PROFIT VS FASHION INDUSTRY
Profit is one of the main aspects when making a fashion brand. The fashion industry has seen a drastic increase in profit; as 2022 shown that “the revenue of the apparel market in the uk was estimated to be just under £58.5 billion.”
Underground designers often take advantage of social media. For example, the brand “years of tears” started with base designs, once popularity increased, he converted them into garments building brand name. Social media is seen to give unexpected opportunities for underground designers, but also huge brands. It is the cause for some recent collaborations as brands are eager to increase their revenue and market to a larger audience. The collaboration between Kaws and Dior, was seen as Dior widening its market segment and catering to the younger generation as Kaws designs are popular amongst Gen Z. By using social media, they have tailored it to their younger target, as well as cut down on costs because it is digital; this is a very effective strategy which ultimately raises profit.
Fashion brands tend to change certain aspects to increase profit by trying to cater to their audiences. For example, H&M is a fast fashion brand, and they claim that they used recyclable materials to encourage people to buy their products, thinking it’s a sustainable business which they aren’t (greenwashing). They have done this to grow their profit as sustainability can be viewed ultimately as a trend. However, some fashion brands try to change the materials they use and adhere to the Sustainable Development Goal as consumers are ready to pay more for organically sourced clothes.
Economic difficulties are normal for all brands at some point.For example, the brand MCM stumbled across issues such as the product being exported to Asia and being sold for very cheap at gas stations leading to a loss. The Initial creator was also being accused of tax evasion leading to him being removed. The CEO of MCM Kim, hired creative director Michael Michalsky who revived the brand by redefining it. The brand became successful, as of 2022 there have been 35 stores opened globally and 60 in Korea. Creative directors combine creativity and commerce, as they have cultural capital because they know the complexity of the industry. They also have social capital as they know who to connect within the industry to make the brand successful increasing capital (according to Boudieu).
References
International Journal of Recent Technology and Engineering. (2020). Global Fashion Brands: Does Sustainability Make Business Sense?. [Online]. switch-asia.eu. Last Updated: May 2020. Available at:https://www.switchasia.eu/site/assets/files/2463/does_sustainability_make_sense.pdf [Accessed 20 October 2023]. 20Mitterfellner [Accessed 20October 2023].
Olga Mitterfellner. (2023). Luxury fashion brand management [electronic resource] : unifying fashion with su. [Online]. London : Routledge. Available at: https://libsearch.arts.ac.uk/cgi-bin/koha/opac-detail.pl?biblionumber=1546849&query_desc=kw%2Cwrdl%3A%
statista. (2023). Apparel market in the United Kingdom (UK) – statistics & facts. [Online]. www.statista.com. Last Updated: Sep 12, 2023. Available at: https://www.statista.com/topics/3348/apparel-market-in-the-uk/#topicOverview [Accessed 20 October 2023].
This is local London. (2020). Syd: Years Of Tear And BySlik By JairuzAmiscua Esher College. [Online]. This is local London. Last Updated: 28th November 2020. Available at:https://www.thisislocallondon.co.uk/youngreporter/18906478.syd-yearstear-byslik/ [Accessed 20 October 2023].