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/.

Profit is an essential factor that allows the fashion industry to succeed. In 2021 the size of the fashion industry reached around $1.5 trillion with the prediction for it to increase by $500 billion by 2026. 

Revenue of the apparel market worldwide from 2013 to 2026 (in billion U.S. dollars:

Fig. 1- (Statista, 2022) 

As seen in figure 1, in 2020 the apparel market saw about a 12% decrease in revenue from the previous year. In these uncertain times brands have had to make changes to be able to continue to operate within the market; due to the closure of stores, many companies have had to rely on their e-commerce and marketing to be able to reach their target consumers. Brands such as Irene Neuwirth, a jewelry designer used her e-commerce website to be able to continue to sell her products online during the pandemic, she also engaged with customers and/or future customers on her social media platforms, this allowed her to create relationships with the consumers. This allowed her brand to continue to make profits without being affected by the economic crisis. 

Consumers such as gen z look for brands to be transparent about their values and beliefs, such as their sustainability goals, this could be done by brands being more active on social media or brands working with bloggers, which allows brands to be able to expand their engagement and work with bloggers that have the same beliefs and values as them. Brands can make profits as bloggers can influence their audience to buy the goods, as the audience may want to copy the blogger and trust their opinion. 

In the fashion industry, there are many different sectors that perform different tasks such as manufacturing, marketing and retail. However, each sector is performing differently; the manufacturing sector is performing poorly as the ‘fast fashion’ business model has been pushing over-consumption which creates negative environmental impacts, but with high demand for cheap clothing, materials used will be worse for the environment as they are less likely to be able to be recycled. Sectors such as marketing however are performing well, with trends and technologies continuing to change brands can continue to successfully market their products in new ways to stay relevant and connected to the consumer, which can increase overall sales for the brand. 

To overcome the bridge between creativity and commerce is that creative director should integrate both factors when making their art. However, by thinking more creatively, it allows for commerce to have a different approach to business by having more freedom and creativity and therefore the art can appeal to the consumer as the brand doesn’t focus on just the commerce aspect of the design process. 

“Fashion is one of the world’s most important industries, driving a significant part of the global economy. It is one of the key value-creating industries for the world economy.” stated McKinsey in its State of Fashion 2017 report (2016). As one of the four pillars, profit is the pillar of the fashion industry. Before the Covid-19 pandemic, the fashion industry global revenue was estimated between $1.7 trillion and $2.5 trillion (McKinsey analysis, 2019).

The fashion industry as the world’s fourth largest industry has a strong market. According to Fashion United (2022), the industry has a labor force of 3,384.1 million. Its value is equivalent to 3 trillion dollars. That means, it corresponds to 2% of the world’s Gross Domestic Product (GDP).

The fashion industry consists of several key sectors. Fashion design and manufacturing translate some new fashion trends into concrete fashion items for the public to see. Fashion retailers buy products from manufacturers and sell them. Fashion marketing is the process of managing the product flow to maximize the profitability of the brand and the company.

What can a brand do to stay competitive in this uncertain economic climate? Firstly, I think brands have to have unique selling point in order to stand out in the same space. In addition, capturing the target customers of the brand is also an indispensable way. Through some brand innovation and marketing strategies to maintain a good relationship with these customers. Finally, the brand should keep up with the current trend, cater to GenZ’s taste, and adapt to uncertain factors in order to stand firm.

Designers try their best to balance commerce and creativity in the development of a brand. A brand without profits is like a brand without a pillar. Marni x Uniqlo is a good combination of profit and innovation.

Marni is known as a luxury fashion brand for its bright colors, graphics and bold stripes, while Uniqlo is favored by consumers for its affordable comfort. The cooperation between the two brands not only follows the current fashion trend but also has a high cost performance ratio, which has attracted a large number of consumers. At the same time, it also became famous. It combined creativity and commerce perfectly, and gained a good influence in the uncertain environment. “It combines impeccably crafted clothes with MARNI’s offbeat and life-embracing spirit. I really hope that wearers feel good, that they feel themselves, that they feel free” says Creative Director of Marni, Francesco Risso(2022). 

