Profit
Profit is imperative for any business’s economic growth. One could argue it is essentially an equal balance between the remaining 3 industry pillars – people, planet, and purpose. The primary goal is to produce profits responsibly without compromising the environment, corporate values, or the wellbeing of stakeholders. There are many ways for a company to increase its profitability, from the deployment of innovative business concepts to long-term strategies that prioritise ethics and sustainability. As stated in the 2017 Mckinsey & company report, fashion is one of the world’s most important industries, driving a significant part of the global economy. The global industry was valued at roughly $2.5 trillion in 2020 and has since grown due to its dynamic nature as well as constant over purchasing as a result of social media.
According to the 2023 Mckinsey & company report, luxury fashion sales are expected to grow across the board. European sales alone in the luxury sector are forecasted to grow from 3-8% in 2023. Proving how many people continue to show a willingness to invest in luxury items, demonstrating the persistence of consumer spending even during economic downturns, which highlights the lasting significance of the luxury sector within the fashion industry.
Whilst building a profitable brand, economic uncertainty is a factor that must be considered. By adopting some strategic measures, it will allow businesses to remain in competition. A key example of this includes a brands adaptation and inclusion of evolving technologies. A striking example includes women’s sportwear brand, lululemon, who have improved client engagement and retention by utilising fitness tracking technology in their new ‘lululemon studio mirror’, an interactive two-way mirror. The unique product incorporated personalised fitness training which improved consumer interactions and created additional revenue on top of apparel sales.
Creative directors find a balance between innovation and commercial feasibility through compelling storytelling. This equilibrium is best exemplified by Virgil Abloh’s creative style at Louis Vuitton and Off-White, which fuses streetwear influences with luxury aesthetics. Creative directors may learn from Abloh’s inclusive brand narrative, strategic partnerships, and tactical use of social media to manage the challenging junction of art and commerce. His singular blending of creativity and expertise in business has permanently altered the fashion industry, transforming current trends and consumer interaction.
It’s still essential to strike a balance between artistic expression and financial success. In the fashion industry, brands that successfully combine art and commerce create long-lasting financial success and alter market dynamics.
bibliography
McKinsey & Company (2017). The state of fashion report 2017 [online]
https://www.mckinsey.com/~/media/McKinsey/Industries/Retail/Our%20Insights/The%20state%20of%20fashion/The-state-of-fashion-2017-McK-BoF-report.pdf [accessed 21 October 2023]
McKinsey & Company (2023). The state of fashion report 2023 [online]
https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/state%20of%20fashion/2023/the-state-of-fashion-2023-holding-onto-growth-as-global-clouds-gathers-vf.pdf [accessed 22 October 2023]