Funding deal agreed
2Pure clothing distributor eyeing direct to consumer market
2Pure is looking to new markets
A Scottish active lifestyle distribution business is looking at international expansion and developing a ‘direct to consumer’ channel after securing a £2.75 million re-financing package.
Edinburgh-based 2Pure employs 35 staff and distributes branded products in the running, cycling and outdoor sectors.
The company’s managing director George Bowie said the funding from HSBC would provide some breathing space around the Brexit deadline on 31 January.
Beyond that the firm would be looking to international growth and selling direct to consumers (DTC), a market which is expected to grow sharply, particularly for manufacturers who are looking to bypass traditional channels, including wholesalers, distributors and retailers.
A recent report from Barclays Corporate Banking Manufacturing said that nearly three-quarters (73%) of manufacturers now sell direct to consumers – compared to 56% five years ago.
As many as four out of five Scottish companies now sell direct to consumers (82%) and over the last five years, Scotland’s DTC sales have soared by 62%.
Social media is also of increasing importance with more than three-quarters (79%) currently using or planning to sell via Facebook and nearly three-quarters (72%) currently using or planning to sell via Instagram.
Mr Bowie said: “The current consumer retail and political environments are more volatile now than ever.”
He said the latest financial support would allow the the firm to plan strategically, consolidate recent growth and make considered plans for 2020 and beyond.
“We have ambitious plans to grow the business internationally and through new retail channels, as well as offer the option of selling directly to consumers.”