Move over Millennials, sadly, it’s not all about you anymore. Generation Z is primed to take centre stage and retailers and brands are asking this constantly ‘on’ generation exactly what they want.
Generation Z are those born between 1995 and 2010, which means that the oldest are about 23 and are entering the workforce. Their spending power is increasing, their influence growing and they are a generation who doesn’t know life before the internet and mobile phones.
Younger focussed fashion and sports brands want to know what these young people want and what better way to do that than getting them to design the clothes themselves.
Left - ASOS's new Generation Z designed COLLUSION label
This new trend in Generation Z designers is mirroring the multifaceted desires and identities of this group of people.
Online behemoth, ASOS, recently launched its ‘COLLUSION’ brand. The entire brand is shaped and ‘focused' by Gen-Z with a line-up of 6 collaborators. The brand is exclusive to ASOS and can be found on COLLUSION.com which links through to the main ASOS site. The blurb says it “is built for a new generation united in their pursuit for inclusivity and representation. The 200-piece, animal-free collection is designed to fit seamlessly into the wardrobes of those who helped shape it”.
It goes on, “From the cut of a jacket, to the way that it is marketed, photographed, styled and sold, this collection is the result of extensive research into the values that this generation sees as non- negotiable”.
The brand speaks as a collective. Categorisation by gender is unnecessary, COLLUSION is ranged as one collection – for everyone. The brand’s website allows for navigation by product category, style or mood, rather than by men’s or women’s. The debut collection and the regular drops beyond it will be available up to a size 6XL. Price points for launch range from £5 for jersey basics to £70 for statement outerwear.
The initial six collaborators were selected by COLLUSION's cultural social team who find tastemakers and talent. The six were chosen from a wide pool of young creatives and all come from different backgrounds, areas, and professions. Students, stylists, activists, image-makers, authors and YouTubers.
It says, “COLLUSION is a manifestation of what this first contingent of six want the future of the fashion industry to look and feel like. Working in collaboration with a team of standalone designers and creatives assembled by ASOS, each industry experts in affordable fashion, the six are consumers of, consultants to, and architects of this brand. Their brief: to realise an authentic, vibrant wardrobe which speaks directly to themselves and their Gen-Z peers”.
Chidera Eggerue, 23, blogger and author, says, “I joined Collusion because I wanted to be part of something that created the change that I want to see,”. Chidera is known to her followers as The Slumflower.
Right - Brands giving the next generation what they want by getting them to design it - ASOS COLLUSION
The collection is animal-free and has been recognised a number of times in PETA’s vegan fashion awards, first launched in 2013, celebrating the most desirable cruelty-free clothing and accessories on the market.
So, what’s been the reaction? The brand says, “COLLUSION has been applauded both on social media and in the press for its unwavering commitment to diversity and body positivity. Publications such as Vogue, i-D, Dazed and Grazia have featured the brand and commended the daring approach for a big backed brand towards gender neutrality and its direct involvement with Gen-Z”.
I’m not sure this generation even read these publications anymore, but, it’s commercial success will be judged with how many follow up collections there are.
This burgeoning woke generation has also come to the attention of sports brand, Champion. They’ve just launched a capsule line of T-shirts inspired by the power of words and how the negative labels used to describe young people can influence and determine their identity and behaviour.
Partnering with the London-based charity ‘London Youth’, which represents 400 community youth projects across the city, and called ‘Champion London Youth’, the T-shirts are each inspired by the personal stories of five young people who have faced stereotyping and have overcome this with the help of their youth clubs and organisations.
Local authority youth service budgets across London in 2017/18 are £39 million lower than in 2011/12. This represents an average cut of £1.5 million or 44% per local authority. During that period, 81 youth centres were closed and there were 800 fewer youth workers.
Gill Goodby, Head of Communications at London Youth, says “We combined with The Corner agency to produce a film to challenge the perceptions of young people and every newspaper headline having ‘youth’ and ‘violence’ in the title wasn’t representative. The T-shirts with Champion came from that film,” she says.
Subira Damali, 23, from Lewisham is one of the chosen designers of the T-shirts, and describes how she became involved, “I’m part of Lewisham Youth Theatre. They send me acting opportunities and I applied to be on the film”.
Left - Subira Damali & her daughter
A young mum, she was interviewed for the film and wrote a few words that people used negatively to describe her. “Then somebody said, ‘This is going to be on a T-Shirt’. It’s about breaking down stereotypes and designing clothes helps confidence, leadership and is therapeutic,” she says.
Renowned designer Tim Head transformed the experiences of these young people into limited edition designs, which will be available for sale in Champion’s Soho store and at Urban Outfitters. Champion will be donating all profits to London Youth to help fund the charity’s arts, sports development, youth social action, employability and outdoor learning programmes.
If they design it, then, hopefully, they’ll buy it. Or, so the thinking goes. Asking the next generation what they want seems almost too simple in its concept. But, this generation is very individual and it wants to be seen that way.
This feels like the natural progression of personalisation and customisation and a step to the future where we’ll all be able to share a hand in designing what we want.
Today, retailers and brands are up to the size and speed of being able to tailor collections for certain generational groups or be reactive to their wants and desires. It makes business sense, but will it be this straightforward?
This is a generation of confident young individuals who know what they want and want their clothes to reflective their disparate identities. Brands will just have to try as hard as they can to keep up.
Things often speed up towards the end. It’s probably in one of Newton’s laws and it best describes the recent carnage in the printed media industry. It feels like we’re finally at a tipping point, and, in the past week, we’ve seen the men’s style media hardest hit with Esquire halving the frequency of its print edition and Shortlist, the biggest UK men’s title by readership, closing altogether.
Add in Johnston Press, which owns more than 200 titles including the i, The Scotsman and The Yorkshire Post, going under, and it’s free-fall in the newspaper and magazine publishing business. You’re doing very well to stand still.
According to a recent Evening Standard article, in the past decade over 300 local newspapers have closed, circulation has more than halved, advertising revenues have nosedived by 75% and 6000 fewer journalists are employed.
What’s killing these businesses isn’t the falling number of copies being sold - while that doesn’t help - it’s been the giant migration of advertising and marketing revenue to the online monopolies of Google and Facebook.
It’s obviously a shift to online, but the big question is, why have all the magazines and newspapers happily sat back and watched both these businesses take away all their revenues?
In 2017, Google's revenue amounted to 109.65 billion US dollars. Google's revenue is largely made up by advertising revenue, which amounted to 67.39 billion US dollars in 2015. Facebook made $39.9 billion in ad revenue in 2017. Mobile advertising represented approximately 89% of advertising revenue for the period, up from 84% of advertising revenue in the fourth quarter of 2016, while the company saw the biggest jump in revenue in Europe (31%).
