Profit
“Profit is the financial benefit realized when the revenue generated from a business activity exceeds the costs involved in sustaining the activity in question.” (Will, 2022) As one of the largest industries and the biggest e-commerce industry in the world, the fashion industry generated $1.55 trillion in revenue in 2021, and it is predicted to be worth $1.7 trillion in 2022. (Dunja, 2022) To generate profit, contributions from various sectors of the industry are indispensable.
According to Fashion United (2022), there was a 3.45 billion workforce in the fashion industry in 2021, which accounts for 44% of the global population. This can tell that the size of the fashion industry is very big. Plenty of people from various sectors are included in the fashion industry, such as designers, retailers, visual merchandisers, creative directors, fashion journalists… They all involve creativity in their work to help run the industry, which is a very important tool to be performed in the industry as it helps businesses remain competitive, draw attention and stand out from the market.
It is essential for a brand to remain competitive in uncertain economic times to ensure a profitable business. Since customers’ behavior and consumption habits have a significant impact on business behavior and policy (Hethorn, 2015, p.79), it is important to focus more on strengthening the relationship with existing customers, which can be done through communication. Customers may communicate publicly and directly with businesses through social media, which is a useful tool for holding them accountable for their activities. (Hethorn, 2015, p.76) If consumers’ voices are heard by companies, they will feel emphasized and will develop long-term and trustful relationships with companies. Also, a brand should not retreat from marketing even during uncertain economic times. Instead of cutting the marketing budget that might possibly harm the brand over time and make it easier for less-capable competitors to gain market share, maintaining or boosting advertising during a recession can on the contrary increases market share in the long run according to studies. (Erik, 2020) This shows that a brand should strengthen its brand position during uncertain economic times to remain competitive.
Art and commerce are increasingly connected in the fashion industry. Many creative directors have started bridging the gap between creativity and commerce. The most common way is to launch collaborations on fashion products, such as KAWS x Dior and Louis Vuitton x Stephen Sprouse. Those collaborations have sparked new styles, boost the sales for the brands, and increase public awareness to the artists and their works.
Apart from the collaboration of products, there is a similar way that art and commerce come together. For example, one of the fitting rooms in Louis Vuitton’s flagship stores is decorated with wallpapers that are designed by Damien Hirst. More and more brands are launching collaborations with art, which indicates that it is a new form of expression and marketing to gain public attention and popularity.
Reference
Clausen, E. (2020) Council post: Marketing rules to follow during Uncertain Economic Times, Forbes. Forbes Magazine. Available at: https://www.forbes.com/sites/forbesagencycouncil/2020/04/03/marketing-rules-to-follow-during-uncertain-economic-times/ (Accessed: October 21, 2022).
Global Fashion Industry Statistics (no date) FashionUnited. Available at: https://fashionunited.com/global-fashion-industry-statistics (Accessed: October 20, 2022).
Hethorn, J., Ulasewicz, C. and McDonough, W. (2015) Sustainable fashion – what’s next?: A conversation exploring issues, practices, and possibilities. New York: Fairchild Books.
Kenton, W. (2022) Profit definition plus gross, operating, and net profit explained, Investopedia. Investopedia. Available at: https://www.investopedia.com/terms/p/profit.asp (Accessed: October 20, 2022).
Radonic, D. (2022) The most important fashion industry statistics in 2022, FashionDiscounts. Available at: https://fashiondiscounts.uk/fashion-industry- (Accessed: October 20, 2022).
Image reference
Manon Garrigues, translated by H. L. (2018) Kaws and dior create the prettiest set of Men’s Fashion Week Spring/Summer 2019, Vogue France. Vogue France. Available at: https://www.vogue.fr/fashion-culture/fashion-exhibitions/story/kaws-dior-homme-kim-jones-show/2815 (Accessed: October 21, 2022).
Serio, K. (2020) Louis Vuitton’s Stephen Sprouse Collab was (and is) the brand’s best, PurseBlog. Available at: https://www.purseblog.com/louis-vuitton/louis-vuittons-stephen-sprouse-collab-was-and-is-the-brands-best/ (Accessed: October 21, 2022). Tilton Fenwick: Butterfly Wallpaper, Damien Hirst Butterfly, Damien Hirst (2012) Pinterest. Available at: https://pin.it/1ikcoAS (Accessed: October 21, 2022).
Tilton Fenwick: Butterfly Wallpaper, Damien Hirst Butterfly, Damien Hirst (2012) Pinterest. Available at: https://pin.it/1ikcoAS (Accessed: October 21, 2022).