LEEDS FASHION INCUBATOR & BUSINESS SUPPORT - STUDY AND RECOMMENDATIONS

A vision for a Leeds Fashion Centre

CENTRE FOR FASHION ENTERPRISE

19.10.16.

Centre for Fashion Enterprise, London Contact Louise Mullane Enterprise Project Manager London College of Fashion, University of the Arts London E: [email protected]

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FOREWORD

The Centre for Fashion Enterprise (CFE) are pleased to have been commissioned by Leeds City Council (LCC) to propose a three year strategy for incubation and business support for emerging brands and designers within Leeds and the wider city region’s fashion community.

Following visits, meetings, interviews, focus groups and surveys conducted earlier this year, an analysis of this information and opinions gathered, it is apparent that there is a strong will from stakeholders, to nurture new Fashion Designer talent in Leeds, which in turn will enhance Leeds’ credentials as a cultural and creative city along with creating new companies and employment in the area. The opinion of the CFE is that the ambition should be for a programme of support via a new Leeds Fashion Centre that works in partnership with stakeholders to motivate and support the future fashion business founders at Pre- start-up phase, while providing networking and sector specific business support to the existing start-ups and later- stage businesses. This report explores opportunities to develop new Leeds brands and designers, while Leeds Business Improvement District aims to promote the Leeds fashion industry. Development of the textile industry, though mentioned in this report, will be explored separately. By proposing this end-to-end development strategy, which we have also addressed in our Recommendations, we hope to drive the growth of sufficient critical mass of stakeholder support.

Vision: This Report sets out how the proposed Leeds Fashion Centre (Centre) will be the first dedicated fashion designer incubator in the North of England. The report will recommend to: o identify a fashion leader and establishment of a Steering Committee comprising local fashion stakeholders, supported by national and international influencers playing the role of Leeds’ champions; o to commission research studies to demonstrate the economic and social impact of the Leeds’ fashion sector and particularly its spill-over effect into textiles, education, tourism etc., which will in turn provide impact evidence to support bids for funding locally, nationally and internationally); o secure partners who can provide access to funding, access to workspace, access to equipment, textile (and other) sponsorships, access to retail opportunities (e.g. collaborations and pop-ups); o create and deliver a marketing strategy for the Leeds Fashion Centre; o research and maintain a database of Leeds fashion businesses; o create a Leeds Fashion Centre membership structure; o provide access to mentors and experts; o facilitate internships with local fashion businesses; o facilitate recruitment of a local skilled fashion workforce; o create a dynamic calendar of networking events; and o create an incubator to ensure a sustainable pipeline of Leeds fashion talent to build the local fashion eco-system and be a showcase for the Centre.

Mission: The Leeds Fashion Centre will provide a supportive business growth &, development hub and networks for Leeds’ new emerging fashion designer eco-system. It will also attract designers from the region to set up their business in Leeds, reaching out to a Yorkshire wide innovation and supply chain. It will accelerate the launch of outward and internationally facing Fashion Designer businesses, and will create: o Positive economic impact through sales revenues and jobs created; o Social impact through achievement and tackling social exclusion issues for lone workers; o Economic impact through contributing to Leeds’ reputation as a vibrant place to visit, live in and work in; o Cultural impact through design, self expression and exchange of knowledge. 2

Timescale: The Leeds Fashion Centre will have an initial three year pilot phase, potentially seed-funded by Leeds City Council, enabling strategies for building partnerships and securing new funding streams to secure the long term sustainability for the Centre.

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1.0 INTRODUCTION

This Report is the outcome of a research and strategic vision project undertaken by Centre for Fashion Enterprise contributing to the overall Leeds Fashion Strategy, specifically in the Heritage and Development strand, and nurturing the fashion design talent pipeline.

Its objectives are to: o Assess the nature of the current fashion talent pipeline and fashion design businesses, and identify the challenges inhibiting growth. o Recommend business support solutions1 to tackle the identified challenges.

This Report provides an assessment of the: o Scale and characteristics of the fashion talent pipeline in Leeds; o Challenges for fashion designer2 businesses located in and around Leeds; o Past and present regional support activities; and finally o Recommendations for the development of fashion business support in the form of a Leeds Fashion Centre to nurture and support more fashion design talent to choose Leeds as a viable place to run their businesses.

1.1 Leeds City Council

A vibrant economy and a culturally diverse and aware city are central to Leeds’ bid to be European Capital of Culture 20233. Leeds aspires to be a vital, inclusive, creative city for fashion with an associated increase in jobs, skills and business capacity. Leeds has a strong heritage in textile and a long standing history in clothing manufacturing which dates back to the 1800s. The city is keen to build on its history and tradition through current and future work with textile, clothing and fashion companies. It is important that Leeds City Council continue to support the creation of new business and the growth of small business in line with LCC’s vision for ‘More Jobs, Better Jobs’ (a series of research projects to look at how Leeds can better link policy and interventions aimed at supporting economic growth and tackling poverty) so that Leeds retain skilled, talented people to help drive economic growth.

1.2 Leeds BID

Leeds Business Improvement District (BID) is a private sector-led development which covers Leeds City Centre. Its three key aims are (i) to raise standards, (ii) raise awareness and (iii) add value by doing more things better for the benefit of all the businesses in the BID area. Fashion is a useful vehicle for helping to achieve these aims; Leeds BID wants more people to enjoy the city longer and create greater prosperity

1 Examples of potential solutions could be specialist business support programmes, short course training, access to sampling unit, development of an incubator. 2 Fashion designer business for the purposes of this project and Report is defined as a business that designs and sells fashion product (ready-to-wear, bespoke, accessories and footwear) as its core business. Some of the businesses may also undertake manufacturing itself, but this is often outsourced. 3 At the time of writing this report it is not know whether this bid will still be taking place

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for all its businesses and citizens. Leeds BID is keen to work with others in a strategic way and to invest in projects (like fashion) that will make the city a trailblazer for innovation in its welcome, environment, opportunity, diversity and range.

The Leeds Fashion Strategy presents the BID with the opportunity to build on past successes while creating new opportunities for private and public sector to help promote the fashion and retail sector.

1.3 Background to the Leeds Fashion Strategy

Led by Leeds City Council, the Leeds Fashion Strategy has been an ambition stirring since 2012 at an initial meeting of 100 local fashion stakeholders4. Since then the city has seen award winning fashion retail developments opening (Trinity won the ‘World’s Best Designed Shopping Centre In The World Award 20135), a new Fashion Design degree course launch at Leeds Beckett University in 2014, two further fashion courses launching at University of Leeds and Leeds Beckett University in September 2016, and fashion start-up business support being piloted in Leeds by the Centre for Fashion Enterprise in 2014 and 2016 with local partners.

Not wanting to lose momentum, and recognising that fashion can be a significant contributor to the image and economy of Leeds as a great place to live, do business, and work in, a Steering Committee6 led by Leeds City Council is progressing with the vision to make Leeds “The Fashion Capital of the North”. This vision focuses on how fashion can contribute to economic development by creating/developing an infrastructure that will allow for fashion businesses to be based in Leeds and retaining fashion graduates from the strong courses at the city’s universities.

To deliver on this vision, the local fashion sector has been divided into three key strands7: Retail, Heritage & Development and Events. The thinking behind this is to have clear defined areas that benefit levy-payers in different ways including driving footfall and sales, building the Leeds brand and providing the ‘experience’ part of the BID plan.

Retail - This strand is all about driving footfall to Leeds city centre fashion retailers. Promotional campaigns will be created that focus on the brilliant fashion retailers in the city. With John Lewis arriving in 2016 it is the perfect story to attach the extended retail offer to. The aim is to strike a good balance between the flagship retailers such as Harvey Nichols & House of Fraser and the world class independents such as The Chimp Store & The Hip Store.

Events - There are already a number of ‘low-quality’8 or small-scale fashion events that take place in the city. Most of these have been one-off events that have not managed to gain enough traction to develop into ongoing, sustainable activities. The Events part of the Leeds Fashion Strategy will aim to provide an overall events strategy (and support for the right existing activities) but the main focus will be around creating two main events – first, a fashion event that showcases talent, technology, manufacturing, marketing, etc., which

4 Minutes from the Leeds Fashion Strategy Steering Committee Meeting 22.04.16. 5 http://www.chapmantaylor.com/en/projects/detail/trinity-leeds/en/ 6 Full list of the Steering Committee members is provided in Annex 1 7 The following text about Retail, Events, and Heritage & Development strands has been extracted from an internal document titled ‘Leeds Fashion Plan’ by Hebe Works, 02.03.16. 8 Defined as low quality by the Steering Committee driving the Leeds Fashion Strategy

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will take place during Live At Leeds Creative Week and secondly, a retail led fashion event programme in the autumn (perhaps to coincide with the Victoria Quarter shopping affair).

Heritage & Development – For the purposes of the internal strategy document these two have been grouped together as they are perhaps the most ‘intangible’ of the plan, but are vital to the overall narrative of Leeds as an important city for fashion. Projects will be created highlighting the heritage of fashion retail in the city and showcasing brands such as Marks & Spencer, Burtons, Arcadia and Nicolas Deakins, while drawing in the fact that Burberry are moving to the city. As well as helping the fashion sector this will also have a big impact on international audiences and give Visit Leeds some great material to work with.Visit Leeds some great material to work with. The Heritage & Development strand will focus on the narrative for Leeds fashion sector on a national and international level. It is about telling the story of the city’s heritage in textiles and retail innovation (M&S/Burton/Arcadia). It will also focus on future talent, developing the next wave of retailers, designers and creative talent coming through as well as the arrival of Burberry. The intention is to work with the colleges, universities and CFE on creating the right pathways of talent to market. Key stakeholders include: Leeds College of Art, CFE, Leeds City Council, Burberry, Leeds University, Leeds Beckett University, Schools.

It is intended that the Leeds Fashion Development Strategy should cover the Leeds City Region (not just the city centre) which would also include surrounding areas such as Huddersfield and Bradford – more info here: http://www.the-lep.com/.

1.4 Centre for Fashion Enterprise at London College of Fashion

The CFE has been piloting fashion designer business support in Leeds with local partners over the past two years and has instilled confidence in its know-how and expertise from local stakeholders, which has led to Leeds City Council commissioning the CFE to undertake the research described in this Report and to propose a set of Recommendations and an Outline Strategy for Leeds to develop a business support strategy unique to the Leeds fashion environment. This Report is the culmination of the research work carried out as part of the commission. It aims to provide informed expert recommendations for establishing an effective business support strategy.

The CFE is a pioneering strategic business development initiative that incubates, supports and develops leading emerging designer labels in the luxury and high end fashion sectors. The CFE’s team of industry specialists deliver bespoke support to fashion businesses. In London they offer a unique 360° business growth support model which includes studio accommodation and resources, expert mentoring teams, legal and financial advice, marketing and international trading assistance. The CFE boasts a past and present roster of international designers including Erdem, Peter Pilotto, Christopher Raeburn, Holly Fulton, Craig Green, Marques ‘ Almeida and Mary Katrantzou and has established a strong track record in escalating the economic and employment growth of the businesses they support.

It has an unrivalled place in the fashion sector, integral to London College of Fashion (LCF), part of University of the Arts London, where it has been based since 20039.