Not amount of rebrands or editors being replaced will compete with this dominance.
Condé Nast just announced it was closing American Glamour, this follows Teen Vogue, and there are rumours W is next, if it can’t find a buyer.
While Google keeps its nose relatively clean, it’s Facebook that seems to jump from controversy to controversy.
At the beginning of this year the Facebook–Cambridge Analytica data scandal revealed Cambridge Analytica had harvested the personal data of millions of people's Facebook profiles without their consent and used it for political purposes. It opened the eyes of the general public. Facebook wasn’t this cuddly and friendly village notice board anymore, but rather an aggressive marketing tool selling access to their lives. This was a huge sucker punch to this online Goliath and the newspapers and media should had been encouraging us all to close our accounts and walk away.
The media should have pushed for us to delete Facebook. It was a huge opportunity for them to damage Facebook and take back a slice of revenue. Much in the same way we joined, if all our friends left, we would leave or no longer be active on there.
Recent evidence also suggests Facebook knew about Russian political activities on its platform even while Mark Zuckerberg, Facebook’s Founder, publicly denied it. The Facebook culture is said to be one of ‘delay, deny, and deflect’ and is full of ‘fake news’.
This has had a slight effect on visitor numbers. According to the company's latest figures, the number of Europeans logging onto the site every day dropped from 279 to 278 million, while monthly European users fell from 376 to 375
However, total global user numbers continue to slowly rise, with more than 2.2bn people using the platform every month. The latest results showed total revenue of $13.7bn dollars (£10.8 bn), an increase of 33 per cent on the same period last year.
After its financial results in July when Facebook said it expected revenue growth to slow and costs to rise, more than £90bn was wiped off the company's value. The latest figures show costs rose 53 per cent on the same period last year to $7.9bn (£6.2bn).
Facebook is trying to change its image, with adverts telling you how much they care and it publicly committed to recruiting thousands of new content moderators to help improve its ability to remove malicious content from the site - an area it has been widely criticised over.
It also just announced they have partnered with regional publishers Reach (formerly Trinity Mirror), Newsquest, Archant, JPI Media (formerly Johnston Press), and the Midland News Association to launch the ‘Community News Project’, a scheme that will help fund 80 community journalists.
Ironic when you consider they have mostly disappeared because of Facebook. This is, now, media as charity, subsidised by Facebook to give a veneer of unbiased and local coverage. The scheme follows in similar footsteps to the BBC‘s ‘Local News Partnership’ which has helped fund over 140 local democracy reporters.
What all this shows is Facebook isn’t unstoppable. People and their time is the value in Facebook and if we walked away we could damage it. It’s probably naive to think it would disappear, but just a small slice of those huge revenues returning to more independent media would make for a healthier and broader media landscape.
The current traditional media feels very passive and defeatist with regards to these advertising revenue giants when they should making them public enemy number one and encouraging us to walk away.
Are you ready to delete yours?
Superdry has been a British retail phenomenon. In under a decade, the brand went from its first store in Covent Garden to a huge multi-storey flagship on London’s Regent Street.
Established by James Holder and Julian Dunkerton, the Superdry name first appeared in 2003. It has been an unstoppable juggernaut since then, racking up yearly sales of over £750 million (2017) and operates in 55 countries.
Left - Superdry went from a single store to a huge Regent Street flagship in under 10 years
At the beginning of this year, the remaining founder, Julian Dunkerton, announced he was stepping down from the company. In a statement, Mr Dunkerton said he had “other demands” on his time, and stepping down was “the right point for me to transition my focus and responsibilities”. Handing the reins to new Superdry chief executive Euan Sutherland, Dunkerton bowed out quietly until this October when Superdry issued a shock profit warning blaming warm weather and bad foreign exchange hedging. Shares in the group crashed 20%.
Dunkerton has been vocal in his disagreement with the direction the company is heading in, saying, “I cannot sit back and watch my shareholding — and those off all the pensions invested in the company — be dissipated”. He’s trying to gather other shareholder support to return to and steer the company in his direction, but, have they got their strategy wrong or has the Superdry brand simply peaked and run out of steam?
Mat Heinl, CEO at global creative business Moving Brands, an independent, global creative company, says: “It has become unclear who Superdry is for and it feels like its brand and purpose has been entirely lost.
“There, now, seems to be a clear disconnect between what made the brand successful and its core base of customers. With the mid-market being hit hard by competitors, brands like Superdry fall into a sea of sameness,” says Heinl.
The strategy in question has been Superdry’s move into fast-fashion. In September, Superdry hired Brigitte Danielmeyer as its new chief product officer to launch a new fast-fashion range called "Superdry Preview”. Formerly Tommy Hilfiger’s global head of womenswear, Danielmeyer, leads the new Superdry Preview label aimed to attract a “younger, more fashion-driven” customer through limited-edition capsule collections. The range will go from design to delivery in just six weeks and be supported by a social media campaign targeted directly at 16 to 24-year-olds.
Yet to be tested, with no results yet for these ranges, Dunkerton thinks it’s a mistake for Superdry to move into the competitive fast fashion arena. He thinks Superdry should stick with fewer, core ranges in store and massively increase the designs and varieties (known as SKUs) being sold online.
“Last Christmas we were at a point where we could hit fast fashion online. We were such a strong brand that we could really increase our SKU count. But they [the new management] did the reverse.
“If you put that product online you would expand brand awareness and create excitement online while combining it with the classic store base.” he said.
Not everybody disagrees with the fast-fashion approach. Natalya Johnson, Marketing Manager, Shopest, who create location- based shopping experiences helping “independent stores to stay vibrant, profitable and nearby”, says “Early on the brand appealed to their target demographic which at the time was young men and women aged around 16-30.
“Over time, their consumer has changed, developed new interests and shop in a new way. Although brand identity is strong, the brand has failed with adapting into the fast fashion cycles, meaning their products seem to be outdated,” she says.
“Superdry are beaten by big brands such as ASOS and Zara, who not only offer consumers constant variety, but also a difference of style.
“Superdry do have great potential to revive the brand, tapping into current trends in the fashion industry that would attract their ideal consumer. It seems that they keep missing the mark in trends that would complement the brand e.g. streetwear and also brand collaborations.
“Once the product becomes more relevant, the brand can offer new innovations in store and develop stronger marketing strategies. In conclusion, Superdry appear to be very stagnant at the moment, but definitely have the potential to make things right,” she says.
The shares now sit at roughly 780p. They began the year above 2000p. The October profit warning said it expected to make £83 million in profit this year, well shy of the near-£110 million expected.
Superdry is heavily reliant on sales of heavy winter items such as jumpers and jackets, making 45% of annual sales. It said “unseasonably hot weather” in the UK, Europe and the east coast of the US was hitting sales.
