Profit
Profit is the ultimate goal and driving force of business activities. A brand cannot function without profit. Brand strategy and behaviors are all for short-term or long-term profit. Without doubt, fashion industry is driven by profit.
As fashion industry develops, in 2022, it is expected that the fashion sector’s revenue would total US$0.99 trillion with a projected market volume of US$312.20 billion (Statista, 2021). At the same time, various sectors in fashion industry produce different results. According to Luxury Outlook 2022: Advancing as a Responsible Pioneer by Boston Consulting Group and Comité Colbert, the French luxury goods association, which included participation from across the industry and 40 interviews with heads of luxury houses, the global luxury industry is anticipated to increase from an estimated €388 billion in 2022 to an estimated €494 billion in 2026 (Joël et al. 2022). However, fast fashion industry has the opposite results. over the past ten years, the fast-fashion industry has expanded significantly, but the COVID-19 epidemic momentarily slowed this growth. One of the major issues for fast fashion in 2020 was the downturn in the economy, which resulted in a 12.32% decline in market value and a £23 billion drop in revenue. But according to experts, the market won’t fully recover until 2023, when it’s anticipated to generate up to £28 billion in sales (Research and Market, 2022). It is obvious that the current market environment is very complicated.
Under the double pressure of such a complex current situation and the unknown future economic situation, only to maintain and improve the competitiveness of the brand can ensure profits, but it is extremely challenging. In terms of consumer goods, great products make better profits. This will test the brand’s operators: creative director. Perfect design does not necessarily bring great economic benefits and design that generates a lot of profit can also be bad in artistic creation. How to balance the creativity and commerce is a constant question for creative director. Conversations are more likely to lead to productive exchanges between the arts and business than strategies and processes due to their distinct but connected and interacting connection. In the artistic creation at the same time appropriate consideration of commercial factors but can maximize the realization of artistic value is the way to bridge the gap between creativity and commerce. From marketing strategy, creative director can not just sacrifice design for economic benefit. It is necessary to effectively communicate and discuss the best cooperation scheme.
Bibliography
Joël, H., Sarah, W., Filippo, B. and Benjamin, F. (2022). How Luxury Companies Can Advance as Responsible Pioneers. [online] Available at: <https://www.bcg.com/publications/2022/luxury-outlook-advancing-responsible-pioneer> [Accessed 22 October 2022]
Research and Market. (2022) Fast Fashion Global Market Report 2021: COVID-19 Growth and Change to 2030. [online] Available at: <https://www.researchandmarkets.com/reports/5321430/fast-fashion-global-market-report-2021-covid-19?utm_source=dynamic&utm_medium=GNOM&utm_code=8qcgtg&utm_campaign=1398970+-+Global+Fast+Fashion+Market+Report+(2020+to+2030)+-+COVID-19+Growth+and+Change&utm_exec=jamu273gnomd> [Accessed 22 October 2022]
Statista. (2021). Fashion – Worldwide. [online] Available at: <https://www.statista.com/outlook/dmo/ecommerce/fashion/worldwide> [Accessed 22 October 2022]