Zaynah Siddiki

The profit pillar entails a certain revenue which companies obtain from selling their products, fashion brands have to think about the pricing and manufacturing costs of their products to determine the retail price and the profit percentage. Suppliers should also take into consideration the current economic state and the amount of disposable income their customers have. The fashion industry is a major contributor towards a healthy economy as it is currently valued at $1.7 trillion as of 2022 (Zippia, Oct 22). Fashion is one of the most important industries in the world, it has a significant place in the global economy and represents the seventh-largest economy (McKinsey 2017). The covid 19 pandemic took a hit on the fashion industry with major retailers being shut down, however, the post covid ‘revenge shopping’ made the industry grow by 18.1% in 2021 (Euromonitor International 2022).

There are various sectors within the industry such as distribution, manufacturing, advertising, retailing, and promoting. As technology has advanced throughout the years this has helped the fashion industry develop and produce items at a rapid speed and cheaper overall. Manufacturing and retailing was disrupted by covid 19, McKinsey business of fashion predicted that the US a7 China would recover as they are the two manufacturing and retailing powers. However, this would be more difficult for Europe as the number of consumers varies leading to the amount of exposure and profit for the brands to differ along with the trends changing. During the past few years as the pandemic hit, economic times have not been stable, brands have faced challenges such as dealing with debt. This has led brands to remain competitive to keep their spot in the industry, to do this they have to focus on marketing and their marketing strategies. Making new content regularly keeps consumers interested and excited about new products, this could include posting things on social media which is a free platform (Horizon marketing, 2022).

 Also by doing something new and exciting, this can spark consumer interest, for example by collaborating with other brands, for example in 2020 Gucci collaborating with the outdoor apparel brand North Face, this sparked interest within the community and it was a luxury retailer collaborating with a brand that focused on a different area of apparel. The gap between creativity and commerce is bridged through fashion shows and exhibitions, for example, the Balenciaga SS23 show where it was contextual by an artist, the models walked in a mud pit where the mud was brought from pairs and the guests sprayed with mud scent. This catwalk show sparked a conversation for the brand increasing its popularity and therefore profit.

REFERENCES

Colleen Baum, Pamela Brown, Emily Gerstell, and Althea Peng, (march 26, 2020) perspectives for north Americas fashion industry in a time of crisis,https://www.mckinsey.com/industries/retail/our-insights/perspectives-for-north-americas-fashion-industry-in-a-time-of-crisis

Euromonitor, (2022), (https://fashionunited.com/companies/euromonitor-international)

Horizon marketing, (august 8, 2022), the value of marketing in uncertain economic times,https://horizonmarketing.co/the-value-of-marketing-in-uncertain-economic-times/

McKinsey State of Fashion, (2017 report, McKinsey & BoF, in 2016),https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/state%20of%20fashion/2022/the-state-of-fashion-2022.pdf

Sky Ariella, (Oct 3, 2022), How much is the fashion industry worth,https://www.zippia.com/advice/fashion-industry-statistics/

People are the core of the fashion industry, the driving point for brands to create and promote certain products and services. Everyone should have representation in the fashion industry, this is an aspect which is highly focused on to give light to all body types, ethnicities, sexualities, and genders. It focuses on how brands respond to diversity and is one of the four pillars of fashion business. Generation Z is the latest generation of consumers and appreciate uniqueness and ethical values of a brand, along with sustainability. Gen Z are not the same as the generations before them as they are the first to grow up as digital natives as they have been exposed to technology throughout their lifetime (Drapers 2022). This generation is also accustomed to online shopping as they are mainly e-commerce, leading brands to create an online presence, they tend to spend more money on brands that value authenticity (Leon Curling, 2022). In order to attract Gen Z as customers brands should put extra time and effort into their social media occupancy as this is the main platform used, on social media platforms such as Tik Tok and Instagram to sell products. Brands should also make their ethos clear to customers as this is what attracts gen Z as they are known to shop at retailers which mirror their beliefs.

A brand which has responded to the diversity is Nike, they have a history of speaking out to support causes that match their values, for example, in 2017 (Pixlee 2022) they designed a sports hijab for women Muslim athletes and also launched a swim line dedicated for Muslim women along with using diverse models and throughout social media. 30.3% of their director level and above employees in the US are from racial and ethnic minority groups      (Nike 2021). In order for a fashion brand to be successful key people skills are essential, having attributes such as adaptability can be extremely useful as time is precious within the fashion industry and trends can change within a matter of days. To be able to multitask and be flexible are also important skills as this industry can require a lot of maintenance and attention making being able to communicate and problem-solve with others a skill which would highly benefit both the individual and the brand. Lastly, inclusivity is another skill which helps fashion brands become successful, this is due to them relating with their target audience and creating interest in their products. Overall people are the centre of the fashion industry leading this pillar to be extremely important.

REFERENCES

Benjamin Schneider and Diana lee, (11 October 22), Gen Z and age of realismhttps://www.businessoffashion.com/reports/retail/gen-z-fashion-in-the-age-of-realism-bof-insights-social-media-report/

Drapers bespoke, (2022), gen z and millennials,https://www.drapersonline.com/guides/gen-z-and-millennials-2022

Leon curling hope,(June 2022), Gen Z is changing,https://www.omniaretail.com/blog/gen-z-buying-ecommerce-behaviour

Mckinsey and company,(2022),state of fashion,https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/state%20of%20fashion/2022/the-state-of-fashion-2022.pdf

Nike,(2021), diversity,eequity and inclusionhttps://about.nike.com/en/impact/focus-areas/diversity-equity-inclusion

pixlee,,(2022),brands embracind diversity in their content,https://www.pixlee.com/blog/4-brands-embracing-diversity-in-their-content

Tracy Francis and Fernanda Hoefel, (2018),True gen,https://www.mckinsey.com/~/media/McKinsey/Industries/Consumer%20Packaged%20Goods/Our%20Insights/True%20Gen%20Generation%20Z%20and%20its%20implications%20for%20companies/Generation-Z-and-its-implication-for-companies.pdf

The fashion industry plays a key role in the planet’s lifecycle and is a major contributor to pollution and climate change, on average, textile produces 1.2 billion tonnes of c02 annually with 120 billion garments every year which is an excessive amount considering the world population consists of 7 billion individuals. This garment production technique is using up fertile land which instead could be used to grow crops. The Brundtland report (1987) describes sustainability as meeting the needs of the present generation without compromising the ability of future generations to meet their needs. A circular economy is an alternative in which items are reused for as long as possible and to repair, reuse and adapt materials. A circular economy also tackles issues such as climate change, biodiversity loss and pollution for products to be reused. At this point in time, the economy is only 8.6% circular. By promoting a circular economy there is a $4.5 trillion opportunity to minimising waste, create employment and reusing and repair which offer innovation opportunities. In relation to fashion, a circular economy contributes to creating better products for customers which also regenerates the environment.

Sustainability is a prominent factor within the fashion industry, it is not a new concept and has been part of the repertoire since the 60’s. Societies and cultures are connected through fashion on a global scale, the pulse of the fashion industry survey has identified 75% of customers in Brazil, the USA, China, and the UK depict sustainability as a key factor of a product they purchase and are more likely to pay a premium price for. Sustainable fashion has had a major uprise in recent years with new technologies developing to create more sustainable materials for garments. The United Nations have established seventeen sustainable development goals to implement peace and prosperity for people and the planet. One of these goals includes ‘life on land’ which aims to ‘protect, restore and promote sustainable use of terrestrial ecosystems, manage forests, reserve land degradation and stop biodiversity loss’. A fashion brand that relates to this goal is Stella McCartney, she helps the planet by never using leather, fur, feathers, or skin. Their offices and stores in the UK are powered by renewable energy sources, their collections also use as much organic cotton as possible. Overall, by individuals trying to be more sustainable along with the fashion industry, this can aid in reaching the end goal of the planet returning to its true form and decrease the amount of damaged caused by both individuals and the fashion industry.

References

David B Mcginty, (February 3, 2021), 5 opportunities of a circular economy, https://www.wri.org/insights/5-opportunities-circular-economy#:~:text=Research%20shows%20that%20the%20circular,models%20offer%20significant%20innovation%20opportunities.

Department of Economic and Social Affairs, (2022), goal 15, https://sdgs.un.org/goals/goal15

Ellen macarthur foundation, redesigning the future of fashion, https://ellenmacarthurfoundation.org/topics/fashion/overview#:~:text=Our%20vision%20for%20a%20circular,industry%2C%20and%20regenerates%20the%20environment.

European parliament, (26-04-2022 – 14:41),circular economy, https://www.europarl.europa.eu/news/en/headlines/economy/20151201STO05603/circular-economy-definition-importance-and-benefits

Giorgia Marino, (21 JAN 2022 17:47), Circularity gap report, https://www.renewablematter.eu/articles/article/circularity-gap-report-2022-only-8-6-of-the-global-economy-is-circular

Wearme fashion, (2021), sustainable fashion

My favourite fashion brand is Off White, this company was founded by Virgil Abloh in 2013, this brand appeals to me as it represents my personal sense of style, it has opened showrooms in 15 worldwide locations and featured in multiple fashion weeks. It merges streetwear culture with premium fashion creating a gap in the market which has appealed to a large number of individuals leading the popularity, growth and success of the brand to increase rapidly. The brand logo is simple yet effective due to it being easily recognisable as it isn’t necessarily exclusive to the off-white brand, it is also displayed on crossings and road signs for decades once again linking back to the streetwear tone. This company appeals to me as it frequently collaborates with other brands and releases limited edition items which have reinvented the reselling market. The brand’s target audience is also millennials leading it to appeal to younger generations. Some of the most recent and world renounced collaborations the brand has released include the Off-White x Nike, this collaboration went viral and was overwhelming to the streetwear community, they were some of the most iconic trainers Nike has ever released that came with a modern twist and included en-vouge themes. Off White had a seemingly good reputation leading the popularity and interest of the brand combined with Nike’s established popularity to be a major hit! The brand has also collaborated with other brands such as Mr Porter, Evian, Mercedes, IKEA, LV and many more, this shows the diversity and adaptability of the brand leading it to be diverse and adaptable.