“Superdry is a British phenomenon who’s growth has been nothing short of miraculous,” says Anthony McGrath, Lecturer and Editor-in-Chief of Clothes-Make-the-Man.com.
“In their heyday, celebs galore were spotted in their trademark casual wear and they set up home in a huge flagship emporium dedicated to all things Superdry on the retail Mecca of Regent Street. BUT! They have rested on their laurels and the whole nature of the beast, that is fashion, is that it changes at a break neck speed. Tastes, styles, trends change and unfortunately Superdry haven’t. So, yes, I do think Dunkerton is right,” he says.
Right - Is Superdry too reliant on coats and jackets?
Dunkerton, who retains an 18.5% stake, said “The management team remains hell-bent on their strategy, publicly supported by the chairman; but the numbers and the market warnings speak volumes. It is very clear that the company needs to change strategic direction; I have a clear and simple plan to correct the problems, and I have been explaining my plan to shareholders over the last couple of weeks.
“This company and brand has such a great opportunity - we must grasp it now,” he said.
This added pressure onto the Superdry management comes at a time when the retail landscape is looking schizophrenic. Long one of the darlings of the British retail scene, could this just be a case of the brand losing momentum and consumers growing tired of the Superdry brand regardless of the strategy? Has the ubiquitous Superdry branding reached its zenith, and, regardless of what the brand does, exponential growth can’t go on forever?
“Another challenge for brands like Superdry is the rise in people turning away from highly disposable and consumerist brands as they become aware of the massive pollution and poor working conditions associated with those brands which emphasise profits over ethical business practices,” says Heinl.
“To claw back momentum, Superdry, and other struggling brands, could do a number of things to help them stand out in a crowded marketplace. They could become a champion of sustainable fashion, improve and showcase high quality products, define a distinct design direction or take a leadership position in improving supply chain transparency and quality,” he says.
Dunkerton said, “My model means less wastage. It is far easier to manage and you have lower stock risk.
“There are too many products in the stores with short shelf life. You shouldn’t try and change it all the time. Get the product right and be confident in it. There’s no reason a jacket in October shouldn’t stay until March. Now, you see jackets on sale already. Can that be right?” he says.
Shareholder Aberdeen Asset Management is supporting current management, saying Dunkerton left after multiple profit warnings. Superdry chief executive Euan Sutherland has said “it will take up to 18 months for the benefits to come through” and Superdry chairman Peter Bamford said: “The Board of Superdry has huge respect for Julian Dunkerton as an entrepreneur and founder of the business. Julian has raised a number of issues with the board regarding strategy since he left the business. We have reviewed and discussed these issues and, while we have sympathy with some of his points, we have a different view on the best strategy or approach to addressing them.
“Superdry is an ambitious, global, multi-channel brand and the Board believes that Julian’s view of strategy has not evolved with the needs of the business. We remain fully committed to our successful global digital brand strategy and the board is confident that Superdry has in place the right leadership to ensure the continued development of our highly relevant brand.”
The management will have to start seeing the fruits from this new strategy and fast, otherwise shareholders will push for change. The next set of results will either quieten Dunkerton or add fuel to the fire for a reversing of the company direction. Superdry is too reliant on coats and jackets, but this has also helped them grow to the size they are. Regardless of strategy, what if consumers are simply bored with Superdry? That’s going to be an even harder job to fix.
Over the past few decades Turkey has become a powerhouse in fashion manufacturing. Thanks to cheap and plentiful labour, quality producers and its geographical location, at the heart of the world, Turkey is, now, the 6th largest fashion supplier in the world and the 3rd largest supplier to the EU, according to World Trade Organization (WTO) data 2016.
The Turkish lira has been failing this year due, in part, to its high levels of government debt and, in August, thanks to Donald Trump’s clumsy rhetoric over the detention of US pastor Andrew Brunson - he has since been released - and his disagreements over defence policy, the Turkish lira plunged even further.
Trump announced his plans to hike tariffs on Turkish steel and aluminum to 50 percent and 20 percent, respectively.
The Turkish president, Erdogan, at the time, repeated calls for Turks to sell their dollars and euros to shore up the national currency. “Together with our people, we will stand decisively against the dollar, forex prices, inflation and interest rates. We will protect our economic independence by being tight-knit together,” he said.
“We will impose a boycott on U.S. electronic products. If they have iPhones, there is Samsung on the other side, and we have our own Vestel here,” he naively said.
After vehicles, clothing is Turkeys’ most successful export product, earning 9.4% of the country’s total exports. Of them, knitwear amounted to US$ 8.8bn (5.6% of total export), while exports of woven clothing reached US$6.0bn (3.8% of the total) in 2017. The Turkish lira (TL) is the world’s worst-performing major currency, losing more than 40 percent for the year to date. Five years ago a dollar bought TL2. It is now around TL7.
This clearly makes manufacturing much cheaper for foreign companies if paying in the local currency and an opportunity for Turkey to boost exports. Dollars, euros and pounds are all going further. A source, who didn’t want to be named, said, “I just returned from a trip to Turkey. It's been sad for the Turkish economy, but great for UK companies.
“I've seen the devastating results for some of our own teams working in Turkey, but purchasing and manufacturing becomes even more cost effective and we have seen factories willing to reduce their minimums,” they said.
Data from September 2018 showed inflation surged to 17.9 percent year-on-year in August, its highest level since late 2003. The central bank reacted by sharply increasing its benchmark lending rate from 17.75 percent to 24 percent last month. Turkish companies buying and selling in foreign currencies are less affected. The boon is when they pay their workers in the local currency.
Mukesh Desai, works with companies such as Hackett and French Connection, connecting foreign brands with fabric and manufacturing in Turkey, says, “Local factories buy in pounds and euros so there’s not much difference. It just matters when paying wages in lira and is better by around 5-10%”.
Imports become more expensive, but with Turkey being such a huge domestic fabric producer this will limit its impact on buying the raw material and fabrics.
“Some manufacturers are passing it on, some are not.” says Desai. “Everybody from the British high-street is increasing production and the fabric side is all increasing in Turkey.” he says.
One thing to note, though. “Brands are buying less quantities and are not carrying too much inventory, but they are not going to the Far East as much with Turkey being quicker to market.”
Oguz Yucel of MPY Textile Manufacturing, who produce thousands of woven and knitted pieces daily, says, “We are a Turkish company and produce in Turkey, Bulgaria and China.
“Our customers, from Europe, Benelux, Russia, USA, Canada regions, work in euros and dollars, therefore, we do not produce in Turkish, but purchase in euros and dollars and sell in euros and dollars, therefore we have no problem with production,” he says.
“2019, we are going to be 6% bigger”. says Yucel enthusiastically.
