New York Fashion Week (NYFW) generates more money than the Super Bowl annually, grossing almost $600 million in profit. It also outperforms the other three major fashion weeks– Milan, Paris and London– earning more than the three combined. NYFW’s celebrity presence and glamorous shows speak volumes about its impact on popular culture; however, it is also a main contributor to both the state’s and the country’s economy. The work opportunities, revenue and tourism it provides heavily influence the financial state of the United States.
What is New York Fashion Week?
Each February and September, New York hosts a four to five day series of showcases highlighting both new and up-and-coming designers. Although many shows are by invitation only, there are events that are open to the public. New York Fashion week shapes the culture and trends for the upcoming season across the globe.
NYFW was born during World War 2, when the previous fashion center, Paris, was under German control. Eleanor Lambert, a fashion publicist, is credited with the creation of the idea, although it started off as an event to bring the press to the city, rather than to set the stage for the season’s trends. Over the years, what was originally “Press Week” grew in size and popularity as New York continued to rise to the top of the fashion industry.
Today, the biannual event is a staple in American culture and brings together the most famous designers from all over the world. Each year, the runway sees new trends emerge and others fade into fashion history, but nonetheless, NYFW maintains its spot as the top-performing fashion week across the globe.
The Economic Importance of New York Fashion Week
Many understand the cultural impacts of NYFW as each year’s shows shape the trends for the months to come, but to the surprise of many, the shows also make significant contributions to the economy. Tourism, revenue and employment opportunities generated by NYFW are critical to the economic state of both New York and the United States as a whole.
Each year, NYFW employs over 300,000 New Yorkers and produces over $20 billion in wages. A contribution so significant that New York Governor Kathy Hochul set aside millions in her budget to devote to furthering the success of the industry.
Between designers, makeup artists, models and set-up and clean-up crews, NYFW provides employment for many. These opportunities are most crucial for up-and-coming designers, who are looking to make their big break. Being able to show their collections on such a large stage can be the difference between becoming a household name or barely making ends meet. The behind-the scenes workers also benefit from the event.
Michele Metamoros, a display artist with over 30 years in the fashion industry, shared her experiences working at NYFW. She described how for many workers in the industry, having “New York Fashion Week” on a resume is incredibly valuable.
Although the state of New York reaps the economic benefits of NYFW, Metamoros noted that the brands themselves don’t necessarily see an increase in sales. This is in part due to the purpose of the collections, as many designers showcase items that are not actually up for sale. “A lot of designers will show bespoke, or couture items that are not available in the ready-to-wear line to be purchased.” This means the show is more of a display than it is an opportunity to increase sales. In these cases, the perks of showing a collection in the event are mostly related to publicity. Metamoros describes how, “The press and the brand recognition sometimes outweighs the sales and that is not necessarily a bad thing.” Despite most of the economic success going to the state and country’s economies, designers do reap the benefits of social media coverage and the reputation that goes along with working at NYFW.
The tourism industry also flourishes during NYFW as people flock to shows to see the latest collections and have the chance at meeting top-tier celebrities. Usher, Suki Waterhouse, Cardi B and Jessica Alba were just a few of the stars spotted at this year’s New York Fashion Week.
Leslie Meadows, an economics teacher at Green Hope, discussed the boost the tourism industry receives as a result of the celebrity presence at the shows. She argues that, “if the celebrities are paying attention, then the people are paying attention because the people are paying attention to the celebrities.” This increases the demand of the tickets, clothes and other items that the stars promote– serving as another bolster to the economy.
Additionally, many of the celebrities who attend do not live in the city, meaning they must pay for lodging, food and more, which also contributes to the tourism industry. The same can be said for designers, influencers and others who travel to New York for fashion week.
Meadows described how people coming to New York for NYFW benefits the restaurant, hotel and the parks and recreation industries. “Everybody in the city will […] see their income increase as a result of having a special event like that happening in their city and so that’s going to enable all of those other people to make more money, and when they can make more money, they can then afford to go and spend on things, boosting up the economy.” She also noted that these benefits are not just short-term, although there are certainly immediate effects from the increase in spending.
With each fashion week, New York solidifies its position as a fashion center, which draws in tourists who are interested in the industry throughout the year. “[Shopping in New York] becomes sort of this iconic thing to be able to go and do,” described Meadows. Designers also reap the lasting benefits of NYFW. The publicity provided by the event can serve as a catalyst for contracts, allowing designers to sell their collections in stores.
A report by Congress’ Joint Economic Committee estimated that about 150,000 attended the shows in 2015– a number that has likely continued to rise in recent years. The influx of tourists is another one of the many benefits that come along with the successful New York Fashion Week.
New York has proven to be the ideal location for fashion events, even more so than the other fashion capitals: London, Milan and Paris. With magazines, world-renowned labels and some of the most famous design schools, New York has many residents who can promote and attend the event each year. Over half of the shows for all four of the major fashion weeks combined come solely from NYFW. The event also has over a 68% higher following on social media than its closest competitor, Paris Fashion Week. Its ideal location, plentiful local connections and its large social media presence, make it no surprise that NYFW is successful year after year.
It would not be an understatement to say that NYFW plays a substantial role in keeping both New York’s and the entire United States’ economy afloat. The money generated from ticket sales and tourism along with the employment opportunities it brings leave a lasting impression on the economy. Although many recognize New York Fashion Week from its impact on popular culture and seasonal trends, the economic impact of the event should not go unnoticed.
