Photo Credit: Pexels (Daniel Torobekov)
In June 2016, a referendum was held in the UK asking UK residents whether or not to leave the EU. 51.9% of people stated they no longer wanted to be part of the EU. So, on 31st January 2020, the UK left the European Union.
Since then, businesses in the UK have had to learn to adapt to life outside of the EU. In this article, we will discuss how the UK fashion industry has adapted, in particular, swimwear:
How Was the Fashion Industry Affected by Brexit?
Although the feared no-deal scenario did not occur when the UK left the EU in January 2020, many UK businesses are still struggling to come to terms with the new UK-EU trade deal. This deal involves higher trade costs, documentation requirements and regulatory compliance. It has had a significant impact on the UK economy.
One of the main industries affected by Brexit was the fashion industry. A 2021 survey found that 59% of fashion bosses had been severely affected by the decision to leave the EU.
Here are some of the ways Brexit has impacted the fashion industry:
- 98% of UK fashion businesses have experienced higher costs through paperwork and bureaucracy.
- 92% of businesses have experienced higher freight costs.
- 83% have experienced higher customer costs.
- 53% of businesses have had customers from the EU cancel their orders.
- Due to customs costs and VAT issues, 44% of UK fashion businesses have seen an increase in returned or rejected items.
As a result, 25% of fashion retailers are considering leaving the UK and relocating to a country inside the EU.
How Has Brexit Impacted UK Imports?
Over the past few years, many businesses have stated that they have had problems importing goods from the EU following Brexit. Their most mentioned reasons for obstacles to imports included additional customs, delays at the border, regulatory checks, and administrative costs. This has resulted in higher consumer prices as cost increases are passed down the supply chain.
How Have Fashion Imports Been Affected by Brexit?
As we mentioned above, all businesses have been affected by Brexit. This includes the UK fashion industry. Fashion businesses, including swimwear, have struggled to import goods for their customers. However, thankfully, the fashion industry is now starting to adapt to the issues it faces.
How Has the UK Fashion Industry Adapted to Brexit?
Although Brexit has severely affected the fashion industry, it is starting to find ways to overcome the challenges it faces. Here are some of the things the fashion industry is doing to adapt to Brexit:
- Growing capacity and competency of the UK fashion and textile industry – instead of purchasing products such as designer swim trunks from abroad, we are now creating our own products in the UK. This has many benefits. It not only helps to reduce the carbon footprint, but it also creates employment opportunities in the UK.
- Purchasing outside the EU – another way the fashion industry has coped with rising prices since Brexit is by buying from countries outside the EU. Many countries outside the EU are cheaper to purchase from. This means that fashion businesses can keep their prices low for consumers.
- Finding ways to cut costs – one way they have done this is by changing their buying habits. Instead of buying little and often, they are buying in bulk. This allows them to get a discount on their order and cuts freight costs.
- Accepting government help – the government continually seeks ways to reduce costs for small businesses and start-ups through tax breaks. This can help improve their access to global markets.
As you can see, Brexit enormously impacted the UK fashion industry and caused many fashion and textile businesses to close. However, some managed to stay open. Thankfully, most of these businesses have adapted to life outside the EU. Let’s hope these businesses continue to thrive and trade in the UK.