With cheaper labour costs, Turkish apparel manufacturers operating in USD will be the main beneficiaries of the change in the exchange rate, but they will be able to become more competitive and reduce their prices to their wholesale customers. Foreign brands and operators will also be able to negotiate harder and drive better deals.
The one place the Turkish currency crisis is affecting negatively is the domestic economy and local fashion industry. Another source, who didn’t want to be named, works for an Istanbul based, international retailer specialising in men’s and women’s contemporary casual wear. They make everything in Turkey, except the outerwear and produce all sorts of jersey tops, knits, light weight woven tops and dresses, shirts, jeans and non denim bottoms.
“On the retail side, all international brands in Turkey raised their sale prices as a quick response,” he says. “Local brands (like us) kept prices to an affordable point. It helps to keep the customer loyalty and bring new customers in. On the other hand it sums up to a profit loss”.
“On the manufacturers' side all exporting factories had the advantage,” he says. “But, there are difficulties with their local customers pricing the new collections and receiving payments".
"All products' costs were dramatically raised up due to fabrics, yarns and accessories prices all being in USD. The payment terms between local brands and suppliers are another case that sourcing and finance teams have to deal with,” he says.
The local Turkish consumers will feel the squeeze and any ambitions that foreign brands or retailers had for growth in Turkey will have to be rejigged to recognise this.
“It will definitely make customers to buy less fashion products in the short term.” he says. “They (consumers) will target more affordable products and retailers. The volumes will slide from better brands to budget retailers. So, the better brands will grow their entry price point product groups to keep their customers.” he says.
While Turkey has become a more attractive place to manufacture and buy fabric from for international brands, in the short term, those retailers or brands may be restricted in their fabric and hardware choices if their suppliers work in Turkish lira and imports become much more expensive.
While the currency has bounced back slightly, it’s still volatile and this makes investors uneasy. While this lira boon may increase demand and production, lower investment, due to the high interest rates and overall caution within the Turkish manufacturing business and economy, may stall growth in production capacity and restrict businesses from reaping the full benefits.
The domestic market will move further towards lower end, homemade product and will definitely dent the luxury international brands unless they can be replaced by tourists with more liras in their pockets. While you’ll probably be seeing an increase in ‘Made in Turkey’ labels in your clothes soon, it will be to the detriment of the local economy.
Charlie Bucket spent his last coin on a chocolate bar in the hope that it would contain a golden ticket and gain entry behind the guarded gates of Wonka’s magical factory. If Roald Dahl were to write the story, today, Veruca Salt, the spoilt brat with the "I want it NOW, daddy!!!" attitude, would probably want to see behind the walls of Louis Vuitton or Chanel rather than Cadbury’s or Nestlé.
Her wishes were granted, last month, when LVMH expanded the fourth edition of its ‘Les Journées Particulières’ open days event. Seventy six venues across four continents held 'open days', with 38 never having been open to the public previously.
The event saw 56 fashion houses, including Louis Vuitton, Christian Dior, Givenchy, Tag Heuer and Nicholas Kirkwood, taking part. New experiences included the opening of the Les Fontaines Parfumées in Grasse, the perfume creation workshop shared by Parfums Christian Dior and Louis Vuitton, the Louis Vuitton prototype workshop in the centre of Paris and the Louis Vuitton workshop in Ducey, Normandy. It was also possible to reserve an exclusive tour of La Colle Noire, Christian Dior’s last residence in Montauroux.
Left - Inside Private White V.C. in Manchester
‘Les Journées Particulières' launched in 2011 and is a LVMH marketing exercise in harnessing the desire and interest from people to see the inner workings of brands they admire and respect. It’s this element of being able to see things you feel aren’t usually on display, demystifying the processes and laying bare the inner workings of these brands that gets people to make the effort to visit.
Watchmaker, Vacheron Constantin, recently tapped into this enthusiasm by auctioning the ultimate watchmaking experience by putting two VIP tours of its workshop in Switzerland up for sale. The brand hired Sotheby’s to auction the experiences, which comprise two separate lots that it claims represent a “once-in-a-lifetime opportunity” to witness its work up close. Each involves a behind-the-scenes tour through the Vacheron Constantin Maison, accompanied by style and heritage director Christian Selmoni.
It’s this ‘magic’ that people want to see and the attraction and interest in seeing how things are made and a celebration our industrial history is expanding as more brands open up their factories to the public. It gives products a halo effect of ‘special’ and really cements the brands into people’s minds and memories in a positive way.
I always say, when you go to a factory, it’s a bit like going to a friend’s house for the first time: you really get a fully rounded and immersive experience and a lasting memory. It’s a familiarity you can’t get in a shop or by simply wearing the product.
Solovair produce their shoes in Northampton under their parental badge of The Northamptonshire Productive Society (NPS) founded in 1881 by five men in Wollaston, Northamptonshire. Ashleigh Liversage, Online Marketing Manager, NPS Shoes Ltd. says, “As more and more brands move their manufacturing outside of the UK it is important to us that our customers can come see for themselves how their footwear is made by our skilled workers in our factory in Wollaston, Northamptonshire.
Right - Exterior of the Private White V.C. factory in Manchester
“Our Managing Director takes the group on a tour through the factory offering an exciting insight into all areas of shoe production,” says Liversage. “The NPS Factory tour follows specific content-related criteria, giving guests access to all shoe production technologies: the ‘Clicking’ or cutting Room, Closing room, Levelling / Making Room, Shoe Room, while machines have made production more efficient, the fundamental process has remained the same at our factory for over a century,” she says.
“The feedback from our customers is why we continue to offer the tour, they love to see how and where their footwear is made and hear about the history and heritage of NPS Shoes,” says Liversage. “Even those with no particular interest in footwear have commented how interesting the tour is. We have people come from all over the UK to attend our tours and even had visitors from Canada once!” she says.
Over in Manchester, Private White V.C., has the last remaining clothing factory in the world’s first industrial city. Mike Stoll, Factory MD, says the reason they have a factory tour is, “To raise awareness: we actually are real and make our special garments near Manchester City centre.”
“Most people that make the tour either make a purchase or send someone who does. It spreads the word,” says Stoll, but, “It only works if you have something to see. This building is unusual and the way we currently manufacture is unique.”
North of the border, Johnstons of Elgin produce some of the world's finest knitwear and blankets. George McNeil, Johnstons of Elgin, Retail Managing Director, says, “Rarely does the public get an insight into how their products are made, and the entire craft behind the process, and so this is a chance to see quality in the making and also to understand our rich and unique history.”
Visitors get to see “Everything!” says McNeil. “Our cashmere goes from raw fibre, through dying, teasing, carding, spinning and hand finishing by the latest generation of craftsmen, all in our Elgin mill.”
