PROFIT
The definition of profit is the percentage of total sales revenue that a business can consider a profit earned. Profit is the drive that keeps any business going, especially within the fashion industry where profit is earned by selling the product.
The size of the fashion industry has evolved over the years, with it’s value increasing and decreasing. According to, mckinsey, the fashion industry delivered a 21% increase in revenues in the years of 2020-21. However, within the different sectors the size of those sectors can differ. For example there can be a difference between luxury fashion brands and fast fashion brands, the luxury sector has grown and will grow over the next few years much more than the fast fashion sector. As we are discussing the various sectors within the fashion industry, they are each showing different levels of performance, some performing better than others. The various sectors within the industry range from shoes to accessories. Therefore, each performing at a different level for example, in 2018, 53% of the total revenue was generated by the womenswear sector ( fashion united, 2018). With all the external factors various sectors within the industries and their performance can be affected, these external factors could include, consumer shifts, the global economy and more (Mckinensy).
There is no specific period of uncertain economic times, with all the external shocks the world has experienced, consumers are used to an elongated period of uncertainty. Therefore, when a brand is trying to remain competitive, the most important strategy they could use to survive would be to listen to their consumers because at the end of the day, consumers are the backbone of a brand. With all the trends going around on social media, brands should try to keep up with them and create products consumers will keep buying. Which will therefore keep the brand competitive, because even in the most uncertain economic times, consumers will continue to purchase items as the basic economic problem shows us that everyone has unlimited wants and needs.
Creative directors are the backbone of every major company, as they bridge the gap between creativity and commerce, not only do they have artistic skills that make the products what they are, but they also have the mindset of a business owner as they need to understand their consumers and what product will sell and bring in the most profit for their company. The creative director, who requests alterations, different lengths, cuts, drapes and fabrics or cancels them altogether if disenchanted, There is a wasteful element to the design and production of sample pieces: a certain percentage of garments will be cancelled and not make it to production.The decision to be economical should not be a fnancial decision only but consider the waste which is generated during production. According to Mitterfellner, the creative director is involved in every step of the process, from the design to the economic decisions behind that design.
Bibliography:
Mitterfellner, Olga. Luxury Fashion Brand Management : Unifying Fashion with Sustainability, Taylor & Francis Group, 2023. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/ual/detail.action?docID=7260416.
Created from ual on 2023-10-22 09:25:38.
Mitterfellner, Olga. Luxury Fashion Brand Management : Unifying Fashion with Sustainability, Taylor & Francis Group, 2023. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/ual/detail.action?docID=7260416.
Created from ual on 2023-10-21 19:30:50.
https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion
https://fashionunited.com/global-fashion-industry-statistics