Profit

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“There are people who have money and people who are rich” (Coco Chanel). This quote expresses the fact that some people may be tangibly wealthy yet poor in their values. This interlinks into the theme for this blog post, ‘profit’. Profit is the 3rd pillar of sustainability at the University Of The Arts London. 

The fashion industry consists of the following sectors: textile design and production, fashion design and manufacturing, fashion retailing marketing and merchandising & media and marketing (BfashionAcademy 2021) These components are steps of production that brands take to create the life span of a product. The fashion industry is one of the biggest and most important industries, driving a significant part of the global economy (McKinsey State Of Fashion 2017)before the Covid-19 pandemic, global revenue was estimated between $1.7 trillion and 2.5 trillion from the fashion industry alone.

Globalisation has had a drastically negative impact on the textile and production sector. Globalisation refers to the ‘spread of the flow of financial products, goods, technology information and jobs across national borders and cultures. This is beneficial as it allows developing countries to catch up to industrialised nations. However, low-income countries can be exploited of their labour, physical & intellectual resources (Investopedia 2022). The recent documentary on the fast fashion brand ‘Shein’ showcases the fact that there are no defined working hours as well as emphasising the fact that workers only get one day off per month; this violates Chinese labour laws, meaning that Shein is not only being unethical but also breaking the law. (Rochelle Brand 2022). 

Brands can also be creative through Celebrity endorsements. When doing this, brands should ensure that the celebrity that they are endorsing has had a successful portfolio, within their scope of performance. For example, the athletic fashion brand Nike’s mission is to ‘inspire athletes. If Nike were to use a gold medallist as the face of a project, the celebrity could potentially inspire athletes and customers to purchase from their brand. This could then lead to an increase in profit for Nike and allow them to bridge the gap between commerce and creativity. (Mitterfellner, 2019, loc 91).

(Annachiara Biondi, 2020 Burberry profit falls more than half)

(The Fortnite team 2021 high altitude meets high fashion in Fortnite with the Moncler classic set)

 Luxury fashion brand Moncler collaborated with leading the gaming industry brand ‘Fortnite’. This was very innovative and creative as players were able to dress their characters in Moncler garments. Both companies not only profited from this but received deserved attention for this unique way of marketing high fashion to the Gen Z sector. Thus, allowing them to bridge the gap between creativity and commerce. 

During the covid-pandemic, ‘Burberry’ harmed sales. Profit decreased by more than half and customers were drawn to niches in the brand lacked. (Vogue business 2020). Burberry could have remained competitive during this uncertain economic time by taking inspiration from the retailer Farfetch which excelled during the pandemic. Farfetch catered to their customer’s fashion needs by having a stay-at-home fashion range and they found that customers purchased more from this category than high-heeled shoes and formal wear. This allowed Farfetch to make a profit even during this unstable economic time. 

  • Mitterfellner, O., (2019) Fashion marketing and communication. Milton: Taylor and Francis Group.
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