Profit
Profit is part of the quartet that makes up the Fashion Business pillars. This pillar keeps the economy afloat and flowing – one that affects not only the fashion industry, but all. The fashion industry can be measured quantifiably, globally amassing to 1.5 trillion USD in 2021 (Statista.com). However, as stated in Fashion Management: A strategic approach, the industry can also be measured through influence and impact, using Victoria Beckham as an example. ‘Public affirmation’ in the fashion business industry is used as a measure of size.
‘Haute Couture’ – an extremely niche, ‘strictly defined’ and luxurious sector of the industry where bespoke tailoring comes into play. Polarised from modern trends such as fast fashion, haute couture slows down the fashion industry with its prestige craftsmanship, only sixteen houses are legally granted the right to use the term haute couture, e.g. Maison Margiela, Schiaparelli, Giambattista Valli etc. As of 2021, the global haute couture market is forecasted to have a growth at a compound annual growth rate of 5.4% during 2021-2028 (Datainetlo, 2021.). Compared to streetwear which takes up 10% of the global apparel and footwear market (Strategy&, accessed October 2022).
Certain economic times, such as a recession, can cause strain on brands and their profit. What seems like the obvious answer is also the most judicious – affordabilty. Understanding geo-politics and the economic climate in each country and accommodating pricing to such so that consumers keep brand loyalty intact. On average, 60% of consumers in Japan spend 300$+ per item, whereas 61% of consumers in Europe and North America spend $100-300~ (Strategy&, accessed October 2022). Matthew Williams, founder of 1017 ALYX 9SM and creative director at Givenchy, bridges the gap between creativity and commerce by envisioning himself as the consumer, “I’m always saying, ‘I’m designing for me and what I want.’ I always try on the clothes myself, and I feel them. I wear them, I live in them, to understand them.” (Matthew Williams for GQ, 2021) Knowing what they desire in clothing, Williams embodies the average Givenchy consumer while working with the atelier designers.
Smith, P. (2022) Topic: Apparel market worldwide, Statista. Available at: https://www.statista.com/topics/5091/apparel-market-worldwide/#topicHeader__wrapper (Accessed: October 23, 2022).
Varley, R. et al. (2019) Fashion management: A strategic approach. London: Red Globe Press. (Accessed: October 22, 2022)
Osman Ahmed, M.S. (2022) In 2022, Haute Couture isn’t just surviving – it’s thriving, i. Available at: https://i-d.vice.com/en/article/z34xq8/haute-couture-aw22-round-up (Accessed: October 21, 2022).
Global Haute Couture market by type (jackets & coating, vests, pants and bibs, boots, others), by application (catwalk, Daily wearing) and by region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), forecast from 2022 to 2030 (2022) Dataintelo. Available at: https://dataintelo.com/report/haute-couture-market/ (Accessed: October 22, 2022).
PricewaterhouseCoopers (no date) Streetwear: The new exclusivity, PwC. Available at: https://www.strategyand.pwc.com/de/en/industries/consumer-markets/streetwear.html (Accessed: October 22, 2022). Battan, C. (2021) The very tactical ascent of Givenchy designer Matthew Williams, GQ. Available at: https://www.gq.com/story/givenchy-designer-matthew-williams-profile (Accessed: October 22, 2022).