The Business of Fashion

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:00:00. > :00:00.in need. We will keep you updated on the

:00:00. > :00:00.developments in Ukraine. Now on BBC News, it's time for

:00:07. > :00:12.Talking Business. 5000 attendees, 16 deciders and

:00:13. > :00:17.millions of customers. Just how big is the business of fashion? Here at

:00:18. > :00:41.London Fashion Week, I'm Linda Yueh, and we are Talking Business.

:00:42. > :00:45.A warm welcome to the programme you times a year, the movers and shakers

:00:46. > :00:51.of the fashion world travel to New York, Paris, Milan and here to

:00:52. > :00:56.London. What is shown on the catwalks will soon be seen on the

:00:57. > :01:00.shelves of the likes of Zara and the Gap. For the host countries, how

:01:01. > :01:09.important is the fashion industry to the British economy? The glamour of

:01:10. > :01:13.the catwalk. The Britain, creative industries are an important part of

:01:14. > :01:20.the economy. The biggest sector is fashion. It is twice the size as car

:01:21. > :01:27.manufacturing and nearly as big as housing. From London Fashion Week

:01:28. > :01:34.alone, an estimated ?100 million of orders will be placed, two thirds

:01:35. > :01:38.from international buyers. The fashion industry contributes around

:01:39. > :01:48.?26 billion to the economy and employs over 800,000 people. I'm

:01:49. > :01:52.backstage at Burberry. But fashion is not just about big businesses.

:01:53. > :01:56.Many of the fashion brands are started by entrepreneurs. Paul

:01:57. > :02:02.Smith, Vivienne Westwood, and you Hindmarch. At a time when the UK

:02:03. > :02:05.government is encouraging entrepreneurship and exports, these

:02:06. > :02:10.British designers have named Reckitt Ocean around the world. -- they have

:02:11. > :02:14.name recognition. What is shown here as a germ of an idea on the catwalk

:02:15. > :02:18.may soon be on a shelf in a store near you, wherever you live. I am

:02:19. > :02:25.here with one of the biggest names in fashion, Tom Ford. I like the way

:02:26. > :02:33.you said that! Biggest names in fashion. Delightful to talk to you.

:02:34. > :02:40.Tell me about the inspiration for your collection. Well, last fall, I

:02:41. > :02:44.went right to the edge with beads, sequins and embroidery, over the top

:02:45. > :02:49.colour. Last spring, I pulled back a bit but it was still over the top.

:02:50. > :02:53.As a fashion designer, the natural thing for me is always to think,

:02:54. > :02:58.what am I tired of? What do I want to see more of? And my natural

:02:59. > :03:04.reaction is to pull back to acquire to luxury. But it is all about the

:03:05. > :03:09.line, the fabrics, the workmanship and a bit of modest luxury. I am not

:03:10. > :03:17.saying we are seeing any change in the luxury market, because business

:03:18. > :03:19.is great. But maybe it is time to be less ostentatious. How important is

:03:20. > :03:24.the global market for fashion these days? If you are not thinking

:03:25. > :03:29.globally, you are not thinking in today's world. In 2014, everything

:03:30. > :03:34.is global. Online is global all stop I don't think of anything other than

:03:35. > :03:41.the market, and the market is global. We have stores all over the

:03:42. > :03:44.world, almost 100 stores. We are well-positioned in Asia, the Middle

:03:45. > :03:48.East, North America. We are not so exposed in South America, but some

:03:49. > :03:55.of our South American customers fly to the states to our store in

:03:56. > :03:59.Miami. So we are global. How much pressure is there to be the face of

:04:00. > :04:03.the brand? There is a lot of pressure, because I am also the

:04:04. > :04:07.owner of the brand. I am the president, the CEO and the designer.

:04:08. > :04:13.But that is OK. When you are building a brand, you need a

:04:14. > :04:19.personality and a character. What defines the brand is all of my

:04:20. > :04:25.guesses and knows. -- my likes and dislikes. That is what gives a brand

:04:26. > :04:29.identity. A brand that does not have that does not have an identity. I

:04:30. > :04:34.don't believe in design by consensus. A designer brand should

:04:35. > :04:40.have a designer at the helm. And it needs a strong designer. You live in

:04:41. > :04:44.London. Yes, London, Los Angeles and Santa Fe. What is special about

:04:45. > :04:50.showing in London at London Fashion Week? I have loved London for years.

