It’s almost the end of 2019 and we now know the UK will definitely be leaving the EU with some kind of deal but who knows what. One of the biggest problems with Brexit is just the uncertainty in itself.
The fact that no one really knows what is going on or what is going to happen means that the economy is growing more slowly. At the slowest rate since 2010 according to The Independent newspaper.
Sadly this means that many people will avoid buying from smaller fashion brands which tend to have higher prices and buy the cheapest item they can find which is probably going to be fast fashion.
Surveys show that 90% of British fashion designers have stated they would choose to stay in the EU. On top of that, 96% of people working in the fashion industry also voted to remain. The British Fashion Council has said a no-deal Brexit could cost the fashion industry between £850 and £900m in a year.
As it stands, Britain has free trade with members of the European Union. However, British producers may be hit with tariffs which they previously did not have to pay when exporting. Tough for small fashion businesses who already have to charge higher prices in order to pay fair living wages and use more expensive ethically made fabrics.
For serious growth, most fashion brands reply on exports to other countries. Brands who are unable to relocate their business outside of the UK are going to be affected the most, especially if a brand has serious EU competition.
At the end of the day, things keep changing and nothing is set in stone yet. It’s best for small fashion brands to try and prepare as much as possible for the upcoming changes and be aware of how that might affect business.
Please remember to try and support your local businesses as much as possible in the future to ensure your favourite brands don’t end up closing business.