Profit

Since decades ago, capitalism has fuelled the industrial-technological and green revolution, altering how countries trade to fasten society’s development toward wealth (Kin, 2021). Therefore, high profit earning is always the vital pillar companies chase for power and longer survival.

In 2021, the worldwide revenue of the apparel market was approximately 1.55 trillion dollars, and women’s apparel occupied much higher revenue than children’s and men’s. In the forecast, the global value might increase to almost 2 trillion dollars by 2026 (Smith, 2022). The global sportswear market showed a growing trend. It was worth more than 350 billion dollars in 2021 and is estimated to grow by roughly 20% (439 dollars) in 2026 (Smith, 2022). Meanwhile, the second-hand’s apparel market has become a global phenomenon, expecting to grow 127% by 2026(Reinhart, 2022).

Under different economic periods, the willingness of customers to spend could change. For example, people in an unhealthy economic time might not have a stable income, so the demand for buying is low. However, there are strategies to remain competitive under unpredictable environments. First, brand globaliastion could reduce the risk of brands over-rely on a single economic. Multiple sources of profit could recover the loss of brands operating in one region. Therefore, while other brands struggle with budget shortages, global brands could be flexible on financial control for promotion to remain competitive.

Meanwhile, Henry Ford said, “A man who stops advertising to save money is like a man who stops a clock to save time.” Since the rivals cut marketing costs, it might be an opportunity for brands to drive and maintain awareness to build substantial market share ((Akyüz & Ercilasun, 2014). Therefore, brands should keep track of customers’ behavior to adjust their marketing strategy. Such as, in an economic downturn, focusing on advertising goods with correct and clear information, including motives like durability and overall quality, could gain customer trust to buy (Shrager, 1991).

Despite the uncertain economy, the gap between creativity and commerce could affect brand reputation all the time. Business is about clarity and measurability, but art loves mystery and multiple interpretations (Ahmed, 2013). More effective interchanges between the arts and commerce would start with communication rather than strategies, ensuring that both have the same value and aims to part. Otherwise, it is easy to misunderstand the audience by using unclear and inconsistent brand messaging, which could cause collaboration to fail(budget wasted).

Ahmed, A. (2013) Bridging the gap between art and business. The Guardian, October. Available at: https://www.theguardian.com/media-network/media-network-blog/2013/oct/16/bridging-gap-art-business (Accessed: October 23, 2022).

Akyüz, A. and Ercilasun, M. (2014) “The role of advertising during recession,” International Conference on Eurasian Economies 2014 [Preprint]. Available at: https://doi.org/10.36880/c05.01141.

Clausen, E. (2020) Marketing Rules To Follow During Uncertain Economic Times. Forbes, 3 April. Available at: https://www.forbes.com/sites/forbesagencycouncil/2020/04/03/marketing-rules-to-follow-during-uncertain-economic-times/?sh=54ecf2c24a36 (Accessed: October 23, 2022).

Kin, M.W. (2021) “It’s done so much for human well-being, but it’s far from perfect. Will capitalism as we know it evolve into something new?,” BBC, 27 May. Available at: https://www.bbc.com/future/article/20210525-why-the-next-stage-of-capitalism-is-coming (Accessed: October 22, 2022).

Reinhart, J. (ed.) (2022) thredUP’s Annual Resale Report. publication. thredUP. Available at: https://www.thredup.com/resale/#decade-in-resale (Accessed: October 23, 2022).

Smith, P. (2022) “Revenue of the apparel market worldwide from 2013 to 2026.” Available at: https://www-statista-com.arts.idm.oclc.org/forecasts/821415/value-of-the-global-apparel-market (Accessed: October 22, 2022).

Smith, P. (2022) “Size of the activewear market worldwide from 2020 to 2027.” Available at: https://www-statista-com.arts.idm.oclc.org/statistics/613169/size-of-the-global-sportswear-market/ (Accessed: October 23, 2022).