scad manor - business and finance columnist
student-lead fashion and beauty publication
At the Manor, I started the first business and finance column: Fashion Financed with Dexter Slinn. The Manor focuses on fashion and beauty topics within the wider industry, but my column delved into the wider financial world of it all and analyzed hard-hitting topics.
Some of my most-read work includes interviews with former industry leaders, reporting on emerging events such as the Capri-Tapestry merger, and Shein’s UK IPO leanings.
Excerpts and links to articles
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Dexter: “Is COVID part of the reason that you left your position as head of commercial law at GAP?”
Dana: “Honestly, If COVID hadn’t happened, I would probably still be at GAP. I really enjoyed the work. It was the right place for me to be for a long time. But [during] COVID, for GAP and for a lot of other companies, our suppliers and factories were shut down. We were still obviously expected to do whatever we could to turn a profit. We can’t keep the business as is however, so we were quickly pivoting. We were figuring out, all right, how do we make masks? What can we disclose about those masks? How do we do it better than other people are doing? How do we shift to almost entirely online business? What store can we open? Are we the type of business that is allowed to be open? “
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“As one of the largest clothing producers in the world, Bangladesh is not going anywhere, but we must implement change. While many will celebrate workers no longer being exploited by Western companies, we need to consider the ramifications of what losing that would do to their economy. Their 2021 GDP was $368 billion USD, $46 billion being exports, and 82% of their exports being garments. Pair that with one-third of their industrial production capacity dedicated to garment production, it is an indispensable part of their domestic and international footprint. Losing 82% of their exports would cripple the Bangladesh economy, and cause even more problems than are already being exacerbated by global issues. “ Read More:
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“GenAI and LLMs are the biggest bubbles in fashion currently, leading companies and consumers to find new ways to utilize them in their daily personal and professional lives. Finding a use for them is the main problem, and once the technology improves, this may be how AI stays in fashion. As consumers, the only effect we can have is testing these new initiatives companies present to us and seeing if these concepts appeal. Right now the technology hasn’t quite caught up to the ideas and implementations, so getting discouraged from incomplete software is a genuine possibility and is putting many off from using these assistants. After giving it a couple of years, the environment will be changed in every level to make these projects up to par, but as of right now, we will have to fill in the gaps that AI can’t.“
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Dexter: “Texas and Houston are becoming the new tech and finance centers right now. Can you see beauty and fashion migrate down there?”
Jeremy: “Well, I mean, there is a lot of production in Dallas, in the beauty world, so there are kind of major production hubs that exist outside of the big cities for these industries. So it’s possible. I think if there were new companies starting now, there’s possibly a recognition that a lot of talent has potentially moved to other places. And it might be a lot easier to start there than then it historically has been. The problem is that the labor pool is always localized in certain cities. Even people graduating from school were thinking, I guess if I want to be in fashion, I should just move to New York and hope for the best. So you had these major pools of people localized in those areas. Now, people have moved out, and you’re starting to see, you know, like you said, tech is becoming a major hub in other places. Tech is such an important part of every company. I suppose it’s totally possible that newer companies can start to pop up there. I think you’d be surprised. I would be surprised, though, if established companies decided to relocate.”
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“So, can the last market ever truly emerge? Potentially, and no, it will not cause the industry to crash and burn; in fact, it will only speed up stagnation. The old ways of thinking of ‘build it and they will come’ may not be enough anymore, and being competitive in more than design will be needed to survive the oncoming future. Rising income inequality is leading to less money spent on luxury, and if wealth continues to consolidate in the ultra-wealthy populace, then it will lead to stagnation in more industries than just luxury fashion. Without new people entering the buyer market, the lack of new buyer behavior will only snowball on top of the effects we have already begun seeing.”
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“However, that deal was not without its problems. They finally got EU and Japanese approval to merge the two companies, but then the FTC moved to sue and block this merger. This is an unprecedented move in the fashion industry, as there is no shortage of alternatives and competition, so arguing a monopoly case will be a difficult position. However, the government’s claims are not without merit, as FTC Director of the Bureau of Competition Henry Liu has said: “With the goal to become a serial acquirer, Tapestry seeks to acquire Capri to further entrench its stronghold in the fashion industry”. The FTC worries that with this merger, the accessible luxury segment will be dominated by Tapestry and drive up the prices. However, the CEO of Tapestry, Joanne Crevoiserat, says these claims are irrelevant to the industry: ‘It’s quite clear to us that they don’t understand how consumers shop today and they don’t understand the dynamics of a marketplace with no barriers to entry, constant influx of new competitors’.”
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“As newcomers to the industry, focusing on these numbers is not something that is going to be incredibly useful for us. Understanding consumer behavior towards the whole fashion sector and the buyer mentality is what is going to allow a new player to insert themselves into an open groove in the market. One report on consumer shopping behavior shows that while over half of their surveyed population is spending more this year in brick-and-mortar shopping locations compared to previous years, 30% still prefer to shop online. A new brand will most likely not be able to open a physical storefront right at launch, so targeting the 30% that focuses on online shopping is going to be the easiest way to grow a new fashion house.”
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“Becoming a listed company on the LSE is sometimes even more of an arduous process than the NYSE, with immense layers of red tape and bureaucracy to get through, especially with a company facing as much scrutiny from the public as Shein. However, with all of the regulations and rules, there comes clarity. They have been making strides in streamlining the process, so with proper guidance and formatting listing is often easier than on the NYSE. Shein having UK backing and advising means that if they choose to move forward with an IPO they may be able to bypass much of the difficulty that they would face if they were a smaller, less desirable company.”