Here's how 5 fashion and beauty brands owned by people of color are coping with inflation
Small businesses, and especially those owned by people of color, have faced a myriad of challenges since the onset of the pandemic and its impact on store closures, supply chain lockdowns and the changing consumer demand.
And with the impact of inflation, these challenges are not letting up.
The last U.S. inflation rate reported by the Bureau of Labor Statistics in June was 9.1%, higher than it has been since the early 1980s.
A March survey by Bank of America found that 88% of small business owners said inflation was affecting their business, 68% raised prices, and 34% had to reassess their cash flow and costs. expenses.
And just as communities of color tend to feel the effects of inflation more, businesses owned by people of color who may have less access to capital to cover some of the rising costs, as has always been the cases, can also be hit harder.
Related GalleriesHere, WWD hears from five fashion and beauty brands owned by people of color on how inflation is affecting their businesses.
Cuyana
Panama hats made in Ecuador for Cuyana. CuyanaCuyana, a women's clothing and accessories brand specializing in sustainable handbags, had to raise prices due to inflation, but the company's co-founder and CEO, Karla Gallardo, said that customers had remained supportive despite the increases.
"Like most businesses, Cuyana is not immune to the impact of inflation. The current climate has presented us with challenges such as rising costs of our materials, production and transportation, ultimately leading to an increase in the price of our products. At the start of the pandemic, when these fluctuations were very unpredictable, we decided to assume the first increases without impacting our suppliers and customers," said Gallardo.
"With every decision, we try to take a longer-term view, realizing that our business operates in symbiosis with people at both ends of our supply chain. But as it has become clearer that the price hike was here to stay, we recognized that it was not sustainable for our business to maintain this position. We shared this position openly and honestly with our customers. They responded with an outpouring of support, acknowledging that we would only take this step if absolutely necessary,” she said.
The folk group
Small businesses, and especially those owned by people of color, have faced a myriad of challenges since the onset of the pandemic and its impact on store closures, supply chain lockdowns and the changing consumer demand.
And with the impact of inflation, these challenges are not letting up.
The last U.S. inflation rate reported by the Bureau of Labor Statistics in June was 9.1%, higher than it has been since the early 1980s.
A March survey by Bank of America found that 88% of small business owners said inflation was affecting their business, 68% raised prices, and 34% had to reassess their cash flow and costs. expenses.
And just as communities of color tend to feel the effects of inflation more, businesses owned by people of color who may have less access to capital to cover some of the rising costs, as has always been the cases, can also be hit harder.
Related GalleriesHere, WWD hears from five fashion and beauty brands owned by people of color on how inflation is affecting their businesses.
Cuyana
Panama hats made in Ecuador for Cuyana. CuyanaCuyana, a women's clothing and accessories brand specializing in sustainable handbags, had to raise prices due to inflation, but the company's co-founder and CEO, Karla Gallardo, said that customers had remained supportive despite the increases.
"Like most businesses, Cuyana is not immune to the impact of inflation. The current climate has presented us with challenges such as rising costs of our materials, production and transportation, ultimately leading to an increase in the price of our products. At the start of the pandemic, when these fluctuations were very unpredictable, we decided to assume the first increases without impacting our suppliers and customers," said Gallardo.
"With every decision, we try to take a longer-term view, realizing that our business operates in symbiosis with people at both ends of our supply chain. But as it has become clearer that the price hike was here to stay, we recognized that it was not sustainable for our business to maintain this position. We shared this position openly and honestly with our customers. They responded with an outpouring of support, acknowledging that we would only take this step if absolutely necessary,” she said.
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