Simon Tate, the 30-year-old founder of Kew Health and Beauty, is one entrepreneur who has fiercely resisted the trend to outsource manufacturing overseas.
“Would I move our manufacturing to a low-cost country like India? Absolutely not.”
Using £40,000 of personal savings, Tate set up his Abingdon-based company in 2004, developing and manufacturing luxury cosmetic and health products for the likes of celebrity hairdressers, exclusive spas and private-label brands.
“Our business hinges on the quality of service and standards,” he says. “I know there’s a tendency to look overseas but I’m not about to jump on that bandwagon. I want our clients to have easy access to factories so they can watch manufacturing runs on new products.”
While this hikes up the cost of doing business, Tate says the process is much easier to control when it’s taking place on home turf. “There’s great talent here in the UK in terms of manufacturing ingenuity and technical skills,” he says. “I think it’s a moral responsibility to support your own country.”
Tate’s company is now turning over £1m a year. But he’s thinking big: “Over the next seven years, I’d like us to hit the £100m mark,” he says.
“It’s tempting to look at other successful businesses or celebrity entrepreneurs on television and think you can get to that stage very easily. But I’m under no illusions.
"You have to be prepared to put in the long hours. And you also have to avoid lavishing attention on the clients that shout the loudest or give you the most business. Everyone is important: small clients can grow to become big clients.”