The repercussions of Britain’s exit from the European Union on the country’s financial and business community continue in the midst of the new controls that these companies operate in in the post-secession era, as companies begin to feel pressure on their business in light of these controls.
However, the famous fashion companies in the country that was once blessed with an open European market for their products are starting to feel the consequences of the separation more than others, as their businesses in those markets receive blow after blow from the new regulations, according to a report by the British newspaper “Financial Times”.
“It was totally catastrophic” With these words, Ben Taylor, co-founder of British clothing brand Country of Origin, described his company’s first month of operations after officially leaving the European Union.
Taylor told the newspaper, “A customer inside the union received a slap when he paid about 200 euros in customs duties on an imported product, and as a result the companies stopped importing. Sales in the countries of the region are down by 58% from what they were before the exit.”
As for Taylor, a company that specializes in producing colored wool sweaters using British wool in the company’s own factory in the British Midlands, about 30% of the company’s online orders came from within the European Union, which has changed today in the midst of economic and commercial cooperation What is new between Britain and the European Union in the post-Brexit era.
In what appeared to be a cry for help from British fashion companies who were groaning in the post-exit era, the major manufacturers in the British business community in the fashion sector sent an open letter to British Prime Minister Boris Johnson to work on finding a formula that would ensure the continuity of their business.
“In danger of perishing” … This is how some 451 dignitaries in the British textile industry, including a number of top fashion models, described their post-Brexit industries in a letter to the British Prime Minister, urging him to quickly intervene to save what he could Save him.
The major manufacturers said in their letter to the British Prime Minister that this industry contributes about 35 billion pounds to the British GDP in addition to its contribution to the employment of about one million Britons in the labor market.
In the letter to Johnson, the famous British designer Catherine Hamnett, who is known for her politically-slogan shirts, called on the British prime minister to quickly intervene and “drastically reform the customs arrangements for British goods shipped to the European Union, otherwise British brands” risk death. “.
Exports are at stake
British official statistics indicate that about 42% of the exports of the British textile sector and fashion brands are directed towards the European Union, which represents a strong blow to the sector, which is trying closely to search for a way out of this crisis with the British government.
“We estimate that these changes will cost us millions of pounds each year … It is not a free trade deal in terms of cost at the moment we have to pay additional fees and tariffs to keep customers and keep our products competitive,” says Paul Smith, a manufacturer of famous British brands.
Smith sells most of his products in the European Union, specifically in France and Italy, for a way out of this crisis, while studying all available options, including manufacturing outside Britain, in order to avoid those fees that cast a shadow over his company’s business.
“Once we finish assessing the effects of the new deal with the European Union, we expect changes to take place in our business strategy over the coming period,” Smith told the newspaper.
Fashion or fish
The letter addressed to British Prime Minister Boris Johnson accused the industry in general, compared to what happened with the fish industry, which for many months remained at the center of the ongoing dialogue between Britain and the European Union to reach a trade deal.
“The fashion industry is often marginalized … How many headlines have we read in the newspapers about the fishing industry. The fashion industry is more valuable than the automobile industry, movies, music and fishing combined,” said major manufacturers in the letter.
“The income of the entire fishing industry can be compared with the income of the Harrods brand, to stand up to the truth of the matter,” the manufacturers said in their letter to the British Prime Minister.