Purpose

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The fourth pillar- purpose, guides fashion brands and companies in setting social and environmental responsibility, such as being more sustainable or transparent, into business strategies and operations.

Brand philosophy is the basis for the fashion brand’s mission, vision, and purpose. Moreover, this is generally very important for fashion companies because it is the simplest and quickest way to let the target audience understand a brand’s identity to support companies’ operations with better brand images. “Today’s consumers, and Millennials and Gen Z specifically, expect companies to establish and advance clear stances on social or political issues.” (Latia Curry, 2020) As the quote shows above, consumers nowadays do not just demand stylish and affordable fashion products but are increasingly seeking to incorporate value into companies’ operations. Therefore, being transparent and providing information to consumers about the companies’ current positions, future ambitions, and future operation plans will “facilitate trust”(Brown, 2014) to consumers. Furthermore, if consumers’ values are in line with the companies’ brand philosophy, the brand philosophy will become the catalyst of decision making to consumers. For instance, consumers concerned about sustainability will want the company to embrace the circulatory system; they will purchase for brands ensuring that 100% of their products and packaging are made from more sustainable or recyclable materials by 2030.

Among different generations, Generation Z would be the most socially conscious generation aware of brand philosophy. Thus, Gen Z has become a key target audience for fashion brands and companies. Combined with Gen Zers’ other key characteristics— tech savvy, brands can focus more on digital campfires like social media platforms to introduce their brand philosophy. “Gen Zers are increasingly using the power of their pocketbook and social media feeds to shape corporate behaviour.” (Latia Curry, 2020) Thus, brands can get more attention from Gen Zers and communicate with them by posting or reposting on Gen Z’s most active social media outlets, such as Instagram, to represent their brand values or operation purposes. Apart from this, collaboration with famous celebs can also let brands leverage celebrities’ popularity to reach more audiences to spread the brands’ objectives. For example, Nike has launched the new Air Force 1 series with Billie Eilish by recycling the leftover material waste from prior AF1 High. Their partnership has led more people to know how much Nike cares about sustainability and that Nike is really “taking action to create a better world.” (Nike, 2022) As a result, communicating with Gen Z doesn’t necessarily mean getting a direct response, but rather brands need to use different approaches to publicise their missions, values, and purposes.

Bibliography:

  1. Brown (2014). Corporate Social Responsibility and Sustainability. Available at https://www-bloomsburyfashioncentral-com.arts.idm.oclc.org/encyclopedia-chapter?docid=b-9781501317798&tocid=b-9781501317798-chapter3&pdfid=9781501317798.ch-003.pdf 
  2. Latia Curry (2020). How brands can follow through on the values they’re selling. Available at  https://hbr.org/2020/08/how-brands-can-follow-through-on-the-values-theyre-selling 
  1. Nike (2020). Nike x Billie Eilish AF1 Low. Available at https://about.nike.com/en/newsroom/releases/nike-x-billie-eilish-af1-low 
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Profit

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The profit pillar refers to the financial gains and losses a company generates through its operations.

According to Statista, the revenue of the global apparel market was calculated to 1.53 trillion dollars in 2022, a slight decrease from the previous year. (P.Smith-Statista, 2023) However, the revenue was forecast to increase in 2023, to more than 1.7 trillion dollars. (P.Smith-Statista, 2023)

“Many industry players are in a stronger position than they were a year ago, however, the fashion industry delivered a 21 percent increase in revenues in 2020-21.” (McKinsey, 2022) This is because as long as the brand can fulfil the increasing demands of potential customers who are desiring to get the items that are in line with trends, increasing the supplies of those items can easily increase the sales. 

In 2023, since the consumer demand for more environmentally conscious apparel options increases, the second-hand apparel industry is forecast to thrive. On the other hand, the study shows that a lot of the world’s largest companies have a long way to go when it comes to revealing how ethically they run their operations. (P.Smith-Statista, 2023)

Figure 1 (P.Smith-Statista, 2023)

In this time of increasing concern for environmental issues, emphasis on corporate transparency, which refers to openly sharing information about the processes, practices, and impacts of the fashion supply chain, would be the most effective way to stay competitive in the market. Therefore, if the company can be very transparent, the trust value of consumers will increase, and thus, sales will also increase. Furthermore, the chance of being affected by an uncertain economy will be smaller.

