Profit
Profit is important for company development and survival. It supports enterprises in achieving sustainable economic development, providing returns to investors, improving product and service quality, and promoting innovation and research and development. Profit should therefore be maximized through effective business management.
In its 2017 State of Fashion report, McKinsey stated that “Fashion is one of the world’s most important industries, driving a significant part of the global economy. It is one of the key value-creating industries for the world economy. If it were ranked alongside individual countries’ GDP the global fashion industry would represent the seventh-largest economy in the world,’’(McKinsey, 2016)Before the Covid-19 pandemic, the fashion industry global revenue was estimated between $1.7 trillion and $2.5 trillion according to two different research reports by Euromonitor and McKinsey.
The fashion industry consists of four levels: the production of raw materials; the production of fashion goods by designers, manufacturers, contractors and others; retail sales; and various forms of advertising and promotion. These levels are made up of a number of separate but interdependent sectors, all of which are committed to meeting consumer demand for apparel on terms that enable industry participants to make a profit. (Valerie, 2023)
To remain competitive in uncertain economic times, brands should adapt to the current environment and cater to current consumer behaviors. For example, in post-Covid-19, the global fashion industry is facing its biggest challenge since the 2008 financial crisis. Some brands have shared a little bit of barely surviving capital, while others have simply gone bankrupt. During this period of global isolation, which has lasted more than half a decade, the fashion week system, which is at its core, has taken a huge impact during this period.So in the post-Covid-19 era, brands need to look for new opportunities. For example, Francesco Risso, the creative director of Marin, sends his garments by mail to his family and close friends living in New York, Shanghai, Tokyo, Los Angeles, London, Paris and other cities after he has finished designing them, and puts them on the street. The fashion is presented to the watchers in a way that is broadcast live online. After Covid-19, in addition to having an impact on fashion week, it has an impact on consumer behavior and patterns of receiving information. Brands need to take into account the shopping style of today’s main consumers, Generation Z, and flexibly apply the influence of social media. After covid-19’s impact consumers focus on health and sustainability, and should seek unity with the emotional values of the current consumers when building brand culture.
The creative director need to understanding the brand’s visual DNA and reinterpreting it with a modern touch to meet the aesthetic needs of the current custom- ers and the business outlook of management. It is this reinterpretation and continuity which forms the brand’s heritage and sustains it from decade to decade. (Mitterfellner, 2023) In the fast-changing fashion industry, the combination of creativity and marketing is the key to profits. The perfect combination of creativity and marketing can help fashion brands build a unique image and establish their brand personality and style. Through the power of creativity, fashion brands can think outside the box. Business helps brands to grasp the psychology and behavior of the target customer and realize the recognition and purchase conversion of the target customer. The perfect combination of creativity and commerce can help fashion brands stand out in the fierce market competition.
Bibliography
McKinsey (2016). The State of Fashion.[Online] 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 22. 10. 2023].
Valerie,S (2023). Fashion industry.[Online] Available at: https://www.britannica.com/art/fashion-industry [Accessed 22. 10. 2023].
Mitterfellner,O (2023). Luxury Fashion Brand Management.[Online] Available at: http://arts.idm.oclc.org/ebrary/ual/unauthorized&url=https%3A%2F%2Febookcentral.proquest.com%2Flib%2Fual%2Freader.action%3FdocID%3D7260416 [Accessed 22. 10. 2023].