The British fashion industry has long been celebrated for its creativity and innovation, but recent challenges, including Brexit and the pandemic, have made its growth and sustainability more difficult. Even so, the British Fashion Council has continued to find ways to support its designers and maintain the industry’s global relevance. Its most recent move was establishing a partnership with Chinese e-commerce giant JD.com, announced on the first day of London Fashion Week, September 13.
For U.K.-based designers, the BFC and JD.com partnership provides funding, e-commerce via JD.com, and logistical and marketing support to expand their presence in China. Asian designers, meanwhile, gain the opportunity to show at London Fashion Week as part of a JingDong fashion show.
Leveraging JD.com’s advanced infrastructure and vast reach in the Chinese market, the partnership promises to give a much-needed boost to British designers. And it comes at a crucial time, as fashion has not yet been mentioned in any significant funding announcements by the Labour government since it took charge of the region in July. The BFC has turned to private investors to support the growth of the local fashion sector, including its international expansion efforts.
“Fashion has always been a key part of JD.com’s business strategy,” said Sherrin Kong, president of JD Fashion at JD.com, Inc. “Partnering with the British Fashion Council and London Fashion Week allows us to support more U.K. brands in entering the vast Chinese market, while providing opportunities for Chinese and Asian designers to gain exposure on the international stage.”
JD.com is backing the partnership with a $140 million (£100 million) investment aimed at expanding JD Fashion and establishing it as a premier destination for fashion. The funding will be used to increase its range of fashion offerings, provide support for partner brands, and drive greater collaboration between British and Chinese designers, according to Kong. JD.com operates a hybrid business model, combining direct sales with a third-party marketplace through which it earns commissions on sales. The platform will earn an undisclosed portion of the sales of U.K. designers’ products.
Recent challenges, including Brexit, have caused the demand for British products in Europe to drop. Plus, there’s been a local tourist drop owed in part to the continued tourist tax. Meanwhile, the erosion of working capital during the pandemic has made it difficult for smaller designers to invest in growth and production. The BFC has increased its efforts to help designers stay competitive.
“With over a billion online shoppers, the Chinese market is vast and diverse,” said Kong. “JD.com offers a complete [commerce] solution [for international brands], covering everything from e-commerce operations to marketing, customer service, and supply chain logistics.”
Both SS Daley founder and designer Stephen Stokey Daley, winner of the 2024 Queen Elizabeth II Award for British Design who presented at London Fashion Week on September 13, and Priya Ahluwalia, who showcased on September 14, voiced concerns about the current landscape. “It’s a huge honor to win the [QEII] award,” Daley said. “But the challenges for young brands, even with this recognition, remain.”
For her part, Ahluwalia is leveraging a partnership with jewelry brand Pandora this season to help with brand visibility. And, she said, financial sustainability remains a hurdle for her company.
According to the BFC, the decline in retail opportunities is a big factor affecting British fashion brands’ ability to grow, with retailers Farfetch and Matches both closing since January.
“It has been one of the most challenging periods for creative businesses, especially after Brexit and the pandemic. The lack of retailers and traditional wholesale support is hurting brands,” said Caroline Rush, CEO of the British Fashion Council. “Stores that used to provide production deposits for emerging designers are no longer able to do so as their working capital has also been eroded. And the closure of key stores has had a significant impact, forcing designers to rethink how they operate.”
In another effort to provide more solutions for designers, the BFC will release a “Commercializing Creativity” report on October 30. The report will offer guidance on how designers can diversify their revenue streams, better leverage community networks and grow their businesses sustainably, with insights from industry leaders, including BFC Foundation members. “This report will [provide] new perspectives on how designers can build more financially resilient businesses,” Rush said, adding, “We’re also working to give businesses better access to finance, which is critical to growth in the fashion industry.”
Along with its new deal with JD.com, the BFC’s efforts to bridge the funding gap for designers include the BFC Foundation, which has disbursed £4.3 million in grants to 94 designers and 81 students since 2019. As of this season, the BFC has also brought back its London showrooms to Paris, providing a platform for British designers to showcase their collections to international buyers.
With JD.com hosting over 90% of the world’s top luxury brands, including Louis Vuitton, Gucci and Burberry, this partnership offers British designers an opportunity to reach Chinese consumers who are increasingly interested in high-end and unique fashion pieces. It has not yet been determined which U.K. designers will be selling on the platform.
Moving forward, the BFC plans to continue leveraging international partnerships and private funding to ensure the longevity and success of British fashion.