In the fashion industry, creativity must be one of the factors for brands’ success. However, earning more profit is the only way to keep a brand surviving in the diverse fashion industry. Consequently, to ensure that those innovative concepts can be commercially successful and marketable, creative directors can reasonably depend on each idea to balance the creativity and purchase value to make products easier for consumers to approach the creation, then broader customer base, and lastly increase the purchase rate of the product.

Figure 2 (Ashleigh Kane, 2013)

Ann Demeulemeester’s 1985-2013 collections have always had the same element, feather, as shown in the picture above. With the advent of more feather-related apparel, the feathers became the brand’s identity; thus, consumers became obsessed with the brand because of this uniform element but a different way of using each piece of apparel. 

Bibliography:

  1. McKinsey (2022). The state of Fashion 2023: Holding onto growth as global clouds gather. Available at https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion 
  2. P.Smith (2023). Global apparel market- statistics & facts. Available at https://www.statista.com/topics/5091/apparel-market-worldwide/#topicOverview 

Image references:

  1. Ashleigh Kane (2013). Ann Demeulemeester’s most subversive moments. Available at https://www.dazeddigital.com/fashion/article/17949/1/ann-demeulemeesters-most-subversive-moments 
  2. P.Smith (2023). Global apparel market- statistics & facts. Available at https://www.statista.com/topics/5091/apparel-market-worldwide/#topicOverview 
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Purpose

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A brand must have a purpose in terms of its aims and ideologies, in order to ensure it stays on its original intended trajectory. The purpose of a company speaks to why it was started and what its desired impact is on the world. By solidifying its purpose, a brand can create a Unique Selling Point (USP) to outline what gap it fills in the market, and should ask itself what its contribution is to society, as well as what society may stand to lose if the brand was to disappear.

The philosophy of a brand can be summed up by its Mission, Vision and its Values. A mission statement focuses on why a brand exists in the first place, and its initial purpose. A vision statement is based on the future goals and ambitions of the company, asking the question ‘Where do we want to be?’. Lastly, the values of a brand revolve around its core beliefs, which in turn shape how it operates. Brand philosophy is vital in order to target specific markets, especially as modern generations focus their attention on a brand’s values and how it positively impacts society. Corporate Social Responsibility (CSR), which was defined by the 2017 European Commission as ‘companies taking responsibility for their impacts on society’, relates heavily to sustainability, as Gen Z in particular has become increasingly considerate of the importance of keeping the future of the planet in mind, instead of fulfilling current goals with no regard to the maintenance of society.

Brands use different methods to communicate their purpose to Gen Z, and in this digital age naturally these tend to fall under social media. For example, musicians, who are arguably some of the most powerful influencers due to the hold they have on their fanbases, may be posted on an Instagram page having been seen in public in a new outfit. Dedicated fans, in the hopes of feeling more connected to their idols, will then strive to recreate similar outfits, often by purchasing the same pieces worn by the celebrity in question. Pages like @whatsonthestar on Instagram exist for this purpose, giving rundowns of what an artist is wearing and even providing links to purchase the exact outfit. In addition, rappers often brag about the expensive things they own, and this extends very much so to luxury clothes, for example with Ken Carson’s lyric ‘Watch his body drop through my Balenciaga glasses’ on his hit song ‘I Need U’. Brands such as Balenciaga and Rick Owens, which of course were popular beforehand, have in recent years attracted younger generations as a result of lyrics such as the aforementioned.

European Commission ‘Corporate Social Responsibility (CSR)‘ (2017) https://ec.europa.eu/growth/industry/corporate-social-responsibility_en

Londrigan, M.P. & Jenkins, J.M. ‘Fashion Supply Chain Management’ (2018) https://arts.idm.oclc.org/login?url=https://doi.org/10.5040/9781501317798?locatt=label:secondary_bloomsburyFashionCentral

Instagram Page @whatsonthestar https://www.instagram.com/whatsonthestar/

Genius ‘Ken Carson – I Need U – Lyrics’ https://genius.com/Ken-carson-i-need-u-lyrics

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purpose

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The purpose of a fashion brand is just as important as any other factor contributing to a prosperous business. It entails the brands mission and values that may appeal to the consumer. For example being a sustainable brand would appeal to Gen-Z due to their positive views on sustainability. The purpose also gives a company aims and a mission they are ultimately trying to reach. That being aims to make profit or to be carbon neutral and fair to their workers, can both be the purposes of a company. Having a purpose give a company the opportunity to gain more loyal customers, and attract more, for example Nikes slogan “just do it” and its inspirational promotional campaigns give an incentive for the customer to buy products as they feel to be part of something bigger.

