With Brexit advocates winning the majority vote on the 23rd of June 2016, it was logical for me to explore how this topical event will influence the fashion industry by incorporating my knowledge of economics and interest in politics.
Brexit took an immediate effect on the value of the pound, which will undoubtedly have an impact on the manufacturing side of companies. In a recent article, the Business of Fashion cited Financial Services Firm UBS who stated that British clothing and home furnishing retailers source about three-quarters of their goods from Asia. Can you imagine the repercussions of leaving the European Union (EU) on the price of their imports? For a large proportion of companies, there is a tendency to outsource production in countries such as China, where costs are more often than not paid for in the dollar. Considering that the British pound has fallen significantly against the American currency, it would be wishful thinking to ignore that these businesses may experience a surge in their costs. What does the depreciating value of the pound mean for you? Well, your wanderlust to experience Christmas this year in the Big Apple may not be appreciated by your pocket.