:04:51. > :04:55.I moved my design offices here in the late 90s full up they have such

:04:56. > :05:00.creativity here. I love the British. I like the formality, and I also

:05:01. > :05:04.like the crazy, eccentric side. People here are the most interesting

:05:05. > :05:09.people in the world. It is where I live and where my son will go to

:05:10. > :05:14.school, so I am happy to be here. What advice would you give a young

:05:15. > :05:21.designer thinking of breaking in? Work for someone else. Do not start

:05:22. > :05:25.your own company until you have good experience behind you. Work for

:05:26. > :05:29.someone for at least five years. Don't start right out of school.

:05:30. > :05:36.There is so much to learn and it is so tough, even if you had every

:05:37. > :05:45.advantage. Things are global, so to start a brand today, it is tough.

:05:46. > :05:49.When you come to a fashion show, you are not here just to see the

:05:50. > :05:54.dresses, you are here to check out the audience, the buyers, the

:05:55. > :06:04.celebrities. Speechless every time. It is amazing. What is it about

:06:05. > :06:09.Burberry? If you can see the show online, why come to a live show? It

:06:10. > :06:13.is just the atmosphere. That is like saying, if you can see a football

:06:14. > :06:16.game on the TV, why go to a live one? The atmosphere makes it all the

:06:17. > :06:23.more. There are amazing people that turn up, all over the world to see

:06:24. > :06:27.these Burberry shows. They are elegant, extravagant. There is

:06:28. > :06:33.always great entertainment. Just for Bailey is the most humble and modest

:06:34. > :06:35.guy ever -- Christopher Bailey. It can see the texture and everything

:06:36. > :06:42.up close. It makes all the difference. And there is nothing

:06:43. > :06:48.like the glamour of seeing a live catwalk show. I remember my first

:06:49. > :06:57.time, and I was blown away. It time I come back, it is the same thing.

:06:58. > :07:01.It is so magical. But that is not the only way that fashion brands try

:07:02. > :07:05.to get their name out. Burberry shows its entire collection online

:07:06. > :07:21.at the same time it is shown inside there. The idea is to try and reach

:07:22. > :07:26.and tap into a global market. It is not just dresses, but accessories

:07:27. > :07:30.and handbags also take centre stage at London Fashion Week. And you

:07:31. > :07:34.Hindmarch is one of the brightest stars of bookish fashion. The

:07:35. > :07:39.handbags are sold all around the world and she led the I'm Not A

:07:40. > :07:44.Plastic Bag campaign. I caught up with her to find out how she makes

:07:45. > :08:07.her handbag is distinctive. -- Anya Hindmarch.

:08:08. > :08:13.For me, it always starts with the craftsmen. I found this amazing man

:08:14. > :08:16.who can work with leather to create those wonderful graphics, but

:08:17. > :08:21.without just printing the leather . It is embossed and debossed and

:08:22. > :08:25.filled. You can create amazing shapes without it being a flat,

:08:26. > :08:31.printed panel. So I started with that. I wanted to work with

:08:32. > :08:34.something that was almost anti-brand in a funny way, because while they

:08:35. > :08:38.are amazing brands, they are not designer brands. There is a nice

:08:39. > :08:42.irreverence of making it more fun. I have always had a fascination with

:08:43. > :08:48.making things which are almost everyday items really beautiful. The

:08:49. > :08:54.handbag business is quite competitive. How do you think about

:08:55. > :09:01.staying ahead of the competition every season? You can't think too

:09:02. > :09:08.much. You have to design from the heart and feel what you do. You have

:09:09. > :09:13.to be full of conviction. If you love it and you are excited about

:09:14. > :09:16.it, it somehow comes across. Once you start thinking about what

:09:17. > :09:22.everyone else is doing, it is probably fatal. I do than what I

:09:23. > :09:27.love. And it is nice, being a woman and someone who obviously carries

:09:28. > :09:32.bags, you know what you want next. Fashion is a global business. How