Marni x Uniqlo 2022SS look

Jackson,C (2022) Marni X Uniqlo Is The Brightly Coloured, Bold And Joy-Bringing Collab We All Need This available at: https://www.elle.com/uk/fashion/what-to-wear/a39837587/uniqlo-marni-collaboration/  (accessed on Oct 23th)

McKinsey & BoF(2016) McKinsey State of Fashion 2017 report available at: https://fashionunited.com/global-fashion-industry-statistics (accessed on Oct 23th))

McKinsey analysis (2019) McKinsey report ‘State of Fashion 2022: An uneven recovery and new frontiers’ available at: https://fashionunited.com/global-fashion-industry-statistics  (accessed on Oct 23th)) 

Vilaca,J(2022) FASHION INDUSTRY STATISTICS: THE 4TH BIGGEST SECTOR IS WAY MORE THAN JUST ABOUT CLOTHING available at: https://fashinnovation.nyc/fashion-industry-statistics/ (accessed on Oct 23th))

Uniqlo (2022) A closer look at the UNIQLO and MARNI Spring/Summer 2022 collection available at:https://www.uniqlo.com/uk/en/contents/collaboration/marni/22ss/article/02/   (accessed on Oct 23th)

The profit pillar in the fashion business school discusses economy being less about monetary value and more about it being a series of systems through which humanity provisions the requirements of life and society. The economic components are known as actors, made up of individuals and households, human-made, being goods and services and lastly, planet-made, such as plants and animals. Capitalism is also discussed within this which is an economic system using finials, human and planetary resources to produce goods and services to supply the demand of consumers. The fashions industry’s current size sits at $1.7 trillion in 2022.  The global fashion industry’s profit is expected to fall by 93% in 2020. Globally the fashion industry has been valued at $2.4 trillion (McKinsey state of fashion). (https://fashiondiscounts.uk/fashion-industry-statistics/) 

According to Forbes May 2020 report on the world’s largest apparel companies, luxury brands such as Louis Vuitton, Christian Dior and Givenchy has the biggest market value of $194 billions making it 73rd largest publicly traded organisation in the world. Sportswear company Nike finished is ranked 244th largest publicly traded company in the world, with Adidas ranking among top 400 with more than $25 billion in sales and athelisure brand Lululemon ranking 1209th with nearly $4 billion sales. (https://fashinnovation.nyc/fashion-industry-statistics/)

Mckinsey State of Fashion report 2017 sates ‘Companies are adapting to new consumer priorities, and digital is providing a nexus for growth’. In order for a brand to stand out remaining competitive it needs to establish a strong identity that is shown to be consistent throughout the brand. Customers are beginning to factor in sustainability into their purchasing as reports such as UNECE 2018 on sdg’s (unece.org/forestry/news/fashion-environment) shows that 10% of global carbon dioxide emissions come from the fashion industry. Reports such as these have made consumers more aware of their carbon footprint and therefore are wanting to shop more sustainable where they can; therefore in turn may search for a brand with sustainability values. 

Charles Frederick Worth who is known as the grandfather of haute couture aggressively marketed himself and the clothing revolutionising women wear for everyday use. He was the first to use real life models in his studio for fittings, recognise the use of magazine marketing and began to sew his signature into clothing as if it was a piece of art.

Virgil Abloh, the creative director of ‘Off White’ bridged this gap by representing the importance of youth culture. Abloh took normal objects and transferred them into a fashion accessory. HIs collaboration with Nike in 2017 used an everyday item of a zip tie on the shoe naming the date and creation of the product. Creative directors must look at the cultural economy to gain a profit.

As John Hawkins observes, “creativity is not new and neither is economics, but what is new is the nature and extent of the relationship between them, and how they combine to create extraordinary value and wealth.” The idea of a ‘cultural economy’ into which these activities and personas exist, provides a ’critical tool for grasping the dynamics between art and commerce.’ (Slowinska, 2014: p 239 – 241). Creative directors must look at the three capitals discussed by Pierre Bourdieu 1993 (Richardson, J., Handbook of Theory and Research for the Sociology of Education) Cultural, the knowledge of culture acquired through upbringing and education as breaking that down into fashion capital of your knowledge in the fashion world, Social, who you know and your social networking groups and economic, how much money you have. 

