Profit
‘Profit’ is the third pillar within the Fashion Business School, and arguably makes the world go round in all industries. Profit and the economy are interlinked systems that effect all individuals, orgnisations and governments worldwide.
The size of the fashion industry is unmeasurable in terms of physical size, but it can be measured through value and price. A McKinsey report estimates the global revenue of the apparel industry was between $1.7 trillion and $2.5 trillion in 2021 (McKinsey, 2022). The industry is extremely fast-paced and constantly increasing in size making it difficult to comprehend and measure, the fast-fashion movement has amplified this due to overconsumption.
One sector within the industry performing poorly is manufacturing and production. There are many practices and processes continuously used within the industry that cause extreme damage to the environment and social systems, affecting the industry as a whole. Examples include; using fabric dyes which pollute communal water sources and outsourcing to factories with unhealthy working conditions. On the other hand, textile recycling is a sector performing well and continuously researching areas for improvement. The industry is able to process 93% of waste without producing harmful byproducts or new hazardous waste (Hethorn, 2015). This poses the question; if waste can be processed sustainably, how come such vast amounts of clothing end up in landfill? There are many practices used to recycle clothes that have been perceived to reach the ‘disposal’ phase of the lifecycle. This includes; donating to charities and returning to the original store if a recycle scheme is available.
During uncertain economic times, such as a recession, there are many problems brands face that pose a threat to profit and growth, making survival during these periods essential. Focus from profit or growth should shift to the consumer and survival to mitigate the increased risks that surface as a result of unstable economic conditions. “Now is not the time to ignore the business you have. Place more emphasis on inside sales to your current customers” (Clausen, 2020). This can be achieved by researching current trends more thoroughly and paying greater attention to the actions of current customers.
Charles Fredrick Worth, the ‘Father of Haute Couture’, recognised the economic benefit of aligning himself with art and creativity over commerce making him the first creative director to successfully bridge the gap between creativity and commerce (Stevenson, 2019). In November 2019, Ikea collaborated with Virgil Abloh to create the IKEA x OFF-WHITE collection ‘Still Loading’. It incorporated the creativity of Abloh’s typical designs and the commerce of IKEA’s basic furniture to ‘tap into a younger market’ and exemplify contemporary fashion collaborations (Stevenson, 2019).
Reference List
Amed et al (2022) ‘The State of Fashion’ McKinsey & Company [accessed October 2022]
Bhatia, B (2020) ‘IKEA x Off-White is finally here & there are even more surprises in store for fans’ Stylist [accessed October 2022]
https://www.stylist.co.uk/fashion/ikea-x-off-white-collaboration-where-to-buy/319889
Clausen, E (2020) ‘Marketing Rules To Follow During Uncertain Economic Times’, Forbes [accessed October 2020]
Devaney, S (2017) ‘Stella McCartney Promotes Sustainable Fashion By Shooting Latest Campaign On A Landfill Site In Scotland’ Huffington Post [accessed October 2022]
Hethorn, J & Ulasewicz, C (2015) ‘Sustainable Fashion: What’s Next? Economic Impact of Textile & Clothing Recycling’, New York: Bloomsbury [accessed October 2022]
Stevenson, C (2019) ‘(I was there) when it all went down’, in Cronberg, A. (ed) Vestoj issue 9: On Capital [accessed October 2020]