Profit
Although fashion can be considered a form of artistic expression, it is still an industry motivated by money. Profit is a fundamental pillar within the fashion industry and is a crucial measurement of a business’s success. Despite being one of the most creative industries it still vastly revolves around consumerism to survive.
The size of the industry is constantly evolving as it is one of the world’s leading markets, in 2022 the fashion industry amounted to worth around $1.53 ( Smith,P 2023), and its value is only set to increase for 2023. However, the size of the industry is uncontrollable with today’s economic climate. Events such as COVID-19 and the ongoing war in Ukraine have created an unstable economic landscape for both businesses and consumers. Mckinsey’s State Of Fashion 2023 found that due to COVID-19 around 7% of companies left the market entirely, either as a result of financial distress or because they were bought by rivals (McKinsey & Company, 2022).
market. All these businesses attract different demographics, causing them to perform differently. However, according to McKinsey’s State of Fashion 2023, the luxury sector is set to outperform the rest of the industry, with it being predicted to grow between 5-10% (McKinsey & Company, 2022). This could be because the luxury sector is more protected from economic turbulence compared to the mass market, due to their demographic having a high disposable income.
Brands must remain competitive in this fast-paced industry. One way for brands to compete during uncertain economic times is to keep up with trends. In today’s climate, it’s easy to fall behind due to the high turnover, mainly as a result of fast fashion and hyper-consumerism generated by Gen Z. Mitterfellner wrote about an example of how MCM failed to adapt to new trends which led to their decline. They kept a niche colour palette and only carried a limited product range, causing the brand to look outdated as they didn’t follow the current trends, which failed to attract a new wave of consumers (Mitterfellner, O 2023).
Creative directors have the hard task of balancing art and commerce. They must cooperate with consumer demands and create pieces that will sell, while still being authentic to their artistic visions. To bridge the gap between creativity and commerce it is very common for brands to collaborate with artists, these types of collaborations also help consumers to see fashion as an art form rather than a profit-powered business. An example of this is Schiaparelli and the lobster dress that was created in collaboration with Salvador Dali, as well as the famous YSL Mondrian dress. These iconic pieces are examples of how artistic collaborations can elevate the brand’s status, as well as enable the brand to reach a wider range of consumers.
Bibliography
Smith, P. (2023) Topic: Apparel market worldwide, Statista. Available at: https://www.statista.com/topics/5091/apparel-market-worldwide/#topicOverview (Accessed: 22 October 2023).
The state of fashion 2023: Holding onto growth as global clouds gather (2022) McKinsey & Company.
https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion
Luxury fashion brand management [electronic resource] : unifying fashion with sustainability / Olga Mitterfellner. 2023