9 http://www.arts.ac.uk/fashion/

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1.5 Leeds Fashion Incubator & Business Support research team and methodology

1.5.1 Team

The CFE team working on this Report and Recommendations include:

CFE Lead investigator

Jan Miller, CFE Senior Business Development Consultant Jan is a Masters graduate, with specialist areas being economic development activities, small business support and project planning, funding, management and evaluation. Jan has been consulting to the CFE since 2006 and has three main roles there: Leading on, and contributing to, various major fashion sector research and infrastructure development projects for CFE clients; securing public sector funding for major CFE projects; and working with the CFE designers on their business plans and financial forecasting. Jan has undertaken the primary research, interviews and analysis for this Leeds Fashion Incubator & Business Support project and is the Report author.

CFE Project Manager

Louise Mullane Louise develops and manages special projects at Centre for Fashion Enterprise, with a focus on developing national and international networks of designers, manufacturers and fashion industry support associations. Having previously worked as European Marketing Project Manager at not-for-profit organisation The Woolmark Company, Louise has over five years’ experience of working with businesses throughout the entire fashion supply chain, from fibre through to end consumer. Louise has managed the delivery of CFE’s programmes in Leeds since 2014, and overseen the development of the Leeds Fashion Business Support report.

CFE Researcher

Craig Cowley, Enterprise Research Assistant Craig is a Masters graduate who specialised in policy and innovation studies. Craig joined CFE in 2015, and his primary role is to assist and support research projects the department is involved in. Craig assisted with the logistics to complete the primary research for this Leeds Fashion Incubator & Business Support project, and helped organise and process the raw data to be analysed.

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1.5.2 Research methodology

Research methodology and work plan

The research and this subsequent report are based on a series of focus groups, phone meetings and interviews and secondary sources via desk research.

The research commenced in March 2016 and the project concluded in October 2016. Key milestones are the three meetings with Leeds City Council and the Steering Committee to discuss the research approach and findings.

Since there is no known documented analysis of the Leeds fashion design talent pipeline or sector in Leeds, time was invested in: o Conducting focus groups amongst Leeds fashion design undergraduates whom we have identified as Pre-start-ups; o An online survey of start-up and early stage fashion designers in the Leeds area; and o Email and telephone interviews with more stakeholders: established fashion designers and Steering Committee members.

Focus groups with Pre-start-ups

In order to understand the characteristics and challenges of Leeds’ Pre-start-up fashion businesses, our research approach was via focus groups which would enable CFE to understand: o How aware of the local fashion industry the undergraduates are o How conducive the local University environment is to fashion entrepreneurs o The appetite for local fashion design undergraduates to start their own business o The undergraduates’ thoughts on remaining in Leeds after graduating

Three one-hour focus groups were held, one for each of the three universities which have fashion design degree courses: o University of Leeds (UL), face to face 22nd April 2016, o Leeds Beckett University (LBU), face to face 22nd April 2016, and o Leeds College of Art (LCA), Skype on 29th April 2016.

The course directors sent out invites to undergraduates with an outline introducing this research project and inviting undergraduates to attend.

No. of Pre-start-up fashion undergraduates interviewed via focus groups = 15

Online survey with start-ups and early stage fashion businesses

To understand the characteristics and challenges of early stage Leeds based fashion businesses, the CFE used an online survey to gather information. With various platforms to complete online surveys available we conducted some brief research into what would be most suitable for our survey. After reading a number of comparative reviews online we compiled a shortlist of two – Google Forms and Survey Monkey. CFE visited each separately and investigated their features, aesthetics and ease of use. For what CFE needed the survey to do, Google Forms was the best fit for purpose. It allowed CFE to add unlimited questions to the survey, as well as automatically collating the live results into graphs to view. It also 8

provided an option to instantly export the results directly into a spreadsheet, saving vast amounts of time from manually inputting this data. These features justified selecting Google Forms as the platform for this survey.

The survey was undertaken in April 2016 and used a database of start-up businesses attending a CFE 2-day workshop in Leeds in April 2016, as well as alumni of a similar CFE Leeds workshop delivered in 2014. Marketing to originally recruit start-up businesses to these workshops included: o CFE website o CFE social media o CFE newsletter o Lamberts Yard website o Lamberts Yard social media o Leeds City Council activities (online and at events) o Leaflet shared at Leeds Fashion Festival (March 2016) o Article on The City Talking blog: http://www.thecitytalking.com/centre-for-fashion-enterprise- in-leeds-new-market-entry-programme/ o Mention in CFE’s presentation at the launch of Leeds Fashion Initiative (November 2015) o Shared with contacts at UL, LBU and LCA o Shared at Leeds Fashion meeting and followed up by email, attended by: local designers, manufacturers, universities (as mentioned above), Hebe works, East Street Arts, Lamberts Yard, Suzy Shepherd (Yorkshire Textiles)

There were 33 start-up businesses on the database, and 17 (52%) responded. The results should not be treated as a quantitative assessment of Leeds start-up fashion businesses. However, they do provide a good set of indicators. No. of Start-up & early stage fashion businesses surveyed = 17

The survey included 48 questions. Many offered multiple choice answers, and there were also some free text questions where CFE expected to receive interesting insights and comments from the start-ups. The survey questions were broadly in 6 groups: o About you o Business description o Where do you work? o Sampling and Production o Your Team o Business Advice

Email and telephone discussions with stakeholders

In addition to the focus groups and survey, CFE also had email and phone discussions with a further ten stakeholders representing retailers, fabric mills, and trade associations to investigate opinions on the opportunities and challenges for any fashion business support strategy for Leeds.

No. of Leeds stakeholders consulted = 10

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2. THE FASHION ENVIRONMENT IN & AROUND LEEDS

2.1 Scale of Yorkshire fashion and textile industry

There is no known recent mapping of Leeds’ fashion sector, but we know it has a strong and famous textiles and manufacturing heritage. What is not known is what is left of the sector as a result of the off- shoring manufacturing strategy implemented by much of the UK high street retailers, which led to many textiles and apparel factory closures. This section of the Report assesses the number of direct companies and employees involved in the fashion and textiles industry, using the most recently available information.

2.1.1 Number of companies

No. of businesses in the textiles, manufacturing, wholesale and retail sectors in 2015 = 3,834

Table 1 below extracts SIC code information showing that in 2015 there were 3,834 businesses in the Yorkshire and Humber region connected with the fashion and textile industry. 64% of these businesses are in retail, and 18% of these are from the supply chain producing (or preparing) textiles, or manufacturing garments, although not necessarily fashion product. 18% (620 businesses) are involved in wholesale activity of clothing, footwear of textiles. These figures illustrate that there is still a significant broad range of fashion and textiles activity across the region. The challenge is identifying them.

Table 1: Size of the sector in Yorkshire and Humber (2015) Sector and SIC codes Yorkshire Leeds Leeds and City Humber Region Textiles 366 171 63 13.10 Preparation & spinning of textile fibres; 13.20 Weaving of textiles; 13.30 Finishing of textiles Manufacturing 421 49 11 14.12 Manufacture of workwear; 14.13 Manufacture of other outerwear; 14.14 Manufacture of underwear; 14.19 Manufacture of other wearing apparel & accessories; 14.20 Manufacture of articles of fur; 14.31 Manufacture of knitted & crocheted hosiery; 14.39 Manufacture of other knitted & crocheted apparel; 15.12 Manufacture of luggage, handbags, saddlery and harness; Manufacture of footwear; Manufacture of watches & clocks; Manufacture of jewellery & related articles Wholesale 610 78 8 46.41 Wholesale of textiles; 46.42 Wholesale of clothing & footwear Retail 2437 1343 352 47.71 Retail sale of clothing in specialised stores 47.72 Retail sale of footwear and leather goods 47.77 Retail sale of jewellery items 47.82 Retail sale of clothing and footwear on stalls and markets Totals 3834 1641 434 Method from: The Value of the UK Fashion Industry: British Fashion Council and Oxford Economics; Estimation of Labour Force (SIC Codes). Taken from: 2015 – taken from Bureau Van Dyke Mint UK system

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2.1.2 Number of employees

No. of employees in the textiles, manufacturing, wholesale and retail sectors in 2014 = 43,570

Table 2 below illustrates that employment in the fashion and textile industry dropped overall by 1% between 2013 and 2014 across the county, but increased by 2% in Leeds. Employment in wholesale businesses increased by 31%, employment in retail plateaued, employment in textiles decreased by 6% and employment in manufacturing decreased by 23%.

Table 2: Employment trends in Yorkshire and Humber

2013 2014 TOTALS Employees FTE10 PTE11 Employees FTE PTE Yorkshire and The Humber 44,039 19,413 24,625 43,570 19,467 24,109 West Yorkshire (Met County) 22,128 11,555 10,575 22,110 11,655 10,457 Leeds City Region 28,267 13,871 14,395 28,371 14,102 14,267 Leeds 8,775 3,630 5,145 9,004 3,899 5,106

2013 2014 TEXTILES Employees FTE PTE Employees FTE PTE Yorkshire and The Humber 3,954 3,539 414 3,731 3,431 301 West Yorkshire (Met County) 3,665 3,291 374 3,392 3,154 238 Leeds City Region 3,785 3,404 381 3,494 3,246 247 Leeds 534 492 42 526 494 33

2013 2014 MANUFACTURING Employees FTE PTE Employees FTE PTE Yorkshire and The Humber 2,002 1,618 384 1,544 822 727 West Yorkshire (Met County) 1,555 1,271 284 1,181 606 576 Leeds City Region 1,717 1,400 318 1,301 683 618 Leeds 312 236 76 283 189 94

2013 2014 WHOLESALE Employees FTE PTE Employees FTE PTE Yorkshire and The Humber 3,822 3,220 602 5,041 4,562 479 West Yorkshire (Met County) 2,256 1,864 393 3,176 2,887 290 Leeds City Region 2,502 2,066 435 3,551 3,236 315 Leeds 648 540 108 963 896 67 Continued on page 11

10 FTE = Full Time Equivalent 11 PTE = Part Time Equivalent

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2013 2014 RETAIL Employees FTE PTE Employees FTE PTE Yorkshire and The Humber 34,261 11,036 23,225 33,254 10,652 22,602 West Yorkshire (Met County) 14,652 5,129 9,524 14,361 5,008 9,353 Leeds City Region 20,263 7,001 13,261 20,025 6,937 13,087 Leeds 7,281 2,362 4,919 7,232 2,320 4,912 Source: Business Register and Employment Survey (BRES) (Companies House / IDBR / Annual Survey)

2.1.3 Comparisons between fashion designer and other creative industries in Leeds

No. of registered ‘fashion designer’ businesses in Leeds in 2009 = 19

Fashion designer businesses are classified by the DCMS within the Creative Industries. The Creative Industries spans nine sectors from advertising and architecture through to music and digital. The contribution of these creative industries to the UK economy is well documented, and increasing governmental emphasis is being placed on the creative industries as part of the regeneration strategy for cities across Europe, with successful case studies being Barcelona and Bilbao.

In Leeds, the Creative Industries are very apparent, with digital and music being the most prominent highlighted in the 2011 report ‘The Creative & Digital Industries in Leeds 2011 Sector Assessment Report’. This is the most recent set of data available (shown in table 3) to be able to contextualise the size of the registered Fashion designer companies to the rest of the Creative Industries. In 2011, Fashion designer represented less than 1% of the Creative Industries in Leeds. The number of Fashion designer businesses was only 19. Whilst this figure is small, it’s ability to punch high above its weight cannot be under-estimated, since the fashion industry is capable of attracting high visibility in the press and social media, as well as having wide reaching spill-over effects into many aligned sectors such as marketing, events, hair, makeup and modelling, photography, fabric/trim suppliers, manufacturers, logistics, legal, and accountancy.