A clear mission offers guidance for a company to make decisions and communicate. It gives a brand a strong and consistent brand identity that’s recognised by both employees and consumers. For example brand Rick Owens has a clear mission being “to stand at the forefront of the avant-garde through instantly recognisable silhouettes and a largely monochrome palette often painted with gothic overtones”, which is clearly seen through their consistently dark themed and coloured clothes. This has gained appeal from the gothic community, and been a staple in clothing for the new Opium aesthetic, an alternate gothic rap style influenced by the punk aesthetic. This therefore increased exposure to the brand in various demographics especially gen-z due to its wide appeal through music, pop culture and general fashion enjoyers, who can appreciate the brands design expertise and quality. This goes to show the importance of having a mission and how it can gain a following unlike any without any purpose.

Without a mission it is very difficult to prosper, especially in fashion where having personality in your brand is important to engage customers, due to the industry’s artistic side. However, considering the values of said company is important too. For example, although the immensely popular brand Balenciaga has a clear mission and design identity, its questionable and highly controversial recent past caused many to avoid the brand altogether. This was due to the disturbing campaign involving bondage and sexual items with children modelling in the same shoot. This made the public question their values and motive and steered many customers away. Connecting with the consumer with similar values is important to keep a loyal consumer base.

https://www.linkedin.com/pulse/importance-having-clear-brand-mission-hamidu-ansumana-

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Profit

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Profit in relation to the fashion industry is inevitably the main goal for a company. The values and methods they carry often are done simply to appease the market and increase sales. This is why its a crucial factor in building and maintaining a company. The pillar includes the sales of items, the net profit and the methods used to reach this destination.

The fashion industry is a major contributor to the global economy, one of the largest in the world. According to a 2022 report by Statista, the global fashion industry was valued at approximately $1.53 trillion dollars, however other sources from before the coronavirus state even higher, up to a staggering $2.5 trillion. This suggests that the Pandemic had an extremely detrimental affect on the industry, dropping over a Trillion dollars in value. However, during the pandemic people turned to online shopping rather than in store shopping which led to a surge in shopping on websites such as Ali express. This was considered a golden age in fast fashion, which was affordable and accessible to the general public. However currently, the fashion industry its returning its methods to how it was before coronavirus, employing over 300 million people worldwide, accounting for 7% of employment in some developing countries.

The entire industry has only recently got back on its feet from covid, and since the restrictions from the pandemic were lifted the industry has been faced with more new restrictions involving sustainability and awareness. This means that the sustainable sector of fashion had a boost and largely increased the size of its market as a response to activism and current values. However, surprisingly the luxury sector is predicted to grow by 5 to 10% in 2023 and the rest of the industry set to decrease by 2-3%. This has motivated brands to change their marketing methods for the coming year, as the fashion centre of the world is shifting, suggesting that the Middle East may be a new haven for growth in the industry.

Through implementing values and motive to the brand, a company may stay competitive by relating to the economic struggles at the time, for example relating to the consumers life in these circumstances. For example, as stated before, during the pandemic brands shifted to suit the internet focused market. This was evidently as a response to people being stuck indoors. This is called a silver lining strategy, that takes advantages of bright spots in a storm.

https://www.businessoffashion.com/reports/news-analysis/the-state-of-fashion-2023-industry-report-bof-mckinsey/?lid=127jc692ohmj&utm_source=braze_marketing&utm_medium=email&utm_campaign=Step%202%20-%20SoF&utm_content=RegEmail2

https://fashionunited.com/global-fashion-industry-statistics

https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion#

https://www.voguebusiness.com/consumers/fashion-and-finance-the-new-economic-realities-of-luxury-consumers-rakuten

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Profit

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Profit is one of the vital topics to address among the four pillars of the fashion business. In the fashion sector, it has been a common view to notice how the ‘art’ can be commercialised by a brand that ultimately can acquire a profit. Consequently, the role of creative directors is needed since, as explained by Mitterfellner (2023), they are responsible for managing the creative design process and the objectives to earn returns.

