97% of Spanish fashion companies believe that the war of discounts and promotions will continue in the sector when the current economic situation is overcome. This is one of the main conclusions of the 2013 edition of the Barometer of Fashion Companies in Spain.

The study, sponsored by vente-privee.com and prepared by Modaes.es from the testimonies of a sample of nearly 300 companies in the sector, was presented at the headquarters of the ISEM Fashion Business School, on the campus of the University of Navarra in Madrid. The presentation was attended by a hundred entrepreneurs and managers, such as Agatha Ruiz de la Prada; Javier de Rivera, from Gocco; Javier Relats, from Aïta; Ricardo Bilbao, from Hakei; Borja Vázquez, from Scalpers; and Diego García, from Uno de 50.

The report also shows how, in the face of a new, more liberalizing regulation of sales, the rate of companies that consider the constant presence of discounts and promotions as something negative has dropped: while in the second edition of the Barometer almost half of the companies believed that this strategy will be negative for the sector in the long term, in 2013 this rate fell to 41%.

Increasingly, therefore, a large part of fashion purchases are shifting to sales periods or to collections subject to discounts and promotions. This transformation in consumer buying habits and in the commercial policies of companies has been "imported" to the Spanish market from other countries, such as the United States, where these practices are fully implemented.

In general terms, the 2013 Fashion Business Barometer shows how companies in the fashion business remain strong despite the current economic climate. Forty-nine percent of the companies say that, during the past financial year 2012, they managed to increase their annual turnover, and another 22% say that their performance remained stable. Forecasts for the current year are also optimistic: 16% expect a substantial improvement in turnover and 42% a moderate improvement.

With this new situation, and in the face of somewhat more moderate growth prospects for this year, job creation in the fashion sector is also contained. The Barometer, whose sample is made up of Spanish companies with brands that directly reach the final public, points out that 51% of the companies in the sector increased their workforce in 2012, compared to 55% the previous year. Looking ahead to 2013, the number of fashion companies that plan to make cuts also increases: from 11% to 20% of the total.

More information about the report in the ISEM Fashion & Business blog