PROFIT AND THE FASHION INDUSTRY
The importance of profit in the fashion industry remains a captivating topic of discussion. In 2021, the fashion business, encompassing various sectors, generated an impressive revenue of around $759.5 billion (Abdul Momin, 2022). This substantial amount highlights the immense profit potential within the industry.
The fashion industry is an ever-expanding sector that employs millions of individuals worldwide. This industry plays a pivotal role in shaping trends and driving consumer demand. With an estimated value exceeding $2.4 trillion (McKinsey & Company, 2023), the industry is characterized by its intense competition, as it constantly adapts to emerging trends that evolve with each season. The industry begins to introduce advanced technologies, such as 3D printing to expedite production costs. The industry wields a profound influence, shaping societal norms.
Sectors within the industry, face distinct challenges. Despite the dominance of fast fashion, there is a growing consumer demand for sustainable and ethical fashion. Some brands have responded by prioritizing sustainability and inclusivity. For instance, companies like Veja and Rothy’s have embraced eco-friendly materials into their sneaker production, demonstrating the feasibility of making environmentally conscious fashion choices (Raf Chomsky, 2023). Moreover, the luxury segment of the industry consistently outperforms others, with China playing a significant role and brands like Gucci achieving notable success in the Chinese market (Anna Cabigiosu, 2020).
In the realm of business, innovation plays a pivotal role in establishing a competitive edge. This is particularly important during times of uncertainty, as being at the forefront of innovation allows brands to differentiate themselves from their competitors (Cemel Zehir, 2012). By prioritizing sustainability and embracing circular economy principles, brands can remain relevant and appeal to consumers, especially Gen Zers, who highly value responsible consumption and production. To attract and retain customers, companies must understand their purchase intentions (Leon Brencic, 2023). Consumers are increasingly mindful of their spending. Therefore, brands that analyse their consumers’ needs and highlight their value proposition are more likely to outshine their competitors.
Creative directors possess a unique blend of creative expertise and a comprehensive understanding of the commercial objectives of a brand. Their overarching responsibility is to bridge the gap between creativity and commerce by ensuring that creative concepts not only drive the growth and success of the brand but also resonate with the intended target audience. An artistic mindset assists business professionals adopt a transformative approach that fosters greater creativity, and possibilities (Amy Whitaker, 2018).
Reference List:
Raf Chomsky
“Eco – Friendly Footwear: Discover Recycled Shoe Brands And Sustainable Materials”
Online Source (2023).
Accessed on 19/10/2023.
Cemal Zehir
“Innovation intelligence and entrepreneurship in the fashion industry”
Online (2012).
Accessed on 19/10/2023
Anna Cabigiosu
Online (2020)
“An overview of the luxury fashion industry”
Accessed on: 19/10/2023https://link.springer.com/chapter/10.1007/978-3-030-48810-9_2
Abdul Momin
“SWOT Analysis of the fashion industry”
Online (2022).
Accessed on 19/10/2023
Leon Brencic
“Marketing strategies in times of uncertainty: How to succeed even in a period of economic downturn?”
Online (2023).
Accessed on 20/10/2023
Amy Whitaker
“bridging the gap between art and business”
Online (2018).
Accessed on: 20/10/2023
McKinsey & Company
“The state of fashion 2023: Holding onto growth as global clouds gather.”
Online (2022).
Accessed on: 20/10/2023