Profit
Profit is the third among the four pillars. The fashion industry needs profit to develop more creative artworks. It will form a cycle in which fashion brands spend money on producing new products, ideas and earn money through selling products and holding commercial events.
Fashion is a significant industry that involves everyone and plays an important role in the economy. According to LYSTInsights (no date): “Prada announced €3.252 million in retail sales in 2022”; “Moncler hosted The Art of Genius during LFW with over 12,000 attendees.” The fashion industry either involves large amounts of money or people.
At the end of 2022, the fashion industry has not returned to the status of 2019 but has returned to the status of the end of 2021 (Berg, 2022). The luxury sector has been looking high and a 5% to 10% growth has been expected in 2023. However, the fashion market apart from the luxury sector, was not looked highly of, even a declaration is noticed in Europe (Berg, 2022). The luxury sector and non-luxury sectors are all showing growth in 2023, however, the luxury sector is showing more rapid growth.
During uncertain economic times, brands should think of how to maintain their original customers and at the same time attract new customers. Brands need to know clearly who their target customers are, and “educate the customer” (Mitterfellner, 2023, p.146). “Educate the customer” means fashion brands could communicate with the customers to let them believe the brand will operate smoothly again through holding some events for example press release parties (Mitterfellner, 2023, p.146). The price to purchase a specific product is an important element at any time as “a pricing strategy on its own can help a brand to better reach their target market” (Mitterfellner, 2019, p.107).
Karl Lagerfeld was the creative director of Chanel, and the fashion shows directed by him were very impressive (Mitterfellner, 2023, p.36). Fig 1 is the image of Chanel S/S 2016 show photo, the collection was called “Chanel Airlines” (Chanel, no date). Karl Lagerfeld moved the show to a simulated airport to fit for the theme. In order to bridge the gap between creativity and commerce, the creative director could apply their ideas through mixed commercial media. The fashion show Karl Lagerfeld not only lets models walk through the runway with the garments but also makes the show more interesting letting the viewers feel like they are participating in the show and making the environment more engaging. Making the commercial events more diverse and appealing can form more chances for creativity.
Bibliography
Berg, A. (2022) How current global trends are disrupting the fashion industry, McKinsey & Company. Available at: https://www.mckinsey.com/industries/retail/our-insights/how-current-global-trends-are-disrupting-the-fashion-industry#/ (Accessed: 21 October 2023).
Berg, A. (2022) The State of Fashion 2023: Holding onto growth as global clouds gather. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion (Accessed: 21 October 2023).
Chanel (no date) SS 2016 READY-TO-WEAR COLLECTION CHANEL AIRLINES
Available at: https://www.chanel.com/th/fashion/news/2015/10/spring-summer-2016-ready-to-wear-collection-chanel-airlines.html (Accessed on: 20 October 2023)
LYSTInsights (no date) Fashion’s Hottest Brands and Products Q1 2023 Available at: https://www.lyst.com/data/the-lyst-index/q123/ (Accessed on: 20 October 2023)
Mitterfellner, O (2023) Luxury Fashion Brand Management: Unifying Fashion with Sustainability. Taylor & Francis Group
Mitterfellner, O (2019) Fashion Marketing and Communication: Theory and Practice Across the Fashion Industry. Taylor & Francis Group
Image:
Chanel (no date) SS 2016 READY-TO-WEAR COLLECTION CHANEL AIRLINES Available at: https://www.chanel.com/th/fashion/news/2015/10/spring-summer-2016-ready-to-wear-collection-chanel-airlines.html (Accessed on: 20 October 2023)