The paradox of Canarian fashion: trailing in exports despite being a talent hotspot

The archipelago is far from achieving export figures like those of Galician fashion, which raked in 5,715 million euros from exports between January and October of last year. A significant portion of the success of that community can be attributed to Inditex, the retail giant belonging to Amancio Ortega, encompassing nearly a dozen brands with Zara as its flagship. The Galician model, associated with fast fashion, bears little resemblance to the industry existing in the Islands, where artisanal production takes precedence over mass manufacturing. The situation in the Canary Islands is almost comparable to that of the Balearic Islands, which recorded 34.5 million euros in exports, making these two communities share similar issues, manufacturing models, and figures.

The additional costs of producing fashion in the Islands are well-known. Jonathan Díaz, the director of the Diazar firm, specializes in party and ceremony dresses and represents the Isla Bonita Moda seal that promotes Palma designers. Based on his experience, the designer mentions that in The Palm, they must combat double insularity due to not being a capital island, coupled with “high production costs, increased transportation expenses, and associated taxes.” Nevertheless, despite these challenges, this small island has managed to retain its presence on the fashion map, and recent years have seen the emergence of international talents from it, such as Manolo Blahnik or Andrés Acosta. Tradition and craftsmanship, exemplified by Las Hilanderas de El Paso, yield quality silks, setting the local product apart from its competitors.

Despite significant challenges, palma brands experienced an estimated 10% increase in exports in the last year. “Considering that the island has endured a pandemic and a volcanic eruption, this growth is commendable,” says Díaz. Behind the positive data lies a strategy focused on “revaluing the designer brands, incorporating craftsmanship, social responsibility, and sustainability.” Isla Bonita Moda utilizes new technologies to communicate the “story” behind each garment to the customer.

Exporting fashion from the Canary Islands is usually “a hassle” for Pedro Palmas, a haute couture designer for Gran Canaria Warm Fashion. The designer exports swimwear to Italy and party dresses to Germany. The primary challenges encountered in selling products abroad are with “customs” and “taxes”: “We pay IGIC and higher transportation costs due to our geographical distance. The paperwork is also more extensive compared to other regions due to the unique characteristics of the Islands, such as their Economic and Fiscal Regime (REF).”

Decline in Profits

When he exports his designs to his two retail points in Italy—Lago di Parma and Sanremo—Palmas incorporates transportation and IGIC into the final price. Furthermore, the customer pays the applicable taxes in the country upon receiving the merchandise. To maintain competitiveness, the designer mentions enhancing the commission “slightly”: “I provide the merchant with a discount to expand their profit margin.”

Far from accepting the disadvantages of producing in the Canary Islands, Palmas advocates for action: “We were born with the challenges of living here, but we have adapted. There has been no improvement nor deterioration. The key always lies in figuring out what can be changed to simplify everything.” Online commerce,In its situation, the “display” has potential for growth: “At present, we have a functioning website in the Canary Islands. However, customers here prefer to visit the store and try on the products.”