Masters of Fashion - Clive Beharrell - 18th Sept 2017

Rise is very pleased to announce a series of talks with some of the biggest names in fashion. The events are designed to give audience members a unique insight into the careers and techniques of some of the fashion industry's most successful players. 

The first talk is with Clive Beharrell, who is a pioneer of direct marketing. Clive has chaired and/or invested in more that twelve businesses. These have included Fat Face, Crewe Clothing, Agent Provocateur and Scott Dunn, during times when these businesses saw rapid growth. 

Clive will be interviewed by Kirsty McGregor, Deputy Editor of Drapers, and there will be networking opportunities and drinks after. 

The events are VERY limited in tickets and are open to brand owners and representatives only.

New Year Social 2017 - A New Chairman...

Our New Year social, which actually slipped into February this year (!), was held at the Aviva Digital Garage in Shoreditch. The main headline from the evening was that Richard Hurtley, one of the co-founders of Rise, stepped down as Chairman. Richard has been instrumental in the construction and growth of Rise. Many brands owe him a debt of gratitude. We are certainly very sorry to see him leave the fold, but he will remain involved with Rise. We would like to take this opportunity to thank him sincerely for all his hard work. 

Richard is replaced as Chairman by Patrick Dudley-Williams, founder of UK menswear brand Reef Knots. You'll hear lots from him in the coming months regarding new events for Rise and building on the foundations that Richard and the committee have put down.

Mentoring Event November 2016 - A Huge Success!

Thank you to everyone that attended our mentoring event in November, held at the offices of Wedlake Bell in the City of London.

The event was a massive success and led to 13 brands and mentors being paired up for the future. This is perhaps Rise at its most useful, building networks within the fashion industry and helping small brands tap into the experience of those that have already succeeded. This is an event that will certainly be repeated for years to come!

If you would like to be part of the next mentoring event (likely to be in November 2017), be sure to sign-up to Rise at the bottom of this page to keep up-to-date. 

Investment - Rise Investor Exchange

Funding can be a scary topic for a small fashion brand. Some find the prospect of entering the financial universe daunting (especially with all its related jargon), while others are sceptical about losing the freedom that comes with being a sole owner.

That said, as businesses scale, the cash requirements for larger and larger collections, investment in staff, premises and expertise, often lead fashion start-ups to an inevitable conclusion. The next stage of their growth requires an injection of cash.

This could be through a number of channels including family and friends, angel investors, venture capital, institutional investment, crowdfunding or debt financing. Often the size of the business will steer a company towards a certain funding source, but there will generally be a decision to be made by an owner for one over another.

Some businesses may choose to grow organically and it’s up to the owners to decide what type of business they want to become. Is this a lifestyle business? or is the aim to become something larger? Do they want the responsibility and formality that having an investment partner brings? Do they want to take on the risk of debt to finance the business in return for retaining their equity?

These are all difficult and quite personal questions that need to be evaluated in advance.

Investment is not a given in the fashion business, like it is in technology for example. Tech start-ups need to scale or fail fast because innovation or competitors will supersede them. There is less urgency in that regard for fashion businesses. Many are by nature up-to-date and demand will always be there.

However, the needs of other industries to be fast, leads to well-trodden paths for investment. In fashion, the investment universe is far more fragmented. Creative industries are not a rigid science, especially given the various paths to success available, so clear routes are more difficult to form around them. Every journey is different.

We recently held the UKFT Rise Investor Exchange dinner, which aimed to bring investors and brands from across the fashion spectrum together. The evening allowed free and open discussion between brand owners and investors, allowing both sides to ask and answer questions.

Below is a brief outline of some of the funding sources represented on the evening:

Institutional Investment (represented by Yasha Estraikh – Piper Private Equity): Institutional investment generally works in a cycle, with funds operating for fixed time periods (such as 5 years). Investors are looking to put money to work, grow the business and prepare for exit once the fund matures. This type of investment is generally suitable for businesses that have reached a turnover of around £5m+ and want to become a more established brand. Companies may have matured from a venture capital fund to institutional.

