Customers cotton on to shirt firm's quality

Wednesday 17 February 2010

It could be said that Karl Dunkley’s business plan is on the button. His shirts are manufactured in Northern Ireland’s North West, with its rich textile heritage and unrivalled skills, while his retail outlets sit amongst London’s finest brands in Mayfair and Piccadilly. The result: a business that is collaring prestigious contracts and has big plans up its sleeve.

Grosvenor Shirts was founded in 1999 by Dunkley and business partner John Quigley when they established their whollyowned manufacturing facility in Strabane, a town where shirts have been made since the 1800s. Initially retailing through a concession in London's Selfridges, offering made to measure shirts, they opened their first standalone store off New Bond Street, Mayfair in 2004. The St James's Street, Piccadilly outlet was launched last year.

The company employs 25 in Northern Ireland, primarily making high-end men's shirts that retail for as much as £200, as well as women's blouses and men's boxer shorts. All of the company's fabrics are designed in-house and manufactured in Strabane.

Grosvenor is one of Northern Ireland's few remaining shirt companies. It operates in what was once a thriving sector. It has survived by targeting the top end of the market, developing its own strong brand, and focusing on innovation. Indeed, many of its fabric designs are patented products.

The firm has been working hard to enhance manufacturing capability in Strabane and has been reaping the rewards. It recently signed a licence agreement to design and manufacture luxury formal shirts for each country that has qualified for the 2010 FIFA World Cup in South Africa.

Grosvenor was appointed by Global Brands Group, FIFA's exclusive worldwide master licensee. And Dunkley is confident the deal will be a springboard to further international success for the company.
"Our goal is to develop franchisee initiatives on a global basis. This contract has given us a profile and prestige that will help us to do that," he says.

"Winning the contract is a massive endorsement of our design abilities, as well as of the quality of our manufacturing. We're already talking to potential partners in various international locations and, since announcing the new contract, we've had approaches from a number of others." Northern Ireland Enterprise Minister, Arlene Foster, was equally enthusiastic about the new FIFA deal, saying recently:

"The local textiles sector has faced many difficulties over the past decade, but Grosvenor Shirts' focus on quality products, strong design and branding, and diversification has allowed it to retain market share".

Karl Dunkley is originally from the south of England, but has spent a significant proportion of his professional life on this side of the Irish Sea, including as director of The Donegal Shirt Company for a number of years. As a result, he was well aware of the capabilities of the North West's textiles industry. When he left The Donegal Shirt Company to set up his own business, he says Strabane was the natural choice for a manufacturing base.

"The North West's textile history is world renowned. By locating there, we could benefit from significant local expertise as well as the prestige of having our manufacturing base there. Other textiles businesses in the North West have disappeared due to cheaper labour available elsewhere, but when your focus is on quality and the higher end of the market, it makes absolute sense to be making shirts in Strabane," he adds.
The fact that the company is still manufacturing in the North West after 10 years and is continuing to invest in the Strabane facility shows that Dunkley's words are no off-the-cuff remark.

BusinessBite.co.uk talks further to Karl Dunkley of Grosvenor Shirts about the FIFA contract and the company's plans for the future

What was the most important factor in Grosvenor winning the FIFA contract?
I feel that the most important factor was a well thought out plan. This included not just the designs of the shirt, it also took in the marketing plan, the sales plan, and the overall collection; being 210 shirts for each country. This, together with our ability to move quickly on the project, as we have our own factory in Strabane.

Have you any advice for other Northern Ireland companies hoping to secure prestigious international contracts like this one?
For Northern Ireland companies, I feel that the future is in the high end sector. We all know that the cost of production overseas can be considerably lower than in the UK. It's important for Northern Ireland companies to create innovative products and services.

What is going to be the most important factor in being able to meet your objectives to develop franchise agreements around the world?
To obtain franchises, you need to have a complete collection, not just a single product. We have a total collection of men's and ladies' shirts, ties, sock, boxer shorts, cuff links, pyjamas, robes and a full made to measure service (made in just two weeks). These are all made in the UK. The made-to-measure service is attractive for franchise, as the capital employed is greatly reduced. We have already received initial enquiries from India and the Gulf.

Which countries are you targeting and why?
In addition to India and the Gulf, we are targeting Russia, China, Japan and Africa. With our retail store in London, we attract many international customer from these countries.

Where do you hope the company will be in five years time and 10 years time?
In five years, we aim to to have 10 Grosvenor stores around the world in key cities and to have Grosvenor stocked in major luxury department stores. In 10 years, we intent to have Grosvenor as a world recognised brand.

Who do you admire most in business?
It's hard to say who I admire the most. I prefer to observe and listen to many people and take out the best parts.

What's the best piece of advice you've ever been given?
The best advice I have been given is to be honest in all aspects of business, including with customers, suppliers, and bankers.