Yiran Yang

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Profit

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Profit is a basic and necessary consideration in the fashion industry, just as it is in any industry. Profitability is a key measure of success and sustainability for fashion brands and companies.

Fashion is one of the world’s most important industries, driving a significant part of the global economy.According to two separate study assessments by Euromonitor and McKinsey, the fashion industry’s global income before the Covid-19 outbreak was projected to be between $1.7 trillion and $2.5 trillion.Although Covid-19 led to a significant drop in revenues for the fashion industry, consumers returned to the shops after blockade restrictions were lifted in many parts of the world. Subsequently, the fashion industry returned to pre-pandemic levels.The global apparel and footwear market expanded by 18.1% at current prices in 2020–2021, reaching $1.71 billion (retail value USD million) in 2021, according to Euromonitor. The global apparel retail market is anticipated to grow by 7.5% in 2021–2022, reaching $1.84 billion in 2022, and by 6.1% in 2022–2033, reaching $1.95 billion in 2023.（FashionUnited, 2023）

The fashion industry is divided into a number of product segments and categories, spread across many different types of organisations and widely dispersed across regions.A select few businesses (including Adidas, Chow Tai Fook, and H&M) have benefited financially from the winner-takes-all market dynamic. By cutting costs, making wise investments, and exceeding other companies in execution, they have been able to outperform sales growth in net profit over the same time period. The mid-market companies, with sharply declining margins and widely disparate operating results, have suffered in the slow growth environment of the past five years.(Berg et al., 2017)

Staying competitive in uncertain economic times can be a major challenge for brands.With the effects of inflation and a cooling economy, consumers are becoming more discerning about their shopping.Despite the fact that many consumers are spending less, brands still have the chance to interact with them, for instance through leasing channels and discount retailers. To protect profits and brand reputation, these strategies must be carefully implemented. In order to engage customers in the crowded digital landscape where data targeting is no longer effective, brands need to be more innovative in their marketing strategies.(Amed et al., 2022)Many of the still-thriving retailers have built their reputations on offering high-quality goods at competitive prices.(Mzizi, 2023)

The Creative Director creates and motivates the design team’s overarching concept for the collection as one of the highest creative positions in a fashion firm. They are in charge of crafting the vision for the entire brand, which goes beyond just overseeing design and garment production. From the brand’s values and mission to its campaigns, all creative concepts are in their hands. The modern creative director must take into account everything the fashion house stands for, including social media strategies and brand collaborations, while keeping the core vision and heritage at the forefront of their minds. This is because consumers are becoming more globally distributed and new communication platforms have emerged over the past ten years.(Graziano, 2022)Finding the right balance between creativity and business can be challenging and requires an in-depth understanding of both areas, Creative Directors can set clear goals, collaborate with others, continue to learn and stay true to their artistic vision, and more. Creative Directors combine artistic flair, strategic thinking and effective leadership to ensure that creative work drives business success while resonating with consumers and stakeholders.

Bibliography

FashionUnited (2023) Global Fashion Industry Statistics, FashionUnited. Available at: https://fashionunited.com/global-fashion-industry-statistics (Accessed: 22 October 2023). 

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). 

Amed, I. et al. (2022) The state of fashion 2023: Holding onto growth as global clouds gather, McKinsey & Company. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion (Accessed: 22 October 2023). 

Mzizi, Y. (2023) Why some brands are thriving in a tough economy – and others aren’t, The Business of Fashion. Available at: https://www.businessoffashion.com/articles/retail/why-some-brands-are-thriving-in-a-tough-economy-and-others-arent/ (Accessed: 22 October 2023). 

Graziano, G. (2022) The role of the creative director in fashion – what they do and how to become one, GLAM OBSERVER. Available at: https://glamobserver.com/the-role-of-the-creative-director-in-fashion-what-they-do-and-how-to-become-one/ (Accessed: 22 October 2023). 

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People

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People play an important role in the fashion industry. Fashion is an important tool for personal expression and identity formation. Through clothing and accessories, individuals can communicate their personality, preferences and social connections. In addition, the fashion industry offers a wide range of styles, enabling individuals to explore their unique tastes and express themselves in a variety of ways. The fashion industry cannot be separated from its people, who influence its evolution, impact and sustainability.

