Yang Zhang

As the name suggests, “purpose,” defined as “why you do something or why something exists” (Cambridge dictionary, 2023), plays a significant role as one of the four pillars in the fashion industry, particularly in establishing a brand’s image. To truly understand a luxury brand, one must delve into the brand’s qualities and construct in a manner similar to understanding a living individual (Mitterfellner, O. 2023).

For a newly established blank canvas brand, it may initially bear no distinctive differences from other brands. However, once it defines its own purpose, this brand, like a person, acquires a sense of purpose and future development goals, along with unique qualities and strategies. Therefore, “purpose” serves as a guiding beacon, illuminating the path for the brand’s progression. It also enables its customers to get to know the brand just as they would get to know a new friend.

Prof. Dr. Christoph Burmann and Prof. Dr. Verena König (2012) proposed that a brand’s self-image can be created through six aspects: Brand origin, Brand vision, Brand values, Brand competencies, Brand personality, and Brand outputs. These six aspects not only contribute to shaping the brand image but also play a crucial role in defining the brand’s Unique Selling Point (USP) to differentiate it from others. Distinguishing between a premium brand and a luxury brand is not solely based on product quality; it largely depends on the image the brand has crafted. Therefore, these aspects form the fundamental foundation of brand establishment (Mitterfellner, O. 2023).

Luxury brands, in their quest to highlight their distinctiveness, often organize various activities to engage with consumers based on their vision, mission, and propositions, such as networking with artists, conducting rituals, and sharing their history (Mitterfellner, O. 2023). However, with Gen Z being the current and future primary consumers, their shopping habits have evolved. They no longer limit themselves to physical brick-and-mortar stores, opting for a seamless blend of online and offline experiences. What they desire extends beyond a mere product; they yearn for a holistic brand experience (McKinsey & Company, 2020).

To keep up with the pace of the times and captivate this new generation of consumers, brands need to focus not only on product quality but also on actively engaging with Gen Z to share their Unique Selling Points (USPs) and purpose.

Different generations respond to varying modes of brand promotion. Baby boomers, for instance, may find television advertisements an effective way to showcase a brand. Generation X, on the other hand, may prefer discussing a brand’s worthiness with family and friends alongside TV commercials. However, as we transition to Gen Z, they seek information through diverse means and have learned to filter information effectively.(McKinsey & Company, 2020).

In summary, regardless of how a brand chooses to promote itself, authenticity is paramount. A brand must accurately represent itself rather than portraying unattainable ideals.

Bibliography

Cambridge, C. (2023) Purpose, Cambridge Dictionary. Available at: https://dictionary.cambridge.org/dictionary/learner-english/purpose (Accessed: 29 October 2023). 

Mitterfellner, O. (2023) Luxury Fashion Brand Management: Unifying fashion with Sustainability. London: Routledge. 

Rahilly, L. (2020) Meet Generation Z: Shaping the future of Shopping, McKinsey & Company. Available at: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/meet-generation-z-shaping-the-future-of-shopping (Accessed: 29 October 2023). 

Profit, one of the four pillars of the fashion industry, is also the aspect that most people are most concerned about because economic profit is often used to measure winners and losers. In McKinsey’s 2016 Global Fashion Index report, it was indicated that 20% of individuals in the fashion industry generated 100% of the profits, while the remaining 80% would be phased out.

As one of the largest markets in the retail industry, the clothing market encompasses various categories of apparel, ranging from home to sportswear and from fast fashion brands like H&M to luxury brands like Louis Vuitton . In 2022, the revenue of the clothing market was approximately 1.53 trillion U.S. dollars. The revenue is projected to grow to 1.7 trillion dollars in 2023 and is expected to reach 1.94 trillion U.S. dollars by 2027 (P. Smith, 2023).

