PROFIT
Profit is a key factor of a business, and profitability is determined by many sectors. The management style, new business and profit models, economic situation, target customers, global trend and so on. Therefore, learning how to analyze and adapt to changes and balance the other three pillars with profit is crucial.
“Fashion is one of the world’s most important industries, driving a significant part of the global economy,” stated McKinsey in its State of Fashion 2017 report. The labour force of fashion industry is approximately 3.45 billions in 2021. The United States and China are the largest apparel retail markets in the world, (Mckinsey, 2016). And, China is the largest exporter of textiles and clothing, which had 154 billion dollars in 2020 and annually increase 29 present.
Fashion industry has been divided into multiple product segments and categories. (Berg, et al 2017) For instance, in the high fashion and luxury, luxury fashion brands and high-end designers cater to a niche market of affluent consumers, and their sales often rely on exclusivity and brand prestige. Moreover,the fast fashion brands can adapt to changing trends rapidly and offer budget-friendly options to a wide consumer base. But it cause variety waste and unsustainability. Furthermore, the E-commerce for online retail was booming, and e-commerce platforms were becoming the preferred shopping method for many consumers.
Remaining competitive in uncertain economic times can be a challenge for fashion brands. However, there are several strategies that the businesses can adopt to navigate economic uncertainty and maintain their competitiveness. Firstly, is diversity. Expand the price rage from entry level to ultra-high (Mitterfellner, 2023), and the market diversification in global. Like, in YSL’s new marketing mix aimed to diverse retailers both offline and online, and to diverse market especially in Asia, (Mitterfellner, 2023). Then, brands need to analyzed and adapted to current rends and behaviors of younger consumer segments. They need to development the online platform by strengthen the digital strategy and e-commerce capabilities. To advertise via social media, blog to increase brand recognition through the unique tone of voice and visual identity of bloggers, (Mitterfellner, 2019). Also, cooperate with influencer and celebrities to attract potential customers.
Creative director responsible for shaping a brand’s creative vision while ensuring that it translates into successful business outcomes. Effective management is necessarily, to balance each departments in the business and motivate staffs. An important point is to innovate and development product to ensuring that align with consumers’ tastes and the brand’s image. At the same time, director must pay attention to the cost control, (Graver, 2022), find ways to reduce overhead while maintaining product creativity and quality. Furthermore, to analyze the retail data from sales and customer feedback, creative directors can make data-driven decisions about which products are performing well and adjust their creative direction accordingly. Last, creative director should have strong cultural and social awareness to care the sustainability, environmental and ethical issues is crucial for brand reputation and loyal, especially young customers concern about these factors.
Bibliography:
Mckinsey (2016). The State of Fashion 2017. [online] McKinsey & BoF. Available at: https://www.mckinsey.com/~/media/McKinsey/Industries/Retail/Our%20Insights/The%20state%20of%20fashion/The-state-of-fashion-2017-McK-BoF-report.pdf [Accessed 20 Oct. 2023].
Berg, A., Hedrich, S. and Leon, J. (2017). The two faces of fashion-industry performance. [online] McKinsey & Company. Available at: https://www.mckinsey.com/industries/retail/our-insights/the-two-faces-of-fashion-industry-performance [Accessed 21 Oct. 2023].
Mitterfellner, O 2023, Luxury Fashion Brand Management : Unifying Fashion with Sustainability, Taylor & Francis Group, Milton. Available from: ProQuest Ebook Central. [21 October 2023].
Graver, K. (2022). 8 Tips to Help Manage a Business in Uncertain Economic Times. [online] Business Plan Writers & Startup Consultants – 1# Resource for Entrepreneurs & Self Employment. Available at: https://startgrowimprove.com/manage-a-business/ [Accessed 21 Oct. 2023].
Mitterfellner, O 2019, Fashion Marketing and Communication : Theory and Practice Across the Fashion Industry, Taylor & Francis Group, Milton. Available from: ProQuest Ebook Central. [21 October 2023].