Profit
Profit in relation to the fashion industry is inevitably the main goal for a company. The values and methods they carry often are done simply to appease the market and increase sales. This is why its a crucial factor in building and maintaining a company. The pillar includes the sales of items, the net profit and the methods used to reach this destination.
The fashion industry is a major contributor to the global economy, one of the largest in the world. According to a 2022 report by Statista, the global fashion industry was valued at approximately $1.53 trillion dollars, however other sources from before the coronavirus state even higher, up to a staggering $2.5 trillion. This suggests that the Pandemic had an extremely detrimental affect on the industry, dropping over a Trillion dollars in value. However, during the pandemic people turned to online shopping rather than in store shopping which led to a surge in shopping on websites such as Ali express. This was considered a golden age in fast fashion, which was affordable and accessible to the general public. However currently, the fashion industry its returning its methods to how it was before coronavirus, employing over 300 million people worldwide, accounting for 7% of employment in some developing countries.
The entire industry has only recently got back on its feet from covid, and since the restrictions from the pandemic were lifted the industry has been faced with more new restrictions involving sustainability and awareness. This means that the sustainable sector of fashion had a boost and largely increased the size of its market as a response to activism and current values. However, surprisingly the luxury sector is predicted to grow by 5 to 10% in 2023 and the rest of the industry set to decrease by 2-3%. This has motivated brands to change their marketing methods for the coming year, as the fashion centre of the world is shifting, suggesting that the Middle East may be a new haven for growth in the industry.
Through implementing values and motive to the brand, a company may stay competitive by relating to the economic struggles at the time, for example relating to the consumers life in these circumstances. For example, as stated before, during the pandemic brands shifted to suit the internet focused market. This was evidently as a response to people being stuck indoors. This is called a silver lining strategy, that takes advantages of bright spots in a storm.
https://fashionunited.com/global-fashion-industry-statistics
https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion#