I've done that for 11
5:57
years, I had managed companies
5:57
making kitchen sinks for five
6:01
years. And I've done a lot of
6:01
international work, brand
6:05
development, work marketing,
6:05
product development, that that
6:07
kind of thing. So I had done a
6:07
lot of things that we do in
6:11
Johnson's, but there's no job
6:11
that's really similar to it, to
6:15
be honest, in terms of the the
6:15
variety and the breadth of
6:18
things that you need to you need
6:18
to be able to do.
6:21
Interesting. And so the the term
6:21
chief executive, can you just
6:26
give us a little insight into
6:26
what it is that you do with
6:29
Johnson's amalgam now? Yeah.
6:33
I look after the team who looks
6:33
after the various bits of the
6:37
business. So my top team
6:37
consists of operations directors
6:42
for the two for the two Mills,
6:42
our finance director, our sales
6:46
director, our retail director,
6:46
a, a marketing director, and our
6:53
creative director, so sorry, and
6:53
an HR director, probably the
6:58
most important right at this
6:58
moment. But yes, it's a it's
7:02
it's really about coordinating
7:02
that team, making sure all our
7:05
various operations are going in
7:05
the right direction, and looking
7:09
after the strategic development
7:09
of the business. So I need to
7:13
ask the elephant in the room
7:14
question. How is the pandemic
7:18
affecting Johnston's Elgon now,
7:18
and what's the state of play
7:22
there? Yeah, we closed down operations
7:24
earlier in March. So we had to,
7:30
I should say, That's not a COVID
7:30
related call thing. We closed
7:35
down operations earlier in
7:35
March. So we have been locked
7:39
down in hibernation whatever
7:39
term we want to use, really,
7:43
since. Since the 20th of March,
7:43
we closed retail and the 23rd of
7:50
March, we closed our
7:50
manufacturing operations. So
7:53
we're well into that process.
7:53
Now. out of our 1000 employees
7:58
around about 960 are furloughed,
7:58
and at home at the moment, and
8:02
of the remaining 14 most of
8:02
those are at home as well.
8:05
working from home like myself. I see.
8:09
And I guess it's it's a worrying
8:09
time for everyone. And is there
8:15
any kind of light at the end of
8:15
the tunnel? Is there anything
8:18
that you guys can be doing in
8:18
the meantime, taking stock,
8:21
paying more attention to digital
8:21
campaigns, etc?
8:26
Yeah, I mean, we are big digital
8:26
businesses is doing very well.
8:30
We're still communicating with
8:30
customers, we're still,
8:33
obviously there's certain things
8:33
that we need to do around
8:35
maintenance, etc. But most of
8:35
the operations depend on on
8:39
having manufacturing running. So
8:39
you know, until manufacturing,
8:43
running again, it will be very
8:43
quiet. Doesn't necessarily feel
8:48
very quiet at the moment, because there is a lot of strategic planning going on.
8:49
There's a lot of preparations
8:52
needing to be done for whenever
8:52
the eventual return to work is.
8:56
And we're doing a few bits and
8:56
pieces, like for example, where
9:00
we're now getting into a
9:00
situation where we can make
9:03
samples again, and we can do
9:03
things like that we're doing a
9:06
little bit of scrub manufacturer
9:06
for local NHS, facilities,
9:11
primary care facilities, things
9:11
like that. So there is a there's
9:14
a lot of activity, but it's not
9:14
the normal activity that we
9:17
would do you know, we've not got
9:17
any, we've not got any weaving
9:20
going at the moment. We haven't
9:20
got any knitting going at the
9:22
moment. And yeah, it's a very,
9:22
very different business for the
9:26
time being. Yeah, I know about interesting.
9:27
And talk to me a little bit
9:32
please about the the website and
9:32
also you had the flagships or a
9:36
store in London on Bond Street,
9:36
and how, how is that performing?
