Brexit, a global pandemic and a shift in consumer buying habits have all changed the fashion landscape and a new report uncovers how fashion stakeholders can support the industry going forward.

A new report from the British Fashion Council and London Business School has detailed how fashion industry stakeholders including brands, designers, trade bodies and the UK government can support industry growth and revenue.

The Commercialising Creativity 2.0 report was commissioned by the British Fashion Council, in collaboration with London Business School, and funded by the BFC Foundation and identifies barriers to commercial success and how levers to overcome them have shifted over the last decade as a result of changes including Brexit, the rise of omnichannel strategies, a global pandemic and changes in consumer buying habits.

British Fashion Council chief executive Caroline Rush: “The last decade has brought extraordinary change and profound challenges to the fashion landscape, and while the resilience of the British fashion industry is truly commendable, much work remains ahead. We are thrilled to partner once more with the London Business School for the second edition of the BFC Commercialising Creativity report, which provides vital insights for the industry and policymakers in understanding the next steps for driving commercial growth and creative success. Now, more than ever, we must ensure that collaboration across the industry supports both emerging and established talent to navigate these challenges.”

It identifies two key commercial considerations to help fashion brand founders to navigate building and growing their brands.

Build and thrive

The first phase supports designers in establishing essential business foundations such as defining their vision, strengthening connections with their customers and instilling financial and operational discipline.

1. Know what the business is for and structure it accordingly

• What is most important for the designer: Control? Scale? Profitability? Longevity?

• Clarity on what the designer wants from and for the business makes it easier to build a roadmap for tailored success.

2. Decide where the designer, as founder, adds the most value

• Businesses can be structured to deliver and protect this value

• This knowledge helps to identify what other expertise are needed to support success.

3. Knowing your customer is a dialogue, not a monologue

• Customer insights can be an invaluable part of the design process

• Strong relationships combined with actionable data are very powerful.

4. Cash flow is key (no money, no options)

• Be clear on the financial levers available to guide decision making

• Manage cash flow efficiently to support scale and creative risk-taking

• Maximise sales windows to maintain exclusivity, and secure early revenue.

Scale successfully

The second phase focuses on accessing talent and selecting partners who will support growth, offering a go-to-market framework that considers the role of wholesale, owned channels as well as third-party opportunities like licensing, collaborations and incubators.

5. Access commercial expertise early (buy, borrow or rent)

• Longevity and scaling are underpinned by robust operations

• Not all roles and functions need to be built in-house.

6. Vary your approach as you grow

• Go-to-market strategy and distribution partners and channels need to match the growth phase

• There are pros and cons to different levers across the evolution of a business

• Channel strategy needs to evolve to meet the challenges of each growth stage.

What can stakeholders do to support the fashion industry’s growth in the future?

The report outlines strategic actions for various industry stakeholders, highlighting their roles in shaping the future of British fashion.

The British Fashion Council (BFC)

The BFC says it is “deeply engaged” in the success of designer businesses and acutely aware of the challenges that they and the industry as a whole faces. It takes action to support designers through knowledge sharing (investment, infrastructure, engaging with policy makers and larger fashion houses). The report recommends that the BFC should be a knowledge-sharing platform through more roundtable events facilitating knowledge-sharing and collective solutions and better promoting its platform to act as an intermediate between designers and subject matter experts.

Government

The report recommendations align with the BFC’s “Growing Fashion’s Future – 5 Priorities” which they set out in June for the new government:

1. Restore the VAT Retail Export Scheme (also known as “Tax-Free Shopping”) and reform Business Rates to boost growth in the fashion retail sector

2. Greater trade and export investment for UK fashion designers

3. Support our world-leading fashion education sector with a commitment to STEAM, not STEM

4. Develop a new generation of businesses and skilled workers in the fashion sector

5. Introduce legislation to activate sustainable business practices to meet decarbonisation and net-zero targets.

Industry grandees: Wholesalers and established brands 

Industry grandees have shown a strong commitment to offering mentorship, advocating for the industry and sharing expertise. Their ongoing involvement is critical to nurturing the next generation of talent and ensuring the industry’s continued vitality.

This report highlights the crucial role big industry players have in supporting emerging fashion talent. Key strategic actions for the industry as a whole include encouraging established brands to mentor and devote resources to support emerging talent and drive industry innovation, particularly around sustainable practices and for wholesalers to support emerging designers to scale by offering flexible merchandising options, more lenient payment terms, and marketing partnerships.

“By acting as mentors, wholesalers can assist designers with navigating the complexities of inventory management and product placement, fostering growth in the sector,” says the report.

Emerging designers and brands

The report offers six key themes and considerations for businesses as they grow including understanding the purpose of the business and structuring it accordingly; building closer relationships with customers; prioritising cash flow as a non-negotiable and varying their approach based on growth including how they go to market, distribute and through which channels and partners.

• Know what the business is for and structure it accordingly

• Decide where the designer as founder adds the most value

• Knowing your customer is a dialogue not a monologue

• Cash flow is key – without money, they are no options

• Access commercial expertise early (buy, borrow or rent)

• Vary your approach as you grow (go to market, distribution, channels and partners).

“The British fashion industry has demonstrated immense resilience in the face of rapid change and a turbulent global environment. The commercial future of British fashion relies on the collaboration between industry bodies, brands and policymakers to meet the challenges ahead. This report offers a path forward for the next generation of designers and the BFC remains committed to providing the resources and insights needed to ensure that British fashion continues to thrive on the global stage,” reads the report.