Is African fashion profitable? There has been a lot of hype around “African inspired” and “African” fashion but how are our African owned or African produced businesses really doing? From event producers of glamorous fashion shows to the fabric and fashion designers, is there really any profit in “African” inspired/African fashion?
Often many fashion entrepreneurs believe they ought to have more funding, staff, support etc. Well, what if you have all that and still record a whopping $54.5 million combined loss in sales? Pretty problematic if you ask me and it is the grim picture Bono’s African inspired and produced company EDUN is facing. Nevertheless, the ever optimistic Bono stays optimistic.
Read on and tell us your thoughts, especially if your business is African owned or African inspired.
-Uduak Oduok
“Losses continued to mount last year at the ethical clothing company founded by Bono and his wife, Ali Hewson.
New figures lodged with the Companies Office show that Edun Apparel Ltd recorded a loss of $7.88 million (€5.9 million) in the 12 months to the end of December last and this followed the firm recording losses of $8.5 million in 2011.The two established the global fashion brand in 2005 in an effort to bring about positive change through its trading relationship with Africa and its positioning as a creative force in contemporary fashion.
In spite of the losses, the Hewsons in their directors’ report say they are “very satisfied with progress during the year, which was in line with the (five-year) strategic business plan projections”.
The directors say the company is “ in investment phase and has made much progress in building its supply chain, brand, marketing materials and retail partnerships, as well as the implementation of its mission”.
In a press interview earlier this year commenting on the progress of Edun, Ali Hewson said: “It has been tough, and I think it’s fair to say that we were a little naive about the challenges at the start. We’re not making money yet, but we’ve survived a recession. We’re still in the game and growing. It’s a long-term commitment.”
Accumulated losses total $54.5 million and figures show that the shareholders – Bono, Ali Hewson and the world’s largest luxury goods group, LVMH – further propped up the company with an additional $17.8 million in loans in 2012 bringing to €54 million in shareholder loans. . .”
Irish Times has the full story.
Founded in 2007, Ladybrille® Magazine is a California based pioneer digital publication demystifying the image of Africans in the west through contemporary African fashion and celebrating the brilliant woman in business and leadership, with an emphasis on the African woman in the diaspora. Our coverage includes stories on capital, access to markets, expertise, hiring and retention, sales, marketing, and promotions.
