Profit
Profit is one of the 4 pillars of the fashion business school, It is one of the most important as it encourages the industry to prosper as well as develop . The fashion industry statistics show that the apparel and textile sector is the 4th biggest in the world (Major, J.S. and Steele, V. 2018) resulting in an increase in the industries profit. Especially after covid, and the mass amount of online shopping done resulted to Ecommerce growing fast, the pandemic pushed even more U.S. consumers online and pushed to spend frequently. Digital Commerce 360 estimates the pandemic contributed an extra $218.53 billion to ecommerce’s bottom line over the past two years. In 2020, the coronavirus added $102.08 billion in U.S ecommerce, and it added $116.45 billion in 2021, according to Digital Commerce 360 . Therefore majorly increasing the retail industry due to customers being forced to stay indoors a lot of people shopped within their free time. However due to the high demand of products there would have been a mass amount of over consumption resulting in mass production as well as wastage which is not sustainable, this would be taken into account when consumers make decisions on their purchases.
The fashion industry currently consists of four levels, the production of raw materials, principally fibres and textiles but also leather and fur. The production of fashion goods by designers, manufacturers, contractors, and others; retail sales; and various forms of advertising and promotion. (CBInsights 2021) it is becoming harder for these sectors to perform especially when selling to a market such as generation z who have strong beliefs in sustainability. It is more expensive to become sustainable within a business especially due to covid due to decrease in certain sales therefore making it challenging for brands to afford to be sustainable as majority of consumers within this generation are more socially responsible and are aware of what products they purchase and how their being produced.
Moreover today, fashion technology is growing at a faster pace than ever as technology is evolving it is providing more opportunities for the industry. Robots that sew and cut fabric, algorithms that predict style trends, clothes to be worn in virtual reality, an array of innovations show how technology is automating, personalising, and speeding up the fashion space(,,,,) , this would allow brands to reach consumers specific needs and understand what specifically needs to be produced to meet the needs of the market.
In addition a brand can remain competitive in uncertain economic times by taking inactive and creating a stronger brand image, past crises also show that brands that have the strongest brand positioning and equities emerge stronger during a crises than brands that are mainstream. Premium and luxury sectors tend to perform much better during recessions than average segments, hence the ability to create extreme value is critical for navigating successfully through a crisis. However brands who are non luxury brands would not have the funding to invest into things like marketing as well as developing their products like luxury brands. Some examples of how to adapt through a economic struggle
Nurture and protect employees and give them perspective (e2fashion.com n.d.)
- create extreme value, you need to refocus on brand equity building in times of crisis. The best brands focus on their core values and make sure the brand storytelling is precise, specific, insight-driven, and differentiating, which creates meaningful value for their customers.
- Innovate and become more influential , by adapting to the current issues and seeing how they could make it easier for consumers to buy or wjhat they need such as during covid majority of retail brands took thinner business online as this was how consumers were purchasing products. or even moving their whole business online as it would work out cheaper than having a store
- Transform digitally
- one of the biggest business impacts of The Pandemic is that it’s highlighted just how important e-commerce has become. Luxury brands have been a combination of tradition and arrogance. Luxury thrives on exclusivity; a luxurious in-store experience; and luxury brands are notoriously controlling about their image. But the future is online – which is why LVMH’s latest ‘cabinet reshuffle’ shows how even luxury brands are being forced to sit up and take e-commerce seriously. (DMARGE. (2020).)
For creative directors to engage and bridge the gap to the audience about creativity and commerce, they must market their product in a way that evolves art as well as skill. Many consumers like to purchase products with a story and extravagant displays . Therefore, if brands portray a message of meaning through their products, it is more likely customers would relate and purchase the product. the invention of the Little Black Dress from coco Chanel incorporated comfort as well as creativity. Wearing a fitting black dress might be a go-to for all western-clothing-clad women today. But it was Coco who invented it, removing uncomfortable frills, corsets, and laces from women’s clothing. she was adapting to the trends of the current era emerging creativity and commerce and to this day her work is constantly worn and continues to be adapted to the target market.
Referencing
Major, J.S. and Steele, V. (2018). Fashion industry. In: Encyclopædia Britannica. [online] Available at: https://www.britannica.com/art/fashion-industry.
CBInsights (2021). The Future Of Fashion: From Design To Merchandising, How Tech Is Reshaping The Industry. [online] CB Insights Research. Available at: https://www.cbinsights.com/research/fashion-tech-future-trends/.
www.fibre2fashion.com (n.d.). Brand Strategy: Rules for Uncertain Times. [online] www.fibre2fashion.com. Available at: https://www.fibre2fashion.com/industry-article/8630/brand-strategy-rules-for-uncertain-times [Accessed 26 Oct. 2022].
DMARGE. (2020). Louis Vuitton’s Digital Moves Evidence That Luxury Brands Are Finally Taking E-Commerce Seriously. [online] Available at: https://www.dmarge.com/lvmh-taking-e-commerce-seriously [Accessed 26 Oct. 2022].
Roberta, V. (2021). Building a legacy: Chanel’s Luxury Marketing Strategy. [online] TheStrategyStory. Available at: https://thestrategystory.com/2021/04/03/chanel-marketing-strategy/.