Profit
In this capitalist-driven society, profit is essential for companies to define success. Profit enables companies to grow, expand, and offer better experiences for consumers. The apparel market, for instance, is worth approximately 1.75 trillion dollars, with a 13.7% annual growth rate (Oberlo,2023). The McKinsey report (2021) states that global online fashion sales nearly doubled during 2018 and 2020, especially in the US and China. Given the increasing economic value and global reach, the fashion industry undoubtedly holds immense importance.
The fashion industry comprises various sectors, including clothing, footwear, textiles, leather, fur products, jewellery, and accessories (Accessed, 2023). The apparel sector is the foundation of the fashion industry, and it typically generates a significant portion of the industry’s total revenue. However, the pursuit of profit can sometimes lead to economic downfall or ethical concerns. To avoid such issues, fashion companies must adopt a multifaceted approach, such as diversifying their marketing campaigns and incorporating sustainable products that appeal to a wider consumer base.
During the 20s, MCM faced a significant downfall due to changes in consumer preference, distribution issues, and loss of brand identity. However, the brand managed to overcome these challenges by recognizing the importance of an online presence and engaging in effective digital marketing. The brand used social media, e-commerce, and influencer partnerships to connect with a broader and younger consumer base. In addition, MCM diversified its product lines to include more wearable collections such as, footwear and accessories, to broaden its appeal and revenue streams (Mitterfellner, 2023). Through redefining the brand’s identity and diversifying their product line from the new creative director, MCM successfully managed to overcome the downfalls and stage a remarkable comeback.
Although fashion is a business, it is closely tied to art. It is crucial for creative directors to bridge the gap through collaboration and by linking garments directly with artistic expression (Ahmed, 2013). An excellent illustration of this concept is Louis Vuitton’s partnership with Yayoi Kusama in 2012. Integrating Kusama’s signature polka dots and vibrant colours into Louis Vitton’s products allowed Kusama’s art to become wearable and accessible to a broader audience. The collaboration showcased the brand’s willingness to embrace and celebrate contemporary art, which resonated with a younger artistic consumer base and further enhanced the brand’s image.
Bibliography:
McKinsey & Company (2021). The State of Fashion 2022. [online] McKinsey. Available at: https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/state%20of%20fashion/2022/the-state-of-fashion-2022.pdf.
Oberlo (2023). Apparel Industry Statistics (2012–2025) | Oberlo. [online] www.oberlo.com. Available at: https://www.oberlo.com/statistics/apparel-industry-statistics.
Mitterfellner, O. (2023) Luxury Fashion Brand Management and sustäinability: Unifying fashion with sustainability. New York: Routledge. [online] Available at:
https://ebookcentral.proquest.com/lib/ual/reader.action?docID=7260416&ppg=150
single-market-economy.ec.europa.eu. (n.d.). Fashion and high-end industries in the EU. [online] Available at:
Diderich, J. (2022). EXCLUSIVE: Louis Vuitton Takes Over Tokyo for Yayoi Kusama Collaboration Launch. [online] WWD. Available at: https://wwd.com/fashion-news/fashion-scoops/louis-vuitton-tokyo-takeover-launch-second-collaboration-yayoi-kusama-1235429524/.
Ahmed, A. (2013). Bridging the gap between art and business | Ajaz Ahmed. [online] the Guardian. Available at: https://www.theguardian.com/media-network/media-network-blog/2013/oct/16/bridging-gap-art-business.