9:42
Or, you know, up until this this
9:42
pandemic, how is that going on
9:46
in London for you? Yeah, lung
9:49
has been very good for us. It
9:49
was a it was a step at the time
9:53
because I mean, we best been
9:53
known as a manufacturer and
9:55
we've been developing the brand
9:55
as a real brand, very hard over
10:02
the last five, six years. We
10:02
established Bond Street a few
10:05
years ago. And it was it was
10:05
considered a risk at the time
10:09
buyers. What was really
10:09
gratifying was that people who
10:12
knew or said, Well, why is it
10:12
taking you so long? Because we
10:16
have been, you know, known as
10:16
the the best kept secret in
10:19
British textile manufacturing.
10:19
You know, we've redone the brand
10:23
behind the brands for many, many
10:23
years. And it was really
10:28
gratifying that everybody
10:28
responded to it very well and
10:30
said, Well, actually, you know,
10:30
you guys should be here. So that
10:33
was nice. Yeah. And I guess I mean, before
10:34
that you have concessions, I
10:39
don't know if that's the right
10:39
word in fortnum, Mason, liberty,
10:43
and etc. So it must have been
10:43
something of a leap of faith to
10:47
get some bricks and mortar in
10:47
London under your own name.
10:50
Yes, it's helped. It's helped us
10:50
It helps people understand what
10:55
the whole brand does, because a
10:55
lot of our customers come into
10:58
us on a specific category. So
10:58
actually, it was the first time
11:02
we could showcase everything we
11:02
do, which is everything from
11:05
socks through two jackets
11:05
through two coats through to
11:08
knitwear through to obviously
11:08
what we're probably best known
11:11
for, which is accessories. So it
11:11
was a chance for everybody to
11:16
see that in one place. And that
11:16
was, has been very helpful
11:20
because companies like Harrods
11:20
and Selfridges have been very
11:24
good in terms of developing with
11:24
us and helping us develop into a
11:29
more rounded brand and have
11:29
given us space and given us
11:32
support in London, and I think,
11:32
you know, that has helped with
11:36
that relationship. Yeah, I'm just as we're talking
11:37
nosing around your website for
11:42
the 10th time today. How much
11:42
input do you have on the e
11:46
commerce side? You know, by doing that, you're
11:48
going to throw off all our metrics, we're going to be
11:50
measuring why this person is
11:52
spending so much time on the website. Yeah, where's the funnelling come from
11:53
you and the e commerce side of our
11:57
business and we're very
12:00
fortunate we've got a really
12:00
exceptional team, most of whom
12:04
are based up here in Elgon, and
12:04
it's not the obvious place to
12:07
have a top class ecommerce team,
12:07
but but they've been with us for
12:11
a good length of time. And
12:11
they've, they've got tremendous
12:13
skills. We're seeing great
12:13
growth on that before the
12:18
crisis, actually, we've had an
12:18
extremely good time during the
12:21
crisis, as you can imagine,
12:21
because people can get our
12:24
products from shops, in many
12:24
cases now. But obviously, on
12:28
certain things, you know, we're,
12:28
we're very closely associated as
12:32
a brand with with comfort with
12:32
home with loungewear. And all
12:37
those things are quite pertinent
12:37
at the moment, you know, so if
12:41
you really want us to cocoon
12:41
yourself up in Kashmir, well,
12:45
while the world goes by, we can
12:45
cater for that. We're also very,
12:50
very well used for gifting. And
12:50
a lot of what people have been
12:54
doing is going out and sending,
12:54
you know, a cashmere blanket to
12:58
to a friend who's isolated or a
12:58
pair of cashmere socks. And it's
13:03
been nice to be able to put some
13:03
things in place to support that
13:06
and make it easier and maybe a
13:06
bit more affordable as well.