Table 3: Comparisons between number of registered companies across the Creative Industries in Leeds

Source: Report titled ‘The Creative & Digital Industries in Leeds 2011 Sector Assessment Report’ authors: Michael Canning & Dan Kudla. Their source is 2005‐2009 IDBR data for creative & digital in Leeds Metropolitan District from the CASE (Cultural and Sport Evidence) programme (DCMS, 2010) 12

2.1.4 Reflection on national figures

Given that the Leeds region has such a dominant history inextricably linked with textiles and manufacturing, the future looks good for the region when we look at information and trends from a national perspective. The information in this section has kindly been provided by UKFT from their 2015 report "Compendium of UK textiles and apparel manufacturing data"

Enterprise and employment As reported through HM Government’s Inter-Departmental Business Register, 2015 saw a sharp increase in textile and apparel manufacturing enterprise numbers. There are now 7,860 enterprises12 and this represents the third successive annual rise in registered textile and apparel manufacturing companies.

A number of factors have been driving these patterns towards both new start-ups and the repatriation of manufacturing, namely rising costs of overseas production and the increasing need for supply chain control and flexibility on the part of retailers and brands; greater consumer awareness of UK production and the continued export demand for UK produced textiles and apparel goods.

Figure 1: Textile and apparel manufacturing enterprises

Business registrations The healthy state of enterprise creation in the industry is illustrated through the registration and deregistration of textiles and apparel firms to 201413. 945 textile and apparel manufacturing firms were created in 2014, and for the second successive year registrations outnumber de-registrations. This is a far different picture than was observed in the immediate period after the recession in 2009 where firm closures numbered almost 1,200 a year, as issues such as access to finance in the aftermath of the financial crisis and the continued impact of globalisation on UK production were significant barriers to new business creation.

12 The IDBR also contains workplace information. Using this measure there are currently 8,240 workplaces 13 The previous year’s figures are traditionally published later in the year. 2015s figures are therefore unavailable.

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Figure 2: Textile and Apparel Manufacturing firm registration and de-registrations

Employment In line with the positive numbers regarding business creation, both major employment measures within the UK reported textiles and apparel manufacturing adding a substantial number of jobs over the recent years.14

Using the Business Register and Employment survey measure15 for which information is available up to 2014, this shows increases in both textile and apparel manufacturing. People working within textile and apparel manufacturers that are either registered for VAT and/or PAYE stood at 96,000 in 2014, its highest level since 2010. Apparel manufacturing has shown significant increases.

Figure 3: Business Register and Employment Survey measures

14 This definition excludes leather and accessories as are textiles services, dry cleaning, fashion publications, and sole traders. If, leather and accessories are included the total employment according to the ONS Business Survey is 90-100k employees with around an estimated additional 30k self-employed.

15 The BRES is a sample survey of businesses taken from the IDBR

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2.2 Leeds Pre- start-up fashion businesses

For the proposed Leeds Fashion Centre to be successful, it needs to have a pipeline and critical mass of fashion designers and entrepreneurs aiming to set up their businesses in Leeds. Therefore an assessment has been made of the undergraduate fashion population in Leeds to estimate the Leeds pre-start-up population.

No. of pre- start-ups in Leeds in 16/17 = 1,036

CFE directly contacted the three Leeds universities currently offering fashion programmes. This resulted in the uncovering of a large undergraduate fashion population in the city of Leeds alone. Table 4 shows that there are currently 875 fashion undergraduates in the city, increasing to 1,036 in 16/17, with almost 300 graduating each year. Clearly if the other universities offering fashion programmes in Yorkshire and Humberside were approached as part of further research, the number would increase.

Table 4: Mapping of fashion undergraduates in Leeds 15/16 and 16/17

University 15/16 Est. No. Est. of Local student 16/17 graduating start-ups retention numbers student p.a. on on numbers graduating graduation Leeds Beckett University 90 215 100 est. Too early to Too early - BA Fashion (started Sept 14) know to know - BA Fashion Marketing (starts Sept 16) Leeds College of Art 509 509 142 20 (12%) 30 (21%) - BA Hons Printed Textiles & Surface Print Design - BA Hons Fashion - BA Hons Photography University of Leeds 276 312 45 2 (3-4%) “very few if - BA Fashion Design any... they - BA Fashion Marketing all head to - BA Fashion Technology (starts Sept London or 16) overseas”

The universities were asked for data regarding the retention of graduates in Leeds, as well as the numbers of graduates who go on to set up their own businesses. Whilst the retention and business start-up rates are very low at University of Leeds (UL), they are relatively high at Leeds College of Art (LCA), which foresees 21% retention of graduates in Leeds, and 12% of these might set up a business. If the proposed Leeds Fashion Centre were to provide the motivation and support to increase these numbers to an average of 15% retention in Leeds and 8% start-ups across all three universities’ fashion courses, this would result in 45 graduates staying in the area (an increase of only 7.5 graduates from each of UL and Leeds Beckett University (LBU)) and 24 start-ups p.a. in the area (an increase of 2 start-ups from each of UL and LBU).

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2.3 Leeds fashion eco-system

As previously described, the scale and nature of Leeds’ fashion industry has not been documented in recent years however Leeds City Council has evidence that there is a groundswell of support. In 2012 there was the first meeting to support growth of fashion in Leeds, and a workshop with 100 people16 ranging from education, Leeds City Council, manufacturers – all people who promote fashion in Leeds. For data protection reasons the attendance list is not available, so as part of the CFE research, the CFE consulted the Steering Committee and through them a wider network to identify the industry stakeholders who could be involved in the Leeds Fashion Strategy and in particular the proposed Leeds Fashion Centre.

The Leeds based stakeholders fall into several groups: o Leeds educators (at the universities) o Leeds universities’ alumni o Leeds universities’ undergraduates o Fashion curators linked to Leeds Museums & Galleries and the Yorkshire Textile Archive o Start up fashion designers17 (working from live/work space) o Start up and later stage fashion designers working from studios o Major department stores (e.g. Harvey Nichols and John Lewis) o Mono brand designer boutiques (e.g. Paul Smith, Vivienne Westwood etc) o Multi brand designer boutiques (e.g. Flannels) o Contemporary multi brand concept stores (e.g. Lamberts Yard) o Independent / street fashion boutiques o Tailors o Textile and haberdashery retailers (e.g. Fabworks) o Freelance fashion journalists o Textile mills o Manufacturers o Workspace providers (e.g. Melbourne Street Studios) o Photography, models, hair and makeup (e.g. Sassoon)

Estimated no. of Leeds fashion stakeholders = 1,200

Across the various groups listed above, it could be estimated that there are 50 or so educators, 1000 undergraduates (described in section 2.2), 50 start-ups & more mature fashion businesses, 50 stores & boutiques, and 50 other stakeholders in the city of Leeds alone. Widening these estimations out across the region will obviously scale up these numbers considerably to the 43,570 employees cited in section 2.2.

In addition to the local fashion stakeholders, and equally as important are the fashion industry influencers that will be needed to champion the ambitions of the Leeds Fashion Centre, raising its national profile and industry standing, validating and adding credibility to the Centre’s activities.

LCA and UL both have very good networks of visiting tutors and high level alumni who could be asked to be involved in an advisory or ambassadorial role to the Centre. Sarah Mower (British Fashion Council Emerging Talent Ambassador and Editor-at-large for US Vogue) and Peter Ruis, CEO of Jigsaw are UL

16 Minutes from the Leeds Fashion Strategy Steering Committee Meeting 22.04.16.

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alumni. Likewise the Yorkshire Fashion Archive (based at UL) has an impressive group of supporters. The 2012 exhibition ‘ReWorked’ gained support from leading fashion journalist and historian Colin McDowell and Burberry Chief Creative Officer (CCO) Christopher Bailey.

This area of the research has been difficult to yield many further results, and will be important to improve as part of the market positioning of the Leeds Fashion Centre.

3.0 REGIONAL SECTOR DEVELOPMENTS

3.1 Leeds projects overview

In the Leeds area there have been a number of fashion focused projects and initiatives launched over the past seven years: o Leeds Fashion Works18 (2009 - present) o Leeds Fashion and Craft Network19 (2010 - present) o Made In Leeds20 (2011 - 2012) o Leeds Fashion Design and Manufacturing Hub (2012-2013) o Leeds Fashion Initiative (2014 - 2016)

There are also other projects such as the Leeds Fashion Festival, but these have not been explored as part of this research since they to date they have been marketing events, which are outside the Report’s remit.

Two of the projects listed above were short lived ideas in 2011-12 (Made In Leeds and the Leeds Fashion Design and Manufacturing Hub). They were attempts to bring groups of stakeholders together but group momentum was not sustained. Similarly the Leeds Fashion Initiative has not been able to sustain group momentum.

The Leeds Fashion Works brand is dormant, but ready to be used in the future as and when the owners (Yorkshire Textiles) have a relevant project for its branding.

The only active fashion business support project appears to be the Leeds Fashion and Craft Network which has a wider audience reach than just fashion. It includes crafters and makers from food, furniture and jewellery sectors. Therefore whilst not all of its activities are relevant to the Leeds Fashion Development Strategy, it should still be borne in mind.

Desk-based research and email exchanges with project owners have provided further background information included below.

18 From email conversation with Suzy Shepherd 12.05.16. 19 Information obtained from email correspondence with Dawn Wood on 10.05.16. 20 From email conversation with Lee Hicken 12.05.16.

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3.1.1 Leeds Fashion Works21 (2009 - present)

Leeds Fashion Works was founded by Suzy Shepherd, Carolyn Lord (solicitor), Paul Forbes (Government Educational adviser), Andrew Homer (accountant and connected to fashion, textile and property business). They found that through their contacts the textile element had considerable interest, which led to being invited to give talks around this subject - and how the Yorkshire textile industry interacted with fashion. Through contacts at Harvey Nichols Leeds they were offered a small space to use as a display/arts area, making this connection. They identified the cloth used across the brands on the rails and it was a very high percentage of Yorkshire cloth. This grew to be a much larger project (all floors/restaurant and 3 month display/theme), involving 12 mills and art students of the Leeds Metropolitan University (former name of named Leeds Beckett University) along with Twist magazine, who ran the story as an additional Japanese issue of Twist. There was also coverage in the UK national press, including Financial Times. There was a need for a collective branding for this - hence Yorkshire Textiles.

Since then most projects have been under the Yorkshire Textiles brand; however Leeds Fashion Works exists as a sub brand for any projects which may come up with more of a fashion theme.

3.1.2 Leeds Fashion and Craft Network22 (2010 - present)

Dawn Wood set up Fabrication Crafts Ltd in Leeds in 2008 with the aid of an Unltd 5k social enterprise grant. A large part of Fabrication Crafts' remit is to stop social isolation amongst those working for themselves. They were able to rent a small space by the Corn Exchange providing cutting tables and machines to share, as well as equipment for other fashion and craft disciplines. They have since opened a retail unit in The Light shopping mall in the city centre where they’ve supported nearly 300 local designers, makers and crafters across clothing, food, jewellery, furniture etc. (the product ranges can include any aspect of fashion and craft).

In 2010 Wood set up the Leeds Fashion and Craft Network to run monthly events and meet ups for peer mentor support, workshops in business issues etc. In the summer of 2016 they launched an updated website with a business directory at the request of their membership, which is slowly being added to.