Venture Capital (represented by Jamie Gill – Eiesha Ltd’s fashion VC fund): VC funds are generally looking to invest in companies that have proved their concept to around the £1m turnover level or above. Specialist funds may be quite hands on in putting in the building blocks to scale the business as well as helping put in the human capital that may be required to take the business to the next stage (such as finance directors and sales specialists).

Crowdfunding (represented by Julia Elliott Brown - Enter The Arena): One of the newest forms of financing and one that can have the added bonus of being an effective marketing tool. Companies set their own valuations and the public can invest in the business directly (starting at nominal amounts). While companies might achieve significant valuations, if the campaign is not successful then no money changes hands. Top tips include having 30% of your funding pre-agreed (to validate it to the crowd), making a compelling video, and explaining what the funding is for and how it will help growth.

Debt Finance (represented by Paul Surtees – Perhaps the most traditional funding route. Debt can be an effective way for businesses to fund their growth and may prove cheaper in the longer-term than selling equity. Debt comes with risk (and lenders may require some type of collateral) but for companies confident in the return on their investment, borrowing might be the most suitable way of retaining their ownership, while keeping their cashflow healthy. It can also be a valuable tool for brands looking to fund orders (such as wholesaling to department stores) where they may not get paid for sometime.

Ultimately, the choice on funding for an owner is a tricky one. As has been proved too many times in the past, cashflow keeps businesses alive (or sees them fail) and fashion business tend to come to points where they need that investment to grow. Thinking about your funding plans well in advance and making the relevant contacts early will only help you make the right decision for your business if (or when) the time comes.

If you want to be involved in the next UKFT Rise Investor Exchange, please make sure you are signed up to receive our updates.

Author: Patrick Dudley-Williams, UKFT Rise Committee member and founder of UK menswear brand, Reef Knots.

Mortar to Mobile

Recently I was fortunate enough to attend the 10th Annual Retail & Luxury Goods Conference at Columbia University New York

It’s always a great event- and this year was no exception, speakers from Chanel to CVC to Chrysler.

The conference is run by and organised by the post graduate MBA students there and this year the main theme running throughout was customer experience and how ensuring that the message sent out to customers is consistent from ‘Mortar to Mobile’. Clearly, since we are in the mobile space now with fashion retail, customers want what they want, when they want it. The young Americans organising the conference were unequivocal in their message which came across loud and clear

"get it right - and you reap the rewards"

This theme from across the pond follows on from my last blog post, when I talked about changes in the industry from catwalk to customer; now we are seeing the customer revolution echoing through the streets of Manhattan to Marylebone High Street.

What fascinated me walking around the shops and streets I know so well  in uptown Manhattan was seeing how many stores seem to be moving downtown, DKNY, Barneys have followed Bloomingdales downtown and Pottery Barn has also closed off Madison Avenue.

Never have I found the big department stores (Macys, SFA, Bloomingdales and my favourite Lord & Taylor) less interesting; it was difficult to get excited about the fashion products there. Even in the shoe room at Macys!

The contrast was in downtown Soho where many new stores are opening and the ambience of walking around with great cafes, bars and the eclectic mix of retail - where independents and large chains rub shoulders.

It creates an interesting and more importantly, an exciting/compelling environment for customers. This may change in New York with the much awaited Hudson Yards project and Neiman Marcus moving in to Manhattan for the first time and opening by 2018.

Surely the department store is the best way to create the experience and retail ‘theatre’ for customers? It strikes me that this is what consumers want - 'the experience'. If we have to buy a train ticket to get there (or drive), then retailers need to make it worth the extra effort and cost, otherwise we will just buy online.

That said, 24/7 shopping makes the customer hard to please; with so much choice, brands have to stand out both online and offline. The success of Westfield in Shepherds Bush and Stratford and locations such as Marylebone high street as ‘fashion shopping destinations’, creates the interest and makes it worth the trip, this should mean individuality in the shopping environment as well as the product mix of the general merchandise.

Author: Virginia Grose, Rise Committee Member & Course Leader & Principal Lecturer, School of Media Arts Design, University of Westminster