Hi Reader

How was your week?

Today, I’m talking about something that could have a much bigger impact on your fashion business than you might expect: the way new EU regulations are changing the economics of selling fashion.

And if you’re thinking, “But my brand isn’t based in the EU,” you should still read this.

EU regulations can affect you if you sell to customers in the European market, even when your business, team or production is based elsewhere.

The EU is introducing new requirements around product information, product safety, sustainability, digital product passports, unsold inventory and supply-chain transparency. And while some of these changes are still being developed, the direction is becoming increasingly clear.

For fashion founders, this can affect much more than compliance.

It can influence product development, sourcing, inventory, market expansion, margins and cash flow.

A product that looks profitable based on its factory cost can look very different once you account for the true cost of selling it in a particular market.

So I broke down what is changing, which EU regulations you need to understand as a fashion founder, and what they could mean financially for your brand.

I also looked at the practical systems you should start putting in place now, whether you are already selling in Europe or planning to enter the market.

Most importantly, I explain how to prepare your business before a new requirement becomes an expensive problem.

Because the goal isn’t simply to stay compliant.

It’s to understand how regulation can affect your business model, and build a fashion business that can adapt without every change becoming a financial emergency.

I want these weekly “meetings” to be useful for you and your business, so please tell me what you think. What was helpful? What wasn’t? What are you struggling with right now? And, what would you like me to cover?

Just hit reply to this email and tell me. Or reach me directly: sa@fashionbrandadvisor.com. I read every response.
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See you next Sunday,
Sofia

Fashion Brand Advisor | fashionbrandadvisor.com​