70%+ of UK fashion businesses are exporting - report

By

Nigel TAYLOR

Published
May 1, 2023

Businesses in the UK’s fashion sector are ambitious for international growth and see exporting as key to their success, according to new research.

The study of 3,000 UK firms by Alibaba Group UK, in partnership with the Institute of Export and International Trade, found that 70% of businesses in the fashion sector are currently exporting and 72% expect their export sales to increase in the next 12 months.

Meanwhile, 81% of businesses in the sector said exporting had boosted their revenue. 

The research also claims exporting businesses are more resilient, with 81% saying exporting had made their business stronger; 79% of respondents saying exporting had fuelled innovation within their companies; 81% of businesses saying they’d increased their headcount as a result; and 77% saying exports relieved the pressure of doing business in the UK.

When it comes to export markets, North America is viewed as presenting the biggest opportunity, according to 35% of respondents. However, many businesses in the fashion sector are looking closer to home. A third regard the UK’s nearest neighbours in the European Union (EU) as the market with the most export potential, despite Brexit.

That said, many businesses perceive challenges that could stand in the way of their export ambitions. The top five biggest export barriers cited by fashion businesses are: supply chain and logistical issues (20%); increased paperwork and red tape (20%); lack of cultural awareness or familiarity with the overseas market (19%); lack of access to suitable export finance (19%); and lack of demand for products in overseas markets (18%).

For businesses focused on international growth, as many as 69% of those surveyed are currently using online marketplaces to boost their export sales. Some 33% started working with a marketplace during the pandemic. On top of this, 80% of businesses said that exporting has driven digital transformation for their business.