“Ten years ago, [the report’s advice] was really much more around the basic principles of management — predominantly wholesale channels or going direct-to-consumer,” says Rush. “In the last five years, we’ve seen so much change in our industry. The Commercialising Creativity report gives us an opportunity to give some recommendations around [the current challenges], not only for us as the British Fashion Council, but for the government and industry at large, as a way of thinking about how we can come together and support businesses to grow.”
The report outlines two phases for designer fashion businesses. The first phase, “build and thrive”, involves defining your vision, the founder’s role in their business, knowing your customer and developing solid cash flow management and operations. “Having control over our cash flow means we have options — without it, we’re stuck in survival mode,” says one designer quoted in the report.
The second phase, “scale successfully”, outlines how to choose talent and partners to build out the business’s capabilities and expertise. It also recommends the best go-to-market framework, including how to expand — or enter — into retail, when to expand into wholesale and how to navigate distribution, licensing, collaborations and incubators. “The access to finance bit is incredibly important — making sure that they’re understanding the business’s funding needs and the opportunities to get cash into the business, whether that’s through collaboration, investment or factoring,” says Rush, highlighting that this is an opportunity to work hand-in-hand with the government and financial institutions to generate the cash necessary for designer fashion businesses to thrive.
What does it mean to be successful as an independent brand? The report suggests three metrics: creative acclaim, communication perception and commercial acclaim. The problem many brands face is the gap between creative success and commercial viability. Commercially, a successful brand must behave as a business, recognise the importance of product development, have a unique proposition, have strong production and distribution, and understand funding and financing options (such as when to seek external investment), the report states.
The report calls on stakeholders to support the growth of fashion businesses. For instance, the BFC can support designers by providing a platform for knowledge-sharing and mentorship, and industry players and wholesale partners can offer more flexible support to emerging talent. “One of the key themes that came out from [the research] was the opportunity to work in tandem with industry grantees — bigger businesses who can think about how to use their support across the value chain, their contacts and network to support smaller businesses as they grow,” says Rush, referencing production, logistics, supply chain contacts and payment terms.