:09:33. > :09:38.hard is it to serve a global market? What are the different taste you see

:09:39. > :09:42.around the world? It is actually more and more OneWorld. With the

:09:43. > :09:49.media and the internet, communication is so fast and

:09:50. > :09:52.magazines are launching globally. It is changing. There are obviously

:09:53. > :09:58.climate differences and sometimes size differences. In Asia, they are

:09:59. > :10:02.often smaller. Sometimes, a show like this with very British brands,

:10:03. > :10:07.are very specific. But there is a fascination with that sort of

:10:08. > :10:11.petitioners. I never think about it when I am designing. Sometimes I

:10:12. > :10:15.will think about a smaller size, but I design what feels right. You are

:10:16. > :10:22.showing at London Fashion Week. What is distinctive about British brands?

:10:23. > :10:25.It is a great city and an exciting place for fashion. Fashion week is

:10:26. > :10:34.full of energy. It is very creative. I don't know if it is down

:10:35. > :10:40.to the colleges or the rain! But there is a good energy here and I am

:10:41. > :10:45.committed to that. I am thrilled to be based here. I think the creative

:10:46. > :10:53.industries are so important to the UK. It is what we are good at. From

:10:54. > :10:58.film, art, theatre or fashion, there is a real momentum. Any city that

:10:59. > :11:03.tends to have great design or art or fashion tends to attract more. It is

:11:04. > :11:08.also an easy place to be. So I find it inspiring, both the history and

:11:09. > :11:17.the architecture and the cutting-edge art going on here. You

:11:18. > :11:22.started your own store at a very young age, and you have become a

:11:23. > :11:29.global brand. For anyone thinking about doing what you have done, what

:11:30. > :11:35.advice would you give? It is like the Nike ad. Just Do It. What you

:11:36. > :11:42.get going, you will find your way. Don't give up. You will get there in

:11:43. > :11:45.the end. It is quite simple in some respects. I know it is not always,

:11:46. > :11:53.but if you are passionate about something, it tends to work. Minutes

:11:54. > :11:57.ago, this was a catwalk where models showed off the latest collections at

:11:58. > :12:01.London Fashion Week. Fashion is a fast-paced and fast changing

:12:02. > :12:05.business. I caught up with the Chief Executive of the British fashion

:12:06. > :12:12.Council and Imran Ahmed, who writes a blog, The Business Of Fashion, to

:12:13. > :12:21.find out where the business is headed. Caroline, it is raining

:12:22. > :12:25.here. Welcome to London! It is a little cold. What draws 5000

:12:26. > :12:29.attendees from all over the world to come to London Fashion Week? As you

:12:30. > :12:37.said, this is London Fashion Week, a showcase of the best of British

:12:38. > :12:43.fashion and design. These people are the deer -- media, retailers,

:12:44. > :12:48.stylists, industry people here to see the collections and then want to

:12:49. > :12:53.take that to the world, whether it is through imagery or hopefully

:12:54. > :12:57.buying the collection so that it will then be in stores in six

:12:58. > :13:01.months' time. Imran, with all of the technology you can watch these shows

:13:02. > :13:12.online, why come here to London Fashion Week? I think even with the

:13:13. > :13:16.digital revolution to bring shows into everyone's homes, I think there

:13:17. > :13:24.is something really special about being in the place where it all

:13:25. > :13:27.happens. London is known for creativity and quirkiness and being

:13:28. > :13:34.bowled with ideas. In other cities, sometimes it is a bit safe. Would

:13:35. > :13:45.never accuse the designers of being safe. So it is the Bulls mess as

:13:46. > :13:48.well. -- it is the daring as well. Caroline, is there something about

:13:49. > :13:53.the training of British designers which enables them to work in other

:13:54. > :13:59.markets? There is. We are known for having the best fashion colleges in

:14:00. > :14:04.the world. These fashion colleges are art colleges. Central Saint

:14:05. > :14:07.Martins is an art college. As is the Royal College of Art. Fashion is

:14:08. > :14:12.taught as an art form because that is where the credulity comes from.

