Profit
By Sophia Pandeli
The pillar of profit is one of the four pillars in fashion business school, profit is what allows the fashion industry to thrive on being bigger and better. Profit is an extremely important factor in the fashion world as without profit the fashion industry would collapse. The value of the fashion industry in 2021 reached $1.55 trillion.
Fashion is one of the largest industries in the world, in fact, the seventh-largest economy in the world. In 2021 the revenue from the fashion industry was $1.7 trillion dollars and before COVID – 19, the global fashion industry’s revenue was estimated between $1.7 and $2.5 trillion (Fashion United, 2022).
There are various factors within the fashion industry for example manufacturing, distribution, marketing, retailing, advertising, and promotion. Manufacturing has changed over the years due to technological advances that are available. This means the performance of manufacturing for the fashion industry is faster, better and in the long run – cheaper. Ideally, the supply and the demand of goods should be balanced (Mitterfellner, O. 2019) to ensure the manufacturing process won’t create too much or too little goods for the industry so that there is the perfect amount of goods for consumers to buy to create profit instead of a loss. Furthermore, distribution in the fashion industry in 2022 also relies on technology as e-commerce creates profit for the fashion industry. In ‘Glossy’s Annual Report on the state of fashion sales and distribution channels in 2022 – owned websites were the most common distribution channels, at 87%. The second was retailer stores, at 52% (Lu, L. 2022). Retailing’s performance grows due to e-commerce and expands the fashion industry’s revenue. In addition advertising and promoting have also become easier due to how popular and engaging social media and online websites are globally and will increase the performance advertising and promoting has for the fashion industry.
E-commerce fashion
A brand can remain competitive in uncertain times by having a strong unique selling point that appeals to the target market the business is advertising to. Having a strong unique selling point will give a brand a huge competitive advantage in comparison to other brands as it will appeal to consumers and grow the brand because of this even in uncertain economic times.
Creative directors bridge the gap between creativity and commerce by thinking like an artist so that when thinking about commerce it’s with a creative approach to ensure the business is intriguing and desirable for consumers to want to purchase from. This gives the business a friendly image that isn’t just about business advantage but also about creating products that will be loved by consumers (The Meaning Team 2018).
– Fashion United (2022)
Global Fashion Industry Statistics, fashionunited.com. Available at: https://fashionunited.com/global-fashion-industry-statistics.
[Accessed 19 October 2022]
-Lu, L. (2022)
Glossy Annual Report 2022: The state and future of fashion brand distribution, Glossy. Available at: https://www.glossy.co/fashion/glossy-annual-report-2022-the-state-and-future-of-fashion-brand-distribution/
[Accessed 19 October 2022]
- –Mitterfellner, O. (2019) Fashion Marketing and Communication. Routledge.
[Accessed 20 October 2022]
– Radonic, D. (2021)
The Most Important Fashion Industry Statistics in 2021, Fashion Discounts.
Available at: https://fashiondiscounts.uk/fashion-industry-statistics/.
[Accessed 19 October 2022]
- – The Meaning Team (2018)
Bridging the gap between art and business (2018) Meaning Conference
Available at: https://meaningconference.co.uk/blog/bridging-gap-between-art-business.
[Accessed: 20 October 2022]