As consumers, Gen Z is becoming more powerful in terms of purchasing power and disposable income. Gen Z places a higher value on brand ethics and corporate responsibility than Millennials, and they have high expectations for customer service and product quality.In Asia, 40% of Gen Zs agree to being influenced by the internet when looking for new things to buy; in the US, 40% of Gen Zs acknowledge being influenced by the internet, frequently by businesses that appear in videos they watch. To choose where and how to spend their money, members sift through a lot of information from influencers, family, and friends.(McKinsey & Company,2023)A survey conducted by IBM found that product selection, availability, convenience and value are the top influences for Gen Z when choosing a shopping channel.(Bewicke, 2023)

In order to appeal to Gen Z, brands should be aligned with their values, preferences and behaviours; Gen Z is a unique demographic with distinctive characteristics, and connecting with them requires a strategic approach, where brands need to be willing to break stereotypes in order to effectively connect with the Gen Z audience.

In the fashion industry, diversity means creating garments that fit different races, categories, age groups and sizes, and marketing them in a way that reflects this.（Nizzoli, 2022）Diversity is essential to creating a more inclusive, representative and forward-looking fashion industry. Dove is one of the brands under the umbrella of multinational consumer goods company Unilever.With a global push for more progressive images of women in its advertisements, Unilever has made a commitment in the past few years to more diversity in its marketing. Since 2016, Unilever has put 1,500 advertisements through testing to find gender and ethnic stereotypes and highlight areas where changes needed to be made.（Pixlee TurnTo, 2022）A brand must completely comprehend consumer needs, be inclusive and diverse in its marketing, understand the fashion industry and current trends, and so on in order to be successful.

Bibliography

McKinsey & Company (2023) What is gen Z?, McKinsey & Company. Available at: https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-gen-z (Accessed: 15 October 2023). 

Bewicke, H. (2023) Gen Z consumer behavior: What you need to know, Gen Z Consumer Behavior: What You Need to Know | Talon.One. Available at: https://www.talon.one/blog/gen-z-consumer-behavior-what-you-need-to-know (Accessed: 15 October 2023). 

Nizzoli, G. (2022) Diversity in fashion: Are Ethical Brands doing enough?: Sustainable fashion blog: Project CECE, Sustainable Fashion Blog | Project Cece. Available at: https://www.projectcece.com/blog/548/diversity-in-fashion-for-ethical-brands/ (Accessed: 15 October 2023). 

Pixlee TurnTo (2022) 4 brands embracing diversity in their content: Pixlee Turnto Blog, Pixlee TurnTo. Available at: https://www.pixlee.com/blog/4-brands-embracing-diversity-in-their-content (Accessed: 15 October 2023). 

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Planet

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  Planet, People, Profit and Purpose reflect the four pillars of Sustainability.And the fashion industry has a big impact on the planet, which includes water, trees, air and so on.

   A circular economy is a system in which resources are organically recycled and never wasted. Products and resources are kept in use in a circular economy by procedures like upkeep, reuse, renovation, remanufacturing, recycling, and composting.The circular economy addresses climate change and other global challenges, such as biodiversity loss, waste and pollution, by decoupling economic activity from the consumption of finite resources.（Ellen MacArthur Foundation,2023）The circular economy approach encourages businesses, Governments and individuals to adopt practices that support sustainable development, reduce environmental impacts and promote economic growth. This approach improves the durability, reparability and responsible consumption of products.

     Sustainability in the fashion industry means promoting the well-being of people, communities, and the environment. In order to safeguard the environment and the garment makers, sustainability refers to the production and consumption of clothing in a “sustainable” manner. True sustainability should also guarantee that the creative process benefits society and the environment, from the materials used through the production process to the working conditions and compensation of employees.(Bringé,2023)For things to be sustainable in the fashion industry, one must take into account the sector’s long-term effects on the environment, society, and local communities. One must also strive for methods that reduce harm while fostering good change.

     The fashion industry has had an impact on Sustainable Development Goals objective 14 – Life below water.The fashion industry actually contributes a significant quantity of carbon to the atmosphere and is one of the main sources of microplastics in the oceans.According to the United Nations Environment Programme (UNEP), about 60 per cent of clothing materials are actually plastics in order to create lightweight, durable and affordable fabrics. Acrylic, nylon and polyester textiles, for example, produce tiny microplastic wastes every time they are washed, contaminating water sources for animals and fish downstream.(St. Catherine University,2022)

Bibliography

Ellen MacArthur Foundation (2023) Circular economy introduction, Ellen MacArthur Foundation. Available at: https://ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview (Accessed: 08 October 2023). 

Bringé, A. (2023) Council post: The State of Sustainability in the fashion industry (and what it means for brands), Forbes. Available at: https://www.forbes.com/sites/forbescommunicationscouncil/2023/01/02/the-state-of-sustainability-in-the-fashion-industry-and-what-it-means-for-brands/?sh=52b106d21c82 (Accessed: 08 October 2023). 

St. Catherine University (2022) What is sustainability in the fashion industry?, St