References 

Mckinsey state of fashion 

unece.org/forestry/news/fashion-environment

Slowinska, 2014: p 239 – 241

Richardson, J., Handbook of Theory and Research for the Sociology of Education

fashiondiscounts.uk/fashion-industry-statistics

‘Profit’ is the third pillar within the fashion business school. Profit is defined as “money that is earned in trade or business after paying the costs of producing and selling goods and services”(Cambridge dictionary,2022). Profit and the economy are a series of systems through which humanity provisions the requirements of life and society and therefore without it the industry would collapse.

Fashion is one of the key industries, which contributes to a large amount of the overall global economy. The fashion industry has no specific size or scale but can be measured through its value and prices. “If it was ranked alongside individual countries, the global fashion industry would represent the 17th largest economy in the world” (McKinsey, 2017). In 2021 before the pandemic, the revenue of the fashion industry was estimated between $1.7 trillion and $2.5 trillion (Fashion United, 2022). As the industry is so fast-paced as well as the fast fashion movement is amplified it’s difficult to measure the true size of the fashion industry.

Within the fashion industry, there are multiple sectors both performing well and extremely poorly. Due to today’s climate manufacturing is performing badly. Brands are mass-producing garments made from cheap materials as well as being constructed poorly. Fabrics such as polyester, and oil-based synthetics have been bleached, dyed and dipped in chemical baths which causes a large negative impact on the environment. Marketing is a sector performing well as it can empower brands to stay longer and stronger in the minds of their buyers. Digital marketing allows brands to reach their target market as well as have a strategy to increase their reach and audience.

During uncertain economic times, brands will need to change their ways of thinking to remain competitive. Brands can often underestimate the power of marketing and the importance of having a unique strong selling point. During Covid 19 brands had to shift from focusing on profit and growth and invest in the power of marketing and social media. As it was an uncertain time it was vital to be present and interact with your customers to increase your engagement.

Virgil Abloh is an American Fashion designer and entrepreneur and founder of OFFWHITE. Describing his brand as “the grey area between black and white as the colour off-white” (Varsity, 2022). After founding Off White in 2013 he later did a collection with Ikea to create the IKEA x OFFWHITE collection. The collaboration incorporated IKEA’s well known furniture and Virgil’s designs and was created to attract a younger audience. Similarly, Charles Frederick Worth Known as the “Father of haute couture” (The Met, 2004) dominated Parisian fashion as he focused on art and creativity over commerce, making him the first creative director to define the gap between creativity and commerce.

References:

Amed , I. (2022) State of Fashion 2022: An uneven recovery and new frontiers, McKinsey & Company. McKinsey & Company. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion (Accessed: October 24, 2022).

Cambridge University Press (2005) Profit, Cambridge Dictionary. cambridge . Available at: https://dictionary.cambridge.org/dictionary/english/profit (Accessed: October 24, 2022).

Environmental sustainability in the fashion industry (2021) Geneva Environment Network. United Nations . Available at: https://www.genevaenvironmentnetwork.org/resources/updates/sustainable-fashion/ (Accessed: October 24, 2022).

Global Fashion Industry Statistics (2020) FashionUnited. fashion united . Available at: https://fashionunited.com/global-fashion-industry-statistics (Accessed: October 24, 2022).

Krick, J. (2004) Charles Frederick Worth , Metmuseum.org. Metropolitan museum of art . Available at: https://www.metmuseum.org/toah/hd/wrth/hd_wrth.htm (Accessed: October 24, 2022).

McGarrigle, W.B.L. and Editor, L.M.G.N.& C. (2019) Everything you need to know for the virgil abloh x IKEA drop Today, Highsnobiety. Available at: https://www.highsnobiety.com/p/virgil-abloh-ikea-collaboration-best-look/#:~:text=IKEA%20x%20OFF%2DWHITE%20release,November%201%20at%2010%20a.m (Accessed: October 24, 2022).

Morris, E. and Morris, E. (2022) The Life and Death of Virgil Abloh, Varsity Online. Available at: https://www.varsity.co.uk/fashion/22623 (Accessed: October 24, 2022).

Smith, P. (2022) Topic: Apparel market worldwide, Statista. stroer media . Available at: https://www.statista.com/topics/5091/apparel-market-worldwide/ (Accessed: October 24, 2022).

Taitler, R. (2020) Mass production in the fashion industry: How quantity outweighs quality and leads to waste and financial loss – 3D insider: Optitex blog, 3D Insider | Optitex Blog. Available at: https://3dinsider.optitex.com/fashion-quantity-outweighs-quality/ (Accessed: October 24, 2022).

