Recent financial statistics of Fashion Industry:
In 2021, the global fashion industry was valued at approximately $2.5 trillion.
The Asia-Pacific region is the largest market for the fashion industry, accounting for approximately 35% of the global market share. The United States is the second-largest market for the fashion industry, accounting for approximately 16% of the global market share. Furthermore, the European Union is known to be the third-largest market for the fashion industry, accounting for approximately 13% of the global market share. The fashion industry is a major contributor to the global economy, with millions of people employed in the industry worldwide. The online fashion market is growing rapidly, with online sales expected to account for approximately 17% of the global fashion market by 2024.
Fashion Industry being involved in Financial Crimes
In 2018, Italian fashion designer Roberto Cavalli was sentenced to a year in prison for tax evasion. Cavalli was accused of failing to declare millions of euros in income and using offshore companies to hide his assets. In 2019, the former CEO of French fashion company Kering, François-Henri Pinault, was placed under investigation for alleged tax evasion. Pinault was accused of using offshore companies to hide assets and avoid paying taxes in France. In 2020, the former CEO of luxury fashion brand Prada, Miuccia Prada, was also placed under investigation for alleged tax evasion. Prada was accused of using offshore companies to hide assets and avoid paying taxes in Italy. In 2021, the former CEO of Italian fashion company Tod's, Diego Della Valle, was indicted on charges of tax evasion. Della Valle was accused of failing to declare millions of euros in income and using offshore companies to hide assets. In 2022, The richest woman in Africa Isabel dos Santos will pay $ 1 billion on the orders of the Supreme Court against the charges of embezzlement and corruption. The court also ordered to freeze Isabel’s shares in major companies. Isabel, the daughter of the former President will also face the seizure of her many properties
Financial regulations on fashion industry in Paris, France
Tax laws:
Businesses in France are required to pay a range of taxes, including value-added tax (VAT), corporate tax, and social security contributions. The specific taxes that apply to your business will depend on the type of business you are running and your revenue.
Accounting and reporting requirements:
Businesses in France are required to keep accurate financial records and to prepare financial statements in accordance with French accounting standards. In addition, larger businesses may be required to have their financial statements audited by an independent auditor.
Employment laws:
If you are employing workers in France, you will need to comply with a range of employment laws, including those related to minimum wage, working hours, and employee benefits.
Consumer protection laws:
The fashion industry in France is subject to consumer protection laws that regulate the sale of goods and services. These laws cover issues such as product safety, advertising, and consumer rights.
Intellectual property laws:
The fashion industry in France is also subject to intellectual property laws, which protect the rights of designers and other creative professionals. These laws include copyright, trademark, and patent laws.
Conclusion
The fashion industry is a dynamic and rapidly-evolving sector that is subject to a range of financial regulations. These regulations are designed to protect consumers, ensure fair competition, and support the financial stability of the industry. Understanding and complying with these regulations is an important part of running a successful fashion business. By staying up-to-date with the latest financial regulations and seeking advice from financial professionals when needed, fashion industry professionals can help ensure the long-term financial success of their businesses.