“If a brand has the personal touch to each and every product, like ours, it is hugely beneficial to educate the consumer,” says McNeil. “We are in fact the last remaining vertical mill in Scotland to take raw fibre to finished product – from goat to garment – making this traditional process unique in current times. As consumers continue to prioritise where their belongings come from, and become more curious about the work that goes into them, they will demand to know more and brands will answer.” he says.
Not all brands can offer this openness though. Brands often produce for other people, called ‘Private Label’, and many brands like to keep their producers and suppliers out of the public domain.
“As a manufacturer for over 160 different brands, we actually don't allow factory visits because of the issues they can cause,” says Rob Williams, Founder & Chief Financial Officer, Hawthorn International, who produce apparel for various brands. “Many fashion brands prefer for their manufacturer to keep their identity private, so that their costs cannot be revealed and so that their designs can't be shared between brands who all use the same manufacturer,” says Williams.
“Because privacy and confidentiality is so important to our clients, we found that it caused a huge logistical problem to organise factory visits without the visitor seeing any intellectual property of our other clients,” he says.
Left - Johnstons of Elgin's mill in Elgin, Scotland
Factory tours work because of a growing niche of people’s fascination with being educated about the things they buy. It works for brands who want to tell their story and, often, explain why you are paying a premium for the products. Admittedly, you get shown what they want you to see, but, it's this openness and sharing that creates an atmosphere people want to buy into.
This is the National Trust for the fashion geeks amongst us and it’s growing in popularity. Johnstons of Elgin has tea shops and restaurants attached to their mills which can also be a revenue maker for the company.
The tour makes the product come alive, you can picture what you’re buying being made and this really is the ultimate souvenir. People love a factory tour with a final stop at the factory shop for a bargain. Who needs a stately home when you can have a Victorian shoe factory?
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Easily the most anticipated retail destination - we can’t use ‘shopping centre’ anymore, can we?! - of the year, and the final piece of the huge Kings Cross jigsaw, Coal Drops Yard mirrors the life of the entire area. From industrial power to warehouse parties to sanitised private/public spaces, this could be a micro model of London as a whole over the last 100 years.
Now reimagined by Thomas Heatherwick, who has joined the two ‘Kit-Kat’ pieces with a sweeping roof which lightly touches across the divide. This was the kiss Kings Cross/St Pancras was waiting for and not that cringeworthy sculpture greeting you as you disembark off the Eurostar.
Opening today, with over 50 new stores, it’s currently only about 50% open, and the most stunning aspect, the Samsung store inside the roof, is far from finished.
Firstly, the architecture is great. What could have been clunky, the roof is elegant and sweeping. Reslated in the original Welsh tiles, Heatherwick works his magic and creates something modern yet respectful to the original. This is the human scaled, brick built industrial Britain that is a joy to bring back to life.
Situated just down from Granary Square and up from the main stations, Coal Drops Yard opens out into a generous V shape with two main levels of shops and restaurants. This feels like the type of retail space you want to give yourself time to explore.
There’s also another space on the other side of the main block called Lower Stable Street that is for smaller and start-up businesses. It has touches of the Southbank with the concrete.
There are a few restaurants - Barafina, Casa Pastor and wine bar The Drop, but it feels the mix is too heavy on the retail, today, especially with the need to drive traffic. People don’t need to go shopping anymore, but they do need to eat. You could easily use the space in the middle for market type concepts.
They’ve made an effort to have a mix of brands - COS, Paul Smith, Tom Dixon, Cubitts, Universal Works, Rains, Aesop, Maya Magal, Miller Harris and Le Chocolat and there are a few that are new to me.
You want to explore, but there’s no element of surprise. The retail mix is dry. It’s from the Monocle school of aching design, devoid of personality. This feels like stylish retail from 10 years ago. We’re in the age of Gucci, of bonkers, of wanting-to-get-my-phone-out-and-take-a-picture-mental, not a single one of the finished shop fits was worthy of an Instagram. Even Paul Smith has produced one of the most conservative shop fits I’ve ever seen from him. You’d think he would have tapped into the rave culture history of the site, especially when you consider so many of his more casual clothes would have been worn there.
This is for one type of design customer and I don’t think that’s as aspirational as they think. It’s also needs a destination store. There was lots of talk from the lease manager about going to Paris for inspiration. When didn’t they resurrect Colette here or try a Dover Street Market type concept. It needs a pilgrimage store, or whatever that is in 2018, to get people up from the stations.
I really think Coal Drops Yard has missed a trick by not tapping into the nostalgia for the area. Those clubbers are now in their 40s with money to spend and families to bring. There are exhibitions regarding the history in the Visitors Centre, back in Granary Square, but I would have done more on site to remind people of their happy times spent at The Cross or Bagley’s nightclubs.
As I said, it’s not fully finished and all these things will evolve. When listening to Thomas Heatherwick give his welcoming talk I thought about the reinvention of Covent Garden, which he then mentioned, and was a huge success, and then I thought about the early 90s, when they tried to turn a similar concept, Tobacco Dock, into a similar retail destination. It was the wrong location at the wrong time. This is in a better position, but like I said, they need enough people to know about it to want to walk up from the stations.
I think we’ll see more food outlets eventually and also they need something like a vintage market, similar to Spitalfields, to raise the element of discovery and keep you coming back.
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It was while watching the Alexander McQueen documentary at the beginning of the summer - Read TheChicGeek Review here - when I wondered where the subsequent crop of young designer brands were.
The British based designers who were the generation after McQueen and showed so much promise - Christopher Kane, Jonathan Saunders, Mary Katranzhou, J.W. Anderson etc. - and despite some investment, just haven’t been able to scale up their brands in the same way McQueen and Stella McCartney were able to.
Left - Christopher Kane's only permanent store on London's Mount Street
I realised that this was a signifier of how the luxury market has changed and the days of nurturing fledgling brands into ‘Mega Brands’ are over. It illustrates the saturation in the market and it’s all about making big brands even bigger, today. “If you’re not going to be a billion dollar brand, then it’s probably not worth our time", is the new attitude. It probably explains the reason why Michael Kors recently bought Versace. Read more ChicGeek Comment here
David Watts, Founder, Watts What Magazine, says, “I suspect that this is more to do with the parent company realising that these businesses are not scaleable - or to the extent of other portfolio brands and cutting their losses.”
“In the current very challenging retail market and designer wholesale model not being as robust as it used to be, brands need to shore up cash and also give themselves a buffer,” says Watts.
“For the larger groups though, bigger really is better,” says Sandra Halliday, Editor-in-chief (UK), Fashionnetwork.com. “When they take on a brand, they want it to have billion dollar potential, or at least to occupy a strong niche that will guarantee high profit margins. The stakes these days are too high to do anything else,” she says.
