Profit
Profit is a businesses most important objective as without it there is no business. Profit is imperative for a number of reasons, one of these being reinvestment into the business to improve the quality of their products, expand their company and most importantly invest in technology. The fashion industry is one of the largest in the world reporting a revenue of “$1.7 trillion – $2.5 trillion in 2021” (McKinsey 2019) contributing to “2% of global GDP.”(Vilaça 2022) Instead of focusing on the whole fashion industry, let’s delve into a section of it, accessories, more specifically bags. The Lyst Index reported that in Q2 of 2023 searches for “Goyard were up 95%.” (Lyst index 2023) Goyard is an elusive brand which doesn’t pursue any marketing techniques creating a sense of exclusivity. Seen on the likes of A$AP Rocky and David Beckham the brand contributes to the annual “$153bn” (Statista Market Insights 2022) annual revenue for the luggage and bags industry. Thus showing that the luxury market is on the rise and is expected to outperform the rest of the industry, as high income earners are less affected by the economic turndown that the world is currently facing.
Post pandemic the world is struggling with rising inflation, a climate crisis, a war and many consumers having less disposable income. As prices rise throughout the industry consumers demand will begin to fall as they turn to cheaper alternatives such as second hand websites EG: Vinted. This will ultimately affect the fashion industry in a negative way. Brands will therefore have to be careful in how they navigate these uncertain times. One way a brand can stay competitive in unforeseeable economic times is to employ enticing marketing which attracts consumers.
Within a brand it is essential to have a figurehead who leads the design process whilst simultaneously has an understanding on how to create a successful profitable business. Hence why the merging of the traditionally two separate roles, creative director and CEO, has been followed by many brands. As Andy Warhol once famously stated “Being good in business is the most fascinating kind of art.” (Warhol 1970) In order to be a successful creative director it is important to be able to emulate the brand and its values whilst also creating a product that consumers will buy, thus generating revenue. Furthermore, as the world tackles a climate crisis it is imperative for a creative director to be on board with creating sustainable decisions as many consumers turn their backs on brands that don’t support the movement towards more sustainable fashion. As Sussane Tide Frater said “The future is not some place to go to, but one we create.” (Frater 2023)
References:
Euromonitor International, a market research provider & McKinsey report ‘State of Fashion 2022: An uneven recovery and new frontiers’. Source: McKinsey analysis 2019
Vilaça, Julia. (2022) Fashion industry statistics: The 4th biggest sector is way more than just about clothing [Online[. Available at: https://fashinnovation.nyc/fashion-industry-statistics/#:~:text=Fashion%20Industry%20Statistics%3A%20General%20Data,Gross%20Domestic%20Product%20(GDP). (Accessed 21.10.2023)
Lyst Index. (2023) Fashion’s Hottest Brands and Products Q2 2023 [Online[. Available at: https://www.lyst.com/data/the-lyst-index/q223/ (Accessed 21.10.2023)Statista Market Insights (2022) Accessories- worldwide [Online[. Available at: https://www.statista.com/outlook/cmo/accessories/worldwide (Accessed 21.10.2023)