Additionally, creative directors should be able to bridge the gap between creativity and commerce, or a brand will begin to lose its clientele and fail to generate revenue in the future. They need to understand the distinctions between fine art and commercial art, where commercial art refers to the selling of goods or services (Iwasaki, 2022). One outstanding example of a creative director who can successfully bridge the gap between creativity and commercials is Karl Lagerfeld. He understands the ‘brand’s visual DNA and tries to meet the aesthetic needs of the current customers and the business outlook of management’ (Mitterfellner, 2023).

Furthermore, as stated by Amed et al. (2017), when discussing earnings, fashion has emerged as one of the significant global sectors that drives a crucial part of the world economy. It is proven by the size of the worldwide apparel market, which was estimated to be 1.53 trillion dollars in 2022, and it was predicted that revenue would reach more than 1.7 trillion dollars in 2023 (Smith, 2023)(Fig. 1).

Figure 1: Line Graph of Revenue of the Apparel Market Worldwide from 2014 to 2027 (Smith, 2023).

However, 56 per cent of fashion executives believe that business conditions will worsen in 2023 due to the industry’s current crises brought on by geopolitical difficulties (conflict) and economic issues (inflation) (Amed et al., 2022). This crisis will eventually impact consumer behaviour as they attempt to spend less, particularly on fashion items.

Figure 2: Expectations for how fashion industry conditions will evolve in the year ahead (Amed et al., 2022).

Conversely, the fear of a severe economic downturn and inflation has not bothered wealthy shoppers and tourists (Felsted, 2023). McKinsey Fashion Growth Forecasts (Amed et al., 2022) indicate that sales in the luxury sector will rise by 5% to 10% in 2023, in contrast to other categories.

Figure 3: Luxury fashion retail sales, year-on-year growth, 2020-2023 (Amed et al.,. 2022).

Therefore, when encountering an unstable situation, a brand must adapt its business strategy to stay competitive in difficult economic times. For example, Berg (2022) contends that businesses must transform from having stores in person to a more digitally-focused business strategy. By doing this, fashion brands can attract and increase potential customers online.

Figure 4: Digital transformation benefit (Firstfocus, no date).
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PURPOSE

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Purpose is the final foundational element of the fashion industry pillars that a brand should consider. A brand’s purpose is a crucial component in its establishment. Kowalewicz (2022) also emphasises that forming the brand’s purpose comes first before deciding on the philosophy (vision, mission, and values) of a fashion business.

Consequently, the importance of determining the philosophy of a brand can directly contribute to creating a solid identity, which enables a company to engage with customers and create lasting, meaningful relationships (Silva, 2020).

Furthermore, building a reliable and trustworthy business should be evaluated through an outline of brand philosophy – such as how they want to communicate their intention with the audience and connect it with consumer needs (Martínez, 2012). Accordingly, understanding the customer segments is required. Particularly now that the target market has shifted to Gen Z, where they are usually not only looking for tangible products; items that can be seen, felt, and touched, but also trying to see what the company wants to bring to the community and environment (Finneman et al., 2020).

Figure 1: How consumers define what makes a brand or company ethical (Martin, 2021).

Thus, through Corporate Social Responsibility (CSR), businesses can be responsible for their action and put their dedication to executing mission statements into practice by developing sustainability, claim Londrigan and Jenkins (2018). Moreover, the CSR strategy might be a chance for labels to showcase a brand’s sustainable objective since 58% of customers believe a brand would be ethical if it promoted environmental protection (Martin, 2021) (Fig. 1). On top of that, the CSR can be an excellent marketing tactic to tempt more audience in buying apparel or goods from the market.

Figure 2: Nike x Billie Eilish AF1 Low (Nike, 2022).

For instance, the shoe company Toms attempts to integrate sustainability and corporate social responsibility in its collections. They manufacture shoes made of vegan materials and utilise ethical production processes as proof of executing their mission statement: “We are in business to improve lives” (Toms, no date). Furthermore, companies like Nike serve as examples of how to communicate their mission to Generation Z. In 2022, Nike and well-known artist Billie Eilish collaborated to create “The Nike x Billie Eilish AF1 Low,” an environmentally friendly product released in 2022 (Nike, 2022). According to Muhammad (2022), Nike has proved their commitment to sustainability by making the shoe using ‘leftover material waste from the artist’s prior collaborative AF1 High’. As a result, fashion companies like Tom and Nike provide an actual example of the way to convey a mission to clients effectively.

