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Ahead of New York Fashion Week, a nonprofit coalition of New York City-based businesses warned that the region’s fashion economy is in danger of losing its luster compared to Paris and Milan.
A report from the Partnership for New York City released this week found that top designers and fashion companies have “visibly little involvement in New York and its institutions.” Additionally, fewer students are completing programs at the city’s major fashion schools, including Parsons School of Design, Pratt Institute, and Fashion Institute of Technology.
“Given the relatively high costs, global dispersion of suppliers and manufacturers, and direct-to-consumer sales and marketing options available from anywhere, graduates are not necessarily staying in New York,” the report said. states.
The New York fashion industry employs about 50,000 fewer people than it did a decade ago, according to the report, and job losses are expected to continue over the next four years. The number of fashion degree and certificate program completions also decreased by 30% from 2016 to 2022.
The report’s authors argue that these numbers demonstrate the sector’s vulnerabilities. The industry’s contribution to Gross City Product (GCP) began to decline in 2014 and declined sharply from 2019 to 2020. The industry’s GCP fell by 13.6% from 2012 to 2022 and “has not yet fully recovered,” according to the report.
According to its website, the New York City Partnership is a nonprofit organization whose members include business leaders and employers in corporate, investment, and entrepreneurial enterprises. In the fashion industry, our partners include LVMH, Macy’s, Tapestry, and the Estée Lauder Companies. The report was compiled based on research and other data from McKinsey & Company.
The report said the findings were also shaped by interviews with more than 40 people in the fashion industry, including brand leaders, retailers, investors, media, landlords, event and trade show managers, and education leaders. .
“New York is at a crossroads. Government and fashion industry leaders must decide whether to make strategic investments in the industry’s future or risk losing fashion’s critical contribution to New York’s economy, culture and brands. a decision must be made,” the report said.
The report said changes in the retail industry have impacted fashion over the past five years, including the rise of DTC brands in the city and the closing of specialty stores such as Henri Bendel, Barneys and Opening Ceremony. The expansion of e-commerce during the pandemic has also changed the way consumers shop, but New York remains a popular destination for mainstream retailers, according to the report.
Additionally, the report cites changes in fashion production and New York Fashion Week as reasons for the city’s vulnerability. There are approximately 125,000 jobs in Manhattan’s Garment District, but industry production is not limited to the area, meaning existing designers are not required to be there, according to the report.
“At the same time, emerging designers remain dependent on the infrastructure provided by local manufacturing ecosystems, benefiting from collaboration and rapid iteration while building their brands,” the report states. “Also, we often cannot meet the minimum quantities required to produce products at scale overseas.”
The report also notes the “transformation” of New York Fashion Week, including “changes affecting the media and landscape, the logistical challenges of decentralization, and the displacement of some Americans. “It has led to what some fashion leaders believe is a decline in its status.” Fashion superstars are leaving New York City, increasing the cost of doing business. ”
Social media and e-commerce are creating what the report calls a “decentralization of influence.” This means that anyone, anywhere can be a trendsetter or trendsetter. This is a change from the New York City-centric fashion influencers of the past.
To solve these problems, the report recommends forming deeper connections between the fashion industry and schools to promote careers in the fashion field. Strengthen the promotion of New York Fashion Week and introduce more emerging designers. Creating a “Central Designer Campus” where up-and-coming designers can work and share resources. Among other suggestions.