13:10
Good. I need some friends like
13:10
that. I'm just mentally going
13:14
through my Rolodex of friends
13:14
thinking who's gonna send me a
13:16
cashmere fro no one is, but the
13:16
word cocoon or cosseted in
13:21
cashmanager. Sounds like a
13:21
beautiful way to spend a Sunday
13:24
afternoon. You've got a you've
13:24
got so many great garments on
13:28
the website. I'm wondering do I
13:28
don't know if you know this, but
13:31
is there a certain portfolio
13:31
that gets a lot more attention
13:35
than something else? They like
13:35
the home interiors, versus
13:39
accessories etc. You know, the interesting thing
13:41
is everybody has their own view
13:45
of what we do. And everybody
13:45
tends to come into one area and
13:49
fall in love in that area and
13:49
assume that's all we do. So you
13:53
know, we do have people who, who
13:53
just come in every year and they
13:57
buy their new cashmere scarf,
13:57
and they're very happy with
13:59
that. And really don't look at
13:59
the rest. We've got other people
14:03
who are really loyal to us on
14:03
knitwear. We've got people who
14:07
have their entire homes, kitted
14:07
out with Johnson's throws and
14:10
fabric and rugs and all the rest
14:10
of the stuff, which is which is
14:14
lovely. And it is that I guess
14:14
it is a brand which you you can
14:20
form a relationship with you
14:20
know, I mean, we we're very
14:23
proud of the people that we have
14:23
the craftsmanship, the stories
14:28
that we can tell. And I think
14:28
people connect with that and
14:33
then want to get more into the
14:33
brand and explore more areas
14:37
with them. Yeah. Interesting. And I guess
14:37
with the commerce side naturally
14:43
then comes social media and how
14:43
to leverage that to bring and
14:46
generate traffic to the site. Do
14:46
you indulge yourself with
14:50
influencers at all? Does that
14:50
have any bearing on the
14:53
business? We do? Yeah.
14:55
We've had some great
14:55
interactions with influencers
14:58
and I think influencers are
14:58
generally very keen to be
15:02
associated with with a
15:02
manufacturer, you know, a lot of
15:05
what they are interested in the
15:05
industry is that manufacturing
15:09
process, you know, they like to
15:09
see raw cashmio being turned
15:12
into a finished garment and to
15:12
seal the manufacturing
15:16
processes. So what we try to do
15:16
is bring them up, show them
15:20
around the mill, let them
15:20
experience a little bit of
15:23
memory and hospitality and so
15:23
forth, and try and let them form
15:27
a real relationship. We're not
15:27
so interested in paying somebody
15:31
to wear something or, you know,
15:31
just just trying to associate a
15:36
name we want, we want influences
15:36
who have a genuine and authentic
15:40
interest in what we do. And
15:40
we're quite lucky that many of
15:44
them do that. On the social
15:44
media side, we've got a, we've
15:48
got a brilliant person in house
15:48
who deals with all of that. And
15:53
it really helped because because
15:53
a lot of what we do, post about
15:57
and talk about is what's going
15:57
on in the mill, you know, it's
16:00
it's real stories, it's really
16:00
important that that is somebody
16:03
in house that they can they can
16:03
glean all that information and
16:07
understand what's going on. It's not something we could do outside.
16:09
Yeah. Interesting. And I'm just
16:09
also curious does because of the
16:15
the history of johnstons of
16:15
Elgin, do you have a royal
16:17
warrant at all? We do we have the Royal warrant
16:19
for estate tweets from Prince
16:25
Charles called it's called a Jew
16:25
kharrazian in Scotland. Yeah,
16:30
and I'm curious about royal
16:30
warrants, because it came up in
16:33
a conversation earlier with a
16:33
friend. What, what kind of
16:36
cachet does that give a
16:36
business? if any?
16:39
No, it's a great Association. I
16:39
mean, obviously, um, it's an
16:44
eclectic group of brands that go
16:44
in there, but they're all ones
16:46
who've been selected by the
16:46
royal family, as as you know,
16:50
the best of the best. So it's
16:50
something we're, we're very
16:53
proud to be associated with is
16:53
something that is increasingly
16:59
recognised, I think it has taken
16:59
on even more prominence as
17:02
people try and cut their way
17:02
through the sways of brands who
17:06
are who are making claims you
17:06
are, you know, you're trying to
17:09
put on a story. And the market
17:09
is crowded, I mean, there's
17:13
there's so many brands out there
17:13
that having something which
17:16
really signifies that you are
17:16
recognised by somebody
17:22
independent and you can get much
17:22
more independent than the royal
17:24
family is, is very nice. And it
17:24
does work particularly in Asian
17:29
markets. Also in the American
17:29
market,
17:32
it's very helpful. And who would
17:32
you say is the biggest
17:36
demographic outside of the UK
17:36
for you.
