Profit
Profit is an integral factor that fuels the fashion industry. The industry is based on drive, ambition and creativity, yet, such designs and collections would not be able to come to fruition if profit was not being generated. There are several costs that need to be covered within the $1.53 Trillion industry (in 2022) and forecasted to grow in 2023 to over $1.7 trillion (Statistica, 2023) hence profit is an essential element in this ever growing industry and what I will be covering in my blog.
It is important to understand how the various sectors of the fashion industry are performing as customers are eager to keep up with the newest trends. There are endless opportunities for brands, particularly in regards to profit. However, due to circumstances such as post pandemic, conflicts and high inflation levels, brands will have to face challenges with predictability of demand and will need the assistance of technology as the top 20 winners of the industry are already adopting. Berg, A. (2022) This will also require brands to think about how they remain competitive in uncertain economic times. Kapferer says the brand can grow older but should not actually age. In order to stay young, regular reinvention, innovation and facelifts help to stay relevant. To do this, current trends and behaviours of younger customer segments must be analysed and adopted. This will generate future customer loyalty. (Kapferer, 2008)
Saint Laurent, successfully revitalised by new creative director Hedi Slimane, targeted a new consumer group in a different location through the use of rebellious celebrities portraying a rock and roll style la lifestyle and effective use of social media. One year after rebranding in 2014, Saint Laurent was among the top 10 most mentioned companies on twitter. Additionally, in the case of Burbery refreshing their core product the iconic trench coat in order to meet the modern tastes and preferences of their consumers. Mitterfellner, O (2023) Therefore, understanding what the target customer values and as a brand positioning yourself within these values is crucial to stay afloat, particularly as customers become more demanding, specifically within sustainability, this provides brands opportunity to be responsible, connect with their customers and generate profit Berg, A. (2022)
Creative directors are the bridge connecting, managing and are responsible for the people who make up a brand as well as narrowing the gap between creativity and commerce with a focus on profit. Karl Largerfeld’s time as a creative director for both Fendi and Chanel portrays a balance of creativity and commerce as he had to balance design, crafting successful collections within time conditions, brand vision and his role as the voice and ambassador with a key focus that the business is generating revenue.
Mitterfellner, O. (2023) Decline and Resuscitation of Luxury Fashion Brands., ProQuest Ebook Central. Available at: https://ebookcentral.proquest.com/lib/ual/reader.action?docID=7260416&ppg=150 (Accessed: 21 October 2023).
Mitterfellner, O. (2019) Social media, blogs, and opinion- leaders: who is leading your opinion? , ProQuest Ebook Central. Available at: https://ebookcentral.proquest.com/lib/ual/reader.action?docID=5981798&ppg=99 (Accessed: 21 October 2023).
Hethorn, J., & Ulasewicz, C. (eds). (2015). Sustainable Fashion: What’s Next? A Conversation about Issues, Practices and Possibilities. New York: Bloomsbury
(Accessed: 21 October 2023). Smith, P. “Topic: Apparel Market Worldwide.” Statista, www.statista.com/topics/5091/apparel-market-worldwide/#topicOverview. (Accessed 21 Oct. 2023).