PROFIT
Profit & Fashion
As a quadrillion-dollar industry, fashion profits are critical to enable companies to sustain operations, invest in new collections, expand their business and remain competitive. Fashion industry profit is a measure of the financial success and viability of fashion-related businesses, including apparel brands, retailers, designers, manufactures and related entities. In addition to traditional fashion brands and retailers, e-commerce platforms, fashion designers, influencers, and even individual sellers on platforms such as Etsy or Instagram can also profit from fashion-related activities.
Before the Covid-19 pandemic, the fashion industry’s global revenues were estimated to be between $1,7 trillion and $2.5 trillion, according to a McKinsey study. And during the Covid-19 pandemic, the fashion and apparel industry entered the cold winter with a 20% drop in revenues for the 2019-2020 fiscal year. After the lifting of embargo restrictions in many parts of the world, consumers began to spend with a vengeance and the fashion industry subsequently warmed up. The entire fashion industry is expected to be worth more than $2.5 trillion annually after 2021, according to the latest data analysed . (Fashion United, 2022; McKinsey&Company, 2021)
YSL
The luxury goods sector is expected to outperform the rest of the industry, driven by strength in China(9-14%) and the United States(5-10%), with growth 5-10% expected in 2023(McKinsey&Company, 2022). Prior to this there have certain brands that have experienced declines but have successfully implemented revitalization measures to ensure the continuation of the brand. YSL is a prime example of this, which faced challenges such as declining sales and shop closures following the death of Yves Saint Laurent in 2008. YSL’s problems were attributed to a lack of fashion authority and brand clarity. It was only after the brand changed its name to “Saint Laurent” and adopted a ”rock’n’ roll” style, targeting a younger, more rebellious consumer base, that it regained its position in the luxury market(Mitterfellner, 2023)
Brand
In an uncertain global economy, brands need to be able to respond quickly to changing market conditions and consumer demands in order to remain competitive, and to make timely and targeted strategies, such as partnering with other brands or artists to help them leverage each other’s strengths and resources in a challenging economic environment( Harley, 2015; Mitterfellner 2019) For example, strategic partnerships with other brands or artists can help brands leverage each other’s strengths and resources to navigate the challenging economic environment, as seen in the popularity and promotion of the Louis Vuitton and Nike co-branded “Air Force 1”.
Creative Directors play a key role in bridging the gap between creativity and commerce in various industries such as fashion, advertising, and design. The Creative Director strives to maintain the artistic integrity and creative vision of the brand while ensuring that it aligns with the company’s business goals and objectives, and researches and analyzes to understand the preferences, needs and desires of the target audience. Blending creativity with market needs in order to resonate with the consumer base（ Peterson, 2015). Ultimately, the Creative Director serves as a bridge between the artistic or creative aspects of a project and the financial and strategic goals of the organization.
Reference List
Fashion United (no date) Global Fashion Industry Statistics, FashionUnited. Available at: https://fashionunited.com/global-fashion-industry-statistics (Accessed: 21 October 2023).
Hawley, J. (2015) Economic Impact of Textile and Clothing Recycling, University of the Arts London weblogin. Available at: https://www-bloomsburyfashioncentral-com.arts.idm.oclc.org/encyclopedia-chapter?docid=b-9781501312250&tocid=b-9781501312250-chapter9&pdfid=9781501312250.ch-009.pdf (Accessed: 21 October 2023).
Mitterfellner, O. (2019) Social media, blogs, and opinion- leaders: who is leading your opinion? , ProQuest Ebook Central. Available at: https://ebookcentral.proquest.com/lib/ual/reader.action?docID=5981798&ppg=99 (Accessed: 21 October 2023).
Mitterfellner, O. (2023) Decline and Resuscitation of Luxury Fashion Brands., ProQuest Ebook Central. Available at: https://ebookcentral.proquest.com/lib/ual/reader.action?docID=7260416&ppg=150 (Accessed: 21 October 2023).
McKinsey&Company (2021）The state of fashion 2022. Available at：https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/state%20of%20fashion/2022/the-state-of-fashion-2022.pdf （Accessed：22 October 2023）
McKinsey&Company (2022) The state of fashion 2023: Holding onto growth as global clouds gather, McKinsey & Company. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion#/ (Accessed: 22 October 2023).
Peterson, D. (2015) Social Media as a Tool for Social Change, University of the Arts London weblogin. Available at: https://www-bloomsburyfashioncentral-com.arts.idm.oclc.org/encyclopedia-chapter?docid=b-9781501312250&tocid=b-9781501312250-chapter4&pdfid=9781501312250.ch-004.pdf (Accessed: 22 October 2023).