Canada is experiencing a technology renaissance. But there is another industry that is ready for its time in the spotlight: fashion.
Over the past several years, the advent of new media platforms, a global shift in manufacturing to Asia and a new-found cultural awareness attributable to globalization have presented Canadian fashion designers with a variety of opportunities and challenges. For some, these trends have enabled new avenues for international exposure and a chance to run leaner businesses operations. But for others, these same trends have made it difficult to compete with foreign brands that seem to have discovered an unshakable formula for world domination.
Despite the opportunities and challenges presented by the constantly evolving $2.4-trillion (U.S.) global fashion industry, Canada continues to hold its own. When considering public company data for traditional apparel and accessory companies as an indicator of economic performance and wealth creation, it becomes evident that we have the capacity to build major fashion brands in our country. The data becomes even more compelling when comparing Canada with the top global fashion markets: France, Italy, Britain and the United States.
There are 117 publicly listed apparel and accessory companies (excluding apparel retail) headquartered in Canada, France, Italy, Britain and the United States. It is interesting to note that Canadian brands have created more value on an absolute and per capita basis when compared with Britain. Our brands also trade at the highest average price-to-sales ratio, which is because of higher revenue growth rates, averaging in excess of 50 per cent year-over-year.
The public company statistics are positive for Canada. Indeed, the apparel manufacturing industry’s contribution to our GDP has decreased at an average rate of 4.8 per cent since 2011 – after all, it is extremely difficult to compete with progressively lower production costs in countries such as China. But Canadian brands have recognized that in order to create wealth through the local fashion industry, an emphasis must be placed on non-manufacturing, high value-added parts of the global apparel value chain. This includes activities such as design, research and development, branding, merchandising, marketing, logistics and distribution.