:14:13. > :14:19.It is great as how that is taken into commerce. That is where the

:14:20. > :14:23.challenge has been in the past for the British fashion industry. We are

:14:24. > :14:27.starting to make more commercial successes. There is great growth in

:14:28. > :14:32.British fashion at the moment. Imran, do you agree? Do you see the

:14:33. > :14:40.growth in terms of export or influence? Yes, fashion industry

:14:41. > :14:45.touches everybody around the world. From the high street to the high

:14:46. > :14:51.end. When we explore and think about the business, fashion includes

:14:52. > :14:55.everything. In the past decade, we have seen the fashion industry

:14:56. > :14:58.become a bigger part of popular culture and I think that has

:14:59. > :15:03.generated a lot of interest in fashion and the growth of the

:15:04. > :15:07.industry. The fashion industry for a long time was an exclusive group

:15:08. > :15:12.which travelled around and Fashion Week was the secret. But with the

:15:13. > :15:18.Internet and live streaming and social media, all of a sudden, the

:15:19. > :15:25.man on the street and the woman on the street can anticipate Fashion

:15:26. > :15:29.Week as well. This democratisation of fashion has made it part of

:15:30. > :15:33.popular culture. I was struck by the figures released by your council

:15:34. > :15:37.that the fashion industry is twice as big as car many factoring in

:15:38. > :15:43.Britain. How important is fashion to the UK economy? Hugely important. It

:15:44. > :15:49.has taken us a while to get the message across that this is not just

:15:50. > :15:56.about a dress, or a show. People look at fashion and sometimes think

:15:57. > :16:01.it is a little frivolous. But behind it are jobs, opportunities,

:16:02. > :16:05.particularly in the UK. It is a dynamic industry globally as well.

:16:06. > :16:12.We contribute 26 billion each year to the British economy. It is one to

:16:13. > :16:17.be taken seriously. There are many challenges and we would like to be

:16:18. > :16:21.able to work with the government to address those challenges. What are

:16:22. > :16:27.the challenges you are most worried about? I think it is the opportunity

:16:28. > :16:33.for home-grown talent to be able to grow. Small businesses in the UK

:16:34. > :16:39.generally have challenges. In the manufacturing and Herrick and -- and

:16:40. > :16:49.textile side, we have heritage. It is about attracting people into

:16:50. > :16:52.those jobs. It is about seeing what intervention can be possible to

:16:53. > :16:57.support the high-end manufacturing to grow in the UK rather than

:16:58. > :17:03.diminish. I see you nodding, it is a tough competitive business. Yes,

:17:04. > :17:10.about 95% of fashion start-ups will fold in the first five years. This

:17:11. > :17:12.is a competitive industry. It is not just about the glamour and

:17:13. > :17:17.flashbulbs and the models and photographers. It is a highly

:17:18. > :17:24.operational, detail orientated business. In order for some of these

:17:25. > :17:28.young designers to succeed, they are shipping to 40 or 50 countries

:17:29. > :17:33.around the world, they are sourcing their fabrics and materials from

:17:34. > :17:37.India and Italy and France. It is a complex business to manage and in

:17:38. > :17:42.order to be successful, you have to not only have great creativity and

:17:43. > :17:46.great ideas and imagery, you also have to have the operations, the

:17:47. > :17:52.manufacturing, the investment, the marketing, the sales, the logistics.

:17:53. > :17:57.All of that has to come together. Fashion is more than an art form.

:17:58. > :18:02.There is creativity in it, but it is a business. That is the message that

:18:03. > :18:07.is sometimes lost. Because of the way the fashion industry is

:18:08. > :18:13.portrayed as a frivolous industry where people drink champagne and go

:18:14. > :18:16.to parties. But there are people working hard packing boxes,

:18:17. > :18:19.organising shipments, doing all of the little details that happen

:18:20. > :18:29.behind the scenes that make the industry tech. -- that make the

:18:30. > :18:33.industry work. What are the challenges and opportunities for the

:18:34. > :18:38.industry? We have representatives coming every week but through the

:18:39. > :18:43.live streaming, and we are up live streaming 43 out of 79 shows and

:18:44. > :18:47.presentations the season, we reached a last season and it will be

:18:48. > :18:51.interesting to see with more live streaming that continues to grow.

