London has been long considered one of the world’s fashion and financial capitals, as one of the world’s most creative and vibrant cities. But what will the Brexit vote mean globally for the fashion indsutry?
London has built its reputation as a cool city because it is a place where worlds constantly collide – a city where the sari silk stores of Brick Lane rub up against the Savile Row-suited bankers of Bishopsgate. It is exciting because in a city of 8.5 million people, three million are foreign born, bringing together a diverse range of world views, to create new experiences and amazing products. It is where history co-exists with some of the most innovative tech start-ups, while Central Saint Martins is the starting point for many of the world’s best designers.
For brands trading on notions of Britishness – from Savile Row to Topshop, this once solid association is now less of a good bet.
Speaking at the FashionTech conference in Berlin this week, the European Parliament’s Dr Christian Ehler said that the decision is a “huge loss of the EU”, because “The UK, and in particular London is one of the most vibrant places in terms of creativity. We often tell other countries to look to London and the UK for inspiration. This is no doubt going to have an impact on the ways in which the UK trades.”
No doubt the descisions of last weeks vote will have an impact, but on which part of the industry?
Luxury and export
The British luxury sector contributes £32m to the UK economy, accounting for 2.2% of the country’s GDP. Of that, 78% of production is destined for export, worth around £35.5m, according to luxury trade body Walpole.
What makes a product quintessentially British? For many luxury labels, like Burberry, Mulberry and Barbour, their “Britishness” is a key element of their brand, regardless of whether their products are actually produced in the UK.
Britishness is a somewhat intangible notion – but for consumers buying into UK brands, there is a perception of creativity, innovation, quality, history and luxury. But it’s not just about the perceived product values, when people buy into British product, it is a reflection on how they feel towards the country.
For brands operating on this basis, it will be important that they continue to consider what it means to be a “British Heritage Brand” and given the uncertain road ahead, whether this will remain a positive product attribute.
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the effects on the fashion industry