How will Brexit affect the Fashion Industry

We’ve made a quick pro's and con's list on the outcome of fashion from Brexit.

Brexit and the fashion industry

BREXIT PROS

1. With the value of the pound set to decrease as it has been, British products are set to be cheaper to international customers which could increase more sales units.

2. There may be some short term benefits, however. In October, Burberry reported a 30 percent rise in its UK sales as tourists flocked to its stores to take advantage of the fall in the British pound, which helped offset falling demand from US department stores. The continuation of that momentum will depend on whether companies operating in the UK maintain their prices, or raise them to compensate for the low pound.

3. As the devalued pound would mean that education over here would be even cheaper than previously for international students.

BREXIT CONS:

1. World Trade Organization rules, meaning businesses would be subject to trade tariffs on import and exports. Textile goods, for instance, may face a tariff of 12 percent in duties.

2. With the value of the pound set to decrease as it has been, British products are set to be cheaper to international customers which could affect perception

3. UK fashion businesses and institutions could also lose access to hundreds of millions of euros in EU funding, which could affect the BFC, the Centre for Fashion Enterprise and the University of Arts London. It is not clear whether the British government will step in to replace the lost EU funding.

4. According to the British Fashion Council London Fashion Week is likely to cease to exist after Brexit 5. Due to potential restrictions in freedom of movement 98 thousand freelancers in fashion (of 16000) could find it difficult abroad. However CIF (Creative Industries Federation) are proposing to introduce a creative freelancer short term visa to act as a resolution to this problem.

(Research sources: Caroline Rush, British Fashion Council, BFC, CFE, Centre for Fashion Enterprise, UAL, University of the Arts London, Fashion Business, Fashion School, Brexit, Fashion Brexit,CIF, Creative Industries Federation)