The British fashion industry is one of those who is struggling particularly hard with the new rules after Brexit: the trade pact agreed between Great Britain and the EU means that trade is in principle duty-free – but only if the products are actually largely produced in these countries and made of materials from there.
In the fashion sector, which has a lot sewn in Asia and uses non-domestic raw materials, this is often not the case. When customers in the EU order clothes from a fashion label in the UK, customs duties are sometimes due – an unpleasant surprise for consumers.
The re will certainly be companies that will suffer badly or even go under. Others could shift activities more strongly to the EU – such as the sportswear manufacturer JD Sports, which is considering opening a location with around 1,000 employees in the EU.
The trend towards online shopping meant that traditional chains in the shopping streets such as Topshop could not survive in their previous form. Online trading platforms such as Asos or Bohoo took over several brands, including Topshop, from the ailing department store group Arcadia, but do not want to keep the branches. London Fashion Week, usually an important event in the fashion industry’s calendar, currently has to take place exclusively online due to the pandemic.