Profit
Profit as a pillar of sustainability
The fashion industry is one of the largest industries around the globe. The number of garments produced annually exceeded 100 billion as early as 2014 (Solene Rauturier, 2022). This number is almost 13 times higher than the world’s population. The amount of waste generated by the fashion industry is no less impressive, producing over 120 billion tons of CO2 annually (Jasmine Chinasamy, 2018). The number of clothes produced will increase every year, in parallel with the increase in demand, which will reach 93 million tons of clothes per year by 2030 (Solene Rauturier, 2022). These facts put the fashion industry on par with other market giants, like the beauty industry.
Fashion Industry Sectors
To maximise profit and understand the market, it is essential to understand how the sectors of fashion marketing are working in the fashion industry’s supply chain. Many segments are supporting the fashion industry. However, they can be categorised as designing, producing materials and clothes, and distributing and reaching the customer (Ania Zoltkowski, 2022). Other segments of the fashion industry are marketing and branding. They are the key to communicating the brand’s idea to the customers. Looking at the general idea of branding, creators usually try to develop a background that potential customers will associate with while wearing particular pieces of clothes.
How to be competitive in uncertain economic times?
Currently, many segments of the fashion industry supply chain are working toward a linear economy generating over 120 billion tons of CO2 annually (Jasmine Chinasamy, 2018). However, the circular economy is a more sustainable analogue to the linear economy (Figure 1). Furthermore, applying a circular economy might increase profits. Investing in high-quality materials and reusing them at the end of the lifecycle will contribute to reducing costs on energy and waste consumption (Gabriele Glebute, 2022)
Figure 1. Visualisation of linear and circular economy ( Jennifer Perr, 2020)
As stated earlier, marketing and branding are essential to attract customers and increase sales. Social media marketing can be one of the easiest and most efficient ways for successful marketing. Social media created an opportunity for small and big creators to demonstrate their works and sell them. Furthermore, many people are specifically looking to support small creators. Generally, social media makes it possible to build a stronger relationship with customers and multiply profits. For instance, a fashion industry giant, ASOS, has over 10 million followers on Instagram, which allows it to increase brand awareness and revenue. (Tiahn Wetzler, 2020) (Figure 2).
Figure 2. ASOS Instagram Page (Alejandra Jauregui, 2018)
Creativity and Commerce
There are two fashion industry aspects to keep in mind – creativity and commerce. It is often the creative director who brings these concepts together. For example, Balmain expects creative directors to work with design and develop an all-encompassing vision that will resonate with customers and can be promoted through social media. This fact again allows us to feel how strongly social media is implemented in the fashion industry (Alexandra Mondalek, 2019).
References
Chinasamy, J. (2019). London Fashion Week: Fast facts about fast fashion. [online] Unearthed. Available at: https://unearthed.greenpeace.org/2019/09/12/fast-facts-about-fast-fashion/.
Gabriele Glebute (2022). Circular Economy: What is It and Why It’s Important in Business. [online] Available at: https://enterprisemadesimple.co.uk/circular-economy-business-benefits/ [Accessed 24 Oct. 2022].
Mondalek, A. (2019). What luxury fashion brands want in a creative director – Vogue Business Talent. [online] Vogue Business Talent. Available at: https://www.voguebusiness.com/talent/articles/luxury-fashion-brands-creative-director-balmain-louis-vuitton-virgil-abloh/.
Perr, J. (2020). Consumption, Sustainability, and the Circular Economy. [online] Hi-Cone. Available at: https://hi-cone.com/2020/08/the-total-cost-of-consumption/.
Rauturier, S. (2019). How Widespread is Waste in Luxury Fashion? [online] Good On You. Available at: https://goodonyou.eco/waste-luxury-fashion/.
Wetzler, T. (2020). Social media marketing for fashion brands | Adjust. [online] www.adjust.com. Available at: https://www.adjust.com/blog/social-media-marketing-for-mobile-fashion-apps/.
Zoltkowski, A. (2017). What On Earth Is A Clothing Supply Chain? [online] Good On You. Available at: https://goodonyou.eco/what-is-a-clothing-supply-chain/.