Profit
Profit is a vital aspect of the fashion industry as it is the driving force of businesses and to an extent a marker of its success. The fashion industry is a careful balance between art and commerce with brands having to find a steady medium between creativity and business in order to maximise profit. According to a report from Eurometer (2022) as of 2021 the fashion industry was worth $1.7 trillion while a report from McKinsey (2019) states that it is worth $2.5 trillion. Post lockdown the fashion industry was able to begin its return to pre-covid levels, according to Euromoniter the global apparel and footwear industry grew 18.1% and before 2022 was expected to rise another 7.5%.
Berg (2022) suggests that the inflation from covid has been a more permanent effect than governments would have suspected. Fashion brands have had to navigate the industry in these uncertain times as no one could have predicted the energy crisis and the recession that is forthcoming which various industries have had to adapt too. Changes such as this affect the economy disrupting consumption patterns and demanding flexibility from brands. The fashion industry has been innovative post pandemic, brands have had to demonstrate ambiguity and resilience to remain relevant. Many leading brands in the UK have already begun to review investment budgets, cost structures and prepare for the challenges of 2023 as the cost of living limits consumers’ disposable income.
Creative directors are facing the challenge to bridge the gap between creativity and commerce in line with industry demands at this time. Historically art and fashion have been used as a tool to make a statement on politics and society, they can demonstrate an individual’s self expression or act as a criticism of society (English, 2013). A key example of this is explored by English (2013), who considers how Yves Saint Laurent was one designer in the 1960’s who’s work mirrored that of artists such as Ellsworth Kelly, Kenneth Noland and Frank Stella who ‘juxtaposed areas of colour for minimalism’, which can be reflected in Laurent’s work. Today, as brands become more commercial, creative directors have less space to explore creativity as they are being forced to focus on profit in order to survive in today’s competitive industry. Overdiek (2016) suggests that dual leadership is the most sustainable managerial model for design fashion entrepreneurship. This explores the designer and business dual partnership which has been crucial to finding a balance between creative and commercial approaches to a brand as well as the splitting of practices providing room for diversity and positive work from brands.
Profit is often the main focus of brands in the industry as their revenue and financial success is what allows them to remain in the industry. Brands need to consider how to find a balance between the creativity that attracts customers and the commerce which allows them to make money as a business.
References
https://fashionunited.com/companies/euromonitor-international
https://fashionunited.uk/uk-fashion-industry-statistics
Berg, A. (2022) How current global trends are disrupting the fashion industry
Overdiek, Anja. (2016). Fashion designers and their business partners: Juggling creativity and commerce. International Journal of Fashion Studies.
https://browzine.com/libraries/479/journals/36584/issues/8230931
English, Bonnie (2013). A Cultural History Of Fashion In The 20th And 21st Centuries. Bloomsbury