Profit
Out of four pillars in the fashion industry, “profit” is the overall purpose and motivation behind all commercial endeavours. Without it, a business simply cannot survive in the fast-changing market. Key factors of brands’ success in uncertain times, a role of creative directors and performance of different sectors of the industry will be covered in this blog.
Before discussing performance of the fashion industry in 2022, it is essential to specify its size. This year’s growth of 4.3% will bring the size of the worldwide apparel manufacturing market in 2022 to $861.5 billion (IbisWorld, 2022). Looking at the statistics one can tell that fashion industry has a big part in the global economy. However, during COVID19 conditions for the global fashion business have been extremely difficult. But the sector is starting to stabilise again after nearly two years of upheaval (McKinsey 2022). During uncertain times a brand still can not only survive but thrive. One of the ways to do that is to “play into the needs of the moment”. Those during COVID19 related to “comfort, outdoor activities and online shopping” claims McKinsey (2022). It is true to say that increased usage of social media during pandemic has changed consumers’ needs and wants. This led to digital sector having the biggest opportunity for growth in fashion, while supply chain, logistics and inventory management fell under pressure (see fig.1).
It could be argued that Digital sector can also close the gap between creativity and business. As consumers spend more time online, there has been created more buzz, hype, and plenty of room for growth in the Metaverse, says Austin Rotter (2022). Furthermore, Consumers should investigate the possibility of NFTs, games and virtual fashion because these sectors all present unique opportunities for trade, community development, and creative expression. One of the collaborations of fashion brands with Metaverse is Burberry’s partnership with Mythical Games to develop an NFT collection within the company’s main open-world videogame, Blankos Block Party (Brooke, 2022). In 2022 it is crucial for customers to have an innovative idea behind their expensive purchase. Thus, it is creative directors’ role to market a brand’s product to consumers in a way “their fashionable purchases are unique and exclusive – artworks rather than mass manufactured garments” Stevenson, C (2019).
There is still a lot of room for development in the Metaverse. 2022 is a good year for fashion industry to start investing in it to strive in the market.
Reference list:
Brooke, S. (2022) Which luxury brands have entered the metaverse?, Raconteur. Available at: https://www.raconteur.net/technology/luxury-goods-crypto-nfts-metaverse/ (Accessed: October 23, 2022).
Drenik, G. (2022) Why it’s time for marketers to believe the metaverse hype, Forbes. Forbes Magazine. Available at: https://www.forbes.com/sites/garydrenik/2022/06/30/why-its-time-for-marketers-to-believe-the-metaverse-hype/?sh=440f16ae634d (Accessed: October 22, 2022).
Ibis World (2022) Industry market research, reports, and Statistics, IBISWorld. Available at: https://www.ibisworld.com/global/market-size/global-apparel-manufacturing/ (Accessed: October 23, 2022).
McKinsey (2022) State of Fashion Technology Report 2022, McKinsey & Company. McKinsey & Company. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion-technology-report-2022 (Accessed: October 23, 2022).
Stevenson, C (2019) “(I was there) when it all went down”, in Cronberg, A. (ed) Vestoj issue 9: On Capital