The battle for the margin has really begun

The Danish fashion fair CIFF is back in full swing. Well, almost full force. The fair returned for the second time since Denmark’s strict Corona measures and this should be the big return, according to a conversation with new director Anna Sofie Dolva. At first glance, the aisles appear to be quiet, but visitors are here to place orders. However, there is a lot more going on behind the scenes than meets the eye.

CIFF celebrated its comeback last spring, but the Danish government had only recently given the go-ahead for the trade fair. The green light meant ‘go’ for the organization but in the end they weren’t happy with the output. This summer edition is set to make up for that, and hopes are high, Dolva said. CIFF flew in over 300 international buyers and press representatives especially for the event.

The beginning of CIFF, because of FashionUnited

Anyone who last visited the Copenhagen International Fashion Fair (CIFF) in January 2020 will notice the changed layout, like so many others. The event will still take place in the well-known Bella Center, but the entrance to the fair is in a different location. So you immediately come into a hall with the Japanese delegation of brands and other young, leading labels. They were put together by the organization in the segment they have dubbed “Greenhouse”. Besides this segment, there is also the new section “Sustain” where the fair tries to educate the visitors about circular economy and there are even some vintage dealers in a small corner. However, the Sports segment, launched in January 2020, is gone.

Observant visitors will also notice that much less space has been taken up in this issue. The largest hall, traditionally used by the fair and now housing the “bungalow” area, is partially cordoned off and unused. Because other parts of the Bella Center are also used, it’s difficult to tell exactly how much smaller the CIFF was compared to the January 2020 edition, but it certainly takes less time to visit the entire exhibition space.

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CIFF, Photo: FashionUnited

CIFF: New direction and focus on sustainability

But the atmosphere is good. People are looking forward to it again and brands are happy that there are also many international visitors. It may seem calm at first, but orders are being placed.

Several customers arrived at The Jogg Concept in the first few hours on Wednesday morning, says Dutch agent Maud van de Laar. This picture also emerges from conversations with other stall operators who report that retail chains from Mexico and other countries have bought.

Some brands who are at CIFF for the first time or who are returning to the fair after a long time sometimes doubt whether they would not rather have been at Revolver, a fashion fair that takes place simultaneously in three locations in central Copenhagen . As a brand, it’s still important to be surrounded by the right brands, including the competition, says Hamburg-based label Anni Carlsson’s founder, Annika Eva Schwieger. When you’re surrounded by competition, it means your ideal customer is more likely to come to you. German swimwear brand My Marini is also toying with the idea of ​​going for the revolvers next time.

The fact that not only CIFF and Revolver but also Copenhagen Fashion Week is taking place (fashion week even closes at the Bella Center) means that Copenhagen has welcomed a crowd of fashion-loving people in recent days. However, visitors have to manage their time, even if they don’t go to the fashion shows and only want to visit the two fairs. It is rumored at CIFF that CIFF and Revolver could be held side by side or closer together in the future. This is a view that many exhibitors would like to see.

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CIFF Lecture on the Future of Recycled Fibers, Image: FashionUnited

Price increases and uncertainty: That’s what brands are concerned about

As if that wasn’t enough, there’s a lot more going on at the show. The fight for the margin. When brands are faced with increasing pressure to be more sustainable, which in turn brings costs, inflation, increased transport and raw material costs also play a role. It’s rare to hear of brands that haven’t had to raise their prices. This is not yet the case, for example, with the brands belonging to large fashion groups, such as DK Company, which owns Saint Tropez and The Jogg Concept, among others. Not every company wants to answer the questions about inflation and price increases, but a large part of the stand operators really have to pull themselves together.

Not all prices were increased for the Tif Tiffy brand, only the prices for a certain fabric quality. This has to do with the cost of raw materials. “We have to do that to maintain our profit margin, but there is also only a certain amount that we can add to the price,” says a representative of the Danish brand. “People often have a maximum that they are willing to to pay for an item.”

Also at the Dutch brand Juffrouw Janssen, the prices for some items have been increased. The prices for the clothes have been raised, but not as much as they need to be to compensate for the increased costs. “We’re already noticing that it puts off some customers,” said Linda van Coevorden. It’s the dilemma facing many of the exhibitors at CIFF and brands in general: profit margin versus customer retention. The brands that haven’t rolled out higher prices this season will do so next season, it seems.

There are also fears of what is to come. Unfortunately nobody has a crystal ball so we’ll have to wait and see. Brands see that consumers are still buying, but the last quarter of the year will be exciting. Global traffic congestion also needs to be considered, and manufacturing in China is no longer a given as the country has routinely shut down various regions completely for at least a month. It is therefore not uncommon for brands not to receive their delivery.

CIFF: Summer edition almost back in full force

More than ever, the fashion industry needs each other. A branch of industry that always cries out for cooperation, but simply does not cooperate in practice. Recovering from the pandemic and managing inflation should not be tackled alone. CIFF wants to be there for its brands and its visitors, says Dolva. Providing knowledge about sustainability but also how to grow with wholesale in the current market.

So the summer edition of the CIFF has a bitter aftertaste: on the one hand, people are happy to be back, to meet and get to know international buyers. On the other hand, people are anxious about the future. It’s a real balancing act that the industry is still walking. In six months we might be able to see at the fair who stayed stable and who didn’t make it to the other side.

This translated and edited post previously appeared on FashionUnited.nl.

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