Jiayi Wu

Profit is a key factor in the development of a fashion brand. It determines whether a fashion brand can continue to operate. A fashion brand can only continue to push for other initiatives if it can achieve solid profitability. The fashion industry is a global behemoth with huge economic clout. Covering clothing, footwear, accessories, textiles and other fields, extending from high-end luxury brands to fast fashion retailers.Instead of releasing garments in four scheduled seasons, fast fashion brands introduce new styles weekly, or even daily, at very low prices. In 2019, the industry was valued globally at 36 billion USD and is estimated to reach 43 billion USD by 2029 (Statista, 2021).

The performance of different segments of the fashion industry can vary significantly. For example, luxury fashion brands are generally more recession-proof than mid-range or budget brands because they cater to a wealthier demographic. Luxury goods have generated more than $300bn worldwide in 2021 (Statista, 2022). Despite the impact of coronavirus disease 2019 (COVID-19) pandemic on demand for luxury goods, the market is expected to rise to $387bn by 2025 (Bain & Co, 2021).Fast fashion brands often focus on cost efficiency and rapid production to remain competitive, but may face environmental and sustainability challenges.In order to meet the growing demand for low-cost clothing, brands have developed supply chains that manufacture high volumes of synthetic, petroleum-based garments in developing countries. This creates significant levels of greenhouse gasses (GHGs) and landfill waste. After a series of exposés and controversies surrounding fast fashion’s impact in the early 2010 s, fast fashion leaders adopted various sustainability initiatives and claimed to be more “eco-friendly”. Upon closer analysis, these initiatives are limited in scope and insufficient to address the impact fast fashion has on the climate. Even with current sustainability practices, it is estimated the fast fashion industry will contribute to irreversible damage to the environment by 2030 (Wren, 2022).

In times of economic instability, fashion brands can take effective measures to maintain brand competitiveness, such as opening up new product lines and market diversification to reduce brand profit risks while increasing investment in online shopping. This includes including a variety of different categories of merchandise in its product lines to meet the needs of different consumers. For example, a fashion brand could offer clothing, footwear, accessories, and home products, among others. Providing products at different price ranges at the same time can attract different levels of customers. A mix of high-end, mid-range and budget product lines can help brands stay competitive across different market audiences. Diversifying product lines and markets is a key strategy that can help fashion reduce profit risk, enhance economic stability, and achieve long-term sustainability.

Reference list

D’Arpizio, C. and Levato, F. (2021). Luxury market rebounds in 2021, set to return to historic growth trajectory. [online] Bain. Available at: https://www.bain.com/about/media-center/press-releases/2021/luxury-report-2021/.

Smith, P. (2023). Fast fashion market value forecast worldwide 2008-2028 | Statista. [online] Statista. Available at: https://www.statista.com/statistics/1008241/fast-fashion-market-value-forecast-worldwide/.

Wren, B. (2022). Sustainable Supply Chain Management in the Fast Fashion Industry: A Comparative Study of Current Efforts and Best Practices to Address the Climate Crisis. Cleaner Logistics and Supply Chain, [online] 4(100032), p.100032. doi:https://doi.org/10.1016/j.clscn.2022.100032.

In today’s rapidly evolving fashion industry, brands are faced with the challenge of attracting a diverse and socially conscious consumer base. As one of the pillars of sustainable development, people may have an important impact on the fashion industry. One of the fundamental considerations for fashion brands is how to engage with Generation Z (Gen Z), a group born between the mid-1990s and mid-2010s. This article delves into various aspects of this challenge, exploring Gen Z as consumers, strategies to engage Gen Z, examples of brands responding to diversity, and the key people skills needed for a fashion brand to thrive.

Generation Z consumers are characterized by being digitally native, socially aware, and diverse in perspective. They have grown up in a world shaped by the Internet, rich in information and connected (Dolot, 2018) They are tech-savvy and have grown up immersed in smartphones, social media and the internet. This digital fluency impacts their shopping habits as they often turn to online platforms for product research, reviews and purchases. Brands therefore need to have a strong digital presence to reach out and engage with the tech-savvy generation. In addition to this they value the brand’s transparency and ethical practices. They want to know where and how products are made and whether the company treats its workers and suppliers fairly. Brands that provide this information openly and honestly can gain Gen Z’s trust.

To attract and retain Gen Z consumers, brands must not only understand these characteristics but also align their practices, values and messaging with the expectations of this unique generation(Francis and Hoefel, 2018) This includes being authentic, socially responsible, and environmentally conscious, and demonstrating these qualities in a transparent and inclusive manner. Gen Z consumers prioritize sustainability. Brands should adopt environmentally friendly practices, use sustainable materials, and ensure transparency in their supply chains. Social media platforms are the primary way Gen Z communicates and shares information. Brands must maintain an active presence on platforms like Instagram, TikTok, and Twitter to connect with this audience. Regularly publishing engaging posts can help build brand awareness and educate Gen Z consumers about products, events, and social events.

