📣 Supporting UK Fashion Designers: Why We Need More Than Just Innovation Grants 📣 This is an odd statement from an innovator, but I believe more non-innovation grants = more organic innovation demand in the industry. It's not just the Matches stock issue causing turbulence. The wholesale market is down by at least 30%, driven by instability among key players and global demand concerns. This decline in wholesale has a compounding impact on brands, especially small standalone companies. There is less revenue and a loss of previously stable income that many used to unlock credit for product creation. So, a 30% reduction in wholesale can actually mean a 100% reduction in credit needed to fund their collections. Credit lines are essential in the fashion industry, where you must pay to create a collection long before you receive payment. With many now looking for other types of funding, the large disparity in grant funding for fashion brands versus their innovation-focused counterparts is increasingly concerning. In the UK, while Innovate UK has provided nearly 500 grants to fashion tech and material start-ups (which is fantastic), this focus on innovation overlooks a critical issue: who will use these technologies if designers are struggling to stay afloat? The British Fashion Council supports the entire industry through education and London Fashion Week, but direct grants only impact 36 designers. This is insufficient given the scale of the problem. We need more grants or low-cost credit from more organisations. As the industry pushes towards sustainability and tech innovation, it's crucial to remember the creators at the core. A more balanced approach to subsidised funding is needed to support both innovation and creative talent as the industry's core. What other options are you offering or have found to help the fashion industry keep thriving through direct monetary support? Do you agree there is a gap, or are there other tools fashion brands can use during this challenging time - share away!! At StudioThree, we help by: 📣 Connecting with brand-focused investors: We match brands with investors who understand the unique challenges and opportunities in the brand space. 📖 Analysing and forecasting product plans: We work to limit cash flow burn and optimise your product strategies for sustained growth. 🖥 Reviewing DTC plans: We help create cost-efficient growth plans tailored to your brand's specific needs. 💰 Preparing you for investors: We ensure that your brand is investor-ready with solid business plans and financials.
Totally agree Carol. The downturn and challenges with wholesale are a major concern. The domino effect from Matches, Farfetch. NETAPORTER, etc. for designers and independent stores narrowing channel opportunities, sales and growth.
Smart thinking 🚀
Founder at XXII | Leading Design Innovation
3moor perhaps this is a correction of an overly-saturated market with too many brands, making too many products, too often? Coming from a design background I can relate to the ambition to design and create new stuff all the time, but in reality there are plenty of great designers creating mediocre clothes in unsustainable methods just to feed the industry’s need to show growth at any cost, and I’m not sure putting those on life support is the answer.