Today, we, the BFC and London Business School, launched a new report, Commercialising Creativity 2.0, as a follow-up to their 2014 study. The BFC commissioned this report in recognition of the changing and increasingly complex environment the fashion industry (designers, businesses, wholesalers and retailers) continues to face. The report is a tangible guide to support business growth, drive revenue, and provide strategic recommendations for industry stakeholders. This second edition explores the evolving barriers to commercial success, how the levers to overcome them have shifted and how these insights can be leveraged to support the fashion industry going forward.
The 2024 report reveals that over the past decade, the fashion industry has undergone significant changes, including challenges of Brexit, the rise of omnichannel strategies, a global pandemic, instability of wholesale models and shifts in buying habits and consumer segments.
Caroline Rush, Chief Executive, British Fashion Council: The last decade has brought extraordinary change and profound challenges to the fashion landscape, and while the resilience of the British fashion industry is truly commendable, much work remains ahead. We are thrilled to partner once more with the London Business School for the second edition of the BFC Commercialising Creativity report, which provides vital insights for the industry and policymakers in understanding the next steps for driving commercial growth and creative success. Now, more than ever, we must ensure that collaboration across the industry supports both emerging and established talent to navigate these challenges."
Report Overview
To help the fashion industry navigate the turbulent landscape and provide tools for long-term growth, the report introduces a two-phase approach: Build and Thrive and Scale Successfully which are based on insights and recommendations from industry experts.
- Build and Thrive: The first phase supports designers in establishing essential business foundations such as defining their vision, strengthening connections with their customers and instilling financial and operational discipline.
- Scale Successfully: The second phase focuses on accessing talent and selecting partners who will support growth, offering a go-to-market framework that considers the role of wholesale, owned channels as well as third-party opportunities like licensing, collaborations and incubators.
Strategic Actions for Stakeholders
The report outlines strategic actions for various industry stakeholders, highlighting their roles in shaping the future of British fashion.
The BFC
The BFC is deeply engaged in the success of designer businesses and acutely aware of the challenges that they and the industry as a whole faces. It takes action to support designers through knowledge sharing (investment, infrastructure, engaging with policy makers and larger fashion houses).The report recommends that the BFC should be a knowledge sharing platform by;
- Convening more roundtable discussions on specific business challenges under Chatham House rules to facilitate knowledge sharing and collective solutions.
- Better promote their platform to act as the connector between designers and potential mentors / subject matter experts.
- Find ways to maintain, grow and share its database of companies in relevant markets who undertake specific value chain activities to make it easier for designer businesses to find the right partners.
Extension of this work:
- Further expand operational support for BFC NEWGEN designers.
- Explore a shared services model.
- Create a physical incubator or accelerator to further support the BFC’s mentoring programmes.
As part of their commitment and to coincide with the launch of the report, the BFC hosted the first BFC Commercialising Creativity: Growth Forum today. This full-day event featured industry specialists from key commercial sectors, including licensing, collaborations, sales channels, and access to finance. The event provided designers with the opportunity to engage with experts, gaining insights into essential business models and commercial opportunities to foster connections for business growth.
Government
The report showcases the economic impact of the fashion industry and highlights the opportunity and need for the government to reset priorities for fashion policy based on the challenges the sector faces. The report recommendations align with the BFC’s “Growing Fashion’s Future – 5 Priorities” which they set out in June for the incoming government:
- Restore the VAT Retail Export Scheme (also known as “Tax-Free Shopping”) and reform Business Rates to boost growth in the fashion retail sector.
- Greater trade and export investment for UK fashion designers.
- Support our world-leading fashion education sector with a commitment to STEAM, not STEM.
- Develop a new generation of businesses and skilled workers in the fashion sector.
- Introduce legislation to activate sustainable business practices to meet decarbonisation and net-zero targets.
Industry Grandees: Wholesalers and Established Brands
Industry grandees have shown a strong commitment to offering mentorship, advocating for the industry and sharing expertise. Their ongoing involvement is critical to nurturing the next generation of talent and ensuring the industry’s continued vitality. This report highlights the crucial role big industry players have in supporting emerging fashion talent. Key strategic actions for the industry as a whole include:
- Established brands are encouraged to mentor and devote resources to support emerging talent and drive industry innovation, particularly around sustainable practices.
- Wholesalers play a pivotal role in supporting emerging designers to scale by offering flexible merchandising options, more lenient payment terms, and marketing partnerships. By acting as mentors, wholesalers can assist designers with navigating the complexities of inventory management and product placement, fostering growth in the sector.
Emerging Designers and Brands
The report offers six key themes and considerations for businesses as they grow:
- Know what the business is for and structure it accordingly
- Decide where the designer as founder adds the most value
- Knowing your customer is a dialogue not a monologue
- Cash flow is key - without money they are no options
- Access commercial expertise early (buy, borrow or rent)
- Vary your approach as you grow (go to market, distribution, channels and partners).
Looking Ahead
The British fashion industry has demonstrated immense resilience in the face of rapid change and a turbulent global environment. The commercial future of British fashion relies on the collaboration between industry bodies, brands and policymakers to meet the challenges ahead. This report offers a path forward for the next generation of designers and the BFC remains committed to providing the resources and insights needed to ensure that British fashion continues to thrive on the global stage. Download the full report here.
The Commercialising Creativity 2.0 report was commissioned by the British Fashion Council, in collaboration with London Business School, and funded by the BFC Foundation (Registered Charity Number: 11852152). The BFC Foundation was created in 2019 for charitable purposes and grant giving; attracting, developing, and retaining talent through education and business mentoring. We extend our thanks to Deloitte for their contribution.