Profit: Art and Commerce
Profit is the 3rd pillar of fashion business which focuses on long-term financial success, balanced with brand purpose. This has become more important especially in the new state of the economy since profit is more driven by purpose rather than the other way around.
The size of the fashion industry can be measured monetarily and currently stands at $1.5 trillion USD and is predicted to increase to approximately $2 trillion by 2026 (Statista 2022).
For an economy to be successful, institutions must meet the needs and desires of consumers a major one being disposable income. Each sector in the industry needed to respond to these changes accordingly to remain competitive. When the pandemic hit, the marketing and communications sector of the industry became responsible to bring in sales and regulate profits. This is also faced with new standards that are linked to the environmental impacts of fast fashion and luxury labels on the planet.
Fashion is a necessity but past a certain point, it becomes a luxury, and consuming fashion at a sustainable pace is becoming more and more important but less and less accessible. This opens the door for brands to increase consumer interest in the brand and maintain profitability. Zara is the world’s largest clothing retailer, being responsible for churning out roughly 840 million garments every year in 6,000 stores worldwide. (Chua, 2019) The fast fashion sector has faced the largest impact in this new era of Gen Z consumers and post-pandemic industry changes.
The present overconsumption has raised questions amongst consumers and has seen a shift to find more sustainable and ethical options. Through the use of social media and consumer-driven change, brands can remain financially competitive in this new age since information is filtered to be digestible for the brand’s audience. (Hethorn and Ulasewicz, 2015)
On the other hand, this has given the chance to creative directors in the Haute couture sector to combine art and commerce. Consumers aren’t looking to purchase haute couture since it is already seen as a luxury, pushing artistic expression is a way for couture houses to remain competitive alongside the fast fashion sector, stirring important conversations in modern culture and society.
Demna has reinforced Balenciaga’s reputation as a streetwear brand and says that couture might become the driving force of fashion again. (Campbell, 2020) Balenciaga closed its couture house in 1968 and made a return with its Fall ’22 collection with direct references to Cristóbal Balenciaga’s work. Demna has been able to subtly bridge this gap between modern material technology and traditional patterns whilst marrying the art and commerce of fashion design and presentation.
Campbell, G. (2022) Demna Gvasalia is preparing us to care about couture for the first time. Available at: https://www.highsnobiety.com/p/balenciaga-haute-couture/ (Accessed: 2 November 2022)
Chua, J.M. (2019) The environment and economy are paying the price for fast fashion – but there’s hope. Available at: https://www.vox.com/2019/9/12/20860620/fast-fashion-zara-hm-forever-21-boohoo-environment-cost (Accessed: 2 November 2022).
Hethorn, J., & Ulasewicz, C. (Eds.). (2015). Chapter 4-social media as a tool for social change Page: 81
Smith, P. (2022) Global apparel market – statistics and facts Available at: https://www.statista.com/topics/5091/apparel-market-worldwide/#topicHeader__wrapper (Accessed: 2 November 2022)