17:40
Also the UK our biggest market
17:40
is Japan. In Japan, we are very
17:44
much associated with the Kashmir
17:44
store. And and Japanese ladies
17:49
love to wrap themselves up in in
17:49
Johnson and Kashmir tartan
17:53
store, a very traditional
17:53
product for us. But one that,
17:56
you know, is it's a very, very
17:56
luxurious item. And we we have
18:01
sold an awful lot of them into
18:01
the Japanese market. And we are
18:05
very, very appreciative of that
18:05
custom. It's become quite an
18:09
iconic product, you know, so the
18:09
every every year, the well to do
18:15
Japanese ladies will will go out
18:15
and select the next product the
18:20
next design for the season which
18:20
is which is very, very
18:24
gratifying for us. And it's
18:24
almost the mark of the seasons
18:28
when you start seeing the
18:28
Kashmir stores coming out in
18:30
Japan it says as iconic as the
18:30
cherry blossoms in the spring.
18:33
Oh, that's so sweet. God bless.
18:33
That's really nice. I have a
18:39
question. It's probably going
18:39
off the grass a bit. But have
18:41
you ever entertained the idea of
18:41
or have you ever done as a brand
18:44
suits and suiting I know you do
18:44
the jackets, the shirts and
18:47
coats, but have you ever done suits. We did a little bit of it. We
18:50
decided it really wasn't suiting
18:55
as we are a much more casual,
18:55
relaxed brand. That's what our
18:59
fibres suit. Our yarn production
18:59
is a woollen yarn manufacturing
19:05
process. So we do have a product
19:05
that we make in house is
19:10
naturally a more and more
19:10
fibrous, more More, more fluffy
19:16
yarn, then you would you would
19:16
use for suits. So it's not a
19:19
native product to us, we would
19:19
use somebody else's yarn for
19:22
that. And also we started to
19:22
enter at the time when really
19:26
the move towards casualization
19:26
was was taking off. And of
19:29
course there's brilliant British
19:29
suiting brands and brilliant
19:34
brilliant Italian suiting
19:34
brands. But there is less and
19:37
less demand out there as people
19:37
go more casual in the workplace.
19:41
So it was kind of the wrong time
19:41
to be going in that direction.
19:44
So we're really retrenched
19:44
around, you know, gorgeous
19:48
knitwear. Very comfortable
19:48
clothing, relaxed jackets,
19:51
relaxed fit trousers, you know,
19:51
a much more casual or smart
19:56
casual look interesting well Listen, Simon,
19:58
thanks for taking time out of
20:01
your day to walk me through the
20:01
brand and the various facets and
20:04
the various sections of
20:04
Johnston's of Elgon. I find it
20:09
fascinating I find the website
20:09
beautiful the products look
20:13
immense and I'm actually
20:13
hovering over the the the book
20:17
section as well as we speak. So
20:17
again, it's gonna screw with
20:20
your statistics a little bit of
20:20
where this is coming from, but
20:23
the analysts are gonna go crazy. I do like the fabrics of
20:25
Scotland's got a foreword by Her
20:28
Royal Highness. I'm all over
20:28
that.
20:30
I'm getting involved. We all
20:30
have to send you a copy.
20:35
That'd be great. tangentially
20:35
Simon.
20:37
I have to end this question because I
20:38
wrote it down at the top before
20:40
any other questions as a proud
20:40
Scot is your favourite film
20:44
Highlander or Braveheart? Haha.
20:50
I'm not sure how much real
20:50
Scottishness is in either the
20:55
grey part. Yeah, good choice. All right,
20:56
brilliant. Well, Simon, thanks
20:59
again for your time. Bye for a lot.
21:01
Take care. Bye. Take me away. Simon cotton, they're given the
21:05
agony of choice Highlander.
21:08
abreva. Which would you go? Anyway,
21:11
that's it from me. Thank you,
21:11
Simon for coming onto the show.
21:14
Thank you for listening for
21:14
sharing writing those lovely
21:18
reviews on iTunes. It means a
21:18
lot to us. In the meantime, stay
21:22
safe and remember, it's only
21:22
fashion people and you're never
21:25
fully dressed without a smile.
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