London Fashion Week wrapped on Monday with shows from Susan Fang, Di Petsa and Burberry, among others. Days prior, the U.K. officially entered a recession. The latest data from the Office for National Statistics revealed a 0.3% decrease in the UK’s GDP for the final quarter of 2023. This downturn was reportedly driven by a decrease in consumers’ discretionary spending.
The local economy has impacted some brands more than others. For its part, industry giant Burberry presented its fall collection amid rumors that creative director Daniel Lee is leaving and the company has overspent. The brand was not reachable for comment on the topic.
In January, Burberry announced a downgrade to its profit forecast for 2024 from £668 million ($841 million) to between £410 million and £460 million ($516 million to $579 million). This news led to a sharp 15% drop in its stock value, its largest decline in over 10 years, positioning Burberry as one of the FTSE’s most negatively impacted companies.
“This is a time to make sure that, with whatever you’re doing, you have a point of view, a tone of voice that separates you from everybody else,” said Ben Matthews, a U.K. fashion consultant with experience at Richemont, Browns and Net-a-Porter. “Don’t just be another one of those brands that do what everyone else is doing. Stay in your lane and remember why you started the band in the first place.”
It may also be a time to reconsider hosting a runway show during Fashion Month. “If you’re a brand new embryonic brand that’s got support and it doesn’t cost you anything to show the collection, that’s fine,” said Matthews. “But for small and mid-tier brands in that £5 million to £10 million mark ($6 million to $12 million), unless you’re going to do it for theatrics, that money can be spent elsewhere.”
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U.K.-based fashion shows typically cost a luxury British brand around £100,000 ($125,000), according to Matthews. “That’s £200,000 ($251,000) to show twice a year,” he said. “That’s enough to hire six members of staff that you could employ for digital marketing or personal shopping for VIP customers — things that will shift the dial when it comes to your sales.”
Matthews said that brands with a big VIP customer base should tailor their events to that base with private presentations or lunches. “They’re going to cost you around £20,000 ($25,000) a pop, and you will likely translate that into actual sales, with customers buying from you,” he said. “Or if you’re a Gen-Z brand, put on a party that’s sponsored by the club so it doesn’t cost you much money at all, and have everyone wearing the collection. Putting out 35-40 looks on the runway might not always give you the best bang for your buck.”
Seven-year-old fashion brand Supriya Lele chose not to invest in a traditional fashion show this season. Instead, the namesake designer rented a storefront to display her collection and invited the press to appointments. “There’s [minimal] audience, but it’s a fun way to present her collection that only costs pennies,” said Matthews.
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He added, “Buyers don’t need to go to a show to get an understanding of the brand — they can just go to the showrooms. … As a buyer, if I feel a collection is right after seeing the clothes and a lookbook, I’ll buy it. I don’t necessarily need to see a show.”
For her part, emerging Chinese designer Susan Fang has leaned on collaborations to maintain brand stability. For her fall 2024 collection, Fang partnered with H&M Group’s & Other Stories, as well as Victoria’s Secret. The designer has previously worked with Zara, Nike, Ugg and Swarovski, with each collaboration providing visibility and a fresh source of revenue to continue growing her namesake brand.
On Glossy’s podcast last season, Fang said that collaborations are key to her success. “They can reach a bigger audience at a much more accessible price,” she said. Prices of the Fang’s core brand range from £300-£3,000 ($377-$3,770).
Collaborations also allow emerging brands to maintain control before it is sold off to bigger houses and conglomerates. “In the early days, it’s nice to try and hold on to as much of your brand as you can before you start giving up chunks and diluting it and relinquishing control,” said Matthews. “You also have to choose your brand partnerships carefully. As long as those collaborations share the same values as your brand, you can leverage those collaborations across your whole platform and help your marketing and reach.”
Modest fashion is gaining traction at LFW
Last year, a report by consulting company McKinsey & Company highlighted the Middle East and North America as regions with the most significant growth potential in the luxury market. According to research by Euromonitor International, fashion sales in the Middle East rose 11% year-over-year in 2023. Fashion is an $89 billion business in the Middle East.
Modest fashion, where heads, shoulders and ankles are covered, has had a growing presence on the LFW calendar. “I always found it quite difficult to find clothing that was luxury and high-end, and also met my modest requirements,” said Deborah Latouche, founder of the modest luxury brand Sabirah, which was part of the LFW calendar this season for the first time. The brand has a large base of female customers mainly in the U.K., where there’s also growing interest in modest bridalwear, Sabirah’s most popular category. The brand declined to disclose its revenue.
Kazna Asker, a London-based emerging designer of modest fashions, showed on Sunday. Her collection combined Middle Eastern textiles with her Yemeni heritage and Northern British street-style tracksuits. “We combine Islamic modesty and Islamic silhouette with the way the different generations interpret culture,” she said at the show.
Even among Gen Z, modest fashion is in demand. The hashtag #modestfashion has 6.4 billion views on TikTok.
