Profit
Profit is the cornerstone of the viability of the fashion industry, serving as both artistic inspiration and commercial enterprise. More than simply measuring financial prosperity, profit in fashion industry terms signifies its success as it captures elements such as artistic inspiration, consumer behavior dynamics, and economic resilience within an overall narrative framework.
The global fashion industry encompasses a wide range of sectors, including apparel, footwear, accessories, textiles, luxury goods, etc. According to Fashion Innovation, the fashion industry is the 4th biggest sector since 3,000 billion textile and garment companies enter the market daily (Fashion Innovation, 2022). In the fashion market, the number of users is expected to amount to 3.4bn users by 2027. The whole industry will expand annually with a growth rate (CAGR 2023–2027) of 9.45% (Statista, 2023).
Due to the global economic situation, the fashion industry is now facing challenges due to inflation and geopolitical tensions, which lowered consumer confidence in late 2022. Under these circumstances, brands should carefully monitor and adapt to global risks and uncertainties with updated design approaches and rental channels (Imran Amed et al., 2023). One thing brands can do to better overcome this competitive market under uncertain economic conditions is to invest in technology.
Gen Z and Millennial shoppers show a growing preference for self-checkout options in clothing stores, with 45% expressing a desire for more self-checkout. Technology companies like Zliide offer digital touchpoints that enable self-service via mobile apps, eliminating the need to wait in line and interact with store staff. Zara and Uniqlo have already integrated self-service elements, including self-checkouts and automated pick-up and drop-off stations, into their UK stores.
There is also a strong demand for sustainability initiatives among younger customers. Around 45% of Gen-Z and Millennials want fashion brands to offer better recycling and collection services for used clothing. A significant percentage (22.2%) are also looking for more rental and resale services, highlighting the opportunity for fashion companies to expand these aspects of their business (Moran, G. 2022).
From the perspective of the gap between creativity and commerce, creative directors in the fashion industry play a central role and carry out a variety of key responsibilities. Creative directors in the fashion industry play a central role and carry out a variety of key responsibilities. They lead the design process and manage teams, ensuring that collections not only reflect artistic vision but also generate revenue, a key factor in success. These visionaries shape brand identity by designing different collections and interpreting brand DNA to suit customer preferences and business goals. Additionally, they act as brand ambassadors, creating collections suitable for high-level presentations and playing a key role in promotional and marketing communications. This multifaceted role influences a brand’s image and commercial success.
Reference list
login.arts.idm.oclc.org. (n.d.). University of the Arts London WebLogin. [online] Available at: https://www-statista-com.arts.idm.oclc.org/outlook/dmo/ecommerce/fashion/worldwide#revenue [Accessed 21 Oct. 2023].
McKinsey (2022). The State of Fashion 2023: Holding onto growth as global clouds gather. [online] McKinsey. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion.
Mitterfellner, O. (2023). Luxury Fashion Brand Management and Sustainability. Mastering Fashion Management.
Moran, G. (2022). Gen Z and Millennials 2022. [online] Drapers. Available at: https://www.drapersonline.com/guides/gen-z-and-millennials-2022.
Vilaça, J. (2022). Fashion Industry Statistics: The 4th Biggest Sector Is More Than Clothing. [online] Fashinnovation. Available at: https://fashinnovation.nyc/fashion-industry-statistics/.