This pillar is an important concern for every business. At the same time, a business must make profits in a way that takes the last two pillars into account. A business needs to be consistent in making a profit, but it is not encouraged to make a profit at all costs. This pillar appears under corporate governance under the economic, social, and governance (ESG) criteria. Good corporate governance practices encourage alignment of interests between a company’s shareholders, board of directors and management team. Such an approach gives consumers or investors confidence that the company’s systems are transparent and efficient. Companies should avoid engaging in illegal practices that harm society and the environment. It should also resolve conflicts of interest between stakeholders in a fair and transparent manner (Colson, 2022)

The largest retail markets in the world are China, the US, the United Kingdom, Germany and Japan. The US accounts for 24.67% of the total global economy, China has a share of 17.39%, Japan a share of 5.97%, Germany a share of 4.54% and the UK makes up 3.26%. China and the United States are the two largest apparel trading countries. China is the number one exporter of clothing, while the United States is second largest importer. According to Euromonitor and McKinsey, the fashion industry was $1.7 trillion and $2.5 trillion before the Covid-19 pandemic. The Covid-19 pandemic was affected the fashion industry. Global apparel and footwear market size shrunks by 18.1% in 2020, according to Euromonitor. And McKinsey states that the fashion industry suffered a 20% decline in revenue in 2019-2020 (fashionunited.com）

The fashion market is segmented into specific divisions, so the company is able to better analyze market data and monitor business results more effectively. This chart gives the main markets and product sectors in which it is available, such as women’s wear, men’s wear, children’s wear and accessories (Posner, 2011, p. 10) But the key sectors of the industry of fashion designing are the production of textiles, designing of textiles, fashion designing and manufacturing, fashion marketing and media. In the textile industry, a large number of manufacturers produce different types of fabrics for the fashion industry. Natural fibres including wool, cotton, silk and linen are widely used in the fashion industry. Nowadays the whole of humanity is concerned about sustainability and eco-friendly textiles are very popular in the fashion industry. There are different design methods for different types of textiles. For example, textiles are coloured with a variety of fabric paints and pigments. With the addition of colour, many textiles are decorated or designed into creative embroideries and patterned paintings. The process of fashion marketing is simply managing the flow of merchandise from the initial design and selection for production to presenting the product to the retail customer in order to maximize the company’s sales and profits. Successful fashion marketing depends entirely on understanding the needs, choices and desires of customers and providing them with products that meet their needs. Finally, the media is a very good platform to promote and market the fashion brand in a way that gives it more visibility (Kumar, 2022)

The fashion industry is dealing with new constraints, such as the impact of Covid-19 and economic transformation, and companies must introduce new innovative models and value strategies to meet the challenges of future business models. “Don’t let innovation stop, because this could be the window of opportunity,” retail futurist Doug Stephens cautioned in March 2020. “Use this time to reinvent how you do what you do, bring consumers new alternatives, new value, and in the process even reinvent your own brand.” Successful fashion companies will embrace new technologies over the long term, starting with their operating models and recruitment strategies. Companies should recruit more talent across geographies, seek out top talent internationally, and set up teams away from headquarters to attract talent. Fashion brands also need to operate flexibly throughout the value chain, adapting quickly to consumer trends and needs. For example, designers and salespeople should make decisions quickly and guide brands toward a demand-driven model through 3D technology, virtual sampling and artificial intelligence. Production-side, successful contingency plans were implemented during the outbreak-such as shifting production to Turkey when mainland China was under embargo-to increase supply chain flexibility and better prepare for future shocks. Brands should also innovate their products by integrating emerging consumer trends. For example, Chinese brand Cosmo Lady developed an antibacterial intimate wear line that capitalises on a niche product concept, a move that drove its share price up 21 percent (McKinsey & Company, 2022, pp. 32-34). The challenge in the future will be how to use the power of social media to do good: put consumer pressure on enterprises to eliminate their impact on society and the environment, put pressure on governments to enact better laws to protect workers and the environment, and let consumers buy less rather than more (Hethorn and Ulasewicz, 2015).