:18:52. > :18:57.The great thing about saying it did Italy is that you can see the number

:18:58. > :19:02.of people who are looking at it, -- the great thing about looking at it

:19:03. > :19:08.digitally is that you can see those things. The market is Europe and

:19:09. > :19:13.increasingly Asia, very strong for British businesses. But we see

:19:14. > :19:16.interest from all over the world and often, some of the small businesses

:19:17. > :19:24.will have international retailers before they have British ones. How

:19:25. > :19:29.interesting, why is that? Well, this is a global industry. The concept

:19:30. > :19:33.stores from Tokyo, the US, from Germany, Italy, will come and

:19:34. > :19:36.identify with a young brand before they have started their

:19:37. > :19:40.relationships with the British retailers. It is those first

:19:41. > :19:45.relationships which are incredibly important because that is where they

:19:46. > :19:48.learn about the industry. It is great having an international

:19:49. > :19:54.partner who can help you understand what it is like to grow a business

:19:55. > :19:59.on an international scale. What about you, Imran, what are the

:20:00. > :20:03.future trends for the industry? A lot of things are driving and

:20:04. > :20:08.shaping the industry. Technology have made the industry more

:20:09. > :20:14.successful and it. Impact in the way things are produced. You have issues

:20:15. > :20:18.around sustainability and ethics. Consumers are concerned. How things

:20:19. > :20:23.are made, where they are made, who makes. But one thing that will never

:20:24. > :20:28.change and one thing which is really what makes this industry so

:20:29. > :20:32.exciting, is that regardless of trends and technology or consumer

:20:33. > :20:39.behaviour, what will always be important is the creativity. This

:20:40. > :20:43.industry, without the creative side, without the incredible people, would

:20:44. > :20:48.have nothing to sell. So as much as fashion is a global industry, it

:20:49. > :20:51.remains a creative one. So whatever happens in the future, creativity

:20:52. > :20:58.will always be the lifeblood of fashion. When you first started,

:20:59. > :21:04.what surprised you about the fashion industry? I don't think what anyone

:21:05. > :21:08.really understands is how committed the individuals in the industry.

:21:09. > :21:13.There is a huge amount of passion about the sector and people work

:21:14. > :21:19.incredibly hard. As an outsider, you look at a show and you assume that

:21:20. > :21:22.it is a short day. People work long hours, they are very committed

:21:23. > :21:27.because they are committed to perfection and excellence and that

:21:28. > :21:32.is when you see that executed well, that is when you know from a

:21:33. > :21:38.designer perspective or from a brand perspective, that you are doing a

:21:39. > :21:43.good job. Imran? I have to agree with that. I came into the fashion

:21:44. > :21:47.industry from the world of management consultancy. So all of

:21:48. > :21:51.this was interesting and new to me. But what really struck me was when I

:21:52. > :21:57.started meeting the people who work in fashion. All sides of fashion,

:21:58. > :22:02.the business side, the operational side, the creative side. People do

:22:03. > :22:05.not come into fashion because they want to become rich. They come into

:22:06. > :22:12.it because they have a shared passionate interest in the industry.

:22:13. > :22:16.Some people will go off and become very wealthy and successful. But

:22:17. > :22:20.what draws people together is this shared interest. That is why I think

:22:21. > :22:25.of the fashion industry as a community. Everybody is shared --

:22:26. > :22:30.everybody is connected by the shared interest. Fashion Week is like the

:22:31. > :22:34.world's most glamorous trade conference. As we are sitting in the

:22:35. > :22:41.Rose, there are people sitting the backs of cars, making deals. That

:22:42. > :22:51.continues to propel the business. -- as are sitting in rows.

:22:52. > :22:54.Fashion has always been a global business. The Internet means of we

:22:55. > :22:59.can all have front row seats to the catwalk shows. But it also means

:23:00. > :23:05.that it is a challenging business to attract the attention of customers.

:23:06. > :23:11.That is all we have time for this week. Check out our website. I am

:23:12. > :23:13.Linda Yueh, and join me next week with more Talking Business with me,

:23:14. > :23:17.Linda Yueh.