Profit
Profit is an important part of marketing. The definition of profit is “Profit describes the financial benefit realised when revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity in question.” （Kenton）. So profit is the most basic and important goal for the fashion industry and the fashion industry is massive. Because “Fashion is one of the world’s most important industries, driving a significant part of the global economy. It is one of the key value-creating industries for the world economy. If it were ranked alongside individual countries’ GDP the global fashion industry would represent the seventh-largest economy in the world.’’ (McKinsey ,2016) Therefore Fashion industry is one of the biggest industries in the world. There are some detailed information about the fashion industry. Prior to covid-19“he fashion industry global revenue was estimated between $1.7 trillion and $2.5 trillion” (McKinsey ,2016). The economic impact on all sectors during the epidemic was significant, but in the aftermath of the epidemic, the world saw a retaliatory spending “The world’s apparel retail market is expected to enjoy a 7.5% growth in 2021-2022 to $1.84 billion dollars in 2022 and a 6.1% growth in 2022-2023 to $1.95 billion dollars in 2023.” (McKinsey ,2016). So the size of fashion industry is really big. But for a industry, it is also divided into many sectors like Production of textiles, Fashion design and manufacturing, Fashion retailing, Fashion marketing, Fashion merchandising, Fashion shows. The meaning of sector is “A sector is an area of the economy in which businesses share the same or related business activity, product, or service. Sectors represent a large grouping of companies with similar business activities, such as the extraction of natural resources and agriculture.” (Kenton, 2022). Those sectors of fashion industry like a process of making clothes. First production of textiles, many brand trend to be eco-friendly brand” Natural fibers that include wool, cotton, silk and linen are greatly used in the fashion industry.” (Mazharul, 2022). Second fashion design and manufacturing, all brands are for consumers that means most of designers they do not decide the popular style “they prefer to endeavor to design clothes that will meet consumer demand” (Mazharul, 2022). Third, for the fashion retailing, they must realize the customer preferences and living style cause retailer is an important bridge between consumers and manufacture. Fourth fashion marketing, “Marketers use sales tracking data, attention to media coverage, focus groups, and other means of ascertaining consumer preferences to provide feedback to designers and manufacturers about the type and quantity of goods to be produced” (Mazharul, 2022). The purpose of those people is maximizing profits. Fifth, fashion merchandising. There is a strong relationship between fashion marketing and fashion merchandising, fashion merchandising staff need data from marketing staff to base decisions on because they” Merchandising aims to maximize sales and profitability by making consumers to buy a company’s products. As per the definition of the term, merchandising involves selling the right product, at the right price, at the right time and place, to the right customers.” (Mazharul, 2022). It also includes tore windows, in-store displays, and special promotional events to attract customers. Sixth fashion shows which is a channel to recommend your clothes to consumers without any distributors.“In the late 20th and early 21st centuries, fashion shows became more elaborate and theatrical, were held in larger venues with specially constructed elevated runways for the models, and played an increasingly prominent role in the presentation of new fashions. (Mazharul, 2022)
Many companies have explored ways to keep their brands competitive in the marketplace during times of economic uncertainty like the epidemic and war. Then all they can do is make the brand stand out in this marketplace like no other. With the evolution of digitalization brands must use it to effectively engage consumers and now that consumers are environmentally conscious they can make it clear to the public that they are a sustainable brand, these are the key points to stand out and it’s also about reassuring your target audience that they’re not affected by these external factors, so that you can make sure that your fans still support the brand and retain your base.
Creative directors exist to reduce the gap between creativity and business, so that designers understand the market better and the market understands designers better. So creative director is more like a company with only designers, he needs to think about brand development, brand design and brand philosophy，to minimize the gap between design and business, the creative director needs to understand the designer’s ideas and design concepts at the time of the product launch and make it a better bed for the marketing and merchandising people to better understand the brand so that they can better promote the brand. Therefore，the profession is like a bridge.
Bibliography
- Kenton, W. (no date) Profit definition plus gross, operating, and net profit explained, Investopedia. Available at: https://www.investopedia.com/terms/p/profit.asp (Accessed: 22 October 2023).
- McKinsey (2016) The state of Fashion, Mckinsey State of Fashion. Available at: https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/the%20state%20of%20fashion%202017/the-state-of-fashion-mck-bof-2017-report.pdf (Accessed: 22 October 2023).
- Kenton, W. (2022) What is an economic sector and how do the 4 main types work?, Investopedia. Available at: https://www.investopedia.com/terms/s/sector.asp (Accessed: 22 October 2023).
- Mazharul,K.(2022) Key sectors of Fashion Industry Available at https://textilelearner.net/key-sectors-of-fashion-industry/ (Accessed: 22 October 2023).
- Decor, E. (2019 ) II riassunto della Fashion week (Accessed: 22 October 2023)
- https://www.hermes.com/uk/en/ (Accessed: 22 October 2023)