Is Fashion Week Selling Dreams to Naive Young Designers?

This week in fashion:

1. Rosemount Australian Fashion Week plays out in Sydney;
2. I was interviewed about being a fashion entrepreneur;
3. Project Runway entries opened in the US;
4. More details emerged from the Alexander McQueen inquest.

So when I came across this article by Lisa Armstrong in the UK Times it caught my attention. As part of the inquiry into Alexander McQueen's death, details have emerged that the label was having money problems. The question is posed, "If after nearly ten years, McQueen's label was still straining to turn a profit, what hope for the newer wave of designers?" And it is a very good question.

After eight years in the fashion industry I still don't personally know even one designer that is making good money. None of them will admit that in public because it's all about the smoke and mirrors of looking sucessful. The problem there is that most young designers themselves can't see past the smoke and mirrors put out by their peers. 

I remember talking to a friend/designer not too long ago about Ksubi. He was wondering how to really crack it big like them. He would not believe me when I said it was all smoke and mirrors. Literally weeks after that conversation Ksubi went into administration.

The barriers to entry in starting your own label are surprisingly low. The process runs like this... Decide you've got better fashion taste than everyone else. Design a logo. Go to fashion school, or not. Sketch some designs. Find someone to make them, or make them yourself. Pay the entry fee for Fashion Week and hope like hell you get some publicity. Drink as much free champagne as possible. Hire a PR agent. Become a celebrity, or not.  

The result of all that is hopefully sales. Remember, you can't eat press placements. But sales to who? Hot new retail stores, of course.

Unfortunately the barriers to entry in starting your own retail store are equally low. The process runs like this... Decide you've got better fashion taste than everyone else. Design a logo. Find a location and negotiate 6 months free rent and a fit-out contribution from the landlord. Visit Fashion Week and place orders on credit from desperate designers. Fill the store with new designer clothes. Open for trade. Expenses-to-date: $0.00. 

The result of all that is usually poorer than expected demand, leading to discount sales. The designers won't get paid and 6-12 months later the shop-keeper does a runner.

Although it might not sound it, I'm actually feeling quite upbeat about the fashion industry today. Lisa's article just seemed to ring true here in Australia as well. Designer be warned.