Danish Fashion Going Global - Spandet And Partners

DANISH FASHION GOING GLOBAL 30
The number of businesses and the industry’s total revenue have quadrupled since
the mid-1990s, but only a handful of Danish power brand houses represent more
than 80% of the export business today.
The fashion industry today consists of approximately registered 800–1,000 fashion
companies with 1 or more labels (the number depends on the type of companies
such as A/S, ApS, I/S, privately owned, holding companies, etc.) and which industry
code numbers have been used by the respective companies.
Often fashion companies are included in the statistics of the 1–2 employee setups;
however, this is a common misunderstanding. These very small setups are mostly
found in other parts of the design industries like architecture and not in fashion
companies. As a comparison the design industry consists of more than 4,500
companies.
In the fashion business it is next to impossible to ensure operation (at least if it is
based on design and more than 1–2 small yearly collections) with only 1–2 people in
a medium- to long-term perspective. A fashion company is in need of at least 4–5
people including a designer, a salesperson (alternatively an agent), a sourcer, a
bookkeeper, and a customer service employee. If the company is design oriented
and in textile, a pattern technician or perhaps an art director should be considered.
Some of these functions can of course be outsourced but still require some extent of
control. Without critical mass profitability is squeezed. Without critical mass the
majority of Danish fashion will compete as generalists against specialists in other
countries. They are also unable to employ specialists within each area of the
complex fashion value chain.
As a consequence, only a few of the small- and medium-sized companies are able to
work systematically with their customers and suppliers to develop products and
services. Evidently, this is not a competitive model, especially not internationally.
When it comes to design, the smaller labels are unable to perform design
assignments or incorporating different design disciplines.
Therefore, Denmark needs more and bigger professional fashion businesses which
can bring Denmark in front globally. Denmark is in need of more industrial platforms
to build the brands.
Some consolidation has already taken place in line with the financial crisis and the
globalization, just like in many other industries.