For some enterprises, the boundary between business and creativity is blurred, which can help them enter a new height. For example, Coca-Cola often defines itself as art itself; The recent cooperation with Kath has proved their unique attraction. The introduction of art into the business portfolio can enhance the stock of any brand.“Increasingly, companies are noted by rating agencies or investment analysts on elements beyond P&L: social responsibility, ethics, sustainability,” says Vadim Grigorian. To some extent, anything related to art and culture is assimilated with commerce. BMW’s art car project began in 1975, when Herv é Poulain, a French racing driver and auctioneer, commissioned American artist and friend Alexander Calder to draw the first BMW art car （Davidson, 2022)

Reference:

Colson, D. (2 February 2022). The Three Pillars of Sustainability: Economic, Social And Environment. Available at: https://www.transformationholdings.com/corporate-sustainability/3-pillars-sustainability/ [Accessed: 20/10/2022]

fashionunited.com (2022). Global Fashion Industry Statistics. Available at: https://fashionunited.com/global-fashion-industry-statistics [Accessed: 20/10/2022]

Posner, H. (2011). Marketing Fashion. Available at: https://ebookcentral.proquest.com/lib/ual/reader.action?docID=1876102 [Accessed: 21/10/2022]

Kumar, M. (MAY 20, 2022). FASHION INDUSTRY AND ITS KEY SECTORS. Available at: https://www.techpublishnow.com/fashion-industry-and-its-key-sectors/ [Accessed: 21/10/2022]

McKinsey & Company (2020). The State of Fashion 2020 Coronavirus Update. Available at: https://www.mckinsey.com/~/media/McKinsey/Industries/Retail/Our%20Insights/Its%20time%20to%20rewire%20the%20fashion%20system%20State%20of%20Fashion%20coronavirus%20update/The-State-of-Fashion-2020-Coronavirus-Update-final.pdf [Accessed: 22/10/2022]

Hethorn, J., & Ulasewicz, C. (eds). (2015). Sustainable Fashion: What’s Next? A Conversation about Issues, Practices and Possibilities. New York: Bloomsbury. Available at: https://libsearch.arts.ac.uk/cgi-bin/koha/opac-detail.pl?biblionumber=1161923 [Accessed: 23/10/2022]

Davidson, J. (2022). From Silicon Valley offices to Warhol’s posthumous dominance, business and art’s long relationship is stronger than ever… Available at: https://www.we-heart.com/2018/10/18/business-and-art-a-valuable-relationship/ [Accessed: 24/10/2022]

One of the most vital pillars within the fashion business industry is the pillar of ‘profit’. In economic terms, profit is the amount of financial benefit any company receives after selling a good or service (Hethorn and Ulasewicz, 2015) – which could hold monetary or asset-based value.

Even though the COVID-19 pandemic brought about 2 annum of “disruptions” (McKinsey, 2021), it played a monumental role in empowering companies to market their products to satiate the hunger within their consumers for goods and services (inside the fashion industry). Due to this, around “75% of fashion executives believe that better trading conditions” will increase profits immensely now (McKinsey, 2021). Before the pandemic, globally, the entire fashion industry’s joint revenue was close to 1.5 trillion Pounds (Fashion United, 2021). And while it may have fluctuated during the pandemic, it still accounts for one of the largest profit-gaining industries in the world (Fashion United, 2021).

Whether it be economic recessions or the COVID-19 pandemic, brands need to remain competitive under various unprecedented economic times. Below is an illustration of how companies feel during such times. But brands can still try to stay competitive by focusing on the consumers who have already shopped with them. Since consumers are more likely to remain loyal to a brand they have already tried, chances are they would do the same during an economic recession, too (Forbes, 2020). Moreover, since there is less cash influx, consumers would not want to try new brands with which they do not share any previous experience. In the COVID-19 pandemic’s case, the brands could have focused on building more strategy and not be afraid to try out new advances and technology that might have helped them to create a better user experience for their homebound consumers (especially in the case of application building and the smooth running of online shopping).

Although creativity and commerce usually do not merge well with each other, most companies and their creative directors have to make sure that they are bridging this gap as much as possible in order to create products that have a high demand as well as design qualities to it. One easy way to achieve this is by the method of collaboration and working to see what areas each aspect of a company lacks (Business of Fashion, 2021). Working on resolving both such issues can help bridge this gap.

REFERENCE LIST:

Clausen, E. (2020) Marketing rules to follow during Uncertain Economic Times, Forbes. Available at: https://www.forbes.com/sites/forbesagencycouncil/2020/04/03/marketing-rules-to-follow-during-uncertain-economic-times/ (Accessed: October 23, 2022). 

