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Fashion industry steps in to help smaller, independent designers

Many fashion industry bodies across the globe have stepped up to help smaller independent designers suffering from loss of orders due to COVID-19. The British Fashion Council has set up an emergency fund to help British designers but has called on the government to provide more aid, which it says is still needed.

Carlo Capasa, President of the Italian Chamber of Fashion, also asked his country’s government for help. Even Marc Jacobs, a well-known name in the industry, says he didn’t manufacture the clothes he designed for his last collection and won’t design a new collection next season. His brand is owned by LVMH.

Orders of many of these independent designers have either being cut or canceled by retailers who have closed stores and face a plunge in demand for new clothing. A March survey of designers by the British Fashion Council found 35 per cent of these designers believed they would go out of business within three months without external support. Half said they would go under by the end of the year.

These independent designers often operate on tight budgets, using the sales from one collection to fund the next. Many still rely on selling wholesale to retailers for the bulk of their earnings, and may sell just a few items straight to shoppers. Either way, any delays or disruptions in their sales can interrupt their cash flow and play havoc with the whole business. They may be unable to buy fabrics, pay manufacturers, or cover other bills, such as rent if they have a store.

 
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