Bibliography:

  1. Finneman, B., Spagnuolo, E., Rahily, L. (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).
  2. Kowalewicz, R. (2022) Defining Your Brand’s Purpose. Available at: https://www.forbes.com/sites/forbesagencycouncil/2022/01/12/defining-your-brands-purpose/?sh=778c588a1e43. (Accessed: 27 October 2023)
  3. Londrigan, M and Jenkins, J. (2018) Fashion Supply Chain Management. New York: Fairchild Books. Available at: https://www-bloomsburyfashioncentral-com.arts.idm.oclc.org/encyclopedia?docid=b-9781501317798. (Accessed: 27 October 2023).
  4. Martínez, P. (2012) The Consumer Mind : Brand Perception and the Implications for Marketers. Available at: https://ebookcentral.proquest.com/lib/ual/reader.action?docID=838132&ppg=27. (Accessed: 27 October 2023).
  5. Martin, K. (2021) Ethical Lifestyle UK 2021. Available at: https://reports-mintel-com.arts.idm.oclc.org/display/1092717/. (Accessed: 27 October 2023).
  6. Muhammad, L. (2022) Billie Eilish’s Latest Nike Collaboration Is on the Way: Here’s A Sneak Peek. Available at: https://www.billboard.com/culture/product-recommendations/billie-eilishs-nike-air-force-1-low-tops-release-date-where-to-buy-1235179148/. (Accessed: 28 October 2023).
  7. Nike. (2022) Nike x Billie Eilish AF1 Low. Available at: https://about.nike.com/en/newsroom/releases/nike-x-billie-eilish-af1-low. (Accessed: 28 October 2023).
  8. Silva, P. (2020) Why Philosophy Has Much To Do With Brand-Building (And What That Looks Like). 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/. (Accessed: 27 October 2023).
  9. Toms. (no date) Impact. Available at: https://www.toms.com/uk/impact-emea.html. (Accessed: 27 October 2023).

Image Ref:

  1. Martin, K. (2021) Ethical Lifestyle UK 2021. Available at: https://reports-mintel-com.arts.idm.oclc.org/display/1092717/. (Accessed: 27 October 2023).
  2. Nike. (2022) Nike x Billie Eilish AF1 Low. Available at: https://about.nike.com/en/newsroom/releases/nike-x-billie-eilish-af1-low. (Accessed: 28 October 2023).

Martínez, P. (2012) The Consumer Mind: Brand Perception and the Implications for Marketers. Available at: https://ebookcentral.proquest.com/lib/ual/reader.action?docID=838132&ppg=27. (Accessed: 27 October 2023).

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People

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As the fashion business industry evolves, four fundamental pillars should be considered: the planet, people, profit, and purpose. Although these pillars serve distinct purposes, they must all work together to maintain this planet’s environmental, social, and economic components. Nonetheless, to ensure the aim is working, people who contribute to the fashion industry cycle, such as consumers and workers, are responsible for each of their actions.

Figure 1: Table of differentiation aspects for each generation (Francis and Hoefel, 2018).

Nowadays, fashion brands have shifted their target to Generation Z instead of millennials as their consumer base. “After millennials and Generation Alpha, Gen Z is currently the youngest generation”, according to McKinsey & Company (2023). Moreover, this generation has different approaches and behaviours of consumption compared to other generations. For instance, this generation is called “digital natives” by McKinsey & Company (2023) because they frequently use the internet to obtain information. It is proven from the data in Figure 2 that Gen Z is dominated by 98 per cent of social media users (McGrath, 2023). Hence, Smith (2023) stated that social media channels have become essential for brands to reach, interact with, and market to Gen Z consumers.

Figure 2: Graph of ‘which of the following have you used in the last 3 months?’ (McGrath, 2023).

In addition, the generation is also increasingly concerned about their purchases because of the industry’s effects on the planet and its ecosystems (Hethorn and Ulasewicz, 2015). Adding the data from Mintel, “34 per cent agree that brands should be boycotted if they do not act on social and environmental issues” (Smith, 2023). By this means, brands and designers should consider sustainability in their practices.

Figure 3: Graph of UK: agreement with attitudes towards diversity and society, by generation, 2023. (Smith, 2023).

