Profit
McKinsey said back in 2017, “Fashion is one of the world’s most important industries, driving a significant part of the global economy. An industry that creates value for the world economy. As one of the four pillars of the fashion industry, profits deeply influence the future of this industry, with global revenues for the p-fashion industry estimated at between $1.7 trillion and $2.5 trillion in 2021 according to Fashion United (Before the Covide-19 pandemic).
The production of raw materials, the creation of fashion items by designers, retail, and advertising and promotion are some of the different industries that make up the fashion industry. The fashion industry is now dealing with a number of problems, according to the State of Fashion 2020 report from McKinsey. For instance, the processing of raw materials for the textile industry still contributes significantly to greenhouse gas emissions, and a fifth of industrial water pollution is caused by chemicals like insecticides and dyes. Additionally, as noted in The State of Fashion report 2022, consumers are becoming more aware of sustainability-related issues and are demanding details about the materials, manufacturing methods, and the people involved, which has led more and more companies to improve the sustainability of their supply chains.
With the rise of Generation Z and consumers looking more for purpose online, the habits of this demographic are beginning to change the way retail and advertising is delivered. Some fashion brands are beginning to flock to the virtual market where young people are the most numerous, for example the gaming ‘skins’, examples include LV’s collaboration with the character Qiyana from League of Legends, and limited-edition clothing from Moschino or Gucci in The Sims DLC. Also the more recent concept that has emerged – the metaverse. Also being transformed are companies that bring in a large number of young employees, who, having grown up in a more inclusive environment, implicitly promote diversity. Companies that show enough goodwill will gain the support of many people and move closer to success in this age of rapid information flow.
Many artists create art as a hobby rather than as a method of supporting themselves, although commercialization is necessary to spread their work. Today’s most obvious examples of art and business overlap admirably, but they also thrive because of an uncomplicated fit between the audience for the brand and the artwork. Burberry and British music groups get mutual leverage through a shared sense of national style and sexy chic. Fashion labels from Cos to Cartier sponsor contemporary artists and art events because they all tap into a certain demographic’s sense of culture and credibility(Ajax, 2013). Even though the above example is a little too old, it cannot be denied that successful art cannot be achieved without the help of business. In the meantime the benefits of this cooperation are mutual. By thinking more like artists, businesspeople have an opportunity to take a radically new approach, with more freedom, more creativity, and more possibilities（Amy, 2018)
REFERENCE:
McKinsey & Company(2022) State of Fashion 2022: An uneven recovery and new frontiers
McKinsey & Company(2020) The State of Fashion 2020: Navigating uncertainty
Fashion United (2022) Global Fashion Industry Statistics
Ajaz Ahmed(2013) Bridging the gap between art and business
Amy Whitaker (2018)Bridging the gap between art and business