Ruixi Liu

The success of any business depends on its ability to continually earn profits. Profit equals a company’s revenues minus expenses. Earning a profit is important to a business because profitability impacts whether a company can secure financing from a bank, attract investors to fund its operations and grow its business. Companies cannot remain in business without turning a profit. A business owner must understand the importance of profitability in business management while developing strategies and tools which give his/her company the best chance at remaining profitable.

The global revenue in the fashion market was forecast to continuously increase between 2023 and 2027 by in total 0.2 trillion U.S. dollars (+11.49 percent). After the fifth consecutive increasing year, the indicator is estimated to reach 1.94 trillion U.S. dollars and therefore a new peak in 2027 (Smith P,2023). The global fast fashion market was valued at $106 billion in 2022, and it’s projected to reach $185 billion by 2027. (Fast Fashion Market Value Forecast Worldwide 2022-2027 | Statista, 2023). 

The fashion industry consists of four levels: producing or sourcing raw materials, and signing contracts with factories; Fashion products produced by designers, manufacturers, contractors and others; Retail sales; And all forms of advertising and promotion. These layers are made up of a number of independent but interdependent departments, all of which are dedicated to meeting the needs of consumers in the fashion industry and enabling industry players to be profitable.

Collaborate with other businesses

Another way to grow your business in a bad economy is to partner with other businesses that have a similar customer base. The company can cooperate with other companies in its industry, can cooperate with other industries such as art celebrities and works, and can also interact with some social phenomena.

eg1. Coca-Cola and Lip Smackers

 Lip Smackers now has an entire line of Coca-Cola-flavored lip balms sold in a single collection. This includes flavors like Coca-Cola, Cherry or Vanilla Coke, Sprite, Root Beer and Fanta (West C, 2023). This co-branding partnership has been a Millennial favorite since the ’90s and doesn’t look to be letting up any time soon. Some brands last through the test of time.

eg2. Giant sculptures and animated robots, buildings covered in coloured polka dots, video games, augmented reality, and top models hired to play with multicoloured dots… Louis Vuitton’s collaboration with Japanese artist Yayoi Kusama has not gone unnoticed.

In an interview with the Wall Street Journal magazine November 2022, Louis Vuitton’s deputy CEO Delphine Arnault said that the launch was an important part of the brand’s expectations for the first quarter, referring to “a 360-degree project involving the entire brand”, launched in 2021, and involving “more than 450 products” (UK, FashionNetwork. com, 2023)

Creative directors can bridge the gap between creativity and profitability by incorporating cultural context. For example, Demna Gvasalia (SINA, 2020), in the process of planning Balenciaga’s ideas, pays attention to and enjoys communicating with creative people of different styles. Their cultural background is very diverse, and many of them have a unique observation and understanding of aesthetics and culture.

Reference

1. Smith, P. (2023) Revenue of the Global Apparel Market 2014-2027, Statista. Available at: https://www.statista.com/forecasts/821415/value-of-the-global-apparel-market (Accessed: 22 October 2023). 

2. West, C. (2023) Co-branding: What it is and why your brand should use it, Sprout Social. Available at: https://sproutsocial.com/insights/co-branding/?amp (Accessed: 22 October 2023). 

3. UK, FashionNetwork. com (2023) Louis Vuitton moves up a gear with its collaboration with Yayoi Kusama, FashionNetwork.com. Available at: https://uk.fashionnetwork.com/news/Louis-vuitton-moves-up-a-gear-with-its-collaboration-with-yayoi-kusama,1482245.html (Accessed: 22 October 2023). 

4. The controversy caused by the Balenciaga Tanabata series is not just to look at the bustle (2020) _ Mobile sina.com. Available at: https://tech.sina.cn/2020-08-18/detail-iivhuipn9303190.d.html?shem=iosic (Accessed: 22 October 2023).

Generation Z is a generation of true digital natives who live their lives completely digital, with streaming content all around them. Having grown up in the shadow of recession and fear of pandemic and climate catastrophe, they are far better at managing their economies and living their lives than previous generations. A Bloomberg report shows that Generation Z of young students and working professionals have $360 billion in disposable (Search Engine Journal, 2022). Therefore, Generation Z has gradually grown into the main force of market consumption, and what the brand needs to do is to cater to this generation of young people and compete for the important pillar of the current market.

A spokesperson of similar age and great influence

Since the people of the generation z are all young people, their thinking is more active and open, and they are more likely to accept the entertainment idols provided by society. Their personality is not independent, mainly through imitation and learning to promote the formation of personality. Entertainment idols are often beautiful men and women who are the same age as generation z, generation z will worship these entertainment idols as a part of their lives, by imitating the clothes of idols, buying products endorsed by idols, buying good things recommended by idols and other ways to express their worship and pursuit.

