Do the maths
Let’s ignore the big picture for now and focus on young brands. Browns’ Buying Manager Holly Tenser frames the financial challenges designers are facing: “With rising costs, emerging brands will, unfortunately, find it more challenging to offset these costs through scale of production versus larger, more established brands.” As manufacturing units reduce, costs tend to increase, and we know many of our emerging brands produce for fewer stores in more limited numbers.”
“As manufacturing units reduce, costs tend to increase, and we know many of our emerging brands produce for fewer stores in more limited numbers.” – Holly Tenser, Browns’ Buying Manager
“It’s obviously extremely difficult for young talent to prepare for this, especially given the uncertainty in global markets,” admits Liberty London’s Buying Manager Larissa Stange. “Whilst customer demand might be complicated to predict, as we have seen in Covid, strategising internal processes, supply chains and collection structures in a way to reduce overstock and alleviate risk is something to keep in mind,” she says.
In other words: be smart about spending. Identify the business-critical costs and get creative. What expenses are essential? What investments are important for production? How can processes be adapted to save money? Long story short, work out a recession-proof strategy.
Time to get creative
What could be a strategy when having the cards stacked against one? Tenser offers food for thought: “I think it’s a very important time to reassess what is the right approach for you and your business. For instance, do you need to produce two collections a season? Or should you focus on one strong and well-edited collection to help production costs? What’s the most beneficial use of funds for marketing and exposure? Is a runway show or a large presentation the best option for you, or would it be better to focus a season on creative content and seeding?”
Post-Brexit, British-based brands are forced to choose the lesser evil. “Import, export, duties, and licences are an absolute nightmare,” states Daniel Russen, Assistant Buyer at Selfridges. “There is a reluctance cost-wise to make stuff in Britain. But now, would you rather lose money from importing products from China or Italy or be more hands-on with the manufacturing process within the UK?”
“You must go to market and deliver your stock as early as possible. There is nothing worse than an amazing collection that delivers eight weeks before the Christmas sale and then gets marked down.” – Daniel Russen, Selfridges’ Assistant Buyer
It is a good call. As much as talent learns about distinctive design at university, education misses practical advice. “They don’t teach you anything about production or delivery windows, payment and shipping terms, or import-export,” continues Russen. “Those are the things that ultimately destroy small brands.” So what would be a good strategy, particularly in a financial and economic crisis? “You must go to market and deliver your stock as early as possible. There is nothing worse than an amazing collection that delivers eight weeks before the Christmas sale and then gets marked down.”
Strong partners play a huge part in emerging designers’ success. But even established businesses have a tough time. The recession rocks a struggling system still trying to recover from the challenging Covid crisis and most importantly, Brexit. Thus, it is vital to not only understand the internal processes of designers and businesses but the industry’s toil, too. It’s time to look at the big picture.
Lean on relationships
As much as the fashion industry is not democratic, it is highly dependent. “No one saw the pandemic heading our way, and nothing could have prepared us for lockdown where non-essential retail had to close for the best part of six months,” reflects Tenser. Not only brands battled the effects of Covid, but the stores also suffered from lockdown. An outstanding brand portfolio is a store’s USP. So, as LN-CC’s Buying & Creative Director Reece Crisp voices: “It’s all about taking risks. If we play it safe, we will miss out. So, we will double down on our strategy and continue to differentiate.”
“I do anticipate that shoppers will start to consider their purchases more; for example, during the last economic downturn in 2007, we saw customers buying less and with caution, and mainly investing in items that held value and truly excited them.” – Holly Tenser, Browns’ Buying Manager
Understanding the industry’s dependency can be an actual silver lining. The rising living costs reduce consumers’ disposable income. And as people have less money to spend, they deliberate about whether a product is worth the price. “I do anticipate that shoppers will start to consider their purchases more; for example, during the last economic downturn in 2007, we saw customers buying less and with caution, and mainly investing in items that held value and truly excited them,” Tenser shares.
There is an opportunity for emerging talent to stand out to big brands by offering products with unique selling value and meaning.
Find your niche
Let’s assume a brand has the business side of things figured out. Ultimately, the customer is king. The best designs often offer value beyond what meets the eye. Even more so when disposable income is tight, customers seek meaning to their purchase. “Within the current climate, customers are definitely looking for special pieces,” says Stange. But what is special anyways? “Having key differentiating elements aesthetically as well as sustainability-wise will certainly help emerging brands to stand out,” she states. “Sustainability is on everyone’s radar.”
“Instead of being broad and selling to everyone, focus on one thing. Having one marked product category that people know and recognise you for is more valuable than another 50-piece collection. This one product gives you a differentiation from LVMH or Kering brands.” – Daniel Russen, Selfridges’ Assistant Buyer
Russen believes that finding and defining the niche has never been that crucial. “That’s why Craig Green is so successful,” he argues. “Instead of being broad and selling to everyone, focus on one thing. Having one marked product category that people know and recognise you for is more valuable than another 50-piece collection. This one product gives you a differentiation from LVMH or Kering brands.”
Therefore, know not only the customer but the competition. Crisp points to how the past season already sensed the change of sentiment: “I think there’s a real onus on trying to stay relevant. Brands and designers have focused either on their own proven formula or gone deep into trends, and as a result, collections have a more commercial edge.”
Any last words?
Trying to pivot this new crisis and uncertainties will be an extreme challenge for emerging brands. Is there anything talent should expect for next season? As Larissa Stange shares at Liberty London, they have not yet seen a decline in the demand for fashion. “Fashion trends tend to be a reflection of the current social climate, and whilst we have been seeing a lot of glitz and glam over the last few seasons, I expect customers to look for slightly more muted pieces next year.”
Selfridges’ Daniel Russen resonates a similar sentiment, emphasising the balance between a forward-thinking style but commercial, easy to buy into elements. “If we look at the last couple of years, there has been a lot of new-Gen talent like Bianca Saunders or Saul Nash, who reflect the sort of creativity that London fosters and is still super prevalent. We are a British company, so it is important to support people close to home.”
“Fashion trends tend to be a reflection of the current social climate, and whilst we have been seeing a lot of glitz and glam over the last few seasons, I expect customers to look for slightly more muted pieces next year.” – Larissa Stange, Liberty London’s Buying Manager
LN-CC’s Reece Crisp and Browns’ Holly Tenser stress the importance of relationships and community. “If you can’t secure the stores you know understand your vision, go directly to the consumer. Lean on relationships where you can and get your product out there. If you get the right traction, you’ll either keep that focus on DTC or you’ll gain more fans, and stores will then come calling,” says Reece, while Lange adds, “It’s important to identify your audience and community, listen to them and assess how they are being impacted by these challenging times. Now more than ever, we need to rely on our community.”
“It’s important to identify your audience and community, listen to them and assess how they are being impacted by these challenging times. Now more than ever, we need to rely on our community.” – Reece Crisp, LN-CC’s Buying & Creative Director
Ultimately, as Tenser emphasises, there is no one rule for all. A few businesses like Browns, LN-CC, and Liberty London, which lead with a strong focus on new talent, continue to take risks differentiating their portfolio and showcasing emerging brands across their various platforms. This kind of support is why, despite the grim outlook, designers and creatives should not despair.
