The Spaces and Places of Swedish Fashion

Fashion companies are involved not only in producing material commodities (clothes), but also in the parallel production of ideas (fashion). The consistent use of outsourcing in the fashion industry means that material production is constantly on the move to low-cost locations. Still high-cost countries have managed to retain a sizable presence in the world of fashion. For firms in such countries, the creation of value and profitability commonly rests on the ability to produce innovative design, brand value, efficient marketing channels, logistics and distribution. Sweden, for instance, plays host to a range of fashion firms: from the multinational giant Hennes & Mauritz to small innovative designers. This creates an interesting strategic problem for firms: why root knowledge intensive functions in Sweden when customers are mainly found in distant export markets? What localized knowledge processes, networks and other factors make these firms keep their home base in Sweden? The article suggests that both spatial proximity and the role of place are important to answering these questions. In conclusion, three main findings are discussed: that the Swedish fashion cluster is not based on high-tech but it is nevertheless knowledge intensive; that fashion has a multifaceted relationship with space and is produced under conditions simultaneously characterized by both localization and globalization; that place does play a distinct role in processes of fashion branding and more generally in the creation of immaterial value.