Furthermore, according to Francis and Hoefel (2018), Gen Z wanted the fashion brand to be able to improve diversity; this is a result of the truth-seeking mentality of this generation, which values inclusivity and avoids labels. Companies that promote diversity, equality, and inclusion (DEI) internally are perceived as more appealing than those that do not, based on 52% of Gen Z customers (Smith, 2023). Nike is among the brands that have reacted adequately to diversity. For instance, in 2018, they introduced the “Just Do It” Campaign, featuring Colin Kaepernick as its face, urging people to oppose police brutality and fight against racism (Galluci, 2020). Therefore, one of the keys to attracting these younger people is embracing diversity and pushing forward with bold, authentic action to support minority groups.

Figure 4: Colin Kaepernick as the face of Just Do It Nike campaign. (Galluci, 2020).

In conclusion, for a fashion business to succeed, designers and other employees must develop the ability to understand what their clients want and be flexible enough to adapt to the rapidly evolving world of social media and technology.

Bibliography:

  1. Francis, T and Hoefel, F. (2018) ‘True Gen’: Generation Z and its implications for companies. Available at: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/true-gen-generation-z-and-its-implications-for-companies. (Accessed: 14 October 2023).
  2. Galluci, N. (2020) Nike urges people to stand against racism in striking new ad. Available at: https://mashable.com/article/nike-stand-against-racism-ad-george-floyd. (Accessed: 14 October 2023).
  3. Hethorn, J., & Ulasewicz, C. (2015) Social Responsibility and Innovation in the Sewn Products Industry. Available at: https://www-bloomsburyfashioncentral-com.arts.idm.oclc.org/encyclopedia-chapter?docid=b-9781501312250&tocid=b-9781501312250-chapter2&pdfid=9781501312250.ch-002.pdf. (Accessed: 14 October 2023).
  4. McGrath, R. (2023) Social Media: Influencers – UK – 2023. Available at: https://data-mintel-com.arts.idm.oclc.org/databook/1154787/. (Accessed: 14 October 2023).
  5. McKinsey & Company. (2023) What is Gen Z?. Available at: https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-gen-z. (Accessed: 14 October 2023).
  6. Mintel. (2023) The Future of Consumer Behaviour in the Age of Gen Z. Available at: https://www.mintel.com/consumer-market-news/the-future-of-consumer-behaviour-in-the-age-of-gen-z/. (Accessed: 14 October 2023).
  7. Smith, F. (2023) Lifestyles of Generation Z – UK – 2023. Available at: https://reports-mintel-com.arts.idm.oclc.org/display/1157485/?fromSearch=%3Ffreetext%3DGeneration%2520Z%26resultPosition%3D3. (Accessed: 14 October 2023).

Image Ref:

  1. Francis, T and Hoefel, F. (2018) ‘True Gen’: Generation Z and its implications for companies. Available at: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/true-gen-generation-z-and-its-implications-for-companies. (Accessed: 14 October 2023).
  2. Smith, F. (2023) Lifestyles of Generation Z – UK – 2023. Available at: https://reports-mintel-com.arts.idm.oclc.org/display/1157485/?fromSearch=%3Ffreetext%3DGeneration%2520Z%26resultPosition%3D3. (Accessed: 14 October 2023).
  3. Smith, F. (2023) Diversity, Equity and Inclusion – UK – 2023. Available at: https://clients-mintel-com.arts.idm.oclc.org/report/diversity-equity-and-inclusion-uk-2023?fromSearch=%3Ffreetext%3Ddiversity%2520product%26resultPosition%3D1#workspace_SpacesStore_ef7f6c3b-e327-4508-b670-3356f82a2514. (Accessed: 14 October 2023).
  4. Galluci, N. (2020) Nike urges people to stand against racism in striking new ad. Available at: https://mashable.com/article/nike-stand-against-racism-ad-george-floyd. (Accessed: 14 October 2023).
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Profit

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While a brand should strive for creativity and singularity, a company’s profit margins mustn’t be overlooked as a means to measure its success. Fashion houses define their growth and popularity largely through how designs and products are received by consumers, but from a business perspective, profit is the ultimate manifestation of how a company evaluates it’s growth and affluence.

