A new paradigm

The future of UK fashion after the Brexit

The UK fashion industry has changed after Brexit

The UK fashion industry
The UK fashion industry
Louise Koninckx Louise Koninckx

The referendum held in the UK on June 23rd, 2016 asked the British public one question that would define politics in the years to come; should the UK leave the European Union? The leave side won, and the UK entered 4 years of negotiations between them and the other EU countries. This “divorce” deal affects mostly agreements on trade, security, and other departments. Like many other industries, the fashion industry in the UK will be greatly affected and will be left in a vulnerable position.

Mobility of fashion creatives

One of the biggest problems that the fashion industry in the UK will face is the mobility of their creatives. For the past few decades, London has been the place to be for brands to do their shootings, campaigns, events, and shows. Often these brands will have a roster of international creatives at hand, which consists of photographers to models, and event managers. This roster allows them to quickly contact and hire anyone they might need for a last-minute assignment. However, with Brexit measures on the rise, these creatives would now need to meet certain visa requirements and would be prohibited to enter the UK freely. This might remove the attractiveness for European brands to hire UK creatives or do work in the UK and vice versa.

This freedom of movement affects much more than just creatives who work in fashion, it also influences the supply chain and manufacturers. The fashion industry thrives in an environment where they can work with international partners. Fashion is an extremely globalized industry, with a UK fashion brand often sourcing out their fabrics from one country, designing in a second, producing in a third, and selling in a fourth. The chain of production will be challenged not just because of new visa requirements but also because of new pricing, delivery costs, and timing.

The UK fashion industry
London, the capital of the UK fashion industry

Duty fees and duty taxes

Next to mobility issues, the UK fashion industry will also suffer from extra tariffs that they will have to pay such as duty fees and duty taxes. Companies might need to redesign their entire business plan because they are facing charges they otherwise would’ve never had. Big and global brands like for example Asos, Farfetch, and NET-A-PORTER, who all have headquarters in the UK, have already started preparing for these changes. This way, they want to minimize the amount of fallout they might face due to new regulations.

While there is no doubt that Brexit will be a stumbling block for big brands based in the UK, small or medium-sized companies might even be the most at risk. They have less experience and less capital to finance the changes that they need to make, to keep their business running.

London as a hub for luxury fashion

For luxury houses based in the UK, the Brexit inflicts another challenge. Up until now, a big part of luxury sales was tax-free shopping, which allows customers to get their products at a cheaper price. With tax-free shopping gone, a lot of shoppers might opt for other big European cities like Paris and Milan to make their luxury purchases.

Next to this, the power of London during fashion week might also decline since there is no longer free travel between Milan, Paris, and London.

Opportunities on the horizon

Even with all the complications that are inflicted by the Brexit, there might still be a silver lining. “Adverse situations like this will always bring opportunities to the horizon”, says Niki Susskind, website merchandiser at NET-A-PORTER in London. Brands might switch to UK-based manufactures, to avoid import fees. As a result, this shift will give a boost to the UK manufacturing industry, and also might encourage slow fashion, and slow manufacturing.

In addition to that, because it will be harder to go to London for fashion week, other cities in the EU might get a chance to gain more visibility. “The fashion world needs a stop,” Susskind says, “the industry has been very conventional for a long time, and this might just be the thing that forces them to adjust to a new world.”

In conclusion, the UK fashion industry will have to deal with a lot of changes when it comes to mobility, their supply chain, tariffs, and so on. At the end of the day, the UK fashion world has changed, and the industry will have to find a way to adjust. A better way.

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Louise Koninckx

A student from Belgium. Interested in fashion, politics, and exploring new cultures.