The Great Fashion Reset: Can New Designers Still Build a Business?

Department stores and major e-tailers once incubated new labels with consistent buys and patience; today those channels are shrinking or unstable. Social platforms still create viral moments, but conversion is patchy and fast-fashion copycats shorten the runway for hit products. Against that backdrop, some designers are rewiring distribution, tightening assortments and adding more accessible entry points, while cultivating closer, direct relationships with customers and specialty boutiques.

The stakes are high industry-wide: without a healthy pipeline of young labels, fashion’s creative engine risks stalling. On this episode of The Debrief, BoF correspondent Joan Kennedy joins senior correspondent Sheena Butler-Young to discuss how emerging designers are rebuilding their product pipeline around creativity to survive the great fashion reset.

Key Insights: 

• Multi-brand partners that once incubated emerging brands are now demanding instant results, just as e-commerce economics have worsened. As Kennedy puts it, “Wholesalers and retailers want to see performance from the get-go. There's more pressure to just be in a store, be slotted in, immediately perform. At the same time, we've seen e-commerce fall apart under the rising costs of everything.” The pressure is systemic: “These retailers are really under pressure. After a few decades of being willing to take more risks, investors haven't seen the return on that. So it's hard to blame anybody; it's just what fashion is going through right now.”

• Visibility can soar while sales lag, creating a conversion gap designers must close with clearer paths to purchase. “Fashion has been this industry of smoke and mirrors, but in recent years that's been really exacerbated by the fashion hype machine,” Kennedy says. “It has led to this moment where designers have a lot of awareness on social media, not much of a business.” Many have “built these really big audiences online, [who] don't have ways to buy into the brand, or just don't buy the brand.”

• Without dependable wholesale, labels are rebuilding their direct-to-consumer pipeline through smaller boutiques and sharper merchandising. “A trend I've noticed is that more brands are going back to the trunk shows and creating intimate moments with their shoppers,” Kennedy notes. “Specialty stores and independent boutiques have a very close relationship with their own shoppers, too. It's a little bit closer to demand and you can build a good relationship with the buyer there.” On product, brands like New York-based Area, known for its crystal-embellished clothing, are adding accessible entries: “They’re introducing this line of basics with little rhinestones on them. It’s just more fun dresses at a more accessible price point.”

• As this fashion season unfolds, Kennedy points to creativity as the competitive edge. “The source of optimism is how evident the importance of creativity is to this industry and how key that is to fuelling sales and building good businesses,” she says. “You have to have a very specific product and focus your offering,” and remember that “if [consumers] are going to spend, they want to spend on something that means a lot to them and really stands out – something that is really unique.”

Additional Resources:

• The Great Fashion Reset | Is Fashion Failing Emerging Designers? | BoF 

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