The founders believe that a central and expandable space would be a great asset to the city. It should have provision for both ad hoc and regular use by not only makers but periphery disciplines, such as tee shirt printers, accessories makers, offices for fashion PR, photography etc., this would cut down the problems felt by students on leaving college and feeling adrift, isolation of those working from home and help start ups to work together.

Challenges for the concept: The main problem has been expansion and getting hold of a larger building. The founder has tried to rent a number only for them to be given to arts projects or turned into bars. The founder considers there is some resistance to fashion from the property owners, who appear to prefer to give space to arts and digital projects. However it is hoped this will change by autumn 2016 as they have now secured a 7000sqft space, although unfunded, which will also include provision for at least 20 designers, jewellers, fashion pr companies etc. as well as event space for shows etc.

21 From email conversation with Suzy Shepherd 12.05.16. 22 Information obtained from email correspondence with Dawn Wood on 10.05.16.

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3.1.3 Made In Leeds23 (2011 - 2012)

Made in Leeds was the working title for a ‘movement' started by Lee Hicken and the Art Director from Hebe Works in 2011 with ‘Leeds in Barcelona’, which was a project that showcased Leeds fashion and music at an international showcase in Barcelona. At this point Hebe were appointed to create the digital strategy for the new Trinity Leeds mall that opened the following year, and the Made in Leeds ‘brand’ continued in terms of getting people together and helping make events and collaboration happen through direct involvement or receiving support. The incoming (and now former) GM of Trinity wanted to put independent fashion and ‘cool’ at the centre of the strategy for the mall as it was dominated at that time by the likes of the large high street chains. A meeting of the ‘Leeds fashion scene’ was called. At this point it was led by Hebe, Leeds City Council and Trinity (through the GM) and tried to establish what the industry wanted. Clear themes and requests emerged around marketing, talent and links with education, however the required support to realise these themes was not available.

At this point, Hebe decided to push Made in Leeds forward regardless and secured a pop-up store in Trinity Leeds stocking 80% fashion (mix of male/female) and 20% art, from Leeds designers and makers. It was planned as a four week event but stayed open for 5 months. To help support the store, Hebe designed a line of ‘Made in Leeds’ streetwear style fashion products (tees/hoodies/hats etc). Interestingly, the biggest seller in the store was the own-brand Made in Leeds product, which sold hundreds of the t-shirts. Other stores in the city wanted to stock the Made in Leeds brand, which Hebe supplied for a while (the Hip Store were the main stockist).

The original Made in Leeds project has been wound down as a local TV channel launched with the same name, and there are no plans to do anything with the brand now.

The main challenge for the Made In Leeds project was a lack of decisiveness from the industry itself and potential partners.

3.1.4 Leeds Fashion Design and Manufacturing Hub (2012-2013)

One of the first early indicators of the groundswell of support for the local fashion industry was a meeting in September 2012 to support growth of fashion in Leeds, and a workshop with 100 people24 ranging from education, Leeds City Council, manufacturers – all people who promote fashion in Leeds. It was based around a meeting of the Leeds Fashion Design and Manufacturing Hub (LFDMH) at the Melbourne Street Studios in Leeds. An email to Dr Kevin Almond25 explained that members at the Hub revealed that the initiative had worked with the Business Support Team of Leeds City Council to deliver a vision for a centre of fashion design and manufacture. It would be supported by an active promotional programme and a wider network of facilities, including prime retail locations and high profile gallery and event space. To make this vision a reality the initiative had decided to look for designers, manufacturers and machinists to participate in the development of the Hub which would be based at Melbourne Street Studios. Part of their stakeholder research was via a Survey Monkey questionnaire:

23 From email conversation with Lee Hicken 12.05.16. 24 Minutes from the Leeds Fashion Strategy Steering Committee Meeting 22.04.16. 25 University of Huddersfield. Dr Almond has written a paper entitled “Made In Yorkshire: Harnessing the Zeitgist” Published in Catwalk: The Journal of Beauty and Style, volume 3, no.1 (2013)

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https://www.surveymonkey.com/r/?sm=RcY7SF%2FRyyDC517GNjNQWg%3D%3D which described that the Melbourne Street Studios intended to work in conjunction with Leeds Met, Leeds College of Art, Kirklees College and Leeds City Council, to develop a Fashion Design & Manufacturing Business Incubator. The facility would house brand new state-of-the-art manufacturing equipment, design rooms, 24/7 access, a full business support package, signposting to funding, dedicated on-site manufacturing support, links to independent retail opportunities and marketing and e-commerce support - essentially everything required to set up and promote a fashion design business and manufacture garments for sale. The package would be offered to 12 graduates, postgraduates and/or small/emerging fashion designers and was expected to fully launch in September 2013. CFE have written to Melbourne Street Studios to enquire what happened to the initiative and why it did not proceed. But no reply has been forthcoming. The Melbourne Street Studios website shows that they are currently targeting a wide group of creatives to become tenants in the studios and offices available to rent, and that they have partnered with QU2 (Queens Square Business Quarter) who have created the Business Accelerator programme at Leeds Metropolitan University. Full details here: http://www.melbournestreetstudios.com/business-support/ . However, the premises were empty at the time of writing this Report.

3.1.5 Leeds Fashion Initiative (2014 - present)

The Leeds Fashion Initiative (LFI) was launched in June 2014 by Lambert’s Yard who hosted the CFE’s New Market Entry Programme at their premises in Leeds City Centre, which comprised a free two day programme of workshops and expert advice for designers interested in starting or developing a fashion brand in Leeds. The LFI has since supported the New Market Entry Programme again in April 2016 and have publicised an ambition to provide further business support and incubation services although funding and delivery partners are not clear.

3.2 Comparative projects overview

The CFE considered it useful to make a comparison with a similar regional fashion and textile centre, to illustrate what business support infrastructure can be achieved. Manchester was selected as the comparison city due to its similarities to Leeds in terms of; geographical location in the north of the UK, a strong textiles heritage and large student population. The comparison has been used as an example of the types of activities that have proven successful for Manchester in their support of the fashion sector.

We found four projects launched since 2006 where the fashion and textiles sectors work harmoniously together, all of which are still active. o Manchester Fashion Network (2006 - present) o NWTexNet (2008- present) o The Manchester Alliance Project (2011 – present) o Manchester Textiles Growth Hub (2014 - present)

The Manchester Fashion Network is self financing as a private limited company. There do not appear to be any major third party funders of the network.

However, of particular interest in Manchester is the strategic approach that the city has taken to supporting the sector over the past five years. The Manchester Alliance Project was formed in 2011 and has commissioned and published credible research documents that evidence growth regional sector 20

potential, which can then be used to inform successful EC funding applications, such as the Manchester Textiles Growth Hub, which provides a European Regional Development Fund (ERDF) funded business support programme to a range of businesses including wholesalers and manufacturers. Many start-up fashion designer businesses would classify themselves as either a wholesaler or occasionally a manufacturer, so they would qualify for this support.

Desk-based research and email exchanges with project owners have provided some background information included below:

3.2.1 Manchester Fashion Network (2006 - present)

43 miles from Leeds, privately owned and funded, the Manchester Fashion Network (MFN) has positioned itself to become a business resource for individuals and companies working in the fashion sector. The key benefits marketed include help with recruitment, support with marketing businesses, professional development and learning support. Further services advertised via the website (although the extent to which they are delivered is not known) includes marketing, sales & business development, event promotion & management, and web content management including photography (look book & product shots), blog writing, and digital marketing & communications (emails, social media etc).

Annual membership is £10 for students and job-seekers, £100 for individuals and professionals, and £350 for companies and organisations.

3.2.2 The Manchester Alliance Project (2011 – present)

Led by Lorna Fitzsimons (former MP for Rochdale) The Alliance Project is a public-private partnership to bring back textile manufacturing. It was formed in 2011 to examine the potential for repatriating textile manufacturing back to the UK, including re-opening a mill in Tameside and supporting developments in textiles. A two-year research project led to the publication of ‘Repatriation of UK textiles manufacture’, The Greater Manchester Combined Authority, Author: The Alliance project team (2015)26. The work was commissioned by Lord David Alliance and the Greater Manchester Combined Authority (GMCA), with the support of Government through the Department for Business, Innovation and Skills. Research into supply and demand and related market failure was undertaken to establish if Government action was needed. The research explored the viability of growth in parts of the UK textiles industry, the opportunities that can be supported, and how inhibitors can be overcome. It was developed in light of growing change in the global textiles market, and one of the main findings was the potential for repatriating textiles manufacturing to the UK. Relevant to the Leeds Fashion Strategy, the report describes that “As a result of the cost and consumer drivers, high-end and mid-market apparel, fast fashion, luxury clothing and homeware products are the areas where the proposition for repatriation is strongest. The more added value in the manufacture process, from design, to digital and panel printing, jersey and jacquard, embroidery and knitwear, the more the market can be made in the UK. “

26 http://neweconomymanchester.com/media/1467/3234-j2747-alliance-project-report-lb-low-final.pdf

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3.2.3 NWTexNet (2008 – present)

Based in Bolton, Greater Manchester, NWTexnet claim a portfolio of European research projects and are recognised as the only UK Technical Textile Cluster on the European Cluster Platform. They help member companies to source business solutions and provide personal development for their staff. Strategic partnerships are with the Textile Institute, Nottingham Trent University, University of Bolton and the University of Galway. They have a new Higher Level 4 Apprenticeship with specific units for Product Development and Technical in partnership with Creative Skillset. They have also recently worked with Fashion Enter to branch into the Retail sector.

They have a membership scheme ranging from £350 to £550 for businesses, and £50 for sole traders and students. Membership benefits include Interactive Planning (IAP) sessions between partners, newsletters, access to web content, and travel vouchers.

NW TexNet has recently set up a small group of business leaders to identify the needs of the sector and provide a local voice to try to access Local Enterprise Partnership funding for the sector. The first meeting was on 19th May 2016. The group’s vision is to: o To share intelligence and views on the key market drivers for a viable and commercially successful textile industry in the North West o To share good practice on a range of important topics in the areas of new technology supply chain management and training & development o To lobby and influence the shape of local funding and communicate opportunities to the industry o Improve the image of the sector by providing exemplar models for case studies and explore the opportunities provided by the “Northern Powerhouse.” http://nwtexnet.co.uk/nwtexnet-policy-board-senior-business-leaders-involved/

3.2.4 Manchester Textiles Growth Hub (2014-2018)

The Manchester Business Growth Hub (http://www.businessgrowthhub.com)will receive ERDF funding until end of 201827. Activity includes a programme focused on creating and safeguarding jobs through a grant funded scheme to support capital projects, skills training and research and development in the textile industry. They also offer additional support in areas such as finance, manufacturing advice and international trade, along with skills and management development. Some of the areas where support can be provided include: o Apparel and footwear manufacture o Manufacture of soft furnishings o Knitting, weaving and dying o Cut, make and trim o Carpet manufacture o Technical textiles o Manufacture of textiles machinery o Trading and wholesale

27 From an email from Ross Heaviside, Growth Enquiry Advisor, 17.05.16.

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4.0 CHARACTERISTICS OF LEEDS FASHION DESIGNER BUSINESSES

In order to propose the content and scale of any fashion business support strategy for Leeds, it is important to first understand the characteristics and challenges of the existing and future Leeds-based fashion designer businesses that constitute the Leeds Fashion Talent Pipeline.

4.1 Pre-start-ups

We identified Fashion Pre-start-ups as typically Leeds-based fashion undergraduates studying at one of the three universities in Leeds offering fashion design degrees. Collectively they have 100028 undergraduates on their courses immersed in the local fashion industry.

