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Glittering Sweatshirt

Who Will Be Designing Tomorrow’s Sweatshirts?

Clothing Retailers Worry About Global Economy

Tuesday 23rd of September 2008 02:18:34 PM

Despite a successful London Fashion Week displaying the newest Spring fashions, the clothing retailers are wondering what the impact of the global economy will be over the next year. As Kim Winser, President and Chief Executive of Aquascutum was quoted as saying, “The economic downturn could split the retail market. "I think at the top end it's continuing to do well so long as the product is strong enough and it's interesting enough. I think at the bottom end probably business is going to do quite well because some people are going to be in a very difficult situation. Probably the middle is going to hurt a great deal."

In other words, the sales of expensive fashions and practical clothing such as blank t-shirts will do well in a difficult economy. The moderately priced clothing, on the other hand, may see difficulties if the global economy continues to downturn. When people need to cut household budgets, they often reduce their clothing allowance and purchases of durable goods. Clothing which is considered a necessity, such as sweatshirts, will continue to be purchased.

The high end clothiers such as Aquascutum, Jaeger and Burberry are hoping their long term presence in the fashion world will carry them through global financial problems. The growth of new fashion markets in Russia and the Middle East could help offset sales declines in their traditional markets. Demand in the Middle East for British fashions has been particularly strong.

Aquascutum has been selling high fashion in Britain for over 155 years. The brand is actually now owned by a Japanese clothing company called Renown. Under Mr. Winser’s guidance, Aquascutum is making a financial comeback after troubling times. As it turns out, the strategy for increasing international sales to companies such as the US retailer Bloomingdales and Saks may enable the company to successfully maneuver a global financial downturn.

(c)Christina Nichitus, www.sxc.hu