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What happened in 2008: the Global Credit Crisis

Written by Tania Braukamper

The global credit crunch has so far lost billions if not trillions worldwide. We have already started to see the affect on the fashion industry and despite the fact that many luxury goods retails have been thriving, some well established brands are now feeling the squeeze. Australian label Herringbone are one example, with administrators appointed to the company due to a sharp downturn in retail spending. Herringbone has been reported to have dropped in sales up to 23% when compared to 2007.

Shopping centre giant Centro is another recent victim to admit that the economic crisis has caused them problems. Shares have plummeted as the company tries to remain solvent. Its hard to imagine a company that stocks 7000 individual stores can end up in this situation.

It seems that some parts of the fashion industry have been taking a hit and things will probably only get worse in 2009 as the crisis continues. Internationally, Italy's fashion unions have been entering into emergency talks with the government to try to mitigate the effects on the fashion industry.

We have predicted that there will be a shift in the quality of materials being used by high end brands, and we are also expecting that many people will be more focussed on purchasing staple items that they can re-use more so than one off fad items. Has the economic crisis affected your shopping habits? What will it mean for you in 2009? Let us know what you think in the Fashionising.com forums.

Written: 28th December 2008 at 20.57

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