Rising costs pile on the agony for Britain’s fashion retailers. From culottes to “cold shoulder” tops and woven loafers last seen in Miami Vice, many Britons have struggled with this summer’s fashions, but now there is an even more unpalatable trend on the horizon – in the shape of higher prices.
The devaluation of sterling following the June Brexit vote has had major ramifications for store chiefs who pay in dollars for large quantities of imported goods. The first indication of where prices could be heading came last week from Next, one of the UK’s biggest clothing retailers, which pencilled in increases of up to 5% in 2017. “We have always taken the view that if our costs go up, our selling prices will go up,” said Next chief executive Lord Wolfson. But fashion retailers are already struggling to persuade shoppers to part with their cash as weak wage growth is compounded by a cyclical shift towards spending on eating out and other leisure activities. Kantar analyst Glen Tooke says its most recent reading shows the decline deepening.
BFC Unveils Global Fashion Awards, London’s Answer to the Met Ball. LONDON, United Kingdom — On the evening of December 5th, a vast, floodlit red carpet will transport many of the global fashion world’s most high-wattage figures up the grand staircase of London’s Royal Albert Hall to The Fashion Awards 2016, a newly christened annual awards event organised by the British Fashion Council (BFC), in partnership with Swarovski.
Formerly known as the British Fashion Awards, the revamped event will have a new global focus, with awards honouring international talent from both the creative and business sides of the industry, and a bigger public audience. The BFC also plans to broadcast the event internationally. And, for the first time, the Awards will have an additional sense of purpose: raising money to support fashion education in the UK through the BFC Fashion Education foundation.
The new venue will also enable the Awards to admit a larger public audience. L-R Nadja Swarovski, Natalie Massenet and Caroline Rush | Photo: Shaun James Cox. Is American Apparel A Dead Brand Walking? “We believe that we may not have sufficient liquidity necessary to sustain operations for the next twelve months,” read a release from American Apparel, connected to a regulatory filing triggered by its inability to meet a scheduled debt payment to one of its major creditors Monday.
“These factors, among others, raise substantial doubt that we may be able to continue as a going concern.” Translation: American Apparel may have just months to live. Now, this is far from the first time the once-inescapable hipster basics brand has missed a payment, declared serious losses, or indicated how close it is to complete insolvency—but it is the worst economic report Dov Charney’s Lycra-infused brainchild has ever given. And with good reason. The company has lost 87% of its stock value in 2015 alone and, as a report from Fortune suggests, it lacks both the cash and the borrowing power to make its next credit payment scheduled for October. Okay! (Via Fortune) And with good reason. Okay! (Via Fortune) Why The Hermès Birkin Bag is a Better Investment Than Gold.
The Art of Disclosure: Fashion’s Influence Economy and the FTC. NEW YORK, United States — This September, lifestyle guru Aimee Song’s first book, "Capture Your Style: Transform Your Instagram Images, Showcase Your Life and Build the Ultimate Platform," will hit retailers.
And if the size of her 3.6 million-strong Instagram following is any indication, it’s sure to be a commercial success. A mere mention in one of Song’s Instagram posts is powerful marketing, attracting tens of thousands of likes and hundreds of comments. It’s little wonder, then, that companies from Laura Mercier to Dior have paid her to market their brands and products to her followers. Song is something of a poster child for fashion’s lucrative influencer economy from which top digital stars generate hundreds of thousands — and, in some cases, millions — of dollars each year in income, not to mention perks like free product, travel and meals. Are consumers being deceived? The guidelines do clearly delineate when and where disclosures should take place, however.