Two of the fashion design courses are long established at UL and LCA. The third at LBU is only in its second year and is still establishing itself. Each university and its courses have different learning environments, characteristics and infrastructures, and it must be understood that this Report is in no way intending to review the quality of any of the teaching or curriculum.

The focus groups described in section 1.5 have made it possible to answer the following questions: o How aware are undergraduates of the local fashion industry? o How conducive is the local University environment to fashion entrepreneurs? o What is the appetite for local fashion design undergraduates to start their own business? o Will undergraduates stay in Leeds after graduating?

4.1.1 How aware are undergraduates of the local fashion industry?

o Generally the Leeds fashion undergraduates have very limited knowledge of any local fashion industry, o They know of no local CMT (Cut, Make, Trim) factories, o They know of limited fabric mills (only one was mentioned), o They know about a few clothing and textile companies who offer potential fabric sponsorships, e.g. Crombie and Savile Row Tailoring, o There is awareness of the new Burberry factory, and that this would give the fashion industry a new sense of confidence, o The fashion retail sector is thought to be strong, o Networking activities at Lamberts Yard are fairly well known and have been well attended.

28 This figure is based on the number of students studying, once the course at LBU has reached full maturity in 2018. It includes work placement year students.

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4.1.2 How conducive is the local University environment to fashion entrepreneurs?

o Generally there is a good range of enterprise and entrepreneurial support offered by the business school or enterprise offices across the three universities. Although, almost without exception, they are generic, and not sector specific: o Workshops and courses: - There are plenty of generic workshops at LCA as preparation for being a freelancer, as well as setting up their own businesses. - At LCA there are a number of programmes across the college to support entrepreneurship. There are Career Track Tuesdays (helping undergraduates prepare for the job market) and Start Up Wednesdays (monthly) helping undergraduates understand the preparation needed if they are to set up their own business. There was also a recent CIDA 4 day course (How To Be A Creative Enterprise). - The UL Business School offers the Fashion Design course optional study modules in topics such as ‘How To Run Your Own Business’. Once a week the Fashion Design course hosts a Fashion Forum with a visiting industry speaker. - The LBU Enterprise Hub offers workshops, competitions and prizes (£500 up to £5000). There are no fashion case studies of past recipients as the fashion design course is only two years old. o Incubators and residencies - LCA runs a Fashion Creative in Residence (CIR) scheme for graduates of the College from the past five years, who have not completed further academic study, to work on a specific project for 3-10 months (depending on the proposal). Alumni submit a specific project plan. Each application is judged on its own merit and there is a mix of different projects. It is ideally suited to those who have had some experience after graduating. CIRs pay for their own materials but have free access to all facilities at the College as well as a support network from staff and fellow CIRs. In some cases, a small studio space may be made available. Often CIRs will be using the residency as a base to set up a business start-up, create a capsule collection, or perhaps prepare for an exhibition or publication. - LBU has an incubator unit which was set up around 10 years ago. It is not sector specific. It offers hot desk / rent a desk / office for hire. o Networking and internships - There is good networking across all creative courses at LCA. Good for portfolio building. Good for increasing retention on graduation. - The fashion undergraduates at UL network within their school, but generally not wider. - Almost all UL undergraduates do a work placement year. The course is well connected with alumni who often take undergraduates, however none of these placements are local. - Almost all LCA undergraduates do a placement year. Many placements are with local businesses.

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4.1.3 What is the appetite for local fashion design undergraduates to start their own business?

o Of the sample interviewed at LCA, 2/3 would hope to set up a business soon after graduating. The other 1/3 consider starting up after a little work experience.29 o The UL final year student representative didn’t think she or any of her friends would want to start their own business straight from university. She thought they would want to establish themselves working for a company first, build industry contacts and then possibly start a business.

4.1.4 Will undergraduates stay in Leeds after graduating?

o Approx 50% of LCA undergraduates interviewed have aspirations to stay local as they have built their local creative networks here across many of the other courses. Most appear to originally come from the north of England prior to study. o Less than 5% of UL undergraduates interviewed are from Yorkshire. Undergraduates interviewed felt there was no reason to stay in Leeds after graduating. There is no perceived Leeds fashion network to be part of, not enough resources, and no incentives. Although conversely, they could see that if anyone did stay locally there would be advantages because Leeds is cheaper than many other regions and it’s away from, and therefore can be different to, the London model. o 2/3 of the LBU focus group would prefer to stay in Leeds. They like the city, but the main reason to stay is financial since it is perceived as being cheaper to live there than elsewhere. However, there was a general expectation that most of them would all need to move to London to access more opportunities there.

Finally, in terms of university league table standing, it is worth noting that Leeds ranks highly for design and happiness: o Leeds College of Art is the highest ranked specialist art and design institution in the Guardian University League Tables 2016 for Design & Crafts, ranking sixth in the whole of the UK30. o Leeds is indeed a happy place to study. The University of Leeds was ranked 9 by the Times Higher Education 2015 ranking of UK universities by happiness31.

4.2 Start-ups

As previously described in section 1.5, CFE undertook an online survey amongst start-up and early stage fashion designer businesses of which 82% of the businesses sampled have been trading for under 3 years (31.5% for less than 1 year). Detailed results are available on request, however the results can broadly be summarised as the following business model:

29 These figures are inflated since all the participating students self selected to attend the focus group, knowing that the topic was around fashion business start-up. 30 http://www.leeds-art.ac.uk/news-events/news/2014/06/03/the-highest-ranked-independent-art-college-in-the-2015-guardian- education-league-table-for-specialist-institutions/ 31 http://www.theweek.co.uk/62910/ten-uk-universities-make-top-100-world-rankings

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4.2.1 The business model

56% of the surveyed fashion designer founders are 30 years old or younger

68.8% of the founders are female

100% studied at a university, of which 50% were courses in Leeds

56% of businesses were either set up in their 1st year out of university, or whilst at university

Route to creative expression was the top motive for the founders for starting their businesses

62.5% are still sole traders

Only one business founder has a business partner. This founder is male, has previously received business support. His business is under 1 year old and turnover below £10,000

There were no social enterprises

All the businesses in the sample have gross turnovers under £20,000 p.a. (estimated for 15/16)

Only 12.5% are registered for VAT registered

Only 18.8% of the businesses surveyed employ more than 1 person

56.3% of founders work from a live/work space. Only 25% work from a dedicated workspace/studio 56.3% do not consider that their current premises are going to be suitable for their business in the next year or so. The main reason was that the space would be too small. Wrong location was the second most cited reason.

4.2.2 The product and route to market

The main products designed are Womenswear 68.8% 43.8% Menswear 37.5% Accessories 25.0% Ethical

50% of the surveyed fashion designer businesses are designing for the ‘contemporary’ market which has retail prices of between £100 and £250 (approx), 18.8% are creating high-end product, 12.5% is couture (which can include bridal, millinery and tailoring), and 12.5% is high street.

88% of the sample group have E-commerce distribution Direct sales to the public is more apparent than to the trade. The majority (88%) of business include e-commerce activities, whilst 50% and 44% say they are involved in retail and wholesale

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activities. So there is a pattern of businesses likely to have 2 or 3 revenue streams. The retail activities are likely to be popups, bespoke, or markets)

44% of the sample group do wholesale 43.8% make their own appointments to visit buyers face to face Only 6% attend tradefairs, 6% have a sales agent and 6% sell via other websites

Over half of all production (56.3%) is completed in-house.

62.5% of the sample didn’t consider that their supply chain was good.

4.2.3 Skills & team

68.8% of business founders have previously undertaken either paid or unpaid internships or work experience prior to setting up their fashion business.

75% of the surveyed fashion designer businesses never have interns themselves.

Businesses in their first year of trading consider they need to develop skills in: o Firstly, Financial management skills o Secondly, PR skills o Thirdly, sales and marketing, negotiations, business & management, sewing & technical skills (ranked equally)

Businesses in their second or third year of trading consider they need to develop skills in: o Firstly, Digital marketing and PR (ranked equally) o Secondly, production management, sales and marketing, financial management, business & management (ranked equally)

Businesses in their fourth or fifth year of trading consider they need to develop skills in: o Production management, sales and marketing, and negotiating (ranked equally)

Top 4 skills & know-how strengths amongst the founders were: Creative and design (100% consider they have these skills) Sewing and technical 62.5% Business management 56.3% Networking 56.3%

Bottom 4 skills & know-how strengths amongst the founders were: Branding (only 6% consider they have these skills) Negotiation 12.5% Financial management 31.3% Staff management 31.3%

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Top 4 skills and know-how the founders consider they will need to develop in order to run and grow their business: Financial management (68.8% said they needed to develop these skills) PR (68.8% “ “ “) Sales and marketing (62.5% “ “ “) Business management + Production management 56.3% (ranked equally at 4th)

When recruiting new staff or freelancers, 57% of the founders said they would go direct to a university to find candidates.

The 3 roles considered the easiest to recruit locally are: Sales manager or sales assistant Book keeper or admin PR or social media officer

The 3 roles considered the most difficult to recruit locally are: Designer assistant Sewing or technical Production manager

4.2.4 Business advice

Only 18.8% of the founders received any enterprise/entrepreneurship support or education whilst at University.

Only 37.5% said they received any guidance when they started their business. No sector specific support was mentioned.

Top 4 challenges faced by the businesses when they set up their business were: Accessing finance (mentioned by 81.3%) Finding manufacturers and suppliers 68.8% Finding customers 62.5% Accessing advice 50.0%

Top 4 challenges faced by the businesses in the future as they mature are: Finding more customers (mentioned by 56.3%) Accessing growth finance (borrowing) 50.0% Finding manufacturers and suppliers 43.8% Accessing growth advice + developing your own skills to manage the business 31.3% (ranked equally at 4th)

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4.2.5 Networks

The Top 4 best networks the fashion businesses currently include: Marketing and PR professionals (43.8% mentioned this) Accountants 37.5% Workspace landlords/agents 31.3% Fashion and business advisors 31.3% (the 3rd and 4th ranked networks may have been identified because all the businesses surveyed had been on a CFE business support programme hosted at Lamberts Yard, whose intention is to offer workspace)

Other good networks mentioned included by several founders include other creatives, photographers, models and makeup artists. The University of Leeds SPARK network and the Leeds Fashion and Craft Network were also mentioned specifically by a few.

The 4 weakest networks the founders currently include: Export advisors (75.0% mentioned this) Manufacturers 68.75% Fashion and business advisors 62.0% Finance experts and investors 62.0%

The top professionals that the founders would most like to meet through new future networking opportunities include: 100% Fashion business advisors 93.7% Manufacturers 93.7% Fashion retailers 81.2% Other fashion designers 81.2% Other suppliers 81.2% Marketing and PR professionals 81.2% Journalists 68.7% Finance investors 62.5% Finance advisors 50% Export advisors 50% Workspace landlords/agents 43.7% Accountants 37.5% Lawyers

4.2.6 Leeds: advantages and disadvantages for fashion businesses

Advantages

The main advantages the sample suggested for having their fashion business being based in/around the Leeds area show some clear themes around Leeds being a stylish creative and upcoming city, having a loyal customer base, and links to local Yorkshire textile heritage.

The founders were also asked to describe any other reasons for being based in/around the Leeds area. Family reasons dominate the responses, and 60% of those who cite family as one of the reasons they’ve

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located their business in Leeds studied at universities in Leeds, Bradford and York. So 40% studied away from Leeds and returned motivated by family.