Many brands have recognized the importance of addressing diversity and have taken significant steps to promote inclusion and celebrate diversity in their products, marketing and corporate culture. Nike is a striking example of a brand that has dealt with diversity effectively. Nike has long excelled in diverse advertising, such as the Nike Pro Hijab for Muslim female athletes, adaptive sportswear for people with disabilities, and plus-size sportswear. Among various multicultural marketing campaigns, “One Day We Don’t Need This” stands out. (Refuel Agency, 2020) Nike has been active in featuring diverse models and athletes in its advertising and marketing campaigns. They feature athletes of various ethnic backgrounds, genders, and body types in their ads, emphasizing that exercise and fitness are for everyone. And Nike has expanded its sizing options to accommodate a more inclusive range of body shapes. Their “Extended Sizes” program ensures that a wider range of consumers can find products that fit and are comfortable.

In conclusion, within the contemporary and dynamic fashion landscape, the appeal to Gen Z consumers is contingent not solely upon the quality of products, but also on the alignment of brands with principles of sustainability, diversity, and social consciousness. It is imperative for brands to incorporate these values into their operational framework, product offerings, and marketing strategies.

Reference list

Dolot, A. (2018). The Characteristics of Generation Z. e-mentor, [online] 74(2), pp.44–50. Available at: https://www.ceeol.com/search/article-detail?id=737237.

Francis, T. and Hoefel, F. (2018). ‘True Gen’: Generation Z and its implications for companies. [online] McKinsey & Company. Available at: http://www.drthomaswu.com/uicmpaccsmac/Gen%20Z.pdf.

Refuel Agency (2020). 6 Examples of Brands Who Got Multicultural Marketing Right | Refuel Agency. [online] MILITARY | TEEN | COLLEGE | MULTICULTURAL. Available at: https://www.refuelagency.com/blog/multicultural/examples-of-brands-who-got-multicultural-marketing-right/.

“Pillar” represents an innovative concept encompassing various aspects of sustainable development and responsible business practices. It embodies three key dimensions: People, Planet, and Prosperity. The People dimension primarily focuses on promoting social equity, inclusivity, and fair labor practices. The Earth dimension revolves around environmental sustainability and conservation, and organizations that adopt this dimension typically seek to reduce waste, reduce greenhouse gas emissions, and promote responsible sourcing of materials. The Prosperity dimension emphasizes economic sustainability and ethical governance, encouraging businesses to pursue long-term profitability while considering the interests of various stakeholders, including shareholders, customers, and society as a whole.

The circular economy represents an economic system in which products are designed for durability and repairability, with a focus on preserving the value of products and materials for as long as possible. It underscores sustainability in product design, manufacturing, and usage processes, thereby contributing to reduced resource consumption and waste reduction. In the fashion industry, the principles of the circular economy involve designing durable clothing, encouraging repair and reuse, and utilizing sustainable materials. This approach stands in stark contrast to the traditional linear economy, where products are manufactured, used, and then discarded as waste.

The textile and fashion (T&F) industry faces growing global scrutiny of its supply chain operations. While the industry’s environmental impact has been widely publicized, some of the root causes can be attributed to the proliferation of fast fashion, which relies on cost-effective manufacturing, frequent consumption, and short-lived garment usage (Niinimäki et al., 2020). Consequently, much like other sectors, the circular economy is viewed as a viable alternative for the T&F industry to attain elevated levels of sustainability.

Sustainable Development Goal 5 (SDG 5) emphasizes the importance of gender equality. Gender equality is an extremely important issue for all businesses, however, the fast fashion industry, which primarily targets the female population, faces significant challenges related to women’s well-being and labor rights, as well as employees’ professional and personal development. (Miotto and Vilajoana-Alejandre, 2019) In the T&F industry, achieving gender equality means ensuring equal rights and opportunities for women in the supply chain, including in the workforce and in management positions. By linking gender equality to the people dimension in the Pillar framework, the T&F industry can better achieve social responsibility, create inclusive supply chains, and contribute to achieving the goals of SDG 5. A special focus on gender equality can help address gender inequality within the industry. This includes ensuring that female workers receive equal opportunities, pay and rights, while providing training and development opportunities so that they gain better status and power within the industry. This will help create a more equal and sustainable fashion industry while reducing its negative impact on the environment.

Reference list

Miotto, G. and Vilajoana-Alejandre, S. (2019). Gender equality: a tool for legitimacy in the fast fashion industry. Harvard Deusto Business Research, 8(2), p.134. doi:https://doi.org/10.3926/hdbr.244.

Niinimäki, K., Peters, G., Dahlbo, H., Perry, P., Rissanen, T. and Gwilt, A. (2020). The Environmental Price of Fast Fashion. Nature Reviews Earth & Environment, 1(4), pp.189–200. doi:https://doi.org/10.1038/s43017-020-0039-9.