When the Gucci Group invested in McQueen, Stella McCartney, Bottega Veneta and Balenciaga in 2001, it signalled the moment the luxury fashion industry was in full expansion mode and opening stores all over the globe. Following that, there was a raft of investment in the generation after, with Kering - formally Gucci Group - investing in Christopher Kane in 2013 and LVMH investing in Nicholas Kirkwood and J.W. Anderson in the same year. Everybody was billed “as the next…” but it just hasn’t materialised. Well, not in consumers’ heads anyway.
Now, brands are going into reverse; fashion’s answer to “Conscious Uncoupling”. Stella McCartney just bought back the 50 per cent she didn’t own from Kering and rumour has it, Christopher Kane, is in talks to buy back the 51 percent stake from the French group after a 5-year partnership.
Right - J.W. Anderson single store in East London
Halliday says, “I think in Stella McCartney’s case there was a genuine desire to run her own show and given the strength of her brand, that’s understandable.”
“For Christopher Kane it’s probably more about Kering focusing its resources and its time on its big winners, and that makes sense with Gucci, Saint Laurent and Balenciaga doing so well and Bottega Veneta needing lots of TLC,” she says.
“It give them a certain freedom and with the knowledge and experience learned (hopefully) as being part of a large group that they know how to be more careful with finances and astute with merchandising and keeping overheads down,” says Watts.
“Staying small, focussed and niche with a direct to consumer model could work for some brands, but it’s also very tough to make serious money at that scale,” says Watts. “Of course, there are possibly different and extenuating circumstances for why these brands find themselves in their current predicament. What does it tell you that LVMH and Kering cannot make Stella McCartney, Christopher Kane, Edun and Tomas Maier work…..gonna be tough for them as independents however the chips may fall,” he says.
Announced this year, LVMH has severed ties with Edun, Bono’s ethical fashion brand, and Kering has closed Tomas Maier, previously the Creative Director at their other brand, Bottega Veneta. These brands will have to regress back to start-up mode and think small again if they are to survive.
“In many ways, the future prospects of small designers hoping to break into the big time are quite depressing as the barriers to doing that are very high.” says Halliday. “But, on another level, the internet offers opportunities that didn’t exist just 20 years ago. The combination of a well-run e-store and a physical flagship can actually be a very cost-effective way of reaching the maximum number of consumers.” she says.
“Even if smaller labels can build profitable businesses, the chances are that the end result will be a hoped-for takeover by a bigger group, or by private equity investors, as that’s the kind of investment that’s really needed to make the transition into bona fide big-name brand,” says Halliday. “And all of that doesn’t even factor in what might happen if the luxury boom runs out of steam at any point,” she says.
Those brands fitting somewhere between these smaller designers and the giant groups are making their play for their futures too. Versace has already taken shelter in a bigger American group and other Italian family brands are sensing this shift and deciding on which side of the billion dollar divide they aspire to be on. Missoni opened its ownership up to Italian state-backed investment fund FSI for a cash injection of €70 million, in exchange for a 41.5 percent stake and rumours continually circle around Ferragamo suggesting they are looking for investment or a new owner.
Belgian designer, Dries Van Noten, recently sold a majority stake in his eponymous fashion brand to Spanish cosmetics group Puig.
“Dries Van Noten is 60 and after 30 years if he keeps creative control and remains chairman of his brand, then cashing in a huge stake gives him financial security, and also Puig brings cosmetics, beauty and fragrance know-how,” says Watts. “It could be huge for a brand such as Dries Van Noten - it’s a win win for him on paper.”
“Most people who are outside of the fashion (production) industry really have no idea both how complicated it as and how hard it is to make money,” says Watts. “Fashion wholesale is broken and fashion retail is in freefall,” he says.
Disappointingly, the focus has moved away from talent to bankability. Young designers who were previously given a leg-up with investment look too high a risk and expensive for today’s investors. It seems that only those brands breaking that billon dollar turnover ceiling are worth focussing on. You can increase profit margins by making less, but in larger volumes and become a more dominant force. It is more of a risk having fewer brands, but you can win bigger and Kering is clearly taking pole position right now.
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Young men are officially the biggest consumers of footwear in the UK. Move over Carrie Bradshaw, or is that reference way too old when you consider many of these 16-24 year old men weren’t even born when she started shopping for her Manolos.
According to the latest research from Mintel on footwear retailing, 95% of British males aged 16-24 bought shoes last year, making them Britain’s number one footwear buyers.
There’s been a revolution in men buying shoes and while women (86%) are still more likely to purchase footwear than men (78%), females aged 16-24 (10%) are twice as likely to have not purchased footwear in the last year compared to their male counterparts (5%), as the continuation of the casual and ‘athleisure’ trends drive men’s footwear sales.
Male shoe addicts are fast catching up on women. Men’s footwear accounted for 37% of all footwear sales in 2017, up from 34% in 2015. Valued at £4.38 billion in 2017, sales of men’s shoes increased an impressive 31% between 2015 and 2017. In comparison, sales of women’s shoes grew by only 10% over the same period to reach £5.48 billion in 2017.
“Men’s footwear, particularly among younger age groups, is really fuelling growth in the footwear sector.” says Chana Baram, Retail Analyst at Mintel. “In fact, our research shows that men aged 16-24 are more likely to be swayed by big brand names than women of the same age.” says Baram. “With trainers such a popular category for men as a whole, young men in particular are likely to respond positively to advertising campaigns by the big sports brands that feature their favourite male sports personalities.” she says.
This footwear sales growth is being fuelled by trainers, trainers and more trainers. Casual shoes and trainers are now the most popular shoe styles purchased by men.
“These are not just essential buys, but, got-to-have-it buys,” says Richard Wharton, footwear veteran and founder of Office & Offspring. “It’s all about the latest sneaker, there are millions version of that: the luxe trend, the Balenciaga Triple S, Off-White, Converse or Vans or whatever.” says Wharton. “These young guys have never worn formal shoes or been forced into wearing them at school. They buy what they want,” he says.
“Sneaker culture has really grown, from being a niche market to having mass appeal,” says Pamela Dunn, Senior Buyer, Schuh. “The rise of exclusive collabs and hard-to-get releases from brands like Nike/Adidas has fuelled the sneaker market.” she says.
In our age of sportswear and dress-down, our footwear choices have mirrored this and what was once unacceptable in certain social situations has now become mainstream and mass. Comfort is key.
“In modern offices nobody wears any other formal attire anymore so it’s acceptable to wear sneakers,” says Wharton. “Hype’s there. Before you didn’t have trainers for different occasions,” says Wharton. “Where you had that in formal wear, you, now, have that in sneakers: all black sneaker for work, weekend, something casual, or a club, maybe Dior or Louboutin,” he says.
The trainer market has grown to such as size that there is now multiple categories within this market and men are buying a full wardrobe of trainers for every social occasion. Designer brands have piled into this market seeing big margins and huge volumes. But what are these guys buying into?