Among them, LVMH Group, as a leading entity, generated sales of 83.2 billion U.S. dollars from May 2022 to May 2023, surpassing Nike, another leading group, by 32.5 billion U.S. dollars

Former YSL Creative Director Hedi Slimane and CEO Francesca Bellettini share a common belief: “Fashion is a competition; it’s no longer about loyalty but about being relevant to future generations and attracting them” (Mitterfellner, 2023). The story of YSL’s rise, decline, and resurgence is widely circulated in the fashion world and serves as a valuable case study.

Before 1990, YSL was at its peak. The designer himself, Yves Saint Laurent, became the first living designer to have an exhibition at the Metropolitan Museum of Art in 1983. However, YSL began to decline after 1990 due to three primary reasons. Firstly, the products ceased to be innovative, continually reintroducing previous styles. Secondly, product quality declined, and thirdly, the brand lacked a younger management team. Most of the new products released during that period were reiterations of previous styles, failing to captivate a younger consumer base. As the brand’s loyal older consumers aged, YSL’s image started to be associated with older demographics. The deteriorating brand image resulting from declining product quality and the absence of a younger management team contributed to the brand’s decline.

After 2012, with the support of Hedi Slimane, Francesca Bellettini, and the backing of Kering Group, YSL experienced a renaissance. Hedi Slimane, as the Creative Director, initiated changes throughout the brand, starting with the brand name. This generated significant controversy at the time, with many long-time customers protesting. Nevertheless, it piqued the interest of new customers. “The new design language was either loved, respected, or rejected, and no matter what the opinion was, the collection always ensured one thing: a lot of attention” (Fashionbi LTD, 2014). Despite the controversies, it at least garnered the attention of a significant number of young individuals.

The perfect collaboration between Slimane and Bellettini rejuvenated the brand, making it increasingly appealing to a younger audience, and promoting omnichannel marketing through both online and offline channels. “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” (Mitterfellner, 2023). To thrive in the highly competitive fashion industry, a brand must continually innovate in terms of products and concepts, keep pace with the times (such as new-age digital marketing and the development of digital stores), and continuously analyze and update its existing consumers and potential consumers.

Products are pivotal for a brand’s profitability, and creative directors are the ones steering the ship behind those products. In the realm of fashion brands, creative directors have four primary responsibilities as outlined in Mitterfellner (2023): firstly, they lead fashion design; secondly, they serve as the brand’s visionary; thirdly, they manage multiple teams; and fourthly, they act as brand ambassadors. It can be said that every visual aspect presented to customers by a brand is crafted by the creative director.

Renowned creative director Karl Lagerfeld once simultaneously worked for three brands, Chanel, Fendi, and Karl Lagerfeld. This is because the products created by a creative director aren’t solely based on their own ideas but must also align with the brand’s inherent personality. Therefore, even with the same creative director, the output of products varies. (Mitterfellner, 2023). Hence, a creative director builds upon the brand’s original personality, adding a diverse array of creativity and design. While there is a constant evolution, the core essence remains unchanged. The brand’s fundamental tone remains consistent. Consequently, irrespective of how things change, it continues to resonate with its existing consumers while attracting new, younger consumers.

Bibliography

Berg, A., Hedrich, S. and Leon, J. (2017) The two faces of fashion-industry performance, McKinsey & Company. Available at: https://www.mckinsey.com/industries/retail/our-insights/the-two-faces-of-fashion-industry-performance (Accessed: 22 October 2023). 

Mitterfellner, O. (2023) Luxury Fashion Brand Management: Unifying fashion with Sustainability. London: Routledge. 

Smith, P. (2023) Topic: Apparel market worldwide, Statista. Available at: https://www.statista.com/topics/5091/apparel-market-worldwide/#topicOverview (Accessed: 22 October 2023). 

Under the influence of the different historical backgrounds, people from different periods experiencing varying social environment, leading to a huge gap of social and lifestyles. For example, probably most of the GenX, from the 1960s to 1979s, did not have access to the Internet before the age of 20, they primarily relying on physics books and communication with limited people to acquire new knowledge, In contrast, most of Generation Z started using social media and could quickly access global news and information from a young age.These vastly different experiences have shaped their perspectives on various aspects of society.

