Balancing a fine line in an environment of change
A Coats Viyella case study

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Page 6: Conclusion

Coats Viyella 2 Image 5To conclude the case study it is helpful to identify some further opportunities which will help to enhance Coats’ performance and thus add further momentum to the value chain. In particular, Coats believes that there are opportunities for growth in certain geographic areas: in India, China and Eastern Europe - each with their own challenge. The key drives for these markets is the growth in their export of clothing. All have opportunities for indigenous production of thread - in fact Coats is already producing thread in India and China. All offer very exciting potential to service the local demand for clothing products. All these areas will demonstrate real growth and substantial demand.

In the developed world where garment manufacturing is static to declining, the key area is through niche markets, particularly those for non-apparel use such as automotive seats and seatbelts, tampon threads and teabags. This involves highly targeted marketing activity which enables Coats to understand the specific needs of customers in these niches. For example, think of the niche markets in which you use products which require threads. They may include threads for training shoes or embroidery thread for fashion garments. Coats global presence, balancing its experience of managing growth in the developing world and its strong market positions in the developed countries, make it unique in its industry and Coats should flourish in the next millennium.

Coats Viyella | Balancing a fine line in an environment of change