117-Year-Old Kiltmaker Embraces AI, Sees Surge in U.S. Customers

Houston Kiltmakers, a 117-year-old Scottish kilt and tartan design firm, is undergoing a technological transformation under the leadership of Ewan MacDonald, who took over the business during the pandemic. MacDonald has introduced modern business practices, including online banking and HR systems, and is now exploring the integration of artificial intelligence (AI) to modernize operations and expand its global reach.

The firm, founded in Paisley in 1909 by MacDonald's great-grandfather, has a history of designing tartans for notable figures, including royalty, presidents, and astronauts. MacDonald's father, Ken, designed an Apollo 12 Tartan in 2012, and NASA has previously approached the company for designs for specific missions.

MacDonald hopes to increase the profitability of custom tartan designs, which he sees as a growing segment alongside traditional Highland outfit sales and hires. The company has already created branded tartans for businesses such as Domino's and Boeing. He noted that many families desire their own unique tartan, and Americans, in particular, have a strong affinity for tartan, viewing it as a form of brand identity and a way to express heritage.

While MacDonald spent his twenties less focused on the business, the pandemic prompted him to take on a more central role. He described the period as a time of "survival mode" but emerged with a clearer vision for the company's future. He acknowledged initial disagreements with his father but learned the importance of hard work and preparedness. Weddings remain a significant revenue driver, accounting for 60% of the company's income, and MacDonald emphasizes the enduring value and heirloom quality of a kilt.

The international market, currently representing about a quarter of revenue, is a key area for growth. MacDonald specifically highlighted the impact of American customers, partly attributing a surge in demand to the popularity of DNA testing that reveals Celtic or Scottish heritage, often linked to public figures like President Trump, whose mother was Scottish. He stated that the U.S. market is significant, with customers possessing disposable income and a fondness for Scotland.

Despite generating around £1 million in revenue annually, the seasonal nature of the business, with most sales occurring between March and October, limits growth. MacDonald also cited increasing staff costs and taxes as challenges.

To address these challenges and modernize the 117-year-old firm, Houston Kiltmakers is participating in a Knowledge Transfer Partnership, a UK government-funded initiative connecting businesses with academic research. This partnership identified areas within the company that were "too old-fashioned."

The firm is now pivoting to AI to streamline the ordering process. An "AI mirror" is being developed, which will allow customers worldwide to virtually try on outfits before purchasing, aiming to further boost international sales. While embracing new technology, MacDonald stressed that core elements, such as the kiltmakers' meticulous attention to detail and the use of traditional measurements, will remain unchanged. He believes in maintaining high-quality products and service to attract new generations of customers.

MacDonald expressed no intention of selling the business, even indicating he would not sell to figures like Elon Musk, underscoring his commitment to keeping it a family legacy. He mentioned that his young son occasionally visits the office, hinting at the possibility of future family involvement.