Profit
The fashion industry is a dynamic and ever-evolving sector that holds significant economic importance worldwide. Achieving profitability in this highly competitive sector necessitates a nuanced approach that encompasses both creativity and sound business strategies. It is essential for fashion businesses to implement a multifaceted approach that aligns creative vision with strategic decision-making to navigate the challenging terrain of profit generation in the fashion world (Smith, 2020).
The size of the fashion industry is difficult to pinpoint precisely due to its complexity and the various sectors it encompasses. The global fashion industry was valued at $1.5 trillion, with the United States, Europe, and China serving as major hubs (Global Fashion Industry Statistics, 2020). The global fashion industry is valued at $3 trillion, despite this size and the influence of commerce, the natural fluidity of cultural and trend evolution requires a fashion business to manage its creative direction and financial controls assiduously. The nature of this control is at the heart of effective product management from the high street through to the luxury of haute couture (Crook, 2017).
In uncertain economic times, maintaining competitiveness is a formidable challenge for brands. A brand’s ability to adapt and thrive in these conditions depends on several important strategies. While it generally comes down to good management and healthy parenting, there are specific reasons why brands decline. According to Kapferer (2012), those that lead to loss of brand value include forgotten quality, lack of new trends, mono product offering, distribution problems, poor communications, inability to stay with the target market, environmental factors, and, finally, the departure of the creative director. By addressing these issues and integrating smart strategies, a brand can navigate uncertain economic times while remaining competitive in the market.
Creative directors play a pivotal role in bridging the gap between creativity and commerce in the world of fashion, as exemplified by the renowned designer and creative director Virgil Abloh, particularly during his tenure at Louis Vuitton’s Men’s Artistic Director. Abloh’s innovative approach incorporates streetwear elements, appealing to a younger audience. By doing so, he reinvigorated Louis Vuitton, attracting a new generation of consumers while preserving the brand’s prestige. This fusion resulted in substantial revenue growth. Abloh’s love of collaboration and cross-cultural synthesis is now the norm in fashion. Just as he changed the face of fashion, he helped redefine the parameters of what a creative director can do (D. Parisi & J. Manoff & Z. Zwieglinskanow, 2021).
Figure 2: Virgil Abloh in his Off-White fashion show. (Gallagher, 2021)
Bibliography:
Crook, Josh De Souza (2017). Compelling Fashion Business: Bridging The Divide Between Creative Vision And Commercial Reality. Available at:https://www.arts.ac.uk/colleges/london-college-of-fashion/stories/compelling-fashion-business-bridging-the-divide-between-creative-vision-and-commercial-reality [Accessed in 19 Oct 2023]
D. Parisi & J. Manoff & Z. Zwieglinskanow (2021). Virgil Abloh ‘changed the shape of the luxury fashion industry’. Available at: https://www.glossy.co/fashion/virgil-abloh-changed-the-shape-of-the-luxury-fashion-industry/ [Accessed in 18 Oct 2023]
Global Fashion Industry Statistics (2020). Available at: https://fashionunited.com/global-fashion-industry-statistics#:~:text=According%20to%20Euromonitor%20the%20global,the%202019%2D2020%20fiscal%20year. [Accessed in 17 Oct 2023]
Kapferer (2012). The New Strategic Brand Management: Advanced Insights and Strategic Thinking [Accessed in 17 Oct 2023]
Smith, J (2020). Profit Strategies in the Fashion Industry. [Accessed in 19 Oct 2023]