Disadvantages

The survey identified some clear themes emerging around lack of support generally, lack of networking opportunities, lack of local trade and consumer events, lack of support/recognition of independent designers competing against larger organisations and distance from London.

5.0 CHALLENGES FOR LEEDS FASHION DESIGNER BUSINESSES

5.1 Challenges for Pre-start-ups

As discussed earlier in section 4.1 from the fashion undergraduate focus group feedback, there is a clear opportunity for Leeds to nurture and incentivise undergraduates to stay to set up businesses. There is a strong desire amongst many of the undergraduates to start-up fashion design businesses. However there are five key challenges which are common to most of the undergraduates and most of the courses:

1. Lack of fashion specific start-up advice 2. Lack of relevant local internships 3. Lack of relevant local networks 4. Lack of local awareness about the fashion industry 5. The appeal of London

5.1.1 Lack of fashion specific start-up advice

All three universities offer excellent start-up and entrepreneurship advice. But without exception they are generic and do not provide the sector specific advice needed to help a fashion start-up enter the market, create a successful online presence (website, web shop, social media strategy), or properly cost and price their products so that they are priced properly for the market as well as making enough money from them.

5.1.2 Lack of relevant local internships

The CFE through its 13 years of fashion designer business support encourages fashion design entrepreneurs to spend at least one year honing practical skills in a business environment, building know-how and strengthening the networks that can contribute to launching a business. Often this can be achieved through in-course placement years. Most of the Leeds undergraduates spoken to have already had an internship or will be undertaking a year of internships. From the perspective of gaining experience in a fashion designer business, the downside of the current internships is that many of the links to fashion firms able to offer the internship places, are with very large companies where the student will realistically only get experience of one department; or in retail companies. Clearly both these options provide valuable experience, but experience in a small/newer company is missing, and would add a further useful area of learning to the undergraduate.

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5.1.3 Lack of relevant local networks

With the exception of knowing a few retailers, few of the undergraduates appear to have networks outside their courses and university. The most networked undergraduates are at LCA who have extensive creative networks across most of the college, and it could be this extended network and its large local recruitment catchment, which contributes to their desire to remain in Leeds after graduating.

5.1.4 Lack of awareness about the local fashion industry

The focus groups with the fashion undergraduates showed a lack of awareness amongst them about the local fashion industry. This is a concern since the lack of awareness will drive start-up fashion businesses to look outside the Leeds area to other regions particularly for new supply chain partners (fabric and trim suppliers, sampling units, manufacturers, etc). Fashion designer businesses rely heavily on good supply chains. In the early stages of a fashion designer business some production may be done in-house, then moving to small scale production somewhere in the UK, and then offshore larger scale production. Fabrics and trims need to be sourced from suppliers who can guarantee stock several months after initial prototype development has been done and orders secured from customers.

5.1.5 The appeal of London

This challenge overlaps with some of the other challenges, but is still worth noting separately. Many of the undergraduates suggested there were more opportunities in London for work and internships, and many fully expected to head to London at some point in their career.

5.2 Challenges for start-up and early stage businesses

As identified earlier in section 4.2 the Leeds fashion businesses show a slow growth trajectory. Most are one man bands, working from live/work space, with none from the sample exceeding more than £20,000 turnover p.a. There are a number of challenges identified through the research that will be contributing to the slow growth (and potential lack of sustainability for the businesses): 1. Lack of fashion sector business support 2. Lack of local infrastructure, networking and referral opportunities 3. Lack of distribution know-how and opportunities 4. Lack of awareness of any local manufacturing or suppliers 5. Distance from London

5.2.1 Lack of fashion sector business support

Amongst the founders surveyed, there is a clear lack of places to find fashion business advice and local fashion contacts. They were asked where they might be able to get assistance to develop or improve their skills. There is no common response other than the CFE, who are known to the respondents, since everyone has been on a CFE Leeds programme.

Our research shows that the three universities each offer good generic enterprise and entrepreneurship support available to the undergraduates, or in the case of Leeds SPARK to alumni. However, amongst the

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founders surveyed 81% had not taken up any of the support. Further, 62.5% didn’t get any guidance when they started their businesses.

5.2.2 Lack of infrastructure, networking and referral opportunities

Interns Whilst 68.8% of fashion designers starting businesses have undertaken ‘informal apprenticeships’ via their internships/work experience whilst at university, there are no Leeds start-up or emerging designers surveyed who are hosting interns themselves. The reason is not clear. It could be lack of understanding and concerns about the legal aspects of hosting interns; or not having budget available to assist interns with travel and food expenses; or lack of structure within the businesses to host the interns. Whatever the reason, it is a missed opportunity to train up interns within the businesses for them to become skilled employees or business founders themselves in the future.

Workspace Only 25% of the founders surveyed are working from a studio, and 56.3% considered that their workspace would be unsuitable and too small in the next year or so. However, given the low turnover of the businesses in the sample, it is unlikely that many would be able to afford market rents.

Networks The sample of fashion designers consistently say they need access to networks of fashion professional. Whilst some of the sample access The Leeds Fashion and Craft Network, West Yorkshire Photographers & Models, and University of Leeds SPARK amongst other singular mentioned networks, it is apparent that the fashion designers are not accessing a quality local network.

5.2.3 Lack of distribution know-how and opportunities

Most of the fashion designer businesses in the survey are operating with multiple routes to market. 88% are operating e-commerce platforms, although with low revenues. 50% are involved in retail activities, possibly pop-ups and markets (frequently mentioned in the free text answers).

The founders mentioned that there are not enough events for exposure within the local community, nor enough markets or similar events. That there is little tourism trade (compared to London), and that they are having to compete with large corporations and large shopping centres being built locally, with no real support.

44% are undertaking wholesale distribution, although not very effectively, since only 6% attend tradefairs and have a sales agent. Many of the founders do not appear to know how to access store buyers.

5.2.4 Lack of awareness of any local manufacturing or suppliers

56.3% of the survey sample are doing their own manufacturing in-house, and since only 25% are working from a dedicated studio, it is likely that the in-house production is being made on a limited range of equipment. As the companies grow, the product needs to be professionally manufactured to be able to stand up to the scrutiny of store buyers, and the wider public.

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The challenge is that few of the designers surveyed know enough local manufacturers. And it is essential that fashion designer businesses work with more than one manufacturer to spread their risk if there is a problem with one of them such as the factory not being able to take on a small production order because of pre-booked larger orders for larger customers already booked in.

Designers in the sample also suggested that they needed to know more suppliers generally, and this can be interpreted to local suppliers of textiles and trims, but also knowhow of more UK suppliers of stock fabrics and trims.

5.2.5 Distance from London

Almost all of the sample surveyed, mentioned at some point in their free text responses that there were disadvantages to being based in Leeds. The main concerns are the lack of networking opportunities in Leeds compared with London. It is perceived that the main fashion and networking events and media focus are in London and there is little in Yorkshire.

5.3 Other stakeholder viewpoints

Via email and telephone conversations and interviews with other stakeholders, including established fashion designers, the Steering Committee members and wider fashion industry representatives, CFE has been able to identify additional challenges: o Lack of credibility, leadership and confidence in fashion projects o Lack of funding partners for fashion projects o Lack of sufficiently cohesive marketing profile for Leeds fashion o Lack of long term strategy for local fashion designers o Lack of physical resources o Lack of student integration with industry

5.3.1 Lack of credibility, leadership and confidence in fashion projects

A strong opinion was voiced by many stakeholders regarding the challenges for a future business support strategy for Leeds, regarding a lack of credibility. It is perceived that there have been past project ideas, meetings, short-term initiatives (see section 3) and then no sustained long term action. The result is a lack of confidence and trust. However, part of the lack of confidence is also linked to potential commercial agendas of some stakeholders, lack of clear common goals and outcomes because trying to include everything and all views in one 'project' has meant there has been no clear anchor; and lack of clear follow- ups and possible non-inclusiveness of the wider fashion community into any organising/steering groups. So, creating a central point/umbrella that can make things happen and gather maximum support from diverse groups in related fields as well the designers themselves is going to be a challenge.

5.3.2 Lack of funding partners for fashion projects

Another challenge identified is the identification and engagement of funding partners. A view is that the Council’s emphasis has previously been on other industries and issues, with a resistance in recent years to invest in fashion, but hopefully this is now changing.

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Many past short-term project ideas may have terminated prematurely because of lack of funding availability. Individual projects may have received initial funding, but there has been no long term funding commitment to fashion from local government, which dovetailed with possible lack of business planning by the project ‘owners’ may have led to projects’ early closing. Note - there are currently a number of small workshop, retail and showcasing projects operating on a small scale or are dormant because of lack of funding.

5.3.3 Lack of sufficiently cohesive marketing profile for Leeds fashion

Almost all stakeholders interviewed expressed a concern for a lack of cohesive marketing activity and profile for Leeds. There appears to be a joined up strategy of how to ‘promote’ tech in Leeds and similarly for professional services. However, fashion is dragging behind in promotion and visibility. This could be because there doesn’t appear to be a fashion champion with enough local and national credibility, knowhow and networks to make sure fashion is on the agenda of organisations like LCC, Leeds BID, and Leeds LEP, as well as national organisations.

5.3.4 Lack of long term strategy for local fashion designers

Start-up fashion designers are encouraged within Leeds to go straight into retail (including e-commerce which we know from the survey is 88%). Many of them are designing streetwear with little long term strategy for building a brand, according to the stakeholders interviewed. This is because they’re aiming their product at what the local young market can afford to buy. Specific challenges connected with this short term strategy are: o There’s not enough retailers wanting/able to take local fashion designers product. o If fashion designers do have a retail/pop-up type opportunity, they often can’t afford to invest in any stock since most of these opportunities are Sale-Or-Return (SOR); o The fashion designers are not necessarily thinking about how to scale their business, nor whether this market level is the best for them long term.

5.3.5 Lack of physical resources

Some of the stakeholders interviewed considered that the current potential ‘talent pipeline’ is lacking a process to nurture the graduating local fashion designers.

There is a lack of retail, showcase, workspace, PR services, and high quality mentoring, and also funding to assist with production.

5.3.6 Lack of student integration with industry

As we know from section 2.2 there are currently 875 (16/17) fashion undergraduates in Leeds, and many of these students will hang out with musicians, gamers and so on, creating a lively creative cluster in the city and region, but they don’t integrate much with the industry, or know much about it. We know from the CFE survey that very few local fashion businesses have interns, and one long-standing stakeholder suggested that this is likely to be because the students when they come on internships don’t appear ready to join the workforce and take a lot of resources to supervise.

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6.0 RECOMMENDATIONS

In response to the challenges identified earlier in section 5, CFE are proposing to Leeds City Council and the local fashion stakeholders a three year strategy which will provide the foundations for the city and region to secure its ambition to become the Fashion Capital of the North. Its core will be a new Leeds Fashion Centre.

Steering Committee & Research champions business case Incubator & future strategy

Networking Secure events partners

Figure 4: Proposed Leeds Fashion Centre Leedsand its activities Fashion Centre Recruitment Research and services create database

Internship Create match- Access to membership making fashion structure experts & mentors

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6.1 Ownership and initial resources

In the first instance, funding for a 1.0 FTE staff full-time Business Support Manager (@£40-50,000p.a.) plus modest overheads and events budget will need to be secured for the initial stage while preparatory work is carried out. Leeds City Council has generously offered the support services of Gilda Smith-Leigh, Senior Economic Development Officer to spring-board activity. It is expected that key stakeholders in the Leeds fashion industry will agree on a plan for how to resource the Leeds Fashion Centre in its start-up phase, including a strategy for how and where funding will be secured from. Securing this seed funding for the Leeds Fashion Centre is a top priority if anything is going to get off the ground. After the initial three year period, the ambition should be for the Leeds Fashion Centre to be self-funded when its major activities commence.

