Profit

As well as a form of expressment, fashion is a business and therefore profit has a huge impact on the industry. Profit ensures longevity of a business since without profit, companies cannot sustain themselves in the long run. An example of this is fast fashion brand Top-Shoop, a major highstreet retailer which crashed due to an explosion of competition (Anon, 2021) and in turn led to not making enough profit to keep the company going.

(image 1: Coughlan,2021)

The fashion industry is significant. It is built up of various sectors such as apparel, accessories, footwear and textiles and it is said that one in eight people globally work within or have some link to the fashion industry. (Co-Data, 2018). The fashion industry statistics show the apparel and textile sector is the fourth biggest in the world. (Vilaka, 2022). The global fashion industry was valued at roughly 2.5 trillion dollars in 2019, ranging from fast fashion to luxury brands. Luxury brands can be used as a wide umbrella term since each individual has a very personal unique view of what luxury is”. (Mitterfellner, 2023). 

 This rise of e-commerce left Apparel retail such as highstreet shops facing challenges. To add to this, many fast fashion brands were facing increased scrutiny for ethical concerns and therefore the Apparel retail sector is slowly decreasing.  

Various sectors of the fashion industry perform differently dependending on a range of factors such as political factors like the current economic conditions, consumer preferences/trends and technological advancements. A large chunk of the fashion industry is dominated by ecommerce. This sector has been experiencing rapid growth. More consumers are shopping online for convenience and more choice. This was further accelerated by the Covid Pandemic.

(image 2,2020)

It is important brands remain competitive in the fashion industry during uncertain economic times. This requires strategic planning from brands, knowledge of consumer behaviour and trends and openness to adaptability. Brands should heavily focus on sustainability to remain competitive, this sets them aside from most highstreet brands using unethical materials and practices. Many consumers are increasingly environmentally cautious, especially Gen Z, sustainable practices in brands can attract this demographic. 

Creative directors play an important role in bridging the gap between creativity and commerce within the fashion industry. They balance out artistic visions with market demands and trends. This is done by market research and diving deep into competitors tactics. As well as this, it is vital creative directors understand their target demographic in order to fully get the best outcome out of creative approaches. 

References

Anon (2021). The rise and fall of Topshop. [online] TFR. Available at: https://tfr.news/news/2021/7/21/the-rise-and-fall-of-topshop.

Image 1: ‌Coughlan, S. (2021). Topshop: What happened after the shutters closed? BBC News. [online] 1 Mar. Available at: https://www.bbc.co.uk/news/uk-56204469.

Vilaça, J. (2022). Fashion Industry Statistics: The 4th Biggest Sector Is More Than Clothing. [online] Fashinnovation. Available at: https://fashinnovation.nyc/fashion-industry-statistics/.

Mitterfellner, O. (2023). Luxury Fashion Brand Management and Sustainability. Mastering Fashion Management.

‌co data (2018). Faces and Figures: Who Makes Our Clothes? [online] Common Objective. Available at: https://www.commonobjective.co/article/faces-and-figures-who-makes-our-clothes#:~:text=The%20global%20workforce%20is%20estimated.

Image 2: Estay, B. (2020). 16 Fascinating Online Shopping Statistics (2020). [online] The BigCommerce Blog. Available at: https://www.bigcommerce.com/blog/online-shopping-statistics/.