The Fashion Week Months rolled to an end this week, wash the Champagne Glasses. Editors, stylists, fashion lovers concluded the Big 4 tour in Paris. While the runways flowed with designs, the world reached a precipice in the Gulf. The war between US and Israel against Iran commenced. The first economic shock hit in the form of higher worldwide gas prices, reaching $121 a barrel in a week. Fast moving ripple effects reaching consumer pockets will happen soon in the form overall higher prices for all goods dependent on shipping.
The fashion architecture, already under stress from tariffs and less demand, face another disruption. Far flung supply chains relying on shipments face delays. Manufacturing costs will increase due to higher energy bills. Consumers now reeling from inflation pressures face rising daily expenses. Shaky retailers, Saks Fifth Avenue comes to mind, still struggling in Bankruptcy Court could close its doors for good as buyers decide cut back on luxury purchases. Kering group still trying to find its footing with its top moneymaker moniker Gucci could find the turnaround even harder.
Online sites will need to pass along the higher shipping fees. Sending that 1.99 t-shirt got more expensive. Free returns, already under review, may become a service of the past as companies search for ways to adjust, then pass along charges.
Tourists no longer traverse the upscale malls while shops closed due to the bombings. The high end GCC buyers are no longer reliable customers for the expensive labels. The normally reliable up to latest trend shoppers in Korea and Japan will feel the pinch as the price shock hits Asia, forcing second thoughts on extravagant wares.
The battered magazines and press struggling to maintain relevance most certainly will feel the crunch as ad dollars shrink while readers may not have the urge to know what Hailey Bieber is wearing on a given outing to a corner Starbucks. As the revenue runs dry, expect more lay-offs with possibly shuttered titles.
Under the glamour and glitz is an industry trying to ride out one storm after the other. Yet, the fashion world should learn, in a crisis there is room for reinvention.