Profit
The fashion industry is one of the most dynamic and influential sectors in the global economy, generating over $2.5 trillion in annual revenues and employing millions of people worldwide (Fashion United, 2021). However, the industry also faces many challenges and uncertainties, such as changing consumer preferences, environmental and social impacts, technological disruptions, and geopolitical tensions.
According to the Lyst Index, which ranks the hottest brands and products based on online searches, sales, and social media engagement, the top performers in the first half of 2023 were Prada, Miu Miu, Moncler, Valentino, and Loewe. These brands have succeeded in capturing consumer attention and demand through outstanding show performances, collaborating with different brands to launch merchandise, and utilizing digital platforms as well as collaborating with and endorsing celebrities. Expanding on the impressive success of its flagship brands, Prada Group solidifies its position as a dominant force in the fashion industry. Prada continues to reign as the most sought-after brand globally for two consecutive quarters, experiencing a remarkable 22% surge in online searches. Simultaneously, Miu Miu ascends to second place in The Lyst Index rankings, achieving its highest-ever position since its inception. This accomplishment can be attributed partly to strong consumer demand for the pocket bag and an exciting collaboration with New Balance. Additionally, Miu Miu’s captivating showcase at Paris Fashion Week featuring renowned personalities Emma Corrin, Zaya Wade, Mia Goth, and Ethel Cain contributes significantly to its elevated status (Lyst, 2023).
However, not all fashion industry sectors are enjoying the same level of success. Some segments, such as luxury, sportswear, and casualwear, have shown resilience and growth amid the pandemic, while others, such as formalwear, occasionwear, and travel accessories, have suffered from reduced demand and sales. Moreover, some regions, such as China, North America, and Europe, have recovered faster than others, such as Latin America, India, and Southeast Asia. The uneven performance of the fashion industry reflects the different impacts of the health crisis, lockdown measures, stimulus packages, and vaccination rates across markets (McKinsey & Company, 2021).
In this context of uncertainty and volatility, how can a brand remain competitive and profitable? One of the key strategies that experts recommend is to invest in marketing. Marketing is essential for building brand awareness, loyalty, and differentiation in a crowded and noisy marketplace. Marketing can also help brands communicate their values, stories, and personalities to consumers who are increasingly looking for authenticity and purpose in their purchases. Moreover, marketing can help brands reach new audiences and segments through various channels and platforms, such as social media, e-commerce, influencers, podcasts, live-streaming events etc.
A good example of a brand that has used marketing effectively to remain competitive is Yves Saint Laurent (YSL). The YSL brand, led by its founder and creative director, gained admiration from a wealthy upper class who valued timeless living. However, when Hedi Slimane took over as the new creative director, changes were made not only to the name but also to the approach: embracing a “rock-and-roll” aesthetic endorsed by rebellious music industry celebrities and becoming associated with an indulgent Los Angeles lifestyle. This transformation was emphasized by relocating the brand’s headquarters from Paris to Los Angeles, attracting a new wave of consumers who identified with celebrity culture rather than understated elegance and refinement. (Mitterfellner 2023).
One of the most renowned creative directors in the history of fashion is Karl Lagerfeld, who worked for two major luxury houses: Chanel and Fendi. Lagerfeld was known for his prolific and eclectic output, as well as his ability to reinterpret and modernise the heritage and codes of both brands. For instance, at Chanel, he transformed the classic tweed suit into a versatile and contemporary garment that could be worn with sneakers, jeans, or pearls. He also introduced new elements such as logos, camellias, chains, and quilting that became synonymous with Chanel’s style. At Fendi, he revolutionized the use of fur by experimenting with different colours, textures, and techniques that made it lighter, softer, and more playful. He also created the iconic double F logo that represented the brand’s elegance and sophistication (Mitterfellner 2023).
In conclusion, the fashion industry is a complex and dynamic sector that requires brands to constantly adapt and innovate to meet the needs and expectations of consumers. Some of the ways that brands can achieve this are by investing in marketing and hiring creative directors who can balance creativity and commerce. These strategies can help brands to stand out and succeed in uncertain economic times.
Reference list
Fashion United (2022). Global Fashion Industry Statistics. [online] Fashion United. Available at: https://fashionunited.com/global-fashion-industry-statistics.
Lyst Insights. (n.d.). The Lyst Index: Fashion’s Hottest Brands and Products Q1 2023. [online] Available at: https://www.lyst.com/data/the-lyst-index/q123/.
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 : Unifying Fashion with Sustainability, Taylor & Francis Group, Milton. Available from: ProQuest Ebook Central. [22 October 2023].