Fashion brand Lord &Taylor teamed up with 50 of Instagram’s fashion Kols to have them all pose in the same dress for their Instagram feed. Soon after it was uploaded, the dress sold out. According to Lord &Taylor CMO Michael Crotty, the 50 Kols are selected and paid for by the brands themselves, based on their influence, number of followers, and fit with the brand. Most of the photos posted by these 50 users on Instagram have received more than 1,000 likes, some more than 5,000, which should be said to be a very successful KOL marketing. (Soho, 2017)

Use the comments section

On Generation z favorites apps like Instgram, Tiktok, and Little Red Book, comment sections can be just as interesting as the posts themselves. Most users like to interact with bloggers through likes and comments, and users can also like and reply to comments made by others. Interesting comment sections can even have the corresponding blog post trending. Many brands now also like to take user suggestions in the comments section while interacting with users, so that they can easily get the most authentic reviews, while increasing brand awareness and trust.

A comment from the McDonald’s TikTok account, for example. The original post is a classic example of Gen Z humor—it’s referential, a bit absurd and able to say a lot in a short time. As of April 2023, the video has over 2.4 million likes. The McDonald’s social media team used the comment section to capitalize on those views by reacting as any average person  might. A simple three-word comment racked up more than 304K likes, earning increased brand visibility and reach. (Sproutsocial, 2023)

Reference list

Macura, A. (2022) Marketing to gen Z: How to do it the right way, Search Engine Journal. Available at: https://www.searchenginejournal.com/marketing-to-gen-z/471784/ (Accessed: 15 October 2023). 

Those hot idol stars, in the end can bring how much commercial influence (2017) mobile Sohu.com. Available at: https://m.sohu.com/a/165375470_556767/?pvid=000115_3w_a (Accessed: 15 October 2023).

Gomez, R. (2023) How to make sure you’re marketing to gen Z the right way, Sprout Social. Available at: https://sproutsocial.com/insights/marketing-to-gen-z/?amp (Accessed: 15 October 2023). 

Clothing is an important part of human life, especially with the development of The Times, human demand for clothing is increasing, leather clothing is one of the popular styles of fashion evolution. Leather production is a labor-intensive process that requires a lot of water and energy. It is well known that the industry has a significant impact on the environment, especially water resources.

Water pollution of leather conduction

The leather production is a water-intensive process that can have a significant impact on the quality of water resources in the surrounding area. During leather production, large amounts of water are used to wash, soak, and rinse the hides. This water becomes contaminated with chemicals, such as chromium, sulfides, and organic matter, which can be harmful to aquatic life and humans if not treated properly.

One example of the impact of leather production on water pollution is the case of the Wissahickon Creek in Pennsylvania. In 2013, the Pennsylvania Department of Environmental Protection fined a leather tannery $300,000 for discharging pollutants into the creek. The tannery was found to have violated its discharge permit by releasing excessive amounts of pollutants, including ammonia, nitrogen, and sulfide, which caused fish kills and other environmental damage.

Some research have already showed that, waste management in the industry involves the proper handling and disposal of various materials, such as leather, rubber, textiles, and synthetic components. Improper waste management can lead to environmental pollution, including soil and water contamination.(De Biase, 2016)

According to a study conducted by the United Nations Industrial Development Organization (UNIDO), the leather industry is among the top industrial polluters of freshwater resources worldwide. The study found that the production of one metric ton of leather can generate as much as 150 cubic meters of wastewater, which contains pollutants such as chromium, sulfides, and ammonia.

Environmental water Regulations and Enforcement

the Environmental Protection Agency (EPA) has established several regulations and guidelines related to the environmental impact of leather production. One of the most famous is Clean Water Act, which sets clearly standards for wastewater discharges from industrial facilities, including tanneries. The EPA issues National Pollutant Discharge Elimination System (NPDES) permits that limit the amount of pollutants that tanneries can release into bodies of water.

In addition, many argue that enforcement mechanisms are weak and often ineffective despite the existence of the environmental regulations, and penalties for non-compliance may not be severe enough to deter companies from violating regulations. It is also needed to emphasize the role of consumer awareness and demand for sustainable leather products, and informed consumer choices and preferences for environmentally friendly products can drive industry transformation and encourage the adoption of more sustainable production processes.(Babatunde, 2019)

References

U.S. Department of State. (2014). Leather and the Environment. Retrieved from https://www.state.gov/leather-and-the-environment/

De Biase, L., Petti, L., & Sala, S. (2016). The environmental impact of footwear: Product carbon footprint and waste management. Journal of Cleaner Production, 112, 2378-2388.

Babatunde, R. O., Zhang, Y., & Zheng, Y. (2019). Environmental impact of leather production processes and mitigation strategies: A review. Journal of Cleaner Production, 237, 117810.