The Business of Fashion – The Real Issues

Industry Facts:

+ In 2005, the British clothing and textile industry produced over £9 billion worth of goods and employed more than 165,000 people.

+ However, there is a lack of robust data on the fashion industry, particularly when split into specific sectors. As a result there is very little information on UK wide social or economic shifts within the industry and therefore little evidence to support potential development or innovation.

+ Unlike other major business sectors in the UK there is no single organisation representing the industry, supporting its development and lobbying for policy support.

+ Many new designers leave College and University at degree level but with no practical production or business skills to ensure they remain successful in the industry. Recruitment agencies in the sector complain that Colleges and Universities are churning out too many design students, particularly womenswear, while other key areas are being overlooked.

+ There has been a recent shift in the supply chain and the use of UK based CMT units. Perception has been that the UK manufacturing sector is in decline and yet this area is beginning to show strong signs of potential growth. The traditional set up of low cost high quantity has shifted into high cost low quantity production with manufacturers working closely with designers and retailers.

+ The fashion, textile and manufacturing sector is an insular industry which is notoriously very secretive and closed. In turn it is very difficult for start up businesses to access information to ensure success and growth.

+ The sector is currently missing out on government initiatives, for example; ‘Brand Britain’, currently being presented as a concept by Lord Digby Jones (Minister of State, Foreign and Commonwealth Office and DBERR). Despite a huge international profile for Designer Fashion, its links with manufactured goods in the value added sector is not being exploited to the benefit of fashion and textile manufacturing and the development of apprenticeships in the UK.

 

Ethical Trading – The Facts

+ In 2006, UK clothing and textiles produced up to two million tonnes of waste, 3.1 million tonnes of CO2 and 70 million tonnes of waste water.  Clothing imports into the EU as a whole now account for 42 per cent of the global market. In the UK only 10 per cent of our clothing is manufactured at home, the rest is imported.

+ Mintel’s Green and Ethical Consumer Report 2006 found that one in four (24%) of adults are ‘Keen to be Green’ and are conscious and conscientious about green and ethical issues.

+ YouGov survey commissioned by Marks & Spencer shows consumers are thinking more about ethical and health issues when they buy clothing and food. Almost one-third said they had decided not to buy an item of clothing because they felt concerned about where it had come from or the conditions it had been made.

+ According to Verdict research, consumers are increasingly concerned about ethical standards throughout retailers’ supply chains, and retailers need to answer the following questions: What is ethical sourcing? How is it changing?

+ The increase in sustainable development coverage suggests that major changes are on the way. Consumers are now questioning the materials, products and production methods that they buy into and some major retailers have begun to respond.

+ Despite designers and retailers getting on board the ethical bandwagon there have been accusations of marketing & PR games as opposed to effective sustainable change.

+ Retailers are increasingly involved in sourcing and product development, which means the requirements of the supply chain are shifting.

 

Fashion Forward – Proposed Ideas for Industry Survival

+ Students traditionally are highly qualified in creative skills; however, the fashion industry is changing with greater globalisation and international markets. There is a need to address these changes and recognise the varied roles created by these changes within the industry, for example sourcing and distributing goods.

+ Graduates arrive into the sector with unrealistic expectations and a lack of practical production and business skills to support career development. There is too much importance placed on design/creative roles and not enough on business, production, marketing and other avenues. Colleges, Universities, Business Support Organisations and the Fashion Media need to encourage these other key industry areas.

+ Mentoring is demonstrably beneficial; however there is no infrastructure for nationally accessible, consistent, standardised high quality delivery. Designers need more access and information to working with buyers and retailers, along with financial and production advice.

+ Easy, accessible information and statistics on the industry should be made available from a central source to ensure stable guidelines, growth and future proposals.

+ London has a strong reputation as a hot bed for unconventional cutting-edge design, which attracts students to its top colleges from all over the world. Their products result in admiration and influence global fashion, however, greater commercial support at the early stages of business would lead to greater credibility with international buyers and would retain the talent in the UK.

+ Ethical issues cannot be ignored and retaining manufacturing in the UK is not just logical but vital for the UK fashion industry. Now design and production are embedded in each others survival they can make a significant contribution to the economy if they are supported together.

While there isn’t a central organisation to support and move the industry forward there are several companies that mentor, support and assist various sectors of the fashion industry such as Cutting IT, Fashion-Enter & FashionCapital and The Ethical Fashion Forum. To view the Fashion Business Support Guide please click this pdf link

FashionExpo in association with Profile bridges the gap between design and manufacturing. Held on the 5th & 6th November at the Business Design Centre in Islington, London, the event will showcase collections from up-and-coming designers alongside UK based manufacturers.

Thanks to the various BSO’s and market analysts for their input on the fashion industry today.

What do you think about the UK fashion industry? All comments are welcome.