As one of 4 pillars in fashion industry, “PEOPLE” (including designers, employees, consumers, and more) has also undergone significant changes in line with the developments in society and the era.Therefore, it is crucial to begin a research on Generation Z, who are poised to change the world, in order to keep up with the trends of fashion.

“For them, the self is a place to experiment, test, and change”(Francis, T. and Hoefel, F. 2018) 

What is Gen Z：Gen Z is the generation of people who born between 1996 and 2010. People Called Gen Z “True Gen.” because, compared to individuals from other generations, Gen Z possesses a distinct propensity for deep reflection, unique self-expression and Independent Judgmen. They have four core behaviors:

Undefined ID’ – Gen Z shapes their own identity, avoiding being confined by traditional labels or predefined roles.

‘Communaholic’ – They blur the lines between online and offline relationships, engaging in beneficial interactions with people from all around the world.

‘Dialoguer’ – Gen Z is open to accepting and understanding diverse cultures and is willing to listen to various sets of values and beliefs.

‘Realistic’ – They are more practical and exhibit independent judgment capabilities, making decisions based on a pragmatic approach.

These characteristics set Generation Z apart and define their unique outlook on life and society. (Francis, T. and Hoefel, F. 2018) 

When it comes to how a company can attract the Gen Z consumer base, one can say, “I like to think of consumers, you and me, as agents of change; we push fashion corporations and businesses to make the right decisions that reflect the needs of the time” (Ulasewicz, C. 2015). This implies that a company’s development is driven by changes in consumers. Therefore, to figure out how to capture the attention of the Gen Z demographic, it is necessary to identify the differences in Gen Z compared to previous generations.Gen Z is a generation that has experienced pandemic lockdowns, climate change, and fears of economic collapse (McKinsey, 2023). In this context, they have received more ethical education about environmental and social sustainability, which makes them place a higher value on whether a brand is ethical. At the same time, because they are more inclined towards personalized products, many brands’ traditional mass production models need to be partially altered, and introducing customizable production lines will better align with the new consumer demands.

Grace Ling is a women’s fashion brand that utilizes modern 3D printing and CGI technology to pre-calculate and commit to zero-waste tailoring. Her distinctive and technology-driven sustainable designs have made Grace Ling one of the most highly anticipated runway debut brands at New York Fashion Week in September 2023

To adapt to the evolving times, the key people skills needed for employees within a fashion brand are constantly evolving. One crucial skill is a comprehensive understanding of omnichannel marketing. Over the past decade, online shopping has become the primary mode of shopping for the younger generation in the new era. It extends beyond specific websites and encompasses the entire online landscape. Therefore, the ability to engage in omnichannel digital marketing has become a critical weapon for building a brand’s identity (Moran, G. 2022).

bibliography

About (2023) GRACE LING. Available at: https://gracelingofficial.com/pages/about (Accessed: 15 October 2023). 

Francis, T. and Hoefel, F. (2018) ‘true gen’: Generation Z and its implications for companies, McKinsey & Company. Available at: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/true-gen-generation-z-and-its-implications-for-companies (Accessed: 15 October 2023). 

Hethorn, J. and Ulasewicz, C. (2015) Sustainable fashion: What’s next?: A conversation about issues, practices and possibilities. New York: Bloomsbury, Fairchild Books, an imprint of Bloomsbury Publishing Inc. 

McKinsey & Company, M.& C. (2023) What makes Gen z tick?, McKinsey & Company. Available at: https://www.mckinsey.com/featured-insights/themes/what-makes-gen-z-tick (Accessed: 15 October 2023). 

Moran, G. (2023) Gen Z and millennials 2023 report, Drapers. Available at: https://www.drapersonline.com/insight/drapers-bespoke/gen-z-and-millennials-2023-report (Accessed: 15 October 2023). 