Hedrich, S. (2022) State of Fashion 2022: An uneven recovery and new frontiers, McKinsey & Company. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion (Accessed: October 23, 2022). 

Hethorn, J., & Ulasewicz, C. (eds). (2015). Sustainable Fashion: What’s Next? A Conversation about Issues, Practices and Possibilities. New York: Bloomsbury. Chapter 7. 

Sherman, L. (2021) At gap, how Community Culture Powers Creative Output, The Business of Fashion. Available at: https://www.businessoffashion.com/articles/news-analysis/at-gap-how-community-culture-powers-creative-output/ (Accessed: October 23, 2022). 

Vazzana, C. (2021) Global Fashion Industry Statistics, FashionUnited. Available at: https://fashionunited.com/global-fashion-industry-statistics (Accessed: October 23, 2022). 

IMAGES

Gonzalo, A. et al. (2021) Fashion’s digital transformation: Now or never, McKinsey & Company. Available at: https://www.mckinsey.com/industries/retail/our-insights/fashions-digital-transformation-now-or-never (Accessed: October 23, 2022). 

horizonmarketing_co (2022) The value of marketing in Uncertain Economic Times , Horizon Marketing. Available at: https://horizonmarketing.co/the-value-of-marketing-in-uncertain-economic-times/ (Accessed: October 23, 2022). 

In the fashion industory, profits occupy a crucial position, and profits reflect the state of the social economy. Also, in the fashion industry, profit is one of the four Pillars of fashion in fashion business school. Understanding the impact of profit on the fashion industry and how to improve benefits has always been a topic worth discussing (conceptable. com)

The fashion industry has always played a vital role in the world. In 2022, Radonic said (2022) promised that the business value of the fashion industry will reach 1.7 trillion dollars, which be 103% – 108% of the scale in 2019. The average retail price of fashion will rise by 3%. Fast fashion will recover in 2023, reaching 38.2 billion dollars, and the accessories industry will reach 375.49 billion pounds. The scale of the fashion industry is extensive, and the market value is high. And according to the statistics of the clothing industry, dyeing and textile processing waste 20% of the world’s water (fashiondiscounts.uk, 2022).

The fashion industry has a wide range of departments, each of which has different functions, and they all affect brand interests. The marketing department is also vital for a brand. Kiron said (2022) that digital marketing is more convenient. It can connect with customers more quickly and efficiently, which is more conducive to improving brand interests and brand mindfulness. The digital marketing department makes the fashion industry experience a revolution. Consumers can get the latest fashion news more easily and quickly. Digital marketing has promoted the development of the fashion industry.

The development of new products is essential for a brand to remain competitive. Bandinelli et al.(2013) found the efficiency of the R&D department of new products plays a great role in enhancing brand competition.

How creative directors balance the gap between creativity and business is a topic of great concern. An excellent creative director needs to have many different abilities. Russell commented (2022) Fashion design creativity is the most basic skill of creative directors in the fashion industry. Creative directors must be able to generate new ideas that attract target markets. Communication ability is also very important, which can help him to better communicate with his employees and establish contacts with potential partners in the fashion industry. In addition, the most important thing is to effectively communicate with the business department to find design and marketing solutions that are more conducive to maximizing the benefits of the brand(work.chronic.com, 2018). Mondalek pointed out (2019) “The role of the creative director has become more complex, evolving to include store strategy, social media and advertising campaigns, and global brand vision (voguebusiness.com, 2019), The brand benefits have been further improved.

Reference

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Bandinelli, R. et al. (2013) “New product development in the fashion industry: An empirical investigation of Italian firms,” International Journal of Engineering Business Management, 5, p. 31. Available at: https://doi.org/10.5772/56841.

Business’], contributorN.[‘V. (2020) What luxury fashion brands want in a creative director, Vogue Business Talent. Vogue Business. Available at: https://www.voguebusiness.com/talent/articles/luxury-fashion-brands-creative-director-balmain-louis-vuitton-virgil-abloh/ (Accessed: October 23, 2022).

Kiron, M.I. (2022) Impact of digital marketing in Fashion Industry, Textile Learner. Available at: https://textilelearner.net/impact-of-digital-marketing-in-fashion-industry/ (Accessed: October 23, 2022).

