After Brexit, which way for fashion? The impact of Brexit on the fashion industry is daunting, brain-scrambling and multi-levelled. The industry directly contributed £28bn to the UK’s economy in 2015 and employs 880,000 in roles from manufacturing to retail. For many British designers and stores, there will be an immediate hit on costs and margins. Once Brexit has been achieved, it could jeopardise design talent and retailers within the global marketplace forever. Sample the FT’s top stories for a week You select the topic, we deliver the news. During the campaign the British Fashion Council (BFC) reported that of the near-500 designers it polled, 90 per cent planned to vote for Remain. In the short term, some in the industry are happy. Luca Solca, head of luxury goods at Exane BNP Paribas, calls this positive effect “margin tailwind”. Buyers and retailers are nervous about speaking openly — they want consumers to continue shopping as if nothing has happened. Currency volatility is a huge worry. Photographs: Getty Images
What Brexit Means for the Fashion Industry Today's news that Britain has voted to leave the European Union has sent stock markets plunging and hammered the British pound, which hit its lowest point in decades. Although it will likely take years for Britain to untangle itself from the EU, many in the fashion industry are left questioning what the change could mean for their livelihoods. Of course, London is a major fashion player, with the fashion industry contributing an estimated $38 billion to the UK economy in 2014, according to the Business of Fashion. Advertisement - Continue Reading Below A weak pound and uncertainty about new tariffs could mean major challenges for UK-based businesses, which often source fabrics and produce in other parts of Europe. Before last night's vote, the British Fashion Council surveyed its members and found that the vast majority—90% of members—wanted to remain in the EU. This turmoil is predicted to affect prices of items coming into and out of Britain, as well. Getty
The pound’s fall and why it matters Image copyright PA Have you seen the new pound coin? It's a 50p piece. Admittedly, currency jokes aren't quite up there with Phoebe Waller-Bridge in Fleabag ("People make mistakes. That's why they put rubbers on the end of pencils"), but the point is well made. Harold Wilson might have claimed that a devaluation of sterling doesn't affect the pound in your pocket, but it certainly affects the way the economy operates and therefore all of us. There are three broad reasons for the sickly state of the pound, which fell again this morning by a precipitate 0.9%. 'Flash crash' First, and fundamentally, it is a market judgement on the future growth potential of the UK economy relative to the future growth potential of competitor economies, and their currencies. Second, this downward trajectory is then emphasised by near-term market makers who "short" the currency, making a profit margin on the pound's decline. Third, differential interest rate expectations drive currency moves. Debt issue?
Why Brexit is good for the fashion industry | British GQ On the eve of the EU referendum in June during London Collections Men it wasn’t hard to gauge which direction the fashion pack was leaning. Unsurprisingly, thanks to factors such as the EU support of many of the initiatives of the British Fashion Council (BFF) and the fact that myriad young designers work with factories and suppliers from Lithuania to Lisbon, the community is an outward-looking and inclusive bunch. Indeed, during the campaign the BFC reported that of the near-500 designers it polled, 90 per cent planned to vote for Remain. Now the world has changed and in the face of a probable Brexit, whatever individual’s feelings may be the UK fashion industry has to start accentuating the positive. Astonishingly, the effects were almost instantaneous. E Tautz’s Patrick Grant is cautiously optimistic about sales, too. Harrods is obviously a key destination for visitors to London and so far things have been looking up.