In the world of fashion, there are four essential pillars that guide the industry towards a more sustainable and responsible future: Planet, People, Profit, and Purpose. Each of these pillars is crucial in shaping the fashion business landscape. In this blog post, we will primarily focus on the “Planet” pillar and explore its connection to sustainability, the circular economy, and its impact on the United Nations Sustainable Development Goals (SDGs).

Planet

Fashion and its supply chain is the third largest polluting industry, after food and construction. It produces 10% of annual carbon emissions into the atmosphere releasing 1.2 billion tonnes of carbon dioxide per year, more than the shipping and the aviation industry combined (UNEP)，In addition, the microfiber that flows into the water during clothing washing also has a great impact on marine life and the food chain.The “Planet” pillar is aim to reduce this issues, redefining sustainability businesses by using “Reduce, Repair, Reuse, Recycle, Repurpose, Restore, Regenerate” that keep our finite resources in a closed loop.

Circular economy

Circularity is commonly defined as a system in which all materials can be recycled indefinitely or naturally decomposed. (Gwilt, A. 2014). It emphasizes a closed-loop system where products, materials, and resources are reused and recycled rather than being discarded as waste. In the realm of fashion, Circular thinking encompasses three key principles: Keep clothes in use, Use renewable and safe materials, Solutions based on upcycling, design plays a pivotal role in enabling this circular thinking.

Sustainability in Fashion

The production, utilization, and disposal phases of fashion product lifecycles exert multifaceted environmental, economic, and social impacts (Gwilt, A. 2014). Sustainability is unequivocally the future of the fashion industry. Governments, fashion companies, and consumers are all displaying an increasing awareness of the need for sustainable fashion products. For instance, the European Union has taken a significant step by agreeing to ban the incineration of unsold textile items (Council of the EU, 2023). Moreover, the introduction of “Second-hand style” within the H&M Group exemplifies a broader trend in the industry, demonstrating that people are paying greater attention to sustainability in the world of fashion. This growing emphasis on sustainable practices reflects a collective recognition of the importance of responsible fashion production and consumption.
Impact on UN SDG

One of the UN SDGs has a significant impact on the fashion industry is “Life Below Water.” The production and use of textile products generate significant waste, much of which has a detrimental effect on our water resources. Toxic chemical dyes and microplastic fibers released into water bodies pose a severe threat. These toxic substances lead to the loss of marine life, disrupt underwater ecosystems, and distort the food chain. Thus, addressing the concerns related to “Life Below Water” is imperative, and the fashion industry plays a substantial role in mitigating its adverse effects on our oceans and aquatic ecosystems.

In conclusion, the fashion industry’s path to sustainability is guided by the four pillars of Planet, People, Profit, and Purpose. By emphasizing the “Planet” pillar and embracing the principles of the circular economy, fashion brands can reduce their environmental impact and support UN SDGs such as “Life Below Water.” As the industry becomes more mindful of its choices and practices, it can contribute to a more sustainable and responsible future.

Bibliography

Council of the EU (2023) Ecodesign Regulation: Council adopts position – consilium, European council. Available at: https://www.consilium.europa.eu/en/press/press-releases/2023/05/22/ecodesign-regulation-council-adopts-position/ (Accessed: 08 October 2023). 

Grande, G. and Grande, G. (2022) Onesta, Future Fashion Factory. Available at: https://futurefashionfactory.org/partners/onesta/ (Accessed: 08 October 2023). 

Gwilt, A. (2020) Practical guide to sustainable fashion. LONDON: BLOOMSBURY. 

H&M Group (2023) Second-hand style rolling out across H&M Group, H&M Group. Available at: https://hmgroup.com/our-stories/second-hand-style-across-hm-group/ (Accessed: 08 October 2023). 

World Bank Group (2022) How much do our wardrobes cost to the environment?, World Bank. Available at: https://www.worldbank.org/en/news/feature/2019/09/23/costo-moda-medio-ambiente (Accessed: 08 October 2023).