PROFIT

Profit is an essential outcome of running a business. Making a profit is the main goal of the company. It shows the company is doing well. However, the fashion industry is changing. Many other important factors and values coexist alongside the profit factor to build the most sustainable and developed fashion industry.

Fashion is one of the most important industries. It is holding the “key value-creating” industries for the global economy (McKinsey & BoF, 2016). There was an increase in apparel when the pandemic happened. In 2021, the fashion industry’s worth was approximately 1.55 trillion U.S. dollars. Fashion is not the biggest industry. Although, it is the biggest e-commerce industry in the world. According to Statista, the largest segment belonged to fashion with a revenue of 666 billion U.S. dollars (2022). This segment will increase to over one trillion dollars in 2025 (Statista, 2022). Additionally, one of the potential markets in the fashion industry is ethical fashion. Statista estimates the value of this market will rise by over three billion U.S. dollars in the 2021 and 2025 period.

As a part of e-commerce, social shopping is a vital way for fashion brands to boost their sales and attract customers. Due to Covid-19, it changes consumers’ behaviors. Social networks play a vital role in people’s lives such as shopping, entertainment, and connection. According to a research firm Data Reportal’s The Global State of Digital 2021, about 4.3 billion users (over half of the world’s population) now use social media (Draper, 2022). Therefore, reaching them is an important goal of fashion brands. At the same time, the circular economy is one of the most important sectors of the fashion industry to reduce its footprint. This industry produces around 40 million tons of textile waste into the environment a year. Renewcell partners with brands such as H&M, Levi’s, Beyond Retro’s parent company Bank and Vogue to deliver post-consumer waste to Renewcell.203. They are building a new facility and 60,000 tons of textiles will be recycled. (McKinsey&Company, 2022)

The new normal after the pandemic has just begun. While uncertain times, fashion brands need to find the correct direction to overcome competitors. Firstly, reliability is always the most vital point. In every single step during the process, brands should show sustainability in there. Transparency in the production process will gain the customer’s trust and they are more willing to buy the product. Secondly, there are many possible platforms, tools, and technologies for marketers of brands to develop and be open-mind to them (Clausen, 2020). Because with only one click when accessing the platforms, customer can buy their favorite products. The power of technology and its global is unquestionable.

Balancing creativity and commerce is always particularly challenging for creative directors. When designers present themselves as artists, they reveal their unique vision. However, this also protects their desire to live and work creatively. They can market themselves to consumers who also want to buy a work of art rather than mass-produced clothing (Stevenson, 2019). The designers can still keep their impressions on the garment and have the customer satisfied. In addition, collaboration is also an ideal choice for the brands. During the campaign, the impact of the media will help art spread and commercial purposes are also met (Stevenson, 2019). Nevertheless, the coin always has two sides. Before starting the projects, the creative director and brands understand the partner’s value and vision to make the most successful handshake.

Bibliography:

Business Wire (2020) Global Ethical Fashion Market to reach $8.25 billion by 2023 (COVID-19 adjusted) – researchandmarkets.com. Available at: https://www.businesswire.com/news/home/20200619005202/en/Global-Ethical-Fashion-Market-Reach-8.25-Billion (Accessed: October 16, 2022). 

Clausen. E (2020) Marketing Rules To Follow During Uncertain Economic Times. Available at: https://www.forbes.com/sites/forbesagencycouncil/2020/04/03/marketing-rules-to-follow-during-uncertain-economic-times/?sh=166266e54a36. (Accessed: October 19, 2022).

Drapers (2021) The Power of Marketplaces. Available at: https://www.drapersonline.com/guides/the-power-of-marketplaces-report. (Accessed: October 19, 2022).

Drapers (2021) Social Commerce Guide. Available at: https://www.drapersonline.com/guides/social-commerce-guide. (Accessed: October 19, 2022).

McKinsey&Company (2016) The State of Fashion 2017. Available at: https://www.mckinsey.com/~/media/McKinsey/Industries/Retail/Our%20Insights/The%20state%20of%20fashion/The-state-of-fashion-2017-McK-BoF-report.pdf. (Accessed: October 19, 2022).

McKinsey&Company (2022) The State of Fashion 2022. Available at: https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/state%20of%20fashion/2022/the-state-of-fashion-2022.pdf. (Accessed: October 19, 2022).

ReportLinker (2018) Fashion E-Commerce Global Market Report 2020-30: Covid 19 Growth and Change. Available at: https://www.globenewswire.com/news-release/2020/07/09/2060323/0/en/Fashion-E-Commerce-Global-Market-Report-2020-30-Covid-19-Growth-and-Change.html (Accessed: October 16, 2022).

Stevenson, C (2019) “(I was there) when it all went down”, in Cronberg, A. (ed) Vestoj issue 9: On Capital. Available at: https://moodle.arts.ac.uk/pluginfile.php/1463893/mod_label/intro/Week%204-Pre%20seminar%20read%20-Stevenson%20%28I%20was%20there%29%20when%20it%20all%20went%20down.pdf (Accessed: October 18, 2022).

Statista (2022) Revenue of the apparel market worldwide from 2013 to 2026. Available at: https://www.statista.com/forecasts/821415/value-of-the-global-apparel-market#:~:text=Revenue%20generated%20by%20the%20global,approximately%201.55%20trillion%20U.S.%20dollars. (Accessed: October 19, 2022).

Statista (2022) Fashion e-commerce worldwide. Available at: https://www-statista-com.arts.idm.oclc.org/study/111688/fashion-e-commerce-worldwide/. (Accessed: October 19, 2022).

UK fashion industry statistics (2022) FashionUnited. Available at: https://fashionunited.uk/uk-fashion-industry-statistics (Accessed: October 16, 2022).

Image reference list:

Bui. L (2022), Profit, (Collage).

Bui. L (2022), Collaboration: Sterling Ruby & Raf Simons, Vetements & McDonald’s, Simone Rocha x H&M, and Gucci and Balenciaga’s Hacker Project (Collage).

Statista (2022), Estimated value of the ethical fashion market worldwide from 2020 to 2025. Available at: https://www-statista-com.arts.idm.oclc.org/statistics/1305641/ethical-fashion-market-value/ (Accessed 19 October 2022).