Given the large number of past short-lived projects and initiatives around Fashion in Leeds, it is extremely important that ownership of the new project is defined from the start and has long term sustainability. This is another key area for the Leeds fashion industry stakeholders to agree upon.

Ownership of the project could include: A. Existing organisations with similar ambitions: There are quite a few stakeholders who have similar ambitions, although several are less than two years old and potentially wouldn’t have the cash flow to be able bank-roll a project which will have extremes in income flows from funding partners and sources. B. A new organisation, potentially set up specifically for the purposes of running the Leeds Fashion Centre.

6.2 Aims and objectives

The aim of the Leeds Fashion Centre is to:

Secure a future for Leeds’ ambition as the Fashion Capital of the North.

The objectives of the Leeds Fashion Centre will be to:

Year one & two objectives

1. Secure funding for a Business Support Manager 2. Identify a strong fashion leader and establish a Steering Committee comprising local fashion stakeholders, supported by national and international influencers playing the role of Leeds’ champions. 3. Commission research studies that demonstrate the economic and social impact of the Leeds’ fashion sector and particularly its spill-over effect into textiles, education, tourism etc; to provide impact evidence to support bids for funding locally, nationally and internationally (EC). 4. Secure partners who can provide access to funding, access to workspace, access to equipment, textile (and other) sponsorships, access to retail opportunities (e.g. collaborations and pop- ups). 5. Create and deliver a marketing strategy for the Leeds Fashion Centre.

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6. Research and maintain a database of Leeds fashion businesses including: manufacturers, suppliers, designers, retailers, PRs and journalists/press, models and make-up/hair stylists, and intermediaries such as investors, banks, accountants, lawyers. 7. Create a Leeds Fashion Centre membership structure. 8. Provide access to high quality mentors and experts. 9. Create a dynamic calendar of networking events. (speakers, socials, visits)

Year three objectives 10. Create services to facilitate internships with local fashion businesses. 11. Create services to facilitate recruitment of a skilled fashion workforce. 12. Create an incubator to ensure a sustainable pipeline of Leeds fashion talent to build the local fashion eco-system and be a showcase for the Leeds Fashion Centre.

6.3 Objectives in detail

6.3.1 Identify a strong fashion leader and establish a Steering Committee comprising local fashion stakeholders, supported by national and international influencers playing the role of Leeds’ champions

Any outcome from the research which CFE has undertaken needs to be led by someone with strong industry credibility and networks, not just local, but national and international also. This leader would head up the proposed Leeds Fashion Centre. This will involve pro-active head-hunting of someone with links to Leeds but may not be currently working or living in the area. If they have the right credentials and knowhow about what’s happening in Leeds, we should entice them back with an initial 3-year Director position to lead the Leeds Fashion Centre during its pilot phase.

The Leeds Fashion Centre should have credibility amongst the local and national fashion sector, and therefore should be steered by fashion professionals who are trusted and respected, and who know the sector, its stakeholders and influencers. Because of the past short-term fashion project initiatives, the sector is now fragmented, so the Steering Committee will be a way of bringing some cohesion to the local sector. It would include the Centre Director, representatives from each university (3), 3-4 established fashion businesses, 3-4 boutiques/stores, a manufacturer, a textile supplier, a local PR (with links to fashion), and a representative from Leeds City Council. This would be a membership of 18 people of whom around 10-12 would be anticipated to attend each meeting. They would meet bi-monthly in year one, and quarterly in year two. Their role would be to: o Review the Centre’s progress against its targets; o Ensure that the Centre complements other projects and forms partnerships where possible so that resources are used as efficiently as possible; o Continually inform the Centre with their know-how; o Support the Centre by reaching out to the members’ individual networks where necessary to gain wider external support as and when necessary; and o Act as ambassadors for the Centre, promoting its excellence, and talent, and celebrating its distinct differences with London.

In addition to the Steering Committee members acting as ambassadors for the Centre, it is important to identify national and international influencers who could also become champions of Leeds ‘fashion’, LCA 37

and UL both have very good networks of visiting tutors and high level alumni who could be asked to be involved in an advisory or ambassadorial role to the Centre. Sarah Mower (British Fashion Council Emerging Talent Ambassador and Editor-at-large for US Vogue) and Peter Ruis, CEO of Jigsaw are UL alumni. Likewise the Yorkshire Fashion Archive (based at UL) has an impressive group of supporters. The 2012 exhibition ‘ReWorked’ gained support from leading fashion journalist, commentator and historian Colin McDowell and Burberry CCO Christopher Bailey.

This area of the research has been difficult to yield many further impressive results, and will be important to improve as part of the market positioning of the Leeds Fashion Centre.

6.3.2 Commission research studies that demonstrates the economic and social impact of the Leeds’ fashion sector and particularly its spill-over effect into textiles, education, tourism etc; to provide impact evidence to support bids for funding locally, regionally and nationally

The Leeds Fashion Centre will need to continually be evidencing its economic and social impact in order to secure funding and other support (see 6.3.3 below). There is currently very little public information available to evidence impacts from the fashion design sector’s activities. However, the spill-over effects into allied professions and sectors can be significant. The British Fashion Council commissioned Oxford Economics to undertake research for them published in 2014 to demonstrate the value of the UK Fashion Industry32, so there are high quality methodologies available. The report was strategically commissioned by the British Fashion Council to provide the evidence that it has been referencing ever since as part of its successful bids to the London Mayors Office for funding from the tourism budgets, European Regional Development Fund applications, as well as many private sector financial sponsorship partnerships. A similar approach is recommended for Leeds, enabling the city and region to have credible published data available which could be cited in future funding applications, where evidence of market failure, and potential economic and social impact improvements need to be provided.

In parallel to this, a strategy to promote the Leeds Fashion Centre as an innovative private/public partnership should be implemented through, for example, academia at the Leeds' universities undertaking research within the community to record local impacts. There is opportunity to host a major academic conference in Leeds with the theme of 'Regional Fashion Clusters Outside the Major Fashion Capital - and their social and economic impacts'. This would attract a lot of interest from the international academic community to present papers, and would generate a lot of media interest in the city.

6.3.3 Secure partners who can provide access to funding, access to workspace, access to equipment, textile (and other) sponsorships, access to retail opportunities (e.g. collaborations and pop-ups)

The Centre needs to be viewed as a collaborative effort of partners, and there appears to be various initial options to be explored during the Pilot phase: Start-up Leeds Fashion Centre funding

32 http://www.oxfordeconomics.com/my-oxford/projects/129086

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On-going Leeds Fashion Centre funding (sustainability) Since the EU referendum result, confidence in future public funding sources is uncertain. So the local sector needs to consider strategies to raise funds locally and quickly. One idea could be a membership scheme comprising different membership levels: o Investment Partners: Major corporations linked to the city £10,000 p.a. o Retail partners (local department stores) £5,000 p.a. o Retail partners (local independent stores) £1-2,000 p.a. (depending on floor space) o Associates: Smaller designer and manufacturer/supplier businesses (with less than 10 employees £250 p.a. o Start-ups: In their first two-years of business £100 p.a. o Students: Still in study £25 p.a. (or free) o And with various lead sponsors (logistics, legal, accountancy firms) at various levels of sponsorship depending on level of visibility they would have on communications materials linked to the Leeds Fashion Centre

Longer term funding strategy It is suggested that the Director would establish a close working relationship with Leeds City Council to encourage fashion outputs as part of negotiations for regeneration projects, BID to access marketing budget (since the Centre is promoting Leeds), and the LEP to ensure that fashion is part of any broad Regional Development Agency projects. In Manchester this has been successfully done within the Manchester Textiles Growth Hub, and in Gateshead as part of the Design Network North project.

The Director will also approach the major local fashion and textile companies, and any allied trusts or foundations to secure funding to enable the Centre to scale its operations, as well as providing cash sponsorship or grant schemes longer term for the incubated businesses. It is not out of the question long term for the Centre to create a major trust fund from major donors to secure part of its income in the future. o M&S could be targeted. They started their business in Leeds and have their clothing archive in Leeds at the Yorkshire Fashion Archive, so have close links.

o Trade organisations such as UK Fashion & Textiles, UKTI, British Fashion Council and Creative Skillset should be nurtured as partners so that their regional project opportunities could include the Leeds Fashion Centre.

In parallel with the partnership approach to securing funding, it will be important for the Centre to develop its approach to securing local (e.g. Leeds City Council), regional (e.g. Yorkshire Forward) and national governmental funding for its long term future. It is unlikely that the Centre Director will have experience of this field, so support may be required from the Economic Development experts at Leeds City Council.

Workspace The fashion businesses surveyed show very low turnover and slow growth trajectories, so left un- supported, they are unlikely to be able to fund workspace. The vision of the Centre is to provide incubator facilities during year 3 (supported by a full business plan at that stage) to enable early stage businesses to have somewhere professional to work from, and accommodate what should be growing staff teams.

Since the Centre will be in its pilot phase with limited resources to fund the incubator workspace, generous accommodation support will be sought from local partners. Ideally the space would need to be

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fairly central in Leeds, so close to other stakeholders, suppliers and intermediaries, and close to transport links.

New Action In Leeds: Leeds Beckett University launched a Creative, Textile and Fashion Hub in partnership with AW Hainsworth on 14th September. Located on the Hainsworth site in Stanningley, entry is open to any West Yorkshire based resident or business that is pre-start or in the first 18 months of trading. Comprising 10 co-working spaces, Hub tenants will also benefit from a raft of business support including access to relevant networks to develop business contacts, a dedicated workstation, access to meeting rooms and specialist facilities such as screen printing, internet access, mentoring, training, and a year's free membership of the Leeds Chamber of Commerce.

Equipment The early stage fashion businesses work mainly from live/workspace so are unlikely to have access to the full range of sewing/technical equipment necessary to sample/prototype professional new designs. It is envisioned that a local partner such as Burberry or Hainsworth, could provide access to a sampling room with dedicated equipment which start-up designers could access as part of their Centre membership. The facility would be in high demand and so should only be accessible to businesses with turnovers under £50,000. Once above this threshold, the businesses should be able to start hiring or buying their own equipment.

New Action In Leeds: University of Leeds has launched a new AutoCAD bureau, using digital technology to connect with new user base and to support the sector for short runs.

Textile (and other) sponsorship We envisage that there will be a lot of organisations wanting to be associated with the Centre and keen to support it in some way. The Centre Director will prepare a range of sponsorship options available to potential partners which could include product/services sponsorship of (say) textiles for new collection development, legal services, etc, in return for brand visibility on the Centre’s website.

Retail opportunities The Centre will be looking for high quality retail partners to provide suitable opportunities for the Leeds designers to reach the consumer audience. The Centre will expect to secure regular free use of pop-up retail venues across the region, as well as collaborations/projects with new retail partners. Over time, the Centre could be ambitious and develop collaborations/projects with retail partners from further afield.