According to Statista, the global apparel market generated $1.53 trillion USD in revenue in 2022, is expected to generate $1.74 trillion USD in 2023, and by 2027 could be generating almost $2 trillion USD. These statistic alone reflect how large the fashion industry is currently, and how in years to come one can expect even more growth and expansion. This is because no matter how much trends may change over time, fashion will always be relevant as a means of self-expression. In addition, specific industries such as sportswear are constantly developing new technologies for athletes, which means the amount of money being put into the industry and the amount of profit generated from it is ever-growing.

(Statista graph displaying Revenue of the apparel market worldwide from 2014 to 2027)

The fashion industry can generally be divided into three primary sectors: luxury brands, mid-market brands and fast fashion brands. As of 2023, Statista reports a revenue of $111.5 billion USD for the luxury fashion market, with an increase of 14.7% from 2022. Another Statista report states that the fast fashion market was worth over $106 billion USD in 2022, and is expected to reach approximately $185 billion USD by 2027. Lastly, the mid-market sector has interestingly seen a significant rise according to a MediaVision report, which presents data showing brands such as Phase Eight, Cos and Birkenstock overtaking brands such as Chanel and Prada in internet searches, which can likely be attributed to luxury shoppers finding cheaper alternatives.

When facing uncertain economic times, brands should consider the importance of adaptability. With social media being the primary source of information for current generations, companies must come up with new and creative ways to advertise. Depending on a brand’s desired image and its target audience, the internet can be used to its advantage to attract a larger audience, while maintaining the loyalty of existing consumers. Social media can also be used to increase the transparency of a company, which is especially important in the modern day, as sustainability and ethics are deemed to be more significant than ever amongst potential consumers. Brands might also consider Bourdieu’s Three Capitals: Cultural, Social and Economic. The cultural factor takes into account a brand’s awareness of global cultures, specifically in terms of the fashion world. Social capital can be defined essentially as ‘who you know’; in this age of social media, social networking is more accessible than ever and is paramount to the growth of a business. Lastly, economic capital is simply how much money one has to put into a brand, and it relates to how much profit one makes from their investment.

But what defines the difference between creativity and commerce, and how do creative directors strive to bridge that gap? Consumers tend to refer to designers as artists when a brand is the most separated from the commercial side. A great example of this is Balenciaga’s 2022 Mud Show in Paris, designed by the artist Santiago Sierra and overseen by Demna Gvasalia, the brand’s current creative director and founder of Vetements. Demna was hailed as an artistic genius by many for the show, the originality of which caused many to perceive the experience as a form of art, completely unique from the commercial side of the company. According to Demna in a 2015 interview with The Last Magazine, “[Creativity] is often diminished and bullied out by the ‘idea’ of commerciality, which is often not even needed in the oversupplied and over-consumed market.” He also noted “we try to make clothes that complement [the consumers’] wardrobes,” which perfectly sums up the fact that creative directors have the power to merge the creativeness and commerciality of a brand.

(Kanye West on the catwalk of Balenciaga’s 2022 Mud Show)

References:

Statista ‘Revenue of the apparel market worldwide from 2014 to 2027’ (September, 2023) https://www.statista.com/forecasts/821415/value-of-the-global-apparel-market

Statista ‘Luxury Fashion – Worldwide’ (2023) https://www.statista.com/outlook/cmo/luxury-goods/luxury-fashion/worldwide

Statista ‘Fast fashion market value forecast worldwide from 2022 to 2027’ (2023) https://www.statista.com/statistics/1008241/fast-fashion-market-value-forecast-worldwide

MediaVision ‘Organic Search Demand Report’ (2023) https://www.wearemediavision.com/industry-report/2023-organic-search-demand-report-fashion

Sociology Group ‘Pierre Bordeau’s Capital Explained’ (July, 2020) https://www.sociologygroup.com/pierre-bourdieu-capital-explained/?utm_content=cmp-true

The Last Magazine ‘Vetements’ (May, 2015) https://thelast-magazine.com/vetements-demna-gvasalia-lvmh-prize-interview/

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Purpose

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The purpose is the fourth of four pillars. Brand purpose is a reason to exist beyond selling products and making a profit, it is more a reflection of the company’s responsibility to society and requires consideration of the brand’s social, environmental, ecological, and political position. Working with a purpose increases the strength of the business, makes the brand different from other competitors, and helps increase customer loyalty. Customers are not buying out of need， or just a product. Instead, they are buying something more than that: a brand, what the brand stands for, and a shared vision and values. In other words, they buy into the brand’s purpose(ReSet,2022).

