Najah Johnson

The profit pillar explores the economic state of the fashion industry. The two elements that make up an economy are economic components and economic systems. Economic components are things such as Individuals, goods, services or minerals whilst economic systems identify the structures used to contribute to economy e.g., Value (the structure used to measure the importance we place on things within our economy).

The fashion industry is valued highly within our economy. This is evident through the size of the global fashion market which was worth $1.5 trillion in 2021 and is estimated to reach $2 trillion in 2026 (Statista 2022). There are various sectors within the fashion industry that contribute to the size of the market. Some examples of these sectors are retail, marketing, and manufacturing.

Fashion retail, specifically online, performed well during COVID. In 2020 the online retail sector saw a significant increase in online demand. Since everyone was home during lockdown, people relied on online platforms to fulfil their consumer needs. This triggered a 48% growth in online retail sales during 2020 (Mintel 2022).  As we move into the current cost of living crisis, the online retail market is expected to decline and rebalance as people are becoming more conscious of their spending habits. Despite the current economic state, the market is expected to return and stay in growth up until 2027.

Social media enables brands to maintain their presence during uncertain economic times. The use of social media allows brands to compete with one another in an easier and faster way. As the state of the economy continuously shifts in unknown ways, brands may invest less money into advertisement methods such as TV /billboards, and instead use online platforms to promote their clothing. Another method brands must rely on to remain competitive is brand loyalty. Consumers will continue to purchase products from the brands they’ve built a relationship with. Once brands gain a customer’s trust, it is likely that the customer will remain faithful to them.

For creative directors to bridge a gap between creativity and commerce, they must nurture the skill of making their art desirable. For instance, many consumers like to purchase products with a story. Therefore, if brands portray a message of meaning through their products, there is a higher likelihood of sales. This was done by Chanel in the 1920’s with the creation of the Chanel suit. The Chanel suit was described as a ‘game changer’ as she wanted to move women out of the restrictions of corsets and into the freedom of looser clothing which was seen as masculine at the time. This is an illustration of how designers/creative directors can find balance between creativity and commerce.

References:

Cerini (2021) How Coco Chanel changed the course of women’s fashion https://edition.cnn.com/style/article/coco-chanel-fashion-50-years/index.html

Mintel (2022) Online Retailing- UK- 2022 https://reports-mintel-com.arts.idm.oclc.org/display/1153399/?fromSearch=%3Ffreetext%3DFashion%2520Online%2520%25E2%2580%2593%2520UK%2520%25E2%2580%2593%25202022%26resultPosition%3D1

Statista (2021) Global apparel market – statistics & facts https://www.statista.com/topics/5091/apparel-market-worldwide/#topicHeader__wrapper

‘People’ are one of the pillars of sustainability that are explored at LCF, and they are significant in the process of implementing sustainable practices. People are not only the designers who are creating & sourcing products/materials but they are also the consumers of these products. In order to become more sustainable, people have the social responsibility to make the conscious effort to sensibly produce and consume clothing (Hethorn, J., & Ulasewicz, C. 2015).

Gen Z are the currently the dominant consumers, accounting for 40% of global consumers (McKinsey 2019). Gen Z are focused on three things when consuming (Francis & Hoefel 2018). Firstly, they focus on access rather than possession. For instance, their main concern is the access of services and goods such as subscriptions and streaming etc. Unlimited access to these services has become a new form of consumption for this generation. The second focus point for them is individuality. Gen Z thrives off self-expression and values originality. As a result of this they consume products that they believe will establish them from the crowd e.g. the rise of personalised products and customisations. Lastly, Gen Z consumption is anchored on ethics. When investing in products, they expect their favourite brands to be ethically conscious. This includes factors such as being environmentally friendly or promoting diversity. Brands should use these 3 focal points if they want to attract Gen Z as their consumers. 

Brands can also attract the gen Z demographic by using other methods such as social media marketing. 50.3% of Gen Z use tiktok (Moran 2022), this makes it easier for brands to reach consumers. The rise of social media has made marketing simpler as many brands are using influencers to promote their products. Consumers are more likely to purchase products they’ve seen worn by online public figures as it seems more accessible for them to purchase. In 2022, it has been recorded that 60% of Gen Z buy via social media. (Moran 2022).

