There was mayhem in the financial markets as the British decided to leave the European Union. The June 23rd vote took the markets by surprise, as investors believed that the situation was not so ill for Britain to exit the Union.
As for the fashion industry, a lot of designers voted against it while a few decided to vote for Brexit. Keeping a lot of factors in mind, Brexit has had a few effects on the fashion industry
Devaluation of the pound: The most immediate effect on the fashion industry has got to be the depreciation of pound. Debate concerning the EU vote had an effect on the strength of the British pound, which depreciated to a seven-year low against the dollar.
Consumer’s purchasing confidence: Like we’ve learnt in economics, if the supply decreases, the price increases. Following the same format, a weaker pound, as highlighted above means that fashion companies alike will have to spend more money to produce the same amount of clothing.
Uncertainty to an already uncertain market: Being the first country to leave the European Union, in that process, has plunged the world and world markets into an era of increased uncertainty.
Lost labour and skills: Due to this vote, one of the biggest blows is for the fashion industry to deal with the restriction of free-flowing movements. A lot of designers have workshops and business structures which will be damaged if the citizens lose the right to freely work in Britain.
From Gucci loafers to dresses from Selfridges; the Brexit might not be positive and open to the fashion industry and that’s really hard to cope with. And maybe the dresses at Primark won’t be as cheap as you’d want them to be now!
Image courtesy: blog.politics.co.ox.ac.uk