Profit
Profit will be the third to introduce the fashion industry pillar. The term “profit” means the financial earning and gaining for a fashion brand or company, and it’s calculated by deducting all expenses and costs from the brand’s total revenue. The data of a brand or firm’s profit can reflect their successfulness and also sustainability of the business. And these data can always be evidence to prove a brand and attract more consumers to purchase. Fashion industry is one of the biggest industries in the world. The revenue of the global apparel market was calculated to amount to 1.53 trillion U.S. dollars in 2022. However, revenue was forecast to increase in 2023, to more than 1.7 trillion dollars (Statista, 2023).
The performance of different sectors in the fashion industry is changing rapidly. Especially the e-commerce and online sector is performing well in the fashion industry now. The Covid-19 pandemic has also boosted online shopping to become the most popular shopping method in the fashion industry (McKinsey Company, 2023). In order to increase the likelihood of people paying attention to their products and services, firms and brands make great emphasis to develop social media and online shopping platforms. Moreover, luxury brands and streetwear brands earning approximately US$354.80bn in 2022 are also having a win-win phenomenon in the fashion industry (Strategy&, 2023). As luxury brands have adapted to digital and aspirational marketing strategies to engage consumers, while street wear is maintaining its influence by collaborating with luxury brands and unique artists. Nevertheless, the Secondhand and “Resale Vintage market” sector is also experiencing a rapid growth at approximately 541.41 million U.S. dollars in 2022 (Statista, 2023) , as more and more customers are focusing on the sustainability of the fashion items and affordable price.
Brands to remain competitive in different economic situations are always a challenging task., so they must be creative, innovative and adaptive. First of all, brands need to confirm products and services diversity by listening to customers’ feedback and opinion and increase product range in order to satisfy different wants and needs from different consumers and increase brand’s profit (CONDE NAST, 2023). Secondly, professional market research can also make brands remain competitive. Brands can create better identities and walk on the right path if they stay up to date with information, news, trends and economic conditions. Thirdly, high concern on a company’s sustainability and ethical practices is also a key major to remain competitive in the industry, which include clear and transparent data of brand’s sustainability operations. This can prove to consumers that the brand is a responsible and trustable business and gain profit as a result. On the other hand, creative directors need to have a clear brand identity and economic situation before adding new ideas to the brand because not all loyal consumers can understand unique artists’ artwork, so creating a directory should find creative opportunities and satisfy the brand’s core value, customer expectations and standard profit at the same time (Luxury Fashion Brand Management, 2023).
Reference:
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.
Dillon, S. (2018) The Fundamentals of Fashion Management. 2nd ed. London: Bloomsbury.
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Fashion United (2022). Global Fashion Industry Statistics. [online] Fashion United. Available at: https://fashionunited.com/global-fashion-industry-statistics.
Mitterfellner, O. (2019) Fashion Marketing and Communication: Theory and Practice Across the Fashion Industry, Taylor & Francis Group, Milton.
Mitterfellner, O. (2023) Luxury Fashion Brand Management and sustainability: Unifying fashion with sustainability. New York: Routledge.
Overdiek, Anja. (2016). Fashion designers and their business partners: Juggling creativity and commerce. International Journal of Fashion Studies. 3. 27-46. 10.1386/infs.3.1.27_1.
https://browzine.com/libraries/479/journals/36584/issues/8230931
PricewaterhouseCoopers (2019). Streetwear: The new exclusivity. [online] PwC. Available at: https://www.strategyand.pwc.com/de/en/industries/consumer-markets/streetwear.html.
Smith, P. (2023). Global apparel market – statistics & facts. [online] Statista. Available at: https://www.statista.com/topics/5091/apparel-market-worldwide/#topicOverview. www.condenast.com. (n.d.). Condé Nast. [online] Available at: https://www.condenast.com/diversity.