Profit

The Profit pillar introduces the concept of a business earning money for the payment of staff and the expansion of the business. In order to earn profit a business must earn back what has been spent in revenue, and ideally gain some extra money which can be reinvested.

 The fashion industry is incredibly large in size, with a fashion show hosted by Versace succumbing 38.9 million views on tiktok alone as well as searches being up by 44%, which exemplifies the continued importance of this industry for the younger generation given the social media response. In particular, the luxury sector of the industry appears to be performing the best, likely due to higher prices and established brand image. In the first quarter of 2023, the top performing brands were Loewe, Prada and Versace, all of which are in the luxury sector. (Lyst, 2023)

With a changing society, brands are likely to experience different periods, some of which sales are high and some of which the brand is struggling. This could be down to a changing market and a lack of awareness of the current consumers, for example, a lack of understanding towards Gen Z needs and instead keeping the brand image and products the same and not evolving with consumers. 

An example of the regeneration of a brand is YSL’s successful rebrand. In 1965 YSL were incredibly successful, with the brand shaping trends. Throughout the 1960s and 1970s the brand was highly thought of due to their creative outlook on fashion, for example, their first tuxedo for women and collections inspired by artists such as Andy Warhol. However, as the late 80’s arrived, the brand’s collections were no longer revolutionary, and although the brand was still highly admired, the image of revolutionising fashion started to change. During this period, the brands founder Yves Saint Laurent stepped back, and the brand started to see new faces later on in the 2000’s. The brands first attempt at revitalisation was in 2012, when they officially changed the companies name to Saint Laurent Paris, and subsequently their newest designer created a grunge inspired collection, which made the brand a point of discussion again and saw the brands sales rise. (Mitterfelner, 2023)

In recent years, it is important for a brand to have someone who is considered a “creative leader”, which entails someone who prioritises their creativity in a way that is marketable to the general public. For example, quality is becoming an expectation amongst consumers, especially when considering luxury fashion price points, and therefore creativity and revolutionising fashion is incredibly important to keep consumers interested. Given a business creates products which consumers have seen before, its easy for the consumer to get bored therefore a creative and unique product portfolio is a key component of luxury brands. (K-Hole, 2023)