“Big brands at a more mass market level like Nike/Adidas or more top level brands include Off-White / Gucci / LV etc.” says Dunn.
“It’s so broad. They are buying high-end street couture to basic Vans or Converse,” says Wharton. “Nike rules with guys buy into their new technology. There are huge queues waiting for the next thing and Nike limit it, so they drip feed it in.” he says.
Boys are buying brands and this may go someway to explain the latest movements within the men’s footwear market. Ted Baker recently bought back its shoe license for £21 million. The fashion brand bought ‘No Ordinary Shoes’, the worldwide licensee, from the Pentland Group. “This is an exciting opportunity to drive further growth in our footwear business by leveraging our global footprint and infrastructure, in line with our strategy to further develop Ted Baker as a global lifestyle brand,” said Ted Baker founder Ray Kelvin.
As Pentland lost Ted Baker, it appointed Marc Hare as the new ‘Product Director of the Lacoste Footwear Joint Venture’. He will be leading the new ‘Mainline’ and ‘Future Concepts’ product teams and working with Lacoste JV CEO, Gianni Georgiades, to support the company's vision for the brand. Marc Hare is known for his luxury evening styles and his, now, defunct Mr Hare footwear label. It’ll be interesting to see whether Pentland want to grow Lacoste further out from its sporty origins or use Hare’s skill by giving those sports shoes an elevation to compete within the luxury sneaker market.
What these brands see is growth, but is there further room for expansion or is the market becoming saturated?
“I think males will increasingly buy into footwear in the future, but the market will change,” says Dunn. “I think exclusive products may become less desirable, but brands that are big now will become even more dominant e.g. nike/adidas.” she says.
“It depends when it becomes saturation point,” says Wharton. “So many people want comfort that looks cool and there are multiple sub-genres such as Japanese sneakers, and Palace/Supreme collabs,” he says.
While the sports brands continue to offer newness, limit 'exclusive' product and raid their archives for classic styles, the trainer market seems healthy and will sustain the desire of men to keep adding to their collections. But, this rise of young men becoming the largest consumers of footwear is skewed towards one category and it will be interesting to see how the footwear industry gets this entire generation off their sport wears addiction and into a pair of leather lace-ups.
While the dust continues to settle on the hoo-ha regarding Burberry burning product - who have, miraculously, stopped burning product, BTW - the whole thing is a reminder of how brands deal with waste and what they should do with it.
Brands don’t want waste. Waste costs money. It also takes time and energy to get rid of it. Waste is a sign of over ordering, and being left with a mountain of stock to dispose of. This is basically what sales are: the motivation to shift unsold stock, shoving it all out the door hoping to make some form of profit, or, at worst, cover its costs.
In an ideal world, they’d be zero waste. What if brands only made exactly what they needed? No more sales, no more outlets, no more burning. Welcome to the future.
Janice Wang, Founder & CEO of Alvanon, a fashion tech business specialising in helping brands with fit and reducing returns, says, “Our industry is blighted by oversupply. Some 60 percent of the garments we supply are sold at discount, which means we are making too much of the wrong thing.”
Left - The Sewbots are coming
Sales and discounts are hurting retailers. Not only does it negatively affect profits and margins, it also has created an environment where consumers are hooked on discounts and never want to pay full price. It’s a race to the bottom for many retailers and this is putting many out of business. At the beginning of this year, H&M announced it had a $4.3 billion pile of unsold stock. What do you do with it?
“Sales are bad for brands and retailers because they reduce margin and damage a brand's credibility. It makes people question whether products are worth the price they have paid for them.” says Petah Marian, Senior Editor, WGSN INSIGHT.
Fashion retailers are always pushing for efficiencies, but there’s a disconnect, currently, between the speed of ordering and the making to order window which many consumers will not tolerate.
“To become competitive, fashion retailers and brands need to embrace new production strategies and technologies, such as data and intelligence, robotics and digitalisation, to use customer data to provide tailored, on-demand items.” says Wang.
“A responsive supply chain enables brands to react quickly to consumer demands and changing trends. The vision is to reduce lead times from months to weeks to days or hours.” says Wang. “Consumers today live in a constantly changing world. This shapes their behaviour and expectations. They demand newness and immediacy without compromise.” she says.
Marian says, “It means less wastage of resources and also the possibility of personalising items for an individual consumer. Less wastage means a more sustainable supply chain, and people value things more when they have participated in their creation.”
Fashion is currently stuck in the past. Buyers have to guess what people will buy and in which sizes, many months in advance. It’s guesswork, and, while they have got faster and more efficient, there is huge margins for error and then you’re left dealing with your mistakes. On the other hand, you could also not make enough of something popular: missing out on full-price sales and leaving disappointed customers.
Right - The type of robots soon to be making your clothes
“Regional and localised sourcing allows retailers to be more responsive to actual customer buying behaviour.” says Wang. “Styles can even be adapted in-season and delivered to stores while consumers still want to buy them. And, at the end of the day, smaller runs of garments that sell at full-price are better than cheaper cost volume runs of garments that have to be sold at discount.” she says.
How many retailers blame the weather for having the wrong product at the wrong time when publishing their financial results? It’s also really bad for the environment.
“Eventually technology will allow us to go from producing things by the millions to producing them by the ones. Everyone is talking about customisation and there’s no doubt that will eventually happen.” says Wang. “It’s the most efficient and sustainable way of manufacturing.” she says.
“You used to go to the tailor and they would make one item for you.” says Wang. “I can visualise that you will customise one unit to order. Bespoke, customised, perfectly fitting items made just for you and only when you order them – it sounds just like a Savile Row offering, only this time it will be purchased from your smartphone.”
Fashion businesses are looking at making items ‘on-demand’, but to make these cost effective and fast we’re going to need automation. Amazon has just patented an ‘on demand’ system: making the clothes once an order has been placed, not before.
It will be robots or ‘Sewbots’, situated closer to home, which will, eventually, be making our clothes. SoftWear Automation, based in Atlanta, introduced ‘Lowry’ in 2015, a sewing robot that uses machine vision to spot and adjust to distortions in the fabric. Though initially only able to make simple products, such as bath mats, the technology is now advanced enough to make whole T-shirts and much of a pair of jeans. According to the company, it also does it far faster than a human sewing line.
SoftWear Automation’s big selling point is that one of its robotic sewing lines can replace a conventional line of 10 workers and produce about 1,142 T-shirts in an eight-hour period, compared to just 669 for the human sewing line. The robot, working under the guidance of a single human handler, can make as many shirts per hour as about 17 humans.
“Retailers will push for this when it becomes cheaper to manufacture products using robots than using offshore labour.” says Marian.