Muis, B. and Team, C. (2020) 16 ways to increase your fashion brand’s profitability this year – conceptable – consultancy and mentoring for the fashion, performance and Leisure Products Industries, Conceptable. Available at: https://conceptable.com/16-ways-to-increase-your-fashion-brands-profitability-this-year/ (Accessed: October 23, 2022).

Radonic, D. (2022) The most important fashion industry statistics in 2022, FashionDiscounts. FashionDiscounts. Available at: https://fashiondiscounts.uk/fashion-industry-statistics/ (Accessed: October 23, 2022).

Windermere, A. (2018) The skills for a creative director in Fashion, Work. Available at: https://work.chron.com/skills-creative-director-fashion-16930.html (Accessed: October 23, 2022).

Picture Reference

Kanye West’s Twitter and Instagram accounts restricted after alleged antisemitic post (2022) Google. Google. Available at: https://www.google.co.uk/amp/s/news.sky.com/story/amp/kanye-wests-twitter-and-instagram-accounts-restricted-after-alleged-antisemitic-post-12717097 (Accessed: October 23, 2022).

Although the concepts of “creativity” and “commerce” in the fashion industry are often controversial, as in other industries, profit is crucial to the fashion industry and is one of the most critical factors supporting the development of the industry. In 2021, the global income of the fashion market will be about 1.5 trillion dollars (Smith, 2022).

The pandemic in 2020 has caused a severe and continuous blow to the global economy, including the fashion industry. However, with the spike of so-called “revenge buying” in the late epidemic, the fashion economy somehow recovered in 2021(BOF, 2022). Based on statistics, the revenue of the women’s wear market in 2021 far exceeded that of men’s wear and children’s wear, and the gain of the women’s wear market in China alone reached 150.92 billion US dollars (Smith, 2022). On the other hand, the performance of e-commerce is also awe-inspiring. In 2022, the market size will reach 312.2 billion dollars, of which income from China accounts for the majority (Statista, 2021).

In the case of similar economic shocks, fashion brands must focus on maintaining competitiveness in uncertain economic times. Promotions and shopping channels on social media also play a more significant role in the marketing of fashion brands. As a shared experience, social media promotes interaction and connection among various groups (Domenica, 2015). The immediacy of social media significantly reduces the distance between consumers and brands. Consumers can quickly get timely updates on products or track new fashion trends. Through this, fashion brands can create or master trends to guide consumption. Especially for Gen Z, whom the Internet has surrounded since childhood, the use of social media by brands is a good strategy. Therefore, the sustainable development of similar fashion e-commerce with high convenience, including the meta-universe, should be expected. 

(Vogue, 2012)

In the fashion industry, creativity should also be valued in addition to business. This will focus on how to bridge the gap between creativity and commerce. According to brands like Maison Margiela, Chanel, and Off-white, it is crucial to maintain the characteristics of designers or other creators, such as photographers and stylists. Commodities need to represent designers in some detail, such as Maison Margiela’s label, Chanel’s tweed, and Off-white’s plastic tag. They promote the reputation of designers and convey the concept of brands while fulfilling their business mission.

References

BOF, 2022. The State of Fashion 2022 Report. [online]. 

Available at: https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/state%20of%20fashion/2022/the-state-of-fashion-2022.pdf [Accessed 7 October 2022].

Domenica Peterson, 2015. Social Media as a Tool for Social Change. [online].

Available at: https://www-bloomsburyfashioncentral-com.arts.idm.oclc.org/encyclopedia-chapter?docid=b-9781501312250&tocid=b-9781501312250-chapter4&pdfid=9781501312250.ch-004.pdf

[Accessed 20 October 2022]

Smith, P., 2022. Global apparel market – statistics & facts. [online].

Available at: https://www.statista.com/topics/5091/apparel-market-worldwide/#dossierKeyfigures [Accessed 23 October 2022]

Statista, 2021. Fashion eCommerce report 2021. [online].

Available at: https://www.statista.com/outlook/dmo/ecommerce/fashion/worldwide [Accessed 23 October 2022]

Figure 1

Vogue, 2012. The Meaning of Margiela. [online].

Available at: https://www.vogue.co.uk/gallery/the-meaning-of-margiela [Accessed 23 October 2022]