6.3.4 Create and deliver a marketing strategy for the Leeds Fashion Centre

Under the leadership of a strong nationally known fashion champion, the Leeds Fashion Centre can work with local, regional and national partners and journalists, towards creating national brand awareness for Leeds fashion talent. This will be an ongoing process relying on promoting Leeds as a great place to:

o Study fashion – this is already apparent. o To set up fashion businesses – this will be possible once the business support activities are in place and delivering results. o To do fashion business with - there is an opportunity to promote Yorkshire’s wider contribution to fashion, through the mills which are increasingly known for producing cloth for the leading fashion brands and couture; and could be capitalised as part of a holistic marketing vehicle. The promotion of Yorkshire’s textile sector will be explored separately. 40

Regarding the second point (Leeds – a great place to set up a fashion business), this cannot be an immediate action and will evolve over the years two to three as emerging designers are mentored, supported and ‘made-ready’ for national press exposure. A suggestion is for the most talented 5 or 6 emerging designers to be selected at the end of year two and to form ‘The Leeds Edit’, to receive PR support individually and collectively, reflecting on the model of the Antwerp 6 back in 1986 – six young designers who had graduated from Antwerp’s famous Academy of Fine Arts and exhibited together at London Fashion Week, taking the fashion world by storm33. With the right preparation and energy behind the campaign, the Centre could springboard Leeds talent to grow its public and trade brand awareness, and online retail and wholesale commercial business. Other marketing ideas will be developed over time by the Centre Director.

Regarding the third point (Leeds - a great place to do fashion business with), the proposed Centre could benefit from association with the Yorkshire mills which are collaborating with high-profile, exciting fashion designers such as Alex Mullins, Christopher Raeburn, and Paul Smith. Woolmark and the Campaign for Wool would be a useful partner to collaborate with.

Additionally, there should be co-operation with 'Welcome To Yorkshire', the regional tourism agency. Other ideas to promote Leeds as a great place to do fashion business might include over time hosting regional textile fairs, and starting a textile library with product from agents, so that local fashion designers can place orders and guarantee stock availability.

New Action In Leeds: Lee Hicken has been asked by Leeds BID to lead a task and finish group leading on fashion and retail. This includes: Retail & Marketing o TV advert at production stage. o Media buying taking place for high-profile TV, print, digital campaign in Sept - Oct. o Creative will focus on different audiences for different brands. i.e. not a ‘catch all’ campaign. o Campaign will feed into new ‘Welcome to Leeds’ national and international marketing campaign. Heritage and development o Production on ‘The City Talking: Fashion in Leeds’ feature film underway including interviews with high-profile figures and brands. o Development of online ‘member network’ and supporting launch marketing campaign Supporting networking events pending (working with Leeds Beckett and others) Events and experience o All events supported as part of this plan are now moved to April 2017 so as to be part of the first Leeds International Festival next April. o Proposals for events currently being submitted and are still welcome (SLB/Cabba/Fashion Festival etc have submitted proposals). o Discussions underway with match-funding sponsors

33 More reading here: http://antwerpsix.blogspot.co.uk/

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6.3.5 Research and maintain a database of Leeds fashion businesses (manufacturers, suppliers, designers, retailers, PRs and journalists/press, models and make-up/hair stylists, and intermediaries such as investors, banks, accountants, lawyers.

We know that there are around 3,834 companies related to fashion and textiles in the Yorkshire and Humber area according to the data evidenced in section 2.1.1, however all the interviews and surveys tell us that individually these companies are not known to each other. So there is a need to create a database with public searchable parts to enable business to be developed between companies. The ambition should be for an online platform for designers to see the local suppliers and manufacturers as they are so difficult to find and contact we need to know they support small business and can do low quantity minimum orders.

New Action in Leeds: Lee Hicken is currently working on this, and then the gaps will be filled with info received from the other members of the steering committee co-ordinated by Gilda Smith-Leigh.

6.3.6 Create a Leeds Fashion Centre membership structure.

The Leeds Fashion Centre should create a membership structure by the end of year one, which will provide members with access to networking events, retail collaboration invitations, mentoring and business support, amongst other benefits. There should be a membership fee, so that it can continue self funded.

The Director should meet with the Manchester Fashion Network to discuss Manchester’s initial challenges and lessons learned.

6.3.7 Provide access to high quality mentors and experts

Almost everyone interviewed and surveyed described how Leeds’ fashion designers need access to mentors and experts. Leeds has an opportunity to challenge the business models which London continues to promote, which focus around wholesale, selling via tradefairs to store buyers. Fashion industry experts, such as the CFE, could provide this support on a consultancy basis, new models can be analysed, proposed and promoted to the local fashion designers.

The proposed initial areas of mentoring would be around: o Long term strategic vision o Understanding fashion designer business finance o Understanding hybrid business models of trade and public selling activities (wholesale and retail), since without know-how, guidance and planning, this can lead to problems in the future as it becomes apparent that costing is not done properly o How to access trade buyers o Range planning, including costing and pricing for the market; and understanding mark-ups for wholesale and retail pricing

In addition to the expert mentoring, there could be monthly surgeries available from local sector experts, again on a consultancy basis, such as Leeds fashion buyers and suppliers to give structured feedback on the fashion designers’ product. There could also be monthly ‘generic’ advisors such as lawyers, accountants and banks, hosting monthly surgeries.

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6.3.8 Create services to facilitate internships with local fashion businesses

By year three it is envisaged that the Centre will be able to have an area of its website which will promote internship opportunities so that local fashion businesses can promote themselves, and undergraduates can search for them.

In parallel with this, the Centre would collaborate with the universities so that their students have better knowhow of fashion businesses based locally so that local internships can take place; and conversely will provide advice to local fashion businesses on how to maximise the internships to be mutually beneficial (possibly via factsheets or toolkits).

Over time, the ambition would be to facilitate greater takeup of local apprenticeships in the sector. However, this will require more large scale fashion businesses to be in the local area with the appropriate capacity.

6.3.9 Create services to facilitate recruitment of a skilled fashion workforce

If possible (depending on resources) by year three it is envisaged that the Centre will be able to have an area of its website which will promote recruitment opportunities so that local fashion businesses can advertise new job opportunities and job seekers can search for them. This would have a fee structure and would be part of the mixed funding model which the Centre will need to strive for.

6.3.10 Create a dynamic calendar of networking events (speakers, socials, visits)

Most of the start-up fashion designers surveyed said that there was a need for network opportunities. So the Centre should respond to this two-fold: o Hosting events for its network membership (see 6.2.6) o Collaborating with existing provision in the city including: - Leeds Enterprise Network www.leedsenterprisenetwork.com - Leeds Fashion & Craft Network

New Action in Leeds: There are plans to launch a week-long Leeds Fashion Festival in April 2017 which will include a trade fair for local mills and manufacturers as well as activities targeting designers, such as workshops and ‘meet the buyer’ events. The event will be run by Eventium34 in collaboration with Fabrication Crafts Ltd35 and Fashion Pony36.

34 Eventium - Fashion Marketing Company run by Lisa Darwin 35 Fabrication Crafts Ltd – Social enterprise supporting micro craft & fashion businesses http://www.fabric- ation.co.uk/ 36 Fashion Pony – online fashion portal and PR company http://www.fashionpony.co.uk/

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6.3.11 Create an incubator to ensure a sustainable pipeline of Leeds fashion talent to build the local fashion eco-system and be a showcase for the Centre

The CFE’s recommendation is for the Leeds Fashion Centre to innovate on existing known incubation models from other cities, and to use it as an opportunity to incubate a broader fashion eco-system in Leeds. Not only would it incubate fashion designer businesses, but it could also incubate the development of other specialist fashion businesses such as fashion PR businesses capable of operating outside London, as well as manufacturing agents, fabric agents or sales agents again operating outside of London. This will assist to nurture the critical mass of fashion design entrepreneurs on which to build the Leeds Fashion Centre.

The incubator would be run by a person or organisation with strong industry experience, within and outside of Leeds, with connections across the wider fashion industry as well as an understanding of incubation and business support.

It is foreseen that the incubator will be launched in year 3, following mentoring programmes in years 1 and 2 where the expert mentors will be talent scouting the best potential businesses to come into the incubator in year 3.

Based on CFE’s incubation experience it is recommended that this ambition for the Leeds Fashion Centre is to incubate 8 businesses at any one time: o 6 x Fashion designer businesses (the market level will be defined over time, depending on what the long term business strategies look like). They would initially be divided 3 womenswear, 2 menswear and 1 accessories business. o 1 x new supply chain business such as a manufacturing, local fabric or sales agent o 1 x new media business, such as a new Leeds fashion/lifestyle PR or fashion e-commerce digital business.

The 6 designer businesses will receive a range of incubator support which would depend on the level of external funding that is secured in the first two years. Indicatively it would include subsidised studio/workshop space, marketing and PR support, and finance, business planning, sales, range planning, costing, pricing, manufacturing, branding, e-commerce strategies, digital marketing and sales mentoring from external mentors.

The incubated businesses will benefit from the networking opportunities being developed by the Leeds Fashion Centre, however, these businesses should also be supported to develop networks outside of Leeds – to local, national and international organisations to help gain awareness, credibility and support for themselves and the project.

Ultimately, once the incubated businesses have received support for a reasonable length of time (suggest 6 months – 2 years depending on needs and available resource), they would then wish to remain in Leeds to continue to be part of the ever developing fashion eco-system in the city, with the ability to run successful, sustainable businesses from the city.

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6.4 Challenges and recommendation matrix

To ensure that the challenges identified have been considered within the set of recommendations, we have prepared a simple matrix.

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Thank you

The CFE would like to thank everyone who helped us, in particular:

o Dr Kevin Almond, Head of Department for Fashion and Textiles, University of Huddersfield o David Backhouse, Programme Leader for the BA Hons Fashion Design programme, University of Leeds o Simon Baldwin, Head of Enterprise Services, Leeds Beckett University o Simon Brereton, Head of Innovation and Sector Development, Leeds City Council o Bozena Carter, Bo Carter (Fashion Brand) o Adam Hainsworth, Financial Director, A W Hainsworth and Sons Ltd o Lee Hicken, Creative Director, Hebe Works o Rachael Hickson, Alumni Relations and Development Officer, Leeds College of Art o Sam Hudson, Programme Leader BA Fashion, Leeds College of Art o Katie Lenton, Senior Lecturer BA Fashion, Leeds Beckett University o Adam Mansell, CEO, UK Fashion and Textile Association o Anita Massarella, Anita Massarella Design Couture o Philippa Morgan-Walker, Digital Fashion Editor and Freelance Lecturer o Janet Mulcrone , Business Development Manager, Leeds Beckett University o Cathy Poole, Cabba o Dr Pammi Sinha, Associate Professor Fashion Management, Programme Leader MA Fashion Enterprise and Society, University of Leeds o Suzy Shepherd, Yorkshire Textiles o Gilda Smith-Leigh, Senior Economic Development Officer, Sector Development, Innovation and Economic Policy, Leeds City Council o Dawn Wood, Fabrication o All the staff and students from Leeds Beckett University, Leeds College of Art, and University of Leeds who joined the focus groups.

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Annex 1: Steering Committee membership

o Simon Baldwin, Leeds Beckett University o Simon Brereton, Leeds City Council o Bozena Carter, Bo Carter o Adam Hainsworth, A W Hainsworth and Sons Ltd o Lee Hicken, Hebe Works o Sam Hudson, Leeds College of Art o Adam Mansell, UK Fashion and Textile Association o Anita Massarella, Anita Massarella Design Couture o Jan Miller, Centre for Fashion Enterprise o Louise Mullane, Centre for Fashion Enterprise at London College of Fashion o Pammi Sinha, University of Leeds o Suzy Shepherd, Yorkshire Textiles o Gilda Smith-Leigh, Leeds City Council o Sarabjit Kundan, Leeds City Council

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