Profit
This pillar is an important concern for every business. At the same time, a business must make profits in a way that takes the last two pillars into account. A business needs to be consistent in making a profit, but it is not encouraged to make a profit at all costs. This pillar appears under corporate governance under the economic, social, and governance (ESG) criteria. Good corporate governance practices encourage alignment of interests between a company’s shareholders, board of directors and management team. Such an approach gives consumers or investors confidence that the company’s systems are transparent and efficient. Companies should avoid engaging in illegal practices that harm society and the environment. It should also resolve conflicts of interest between stakeholders in a fair and transparent manner (Colson, 2022)
The largest retail markets in the world are China, the US, the United Kingdom, Germany and Japan. The US accounts for 24.67% of the total global economy, China has a share of 17.39%, Japan a share of 5.97%, Germany a share of 4.54% and the UK makes up 3.26%. China and the United States are the two largest apparel trading countries. China is the number one exporter of clothing, while the United States is second largest importer. According to Euromonitor and McKinsey, the fashion industry was $1.7 trillion and $2.5 trillion before the Covid-19 pandemic. The Covid-19 pandemic was affected the fashion industry. Global apparel and footwear market size shrunks by 18.1% in 2020, according to Euromonitor. And McKinsey states that the fashion industry suffered a 20% decline in revenue in 2019-2020 (fashionunited.com）
The fashion market is segmented into specific divisions, so the company is able to better analyze market data and monitor business results more effectively. This chart gives the main markets and product sectors in which it is available, such as women’s wear, men’s wear, children’s wear and accessories (Posner, 2011, p. 10) But the key sectors of the industry of fashion designing are the production of textiles, designing of textiles, fashion designing and manufacturing, fashion marketing and media. In the textile industry, a large number of manufacturers produce different types of fabrics for the fashion industry. Natural fibres including wool, cotton, silk and linen are widely used in the fashion industry. Nowadays the whole of humanity is concerned about sustainability and eco-friendly textiles are very popular in the fashion industry. There are different design methods for different types of textiles. For example, textiles are coloured with a variety of fabric paints and pigments. With the addition of colour, many textiles are decorated or designed into creative embroideries and patterned paintings. The process of fashion marketing is simply managing the flow of merchandise from the initial design and selection for production to presenting the product to the retail customer in order to maximize the company’s sales and profits. Successful fashion marketing depends entirely on understanding the needs, choices and desires of customers and providing them with products that meet their needs. Finally, the media is a very good platform to promote and market the fashion brand in a way that gives it more visibility (Kumar, 2022)
The fashion industry is dealing with new constraints, such as the impact of Covid-19 and economic transformation, and companies must introduce new innovative models and value strategies to meet the challenges of future business models. “Don’t let innovation stop, because this could be the window of opportunity,” retail futurist Doug Stephens cautioned in March 2020. “Use this time to reinvent how you do what you do, bring consumers new alternatives, new value, and in the process even reinvent your own brand.” Successful fashion companies will embrace new technologies over the long term, starting with their operating models and recruitment strategies. Companies should recruit more talent across geographies, seek out top talent internationally, and set up teams away from headquarters to attract talent. Fashion brands also need to operate flexibly throughout the value chain, adapting quickly to consumer trends and needs. For example, designers and salespeople should make decisions quickly and guide brands toward a demand-driven model through 3D technology, virtual sampling and artificial intelligence. Production-side, successful contingency plans were implemented during the outbreak-such as shifting production to Turkey when mainland China was under embargo-to increase supply chain flexibility and better prepare for future shocks. Brands should also innovate their products by integrating emerging consumer trends. For example, Chinese brand Cosmo Lady developed an antibacterial intimate wear line that capitalises on a niche product concept, a move that drove its share price up 21 percent (McKinsey & Company, 2022, pp. 32-34). The challenge in the future will be how to use the power of social media to do good: put consumer pressure on enterprises to eliminate their impact on society and the environment, put pressure on governments to enact better laws to protect workers and the environment, and let consumers buy less rather than more (Hethorn and Ulasewicz, 2015).
For some enterprises, the boundary between business and creativity is blurred, which can help them enter a new height. For example, Coca-Cola often defines itself as art itself; The recent cooperation with Kath has proved their unique attraction. The introduction of art into the business portfolio can enhance the stock of any brand.“Increasingly, companies are noted by rating agencies or investment analysts on elements beyond P&L: social responsibility, ethics, sustainability,” says Vadim Grigorian. To some extent, anything related to art and culture is assimilated with commerce. BMW’s art car project began in 1975, when Herv é Poulain, a French racing driver and auctioneer, commissioned American artist and friend Alexander Calder to draw the first BMW art car （Davidson, 2022)
Reference:
Colson, D. (2 February 2022). The Three Pillars of Sustainability: Economic, Social And Environment. Available at: https://www.transformationholdings.com/corporate-sustainability/3-pillars-sustainability/ [Accessed: 20/10/2022]
fashionunited.com (2022). Global Fashion Industry Statistics. Available at: https://fashionunited.com/global-fashion-industry-statistics [Accessed: 20/10/2022]
Posner, H. (2011). Marketing Fashion. Available at: https://ebookcentral.proquest.com/lib/ual/reader.action?docID=1876102 [Accessed: 21/10/2022]
Kumar, M. (MAY 20, 2022). FASHION INDUSTRY AND ITS KEY SECTORS. Available at: https://www.techpublishnow.com/fashion-industry-and-its-key-sectors/ [Accessed: 21/10/2022]
McKinsey & Company (2020). The State of Fashion 2020 Coronavirus Update. Available at: https://www.mckinsey.com/~/media/McKinsey/Industries/Retail/Our%20Insights/Its%20time%20to%20rewire%20the%20fashion%20system%20State%20of%20Fashion%20coronavirus%20update/The-State-of-Fashion-2020-Coronavirus-Update-final.pdf [Accessed: 22/10/2022]
Hethorn, J., & Ulasewicz, C. (eds). (2015). Sustainable Fashion: What’s Next? A Conversation about Issues, Practices and Possibilities. New York: Bloomsbury. Available at: https://libsearch.arts.ac.uk/cgi-bin/koha/opac-detail.pl?biblionumber=1161923 [Accessed: 23/10/2022]
Davidson, J. (2022). From Silicon Valley offices to Warhol’s posthumous dominance, business and art’s long relationship is stronger than ever… Available at: https://www.we-heart.com/2018/10/18/business-and-art-a-valuable-relationship/ [Accessed: 24/10/2022]