Effect of Brexit on luxury fashion
Links:
https://fashionunited.uk/news/fashion/6-effects-a-brexit-may-have-on-the-fashion-industry/2016062020813
https://www.standard.co.uk/lifestyle/esmagazine/how-will-brexit-impact-the-uk-fashion-industry-a3931611.html
https://internationalexcellence.co.uk/content/how-will-brexit-affect-luxury-brands
90% of designers told the British Fashion Council they were voting to remain. (standard Link)
Fashion united:
6 effects Brexit may have on the fashion industry
1. Devaluation of the pound
The uk fashion industry contributes 26 billion pounds to the economy in 2014, Brexit will result in the depreciation of the pound. This could affect British fashion brands which produce their clothing abroad in countries such as Vietnam, Cambodia and china where they pay in Dollars, the weaker pound means that manufacturing costs for British brands will cost a lot more.
On the reverse side of this, Dolce and Gabbana could suffer as people in the UK will have to pay more to buy D&G product in Britain, therefore they may not be able to afford it or they will wait until they are In Europe before purchasing, therefore they could potentially lose out on sales from people in the UK.
2. Exporting and Importing fashion goods will become more difficult and Dolce and Gabbana will have to negotiate new trade agreements.
standard:
Trade deals will change or disappear
International excellence:
1. heritage and pedigree
2. relationship to place
3. method of production
The EU referendum votes instantly led to British brands suffering, Burberry dropped over 3% and mulberry dropped 6% all in one day. This is mostly because of the currency depreciation for example burberrys products are often sourced and made in Italy due to this 65% of cost is calculated using the euro, the fashion industry is also effected by Brexit because of the greater barriers for the flow of creative and design talent between EU and UK. It is expected that many designers may leave London and go to Paris or Milan seeking a more open atmosphere.
https://fashionunited.uk/news/fashion/6-effects-a-brexit-may-have-on-the-fashion-industry/2016062020813
https://www.standard.co.uk/lifestyle/esmagazine/how-will-brexit-impact-the-uk-fashion-industry-a3931611.html
https://internationalexcellence.co.uk/content/how-will-brexit-affect-luxury-brands
90% of designers told the British Fashion Council they were voting to remain. (standard Link)
Fashion united:
6 effects Brexit may have on the fashion industry
1. Devaluation of the pound
The uk fashion industry contributes 26 billion pounds to the economy in 2014, Brexit will result in the depreciation of the pound. This could affect British fashion brands which produce their clothing abroad in countries such as Vietnam, Cambodia and china where they pay in Dollars, the weaker pound means that manufacturing costs for British brands will cost a lot more.
On the reverse side of this, Dolce and Gabbana could suffer as people in the UK will have to pay more to buy D&G product in Britain, therefore they may not be able to afford it or they will wait until they are In Europe before purchasing, therefore they could potentially lose out on sales from people in the UK.
2. Exporting and Importing fashion goods will become more difficult and Dolce and Gabbana will have to negotiate new trade agreements.
standard:
Trade deals will change or disappear
International excellence:
1. heritage and pedigree
2. relationship to place
3. method of production
The EU referendum votes instantly led to British brands suffering, Burberry dropped over 3% and mulberry dropped 6% all in one day. This is mostly because of the currency depreciation for example burberrys products are often sourced and made in Italy due to this 65% of cost is calculated using the euro, the fashion industry is also effected by Brexit because of the greater barriers for the flow of creative and design talent between EU and UK. It is expected that many designers may leave London and go to Paris or Milan seeking a more open atmosphere.
Brexit has been very depressed for some industries like the Italian fashion industry and many other, other than this many jobs have been taken off due to this law passed by the government, all the drastic changes which have occurred will surely affect the economy of many countries.
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