Retailers, factory owners and brands will make huge savings. It will also mean things can be made closer to home so left time and expense in travel. They’ll be no more sweatshops and the robots can run 24/7.
Currently, brands are starting to explore this new idea, but it’s still quite niche and can be more expensive. Under Armour has its new Lighthouse Project, Nike has a new partnership with Apollo Global Management and Adidas' Speed factory.
Adidas currently has a ‘Speedfactory’ in both Germany and Atlanta. The factory is completely automated, and designed to be able to speedily produce limited runs of customisable product or replenish the hottest product selling quickly during the same season. Adidas said it can get shoes to market three times faster in a Speedfactory than with traditional means and hopes the two factories can produce one million pairs of shoes a year by 2020. Adidas will continue to experiment with the Speedfactories, adding new technology and more automated processes to get to a goal of 50% of shoes made by with 'speedier' methods.
This is the future. The future will be shops as showrooms, where you order the item in your specific size and then an automated robot, closer to home, will be able to manufacturer it within an acceptable window of time. Just imagine, something will never sell out. They’ll always have your size. Your better size even. You’ll be able to order something to fit perfectly.
The brands or shops that will thrive will be those with the best ideas or styles. Consumers will be able to customise, within reason, and brands will no longer have to hold vast inventory which ties up capital and kills cashflow. Sales will be a thing of the past and the waste and environmental pollution will be reduced hugely. Clothes could also become cheaper as the labour costs are reduced.
This fashion automation is part of the forthcoming ‘Fourth Industrial Revolution’. It will revolutionise what we buy and how we look. The machines are definitely coming because the industry wants it.
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Remainers cover your ears. One of the world’s strongest fashion brands is moving its headquarters to London despite Brexit. Yes, Brexit hasn’t put them off. Chanel has decided to close its global headquarters in New York and move it to London.
Until now, Chanel did not have a single holding company for its operations and functions were located in a number of cities. In a statement from the French company, they said, “We wanted to simplify the structure of the business and London is the appropriate place to do that for an international company. London is the most central location to our markets, uses the English language and has strong corporate governance standards with its regulatory and legal requirements.”
Left - Even London's lampposts are Chanel!
‘Chanel Limited’ became the holding company of most Chanel entities in the summer of 2017 and this is why the majority of the global functions are now located in London.
“Brexit's economic and geopolitical impacts remains a challenge for the London economy. London is still dealing with a hangover from Brexit.” says Brandon Rael, Operations Strategy & Innovations Leader & Retail Digital Strategist. “We should expect that London will experience an upswing when the economy stabilises. Moving the Chanel HQ to London is very much a long-term strategy.” he says.
Chanel could have chosen Paris, but instead chose London, and this goes against the anti-Brexit rhetoric of companies leaving in their droves. In July, Chanel revealed its financials for the first time in its 108 history. It generated nearly $10 billion in global sales in 2017, making it one of the world’s biggest luxury fashion brands. This new openness is Chanel positioning itself and facing up to the dominance of the likes of Kering and LVMH. This is for the next, digital chapter in Chanel’s history.
Brexit is so close, now, it is time to start looking beyond it and, Chanel’s decision would have been a long term decision from this globally revered company. While one company moving its headquarters to London doesn’t prove anything. In the same vein, one company moving out, doesn’t either. The major reasons companies move or stay in London won’t change post Brexit. They move to London because of geography, language, law and talent pool. This is about London competing with New York or Hong Kong and it is the only truly world city within Europe.
“London remains the world‘s most promising city for luxury retail growth, despite troubles faced by the Brexit vote,” says Rael. “A new report conducted by CBRE and Walpole has found that compared to other major luxury destinations across the globe, London still holds the greatest long-term potential,” he says.
The newly christened Capri Holdings - formerly Michael Kors - has its principal executive office in London and Condé Nast International recently choose London to cope with the new demands of its digital future. Everything catwalk related: photography, video, social media and features will be lead by Vogue International, an editorial hub established last year to lead content for the 25 editions of the magazine.
In an interview in the New York Times with Wolfgang Blau, Chief Digital Officer of Condé Nast International, he said two-hundred editorial and engineering staff members had been hired, and next year, he wants to have a Vogue presence at about 900 runway shows all feeding back to London. This is Condé Nast cutting costs and becoming more efficient while focussing its global fashion content in London. This will only get bigger. Its travel magazine, Condé Nast Traveler has moved onto a new single platform, and it too would be overseen not from its birthplace of New York, but from London.
Right - London, not New York, is the global centre for all digital content
We were told that "Brexit would make us poorer”, but since the vote, and with a background of caution and underinvestment, Britain has a joint record high employment rate of 75.6% with 32.39 million people now in work according to the latest official statistics. (June 2018). There were 488,000 unemployed people aged from 16 to 24 for May to July 2018, the lowest figure since records began for youth unemployment in 1992. Overall, unemployment fell by another 55,000 between May and July to 1.36 million. Wages saw faster than expected growth in the three months to July. Excluding bonuses, wages grew by 2.9%, according to figures from the Office for National Statistics (ONS), well above the inflation rate.
Business is doing well. UK Trade benefitted from a goods export boom in July. Official figures showed the deficit in goods dropped to £10 billion in July from £10.7 billion the previous month. Including service, the overall trade gap fell to just £111 million, one of the best monthly results in the past 20 years. In the three months to July overall goods exports grew by £4.3 billion while imports rose by £3.7 billion. This came largely from trading with countries outside the EU.
“It looks like Brexit is going to be a good thing for luxury fashion as people in the US and China take advantage on preferential tariffs coming from the UK.” says Fleur Hicks, Managing Director of onefourzero, a data analytics and digital research agency.
Eurotunnel recorded its best ever August for freight traffic and the number of passengers passing through Heathrow’s terminals jumped to 7.5 million last month, boosted by new services to China. Europe’s biggest airport, said August customer numbers were up 2.6% from a year earlier and cargo volumes were up 1.2%. Asia saw the biggest increase in passenger numbers, up 6.3%, with new services from Hainan Airlines, Tianjin Airlines and Beijing Capital. Gatwick also saw a 0.4% rise in passenger numbers to 4.9 million and its cargo traffic soared a whopping 22.3%.
Irina Bragin, from Made of Carpet, who specialises is making luxury carpet bags, says “I think I have one advantage of Brexit in mind. Today selling to the EU as retailer (to the end buyer) we pay VAT, same as we sell in UK. After Brexit, it will be the same as selling to US, or Canada, or Australia - no VAT to pay.”
I know it’s fashionable not to be positive about Brexit, but, it’s 6 months away and it’s time to turn the negativity into optimism. Global businesses are looking past Brexit, for the longer term, and what makes London great to do business in hasn’t really changed. Brexit is something new and unknown, but, in Britain’s true entrepreneurial spirit, we can do this!