After Europe: The Increasingly Marginalized British Fashion Industry

"British

The industry is not the core of the industry. In contrast to Paris, London is still a marginalized city in the fashion industry.

After Europe, London may become more marginalized in the fashion industry.

In June 24th, the British people voted "off Europe" successfully, leaving Optima with 51.9% votes to 48.1% of Optima, so that after 43 years of joining the EU, Britain decided to withdraw from the EU.

British Prime Minister Cameron then announced his resignation, saying the conservative party will elect the next British Prime Minister at the October annual meeting.

International Finance at the same time

Sharp shocks, the pound plummeted, a 30 year low, the global stock market plummeted, overnight, the three major U.S. stock indexes have tumbled more than 3%.

Oil prices plummeted nearly 5%.

Gold rose 4.7%, the highest closing point since July 2014.

Apart from the most rapid reaction of the financial industry, how can Europe continue to affect other sectors, and all walks of life are watching.

For the famous British fashion industry, Lin Jian, founder of China's famous SHOWROOM, said in an interview with reporters: "in the next two years, how to operate and implement the specific provisions in the European negotiations is still unknown.

It is too early to talk about its impact on the fashion industry from a technical level.

But in terms of environment and atmosphere, the confidence of the British fashion industry has been seriously compromised.

Add frost and frost

According to recent data released by Mintel information consultancy, the British fashion industry in 2015

Sales reached 27 billion pounds, and it is projected to increase by 23% to 32 billion pounds by 2020.

Online fashion sales in 2015 reached 12 billion 400 million yuan, up 16% from 10 billion 700 million pounds in 2014.

According to data released in OxfordEconomics2014, the British fashion industry provided 797000 jobs directly for the British economy to contribute 26 billion pounds in economic income.

After leaving Europe, the British fashion industry will suffer many shocks, leading to a setback in the confidence of the whole industry.

"There are three main aspects.

1. The influence of British fashion brands such as Burberry is quite large.

In Lin Jian's view, because the whole fashion industry is highly cooperative, there is almost no production and processing link in the UK.

He said, "most of the foundries are in Europe, such as fabrics in Italy, which are settled in euros. The sharp drop in the cost of the pound has led to a sharp rise in the cost of procurement, which is very troublesome for the brand."

Ye Qizheng, editor in chief, said: "the production link of the British fashion industry is bound to cause problems because of the fact that many brands are produced in Italy, and the manufacturing costs should be improved after the EU is removed."

In addition, the British creative culture industry, including fashion design, publishing, television broadcasting, film, software and computer, art and antiques, crafts and so on, is one of the fastest growing industries in the UK in terms of economic growth.

According to the data released by the British Ministry of culture in February 2013, the value of creative industries in the UK exceeds 36 billion pounds, while the creative industry has created 70 thousand pounds per minute to help 1 million 500 thousand British employees.

According to the data, the British creative culture industry accounts for 10% of the total export volume.

According to the British creative industries report (CreativeIndustriesStrategy2013-2016) released by the British strategy and Technology Commission in September 2013, the number of people engaged in creative industries in the UK will increase by 4.2% at the rate of 4.2% every year before 2016, which is higher than that in France and Germany.

In the past 10 years, the employment rate of British creative industries has increased by 9%, while that of other industries has increased by only 1.6%.

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Behind this is a strong British fashion education as a support for fashion education, including fashion design, product design, industrial design, jewelry design, film production and creative industries.

"Britain's fashion design actually radiated the whole of Europe."

Lin Jian said, "fashion education in the UK has great influence in the world. After all, there are not many job opportunities in the British fashion industry. We take the UK as a springboard, and seek jobs through British education to Europe, the United States and China.

The European Union will be greatly inconvenienced by the future of the whole fashion education and talents, and there are new obstacles.

This is the second important influence of Britain's "off Europe" on the whole British fashion industry.

According to reports, 282 British actors, writers and creative industry celebrities, including Benedict, Kayla, Knightley and Jude lo, issued an open letter in May 20th, calling on the public to support Britain in the EU's referendum in June.

The letter says that the creative industry that will destroy Britain will be broken away from Europe: "leaving Europe will lead the British in millions of creative industries to the unknown".

Sir John sorrier, President of the British Creative Industries Federation, said: "the creative industry in the UK determines how we are viewed by the world and provides us with 84 billion 100 million pounds of support for the British economy.

Britain has become the centre of European creativity, largely because we benefit from the huge network of talented people, companies and institutions from all over Europe.

The Federation of creative industries announced in June 20th that 96% of its members supported Britain's stay in the European Union.

"Britain stays in Europe stronger" Organization says that 2 million 200 thousand people in the UK are employed in the creative and digital industries.

Europe will increase tariffs and reduce the attractiveness of the UK's creative industries.

Europe's influence on fashion week and other platforms is also affected.

"The environment of the entire luxury industry has been in the doldrums for a long time. It is worse than ever to get rid of Europe."

Lin Jian believes that "in a short period of time, the impact of the fall in the exchange rate will cause ordinary consumers to clamour for tourism and luxury goods in the UK.

But for this country's overall fashion environment, the impact of Europe is on the psychological level of practitioners.

For the newly concluded fashion week in Paris, the commentary of the industry and the number and quality of the buyers are called "the worst in history".

Combined with the British referendum, the atmosphere of European fashion is very bad.

Investment outflow

After the European Union lost its trade, the volume of trade declined, and the need to re sign the agreement with the European Union may face the risk of rising tariff barriers. Overseas investment will decline and investment funds will flow into the UK if market access and investment terms are uncertain.

According to the analysis released recently, the attractiveness of Europe to Britain has dropped.

More than 40% of the UK's FDI stock comes from the European Union, and 50% of the non EU multinational headquarters are set up in the UK.

The uncertainty and panic brought about by Europe will also reduce investment in British domestic enterprises.

"After the British isolate itself from the European market, many brands entering London have begun to withdraw."

Lin Jian said: "there were some small and medium-sized investment companies in the UK, mostly in the direction of acquiring some small luxury goods in Europe, then innovating and reshaping them, and then pushing them to the market.

Now that the London financial industry chain is being affected, the focus of investment companies may move from London to the new European financial district.

For consumers, many people in the industry say that the decline in the pound and the low tariffs are only short-term.

"Luxury brands like Burberry, if manufacturing costs increase, retail prices will also rise, which will eventually shift to consumers."

Insiders comment.

Compared with the domestic market, the overseas fashion industry market is also fluctuating. "This season Paris fashion week buyer reduction, everybody selects the goods and the forecast for the big market tends to be conservative, which is bad news for all brands."

Lin Jian thinks.

London will be more marginalized as a fashion centre after Britain's departure from Europe.

Paris's status can not be shaken. Even in London Fashion Week, designers and their designers have to complete their revenue and sales in Paris.

Lin Jian said, "for the fashion industry, the world is the most conservative, conservative politics is dominant, encouraging people's consumption is the most favorable, and Europe is a big blow to the British fashion industry."