The number of people employed in fashion jobs in New York City has plummeted from 182,000 in 2014 to an estimated 129,000 this year, a nearly 30% drop.
The number of students earning fashion degrees at the Fashion Institute of Technology, Pratt Institute, and Parsons School of Art also decreased by almost one-third, from 3,826 in 2016 to 2,668 in 2022.
And young designers trying to make it in New York are struggling because of the city’s high costs of doing business and failed efforts to establish incubators and accelerators to help establish fashion ventures. I feel that it is becoming more and more difficult.
On top of that, the industry showcase known as New York Fashion Week has largely lost its appeal as a place for emerging designers to get noticed.
New York City’s role as a fashion capital is on the rocks, according to a detailed study released Wednesday by the New York City Partnership to coincide with the opening of Fashion Week on Friday. The report outlines the issues plaguing the industry, focuses on encouraging private sector rather than government initiatives, re-establishing the importance of fashion to the city and providing support for young designers. It presents six possible recommendations.
“Most of us in the industry still believe in New York and believe that New York is the epicenter of fashion innovation,” said Kathryn Wilde, president and CEO of the partnership. Ta. “The question is, how do we keep it that way?”
Of course, what will be important is whether this report compels industry leaders to take action.
“These ideas can make our industry even stronger, but they are only as good as the people and resources that make them a reality. The real test is who steps up,” said Stephen Kolb, CEO of the Council of Fashion Designers of America. he said.
not made in new york
The report reveals trends in the global economy that have diminished New York’s importance.
“New York City will never be able to correct the fact that the entire fashion industry has been completely disrupted over the past decade by low labor costs and the rise of fast fashion, especially in the Far East,” Alicia Glenn said. He served as deputy mayor for economic development under former Mayor Bill de Blasio.
Enrollment of fashion majors at the Fashion Institute of Technology and other area schools is declining as the next generation pursues their ambitions elsewhere. Credit: Alex Krales/THE CITY
Virtually all manufacturing moved overseas, reducing the importance of New York-based companies and designers.
Social media influencers, who can garner followers from virtually anywhere in the world, are also creating competition for New York City-based tastemakers, including big-name fashion magazines.
The rise of e-commerce has eroded the importance of both New York’s major department stores and cutting-edge specialty retailers. Now-closed stores like Henri Bendel, especially Barneys, which closed in 2020, served as springboards for budding designers and attracted buyers from all over the country who needed to keep up with the latest trends.
“Who knew Barneys was so important,” Wilde said.
Fewer people think New York is the best place to enter the industry, as evidenced by the decline in fashion degrees.
Immigration restrictions imposed by the Trump administration have made it difficult for international students to obtain visas to study and then work in the United States. Opportunities for graduates are also decreasing. Once-dominant companies like Liz Claiborne, which essentially dictated what women wore to work, no longer exist.
Tapestry, the city’s largest fashion company with $6.6 billion in sales, is merging with rival Capri, which owns the Michael Kors brand, in a bid to grow large enough to compete with giant fashion conglomerates like LVMH. There is. However, the Federal Trade Commission sued to block the deal, claiming it would harm employees of both companies.
outflow of talent
Meanwhile, young designers here have not been able to expand their companies. Since 2013, the only fashion entrants with $250 million in sales have been based in either Los Angeles or San Francisco.
Changes to New York Fashion Week, which left Bryant Park in 2009 and is now spread across various locations in Manhattan, have created logistical challenges and, as a result, reduced media coverage. There are fewer people looking for young talent. The report notes that in the past, famous American brands such as Oscar de la Renta, Ralph Lauren, Diane von Furstenberg and Donna Karan have launched during fashion week.
Perhaps the most important and high-profile effort to support young designers has failed.
The incubator, set up by the Council of Fashion Designers in 2009 to support 10 businesses at a time, closed in 2018 because it didn’t have enough money to pay rent. The Pratt Institute’s Brooklyn Fashion + Design Accelerator was originally funded by Mayor Eric Adams and Mr. Pratt during his time as mayor of Brooklyn, New York, but it lasted only five years and failed to develop a sustainable business model. It was closed because it could not attract private sector funding. .
The administrations of former Mayors Mike Bloomberg and Bill de Blasio focused heavily on the industry. Eric Gertler, who has worked in economic development in both city and state government and is now a media executive, said Bloomberg focused on strengthening industry partnerships.
The de Blasio administration had worked to move the remaining manufacturing plant at the Garment Center in Manhattan to Sunset Park in Brooklyn, but plans were halted by the coronavirus. Glenn said he also tried to use city funds to leverage private funds to fund emerging designers.
Carefully selected storefront
The report makes five key recommendations, some of which may receive pushback from key industry players.
The most important step, the report argues, is to form a coalition of fashion leaders who can build consensus behind a plan to restore industry prominence. The Fashion Designers Council approached Mayor Eric Adams’ administration earlier this year about creating some sort of industry advisory group to advise the administration.
The coalition will then set up an accelerator to provide companies with mentoring and cheap space to help young designers expand their businesses with the support of fashion companies and the industry, something other incubator efforts haven’t been able to do.
Diane von Furstenberg’s boutique in Manhattan. Credit: Alex Krales/THE CITY
There is also a call for the creation of a designer campus in the center to provide space for young creators in the fashion industry. It will be run by an experienced incubator operator and launched with strong industry support to avoid the failures of previous businesses.
“So many new designers need a place to work, and we provide resources to support them,” said Deirdre Quinn, founder and CEO of Lafayette 148, a women’s clothing company founded in SoHo. Because of the need to do so, the campus at the center of the design can be huge.” Founded in 1996, it is currently based at the Brooklyn Navy Yard.
She moved to Brooklyn, which is cheaper than Manhattan, but wonders if Manhattan is necessarily the right place.
To fill the gap created by the loss of retailers like Barneys, the coalition will facilitate the creation of select storefronts where designers can showcase their work and supplement it with virtual storefronts.
The report recommends that design schools strengthen their links with industry.
It also focuses on overhauling New York Fashion Week and cutting costs for new designers, which are estimated to range from $125,000 to $300,000. The report builds on the model offered by South by Southwest and Sundance, which offers special hotel rates and other discounts to lure back European media representatives, and looks ahead to 2024. We plan special events that bring together people and encourage major events held in a single location. Dior fashion show held at the Brooklyn Museum.
Kolb, whose president is the Council of Fashion Designers, which organizes Fashion Week, rejects the idea that its influence has waned.
“We just partnered with Rockefeller Center to stream some of Fashion Week,” he said. “Like shows in other cities, the show has changed. People sometimes get nostalgic about the 1980s.”
Glenn plans to add to that list efforts to continue supporting small-scale modern manufacturing so that new companies have a place to test their designs and produce limited editions. Apparel manufacturing jobs in the city now number just 6,700, compared to 200,000 at the industry’s peak in the 1970s. Even in 1990, the industry had 95,000 manufacturing jobs.
Mayors need to step up as well, she added.
“Fashion is not front and center like in Paris or Milan, which is why we need to get the mayor to say fashion is really important,” she said. Mayor Eric Adams’ office did not respond to a request for comment by deadline.
The stakes are high for the city.
“The fashion industry has been in decline for years, but it’s an important industry to maintain in New York City,” Gertler said. “It’s not just nostalgia. I’m kidding, but it’s part of the fabric of the city and adds to the dynamism of New York.
