Small businesses, and particularly those owned by people of color, have been facing a multitude of challenges since the onset of the pandemic and its resulting impact on store closures, supply chain tie-ups and altered consumer demand.
And with the impact of inflation, those challenges aren’t letting up.
More from WWD
The latest U.S. inflation rate reported by the Bureau of Labor Statistics in June, was 9.1 percent, higher than it’s been since the early ’80s.
A March survey from Bank of America found that 88 percent of small business owners said inflation was affecting their business, 68 percent have raised prices and 34 percent have had to reevaluate cash flow and spending.
And just as communities of color tend to feel the impacts of inflation more greatly, businesses owned by people of color that may have less access to capital to cover some of the rising costs, as has historically been the case, can also be harder hit.
Here, WWD hears from five fashion and beauty brands owned by people of color about how inflation is affecting their businesses.
Cuyana, a womenswear and accessories brand specializing in sustainable handbags, has had to increase its prices as a result of inflation, but company cofounder and chief executive officer Karla Gallardo said customers have remained supportive in spite of the hikes.
“Like most businesses, Cuyana is not immune to the impact of inflation. The current climate has faced us with challenges such as rising costs of our materials, production and transportation, ultimately leading to an increase in the price of our products. At the outset of the pandemic, when these fluctuations were very unpredictable, we decided to take on the initial increases without impacting our suppliers and customers,”