Profit
Profit can be viewed as the most important aspect of the fashion industry as it maintains the fashion industry and keeps it alive. Profit is what transforms the fashion industry from purely creative into a business. The financial gain made from selling garments is essential to keeping a business afloat and keeping workers in a job. There is no fashion industry and creative design without the aspect of profit.
The fashion industry is an ever-growing booming business. The revenue of the global apparel market was calculated to amount to 1.53. trillion US dollars in 2022 and forecasted to increase in 2023 to more than 1.7 trillion dollars (Statistica, 2023)
‘The luxury sector is expected to grow between 5 and 10% percent in 2023’ (McKinsey, 2023), this is reflected through the recent success of Loewe which has been referred to as ‘the hottest brand in the world.’ (Lyst, 2023). Luxury fashion is making a comeback, reflecting upon the return of runway shows which generate huge interest for luxury fashion houses. However, elsewhere in fashion, The fashion market, excluding the luxury sector, will struggle to deliver significant growth in 2023 according to (McKinsey, 2023).
In order to remain competitive in uncertain economic times, brands need to adapt to the current consumer client, and think about engaging their consumers in new ways. ‘Digital marketing strategies are the way foward’ (McKinsey, 2023), particually to combat against unexpected events which may affect buisness such as the global lockdown due to the Covid-19 pandemic or any further events or EU trade and buisness regulations that may prevent shopping as normal. “They will need to develop risk mitigation strategies that can be implemented quickly as conflicts, fiscal policies, and government regulations evolve.” (McKinsey & Company, 2022).During the Covid-19 pandemic, many companies turned to online marketing and social media as a way to still increase interest in their brand without having to use in real life advertisements in store. This opened new paths to different creative avenues, and now many brands are focused more on online campaigns and capturing people’s interest online.
Creative directors bridge the gap between creativity and commerce by creating art that draws attention to the brand on the runway, but is also viable off the runway. Collaborations with artists are an excellent way to do this as they bring together the creativity of the art world while also including the business side of the fashion industry. For example, the collaboration between Takashi Murakami and Louis Vitton which merged high fashion and streetwear, creating a wider brand reach for both collaborators.
McKinsey & Company. (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#:~:text=State of Fashion 2022%3A An uneven recovery and new frontiers&text=Companies are adapting to new,pressure on the bottom line. [Accessed: 21 October 2023].
Statista, (2023) Global apparel market- statistics and facts, Available at: https://www.statista.com/topics/5091/apparel-market-worldwide/#topicOverview (Last accessed: 21 October 2023)
The lyst index: Fashion’s Hottest Brands and Products Q2 2023 (2023) Lyst Insights. Available at: https://www.lyst.com/data/the-lyst-index/q223/ (Accessed: 22 October 2023).