As Gen Z push for more representation and diversity within fashion, it is important that brands prove they are intentional with their efforts to be inclusive and create a space for everyone to feel valued. Fashion brands need this skill to be successful as for the last few decades, the fashion industry was only centred around people with Eurocentric features. Some brands have done well in showcasing diversity in their products. For example, Fenty Beauty by Rihanna has succeeded in producing products for different skin tones and responding positively to diversity. They are a clear example of how inclusivity can lead to success. 

References:

Hethorn, J., & Ulasewicz, C. (Eds.). (2015). Connecting with people on sustainable practices.

McKinsey (2019) The influence of ‘woke’ consumers of fashion

McKinsey (2019) ‘True Gen’: Generation Z and its implications for companies 

Moran, G. (2022) Drapers, Gen Z and Millennials 2022 

Our planet is largely affected by the fashion industry and is an important pillar of sustainability. Fashion would be non-existent without the environment as it sources all the materials needed for production. Although the fashion production needs the environment to strive, the industry destroys the planet more and more every day.

Circular economy is a model that was created with the intentions to reduce the waste accumulated during the production of materials/clothing etc. This model has been heavily promoted by The Ellen MacArthur foundation and identifies three key principles for circular economy:

1. To eliminate waste and pollution.

2. To circulate products and materials

3. To regenerate nature.

The CE model encourages people to utilise and renew their products instead of discarding them. Upcycling is a clear example of circular economy. You take an old product and transform it into something new rather than purchasing more and increasing unnecessary consumption. 

The future of the fashion industry must be sustainable as it has contributed to a large amount of environmental damage and is a key contributor to the world’s pollution and climate change. Fashion accounts for an estimated 8% of the world’s greenhouse gas emissions (Quantis 2018) and factors such as fibre production accelerates the destruction of the planet. Sustainability within fashion will increase the chances of transforming the planet. It will enable the reduction of waste and can extend the life cycle of existing products. Creating a sustainable future is hard, especially with the rise of fast fashion. Fast fashion is damaging as it has a negative effect on the world’s agriculture, especially in low-income countries. However, taking steps such as making use of existing fibres instead of farming more, could possibly begin to minimise the environmental harm caused due to the production and consumption of fashion.

Brands and organisations that focus on sustainability and the circular economy, often incorporate the United Nations’ 17 SDGs into their research. SDGs are sustainable development goals that should create a sustainable future by 2030. These goals help brands make conscious efforts to be sustainable within their business/productions.

SDG #12: responsible consumption and production, is relevant in turning around the substantial amount of waste gathered on the planet. Brands must recognise that it is important for them to source materials responsibly, ensuring that they limit waste and carbon emissions when producing their products. If consumers also become more intentional with their purchases, the overconsumption of useless products will reduce as well. 

references:

https://ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview

Gwilt, A. (2020). A Practical Guide to Sustainable Fashion. London: Fairchild Books. (e-book) (page 10-11)

https://www.un.org/sustainabledevelopment/sustainable-development-goals/

https://quantis.com/wp-content/uploads/2019/11/measuringfashion_globalimpactstudy_quantis_2018.pdf (page 2)

My favourite fashion brand is Chanel as I love their collections. The founder of Chanel ‘Coco Chanel’ had an influential impact on women’s fashion and how we see bit today. Chanel was responsible for moving women out of corsets and lace to pants and shirts. This was liberating for women in that era as pants weren’t yet seen as fashionable clothing for women but just seen as workwear for them post World War 1.

One of my favourite designs curated by Chanel has to be the “Chanel suits”. This was a game changer for the women in. the 1920’s as it was introduced to the world as a modern piece of clothing for women with a masculine edge. Many influential women have worn these suits from Audrey Hepburn to Princess Diana. 

Not only is Chanel a mogul within the clothing industry but they also dominate the fragrance industry with Chanel no.5. Chanel describes it as ‘A woman’s perfume, with the scent of a woman’.  

I think fashion lovers all over the world can agree that without Chanel, the fashion industry wouldn’t be where we are today.