Mission， Vision, and values are the three most important parts of branding as they guide all other decisions made by the brand going forward. The mission statement defines a brand purpose for Employees and Customers； the brand vision defines how the brand will evolve and how the brand will be perceived by customers in the future and the brand value demonstrates the uniqueness of the brand and its difference from other brands, and enhances the competitiveness of the brand in the market(Limelightmarketing,2020). The brand philosophy defines and integrates the brand values, uniqueness, desired positioning in the market, and brand voice(Molly McGill,2020)

Nicola Zanetti(2022)

Zara, which stands out among fast fashion brands, can serve as a good example. Zara’s Mission Statement is “Provide customers with what they want and deliver it to them faster than anyone else.”While Zara learns about its customers’ needs on social media, its offline shop employees also take notes on customer preferences. The brand can respond quickly to market demand, taking the shortest time from design to delivery to the shop(Edrawmind，2023). The Zara vision statement is “to contribute to the sustainable development of society and that of the environment with which we interact.” Zara offers a great contribution to sustainable fashion, this demonstrates the brand’s strong sense of social responsibility. The company has a long history of not using plastic as a raw material and not adding unnecessary labels to its clothes. The values of Zara are beauty， clarity， functionality, and sustainability. Zara has always been guided by its mission and brand vision, which is what makes it stand out from the competitive fast fashion brands.

Zara（2023）

As the newest generation of consumers, Generation Z has a great influence on the market, focusing more on the purpose of a brand than simply buying a product. According to Jordan Sim, to appeal to the Gen Z demographic, brands need to demonstrate values and purpose, while remaining consistent and personalized (Marketing Mag,2021). Generation Z is the first group born entirely in the digital age， one study suggests that 54 percent of Gen Z will be shopping exclusively online within the next decade. To better communicate with Gen Z, marketing strategy should always be adaptable, inclusive, and innovative. Using social media is a great way to communicate with Gen Z， social media such as Instagram and TikTok allow brands to communicate directly with consumers in a visual way.

Figure2:How Gen Z uses social media platforms( Parallelinteractive,2021)

At the same time, generation Z is drawn to brands that share the same values as they do(Sherwen,2023). Therefore, a brand, should directly and truthfully show brand value and social responsibility to this group of consumers, to gain recognition and increase the brand loyalty of Generation Z.

Reset(2022)Why purpose is the new ‘must have’ for luxury brands.Available at：https://thisisreset.com/why-purpose-is-the-new-must-have-for-luxury-brands/(Accessed: 25 October 2023).

Limelightmarketing(2020)Brand Strategy: Mission, Vision, Values & Brand Personality.Available at:https://limelightmarketing.com/blogs/brand-strategy-mission-vision-values-brand-personality/(Accessed: 25 October 2023).

Molly McGill(2023)Why are Mission and Vision Statements Important for my Brand?Available at:https://warpweftbranding.com/why-are-mission-and-vision-statements-important-for-my-brand/(Accessed: 26 October 2023).

Edrawmind（2023）Zara Mission and Vision Statement Analysis.Available at:https://www.edrawmind.com/article/zara-mission-and-vision-statement-analysis.html(Accessed: 26 October 2023).

Marketing Mag(2021)Calling Gen Z: how brands can engage with a purpose-driven generation.Available at:https://www.marketingmag.com.au/tech-data/calling-gen-z-how-brands-can-engage-with-a-purpose-driven-generation/(Accessed: 26 October 2023).

Sherwen(2023)Cause-related Marketing is the future of Gen-Z Engagement.Available at:https://www.sherwen.com/insights/cause-related-marketing-is-the-future-of-gen-z-engagement(Accessed: 26 October 2023).

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Nicola Zanetti(2022)Vision, Mission and values: how to define them and how to write them.Available at:https://b-plannow.com/en/vision-mission-and-company-values-what-they-are-and-how-to-define-them/

Zara(2023)Available at:https://www.zara.com/uk/en/join-life-projects-mkt5167.html?v1=1906265

Parallelinteractive(2021)How Gen Z uses social media platforms.Available at:https://www.parallelinteractive.com/generation-z-marketing-strategies/

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