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Is There a Demand for Finance in Fashion?

March 30, 2018


Similar to other industry sectors, the fashion world is seeing massive changes in the way people shop for products and services. To keep up with a changing landscape, businesses have to change with the fast nature of buying trends and diversify into new markets. With this unique set of challenges, companies face a struggle if they cannot meet the demands of savvy fashion buyers. So how can emerging designers and established brands stay ahead of tomorrow’s changes and build a sustainable identity into their business structure?


The answer lies in innovation. There are very few industries that see the extent of change that fashion does and building a robust business model to face these challenges will help to ride the tide of diversification. With this change comes the requirement to invest in new markets and extensive digitalisation. This investment often relies on business financing and is essential to help build companies into sustainable brands.


Although there are enormous challenges ahead in this industry, there is also the chance to take advantage of great opportunities. The apparel sector is developing at a rapid rate and hosts some of the largest growing brands across the world. By exploring different target markets and investing heavily in brand identity, moving into these sectors will see businesses reap the rewards from influential buying powers.


To benefit from the changing landscape, finance can help develop critical areas of a fashion business to move it forward. Take a look at some of the ways funding can help companies grow in this innovative sector.


Sustainability factors


In recent years, there is a growing focus on providing sustainable and ethical clothing in mainstream fashion. Although the social aspects of incorporating environmentally conscious clothing into a brand are vital for the reduction in damage to the environment, for some brands the increase in textile costs means that this type of product is just a little out of reach. The hard truth is that this increased cost would also have to be passed onto the consumer and in reality; many people would not be willing to buy with a price hike. There are core elements in the manufacturing process that need to be addressed to make this offering more accessible to all brands but in the short term, if fashion houses want to choose ethical and natural fabrics for their collections, obtaining finance to move in this direction would often be needed to fulfil this growing market.


Going digital


With the increased presence of fashion brands online, building a digital identity should be a priority for all businesses. The scope of these popular platforms opens up a target audience that shares everything including experiences and reviews. Using this method of marketing is essential for both new start-ups and established brands and may require considerable expenditure to promote engagement and feedback from your audience. Digitalisation is vital for building a lifestyle that people want to buy in to and with relevant funding businesses will reap the rewards with a high-profile social presence.


There is a considerable demand for finance in the fashion industry, and this critical funding could pave the future for emerging and established companies looking to expand into this ever-changing market.


Speak to us and see how we can help your Fashion Business. 

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