Camila Tedeschi Mendes Caldeira

In the fashion industry, the Purpose pillar, typically following the order of planet, people, and profit, plays a crucial role in strategic planning and communication. It serves as the platform for a company to express its core purpose and values, inspiring and guiding employees, partners, and customers. Beyond profit, it fosters a deep sense of personal contribution to the company’s larger mission.

BRAND PHILOSOPHY

A brand’s philosophy is the foundation of its mission, values, and vision, differentiating it from competitors. It goes beyond marketing, reflecting beliefs that resonate with the audience and embodying a commitment to positive impact. As a brand, your philosophy is rooted in how your business defines itself, shaping its identity and subsequently presenting it to the wider public. This philosophical underpinning forms the essence of the brand and guides its interactions with the world. (Silva, 2020)

GEN Z

In the contemporary landscape of the fashion industry, Generation Z emerges as a primary target for sales. Born in the early 2000s, this cohort, now in their twenties, drives the rapid evolution of trends, primarily facilitated by the immediacy of social networks like TikTok and Instagram. This phenomenon bolsters the fast fashion sector, catering to the ever-changing desires of the masses, leading to substantial profits.

While fashion trends have historically been cyclical, Generation Z’s entrance into the scene heralds a search for sustainability. In contrast to the preceding Millennial generation, Generation Z has ushered in the rise of the second-hand and reuse market, promoting eco-friendly practices. In partnership with Oxfam, Marks & Spencer initiated the ‘Shwopping’ campaign in 2012, urging consumers to donate clothing for reuse. Despite raising awareness, donated items remain less numerous compared to direct reuse within personal networks. (Gwilt, 2020)

This demographic’s shift in consumption patterns extends to how they purchase products, expanding opportunities for emerging brands, increasing distribution, and facilitating more sustainable practices. This, in turn, contributes to the explosive growth of social networks. Digital influencers wield increasing influence, reshaping the global fashion market. Moreover, collaborations with celebrities prove to be a potent strategy, significantly attracting Generation Z and yielding swift sales and substantial benefits for brands.

In this dynamic landscape, for brands to distinguish themselves and remain authentic, forging an emotional connection with consumers becomes paramount. This connection ensures a brand’s lasting positioning and perspective. The transition from being merely omnichannel to the concept of being omnipresent underscores the importance of brands adhering to their story and authenticity. (McKinsey & Company, 2020)

BIBLIOGRAPHY:

EmbedSocial. (2023) Brand collaborations on Instagram: How to find them? Available at: https://embedsocial.com/blog/brand-collaborations-on-instagram/ (Accessed: 30 October 2023).

Gwilt, Alison. (2020) A Practical Guide to Sustainable Fashion, Bloomsbury Publishing USA, 2020. Available at: http://ebookcentral.proquest.com/lib/ual/detail.action?docID=6234061 (Accessed: 27 October 2023)

Hatchwise. (2021) Business philosophy examples. Available at: https://www.hatchwise.com/resources/business-philosophy-examples (Accessed: 30 October 2023). 

McKinsey & Company. (2020) Meet Generation Z: Shaping the future of Shopping. Available at: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/meet-generation-z-shaping-the-future-of-shopping (Accessed: 27 October 2023). 

M&S. (no date) What is shwopping? Plan A Shwopping. Available at: https://www.marksandspencer.com/c/plan-a-shwopping (Accessed: 30 October 2023). 

Silva, P. (2020) Why philosophy has much to do with brand-building (and what that looks like), Forbes. Available at: https://www.forbes.com/sites/piasilva/2020/11/19/why-philosophy-has-much-to-do-with-brand-building-and-what-that-looks-like/?sh=3e21039171f9 (Accessed: 28 October 2023). 

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] 

People is one of the main pillars of the fashion industry, which brings together the consumer with the brands business strategies to help market their products and attract new consumers who are also known as generation Z or commonly referred to as ‘Gen Z’. They’re called “digital natives”—the first generation to grow up with the internet as a part of daily life (McKinsey, 2023).

GEN Z

Members of Generation Z, commonly born between the mid-1990s and mid-2010s, have emerged as a distinctive cohort of consumers characterized by unique preferences and behaviors. As digital natives, they have grown up in a world saturated with technology and social media, making them exceptionally tech-savvy and interconnected (Twenge, 2017). Luxury brands needs to invest in unique marketing tactics to capture the young audience attention. Co-branding is a trend that brands have attempted with collaborations such as, Gucci and Adidas surpassing the usual limits by creating unique logos and prints for the co-branded collections (Mitterfellner, 2023). Furthermore, in total, 87.7% of Gen Z and millennial consumers use apps to buy fashion at least occasionally, up from 85.5% last year. While it is interesting to note the different patterns of usage between the two cohorts, both Gen Z and millennial shoppers are clearly keen on the speed, ease and engagement factor of apps (Moran, 2022). Therefore, sales are growing into online transactions as brands have introduced an virtual environment that consumers find easy to navigate, enhancing the exclusivity of its distribution network and attracting Gen Z consumers.

DIVERSITY

The “Dream Crazier” Nike’s campaign, featuring tennis star Serena Williams, highlighted the achievements of female athletes and encouraged women to break down barriers in sports. Furthermore, the company has made efforts to address diversity in its workforce by setting targets to increase the representation of women and underrepresented minorities in leadership positions. These actions not only align with Nike’s core values but also respond to the growing demand for more inclusive and representative branding in the marketplace (Nike, 2021). 

Have you ever wondered how much the fashion industry impacts our environment? The industry is often criticized for its excessive waste, unethical labor practices, and relentless pursuit of profit at the expense of our planet. In this blog post, we will be addressing these concerns and delving into the realm of the backstage of this far from glamorous world.

In a world driven by trends and ever-changing styles, the fashion industry has long been associated with glamour, creativity, and innovation. Each step in the fashion supply chain contributes to environmental degradation, however, there is a growing awareness among both consumers and industry insiders about the urgent need for change. A few fashion companies such as Inditex, Lacoste, Primark, PVH Corp, and Tommy Hilfiger have participated in the Make Fashion Circular initiative, collaborating with NGOs to promote a circular economy. This is a term that refers to markets that give incentives to reusing products, rather than scrapping them and then extracting new resources, ensuring recyclability (both technical and nutrient). 

Circular Economy

The circular economy should not be seen as a substitute for sustainability, but rather as a complement to other ongoing efforts. Sustainability in fashion is more than just a buzzword. It encompasses various aspects, such as eco-friendly materials, ethical labor practices, and conscious consumer choices. For example, the Ellen MacArthur Foundation was developed in conjunction with industry partners such as H&M, Lenzing, and Nike, which prioritizes clothes and textiles being kept at their highest value during use and re-entering the economy after use, never ending up as waste (Gwilt, 2014). This highlights the efforts of brands, designers, and activists who are starting to drive positive change and setting the stage for a greener, more equitable future in fashion.

SDG’s

Most importantly, the Sustainable Development Goals, known as SDGs, are 17 objectives set for a better vision of the future and are crucial because they underpin our global response to some of the biggest global problems, from poverty and hunger to environmental conservation and gender equality. Namely, SDG 5 “Gender Equality”, consists of destroying stereotypes, promoting fair wages and providing equal opportunities for all genders. For instance, the Miu Miu FW22 fashion show brought to the runways a genderless collection that features clothing items that can be worn by people of any gender identity such as men using crop tops and mini skirts. This Miu Miu expansion into genderless appealed to an increasingly broad Gen Z target audience (Salamone, 2022).

Bibliography

Gwilt, Alison. (2014) A Practical Guide To Sustainable Fashion. Available at: https://pt.scribd.com/document/672813816/A-practical-guide-to-sustainable-fashion-by-Alison-Gwilt [Accessed in 5 Oct. 2023]

Salamone, Lorenzo. (2022) The new genderless of Miu Miu. Available at: https://www.nssmag.com/en/fashion/29205/menswear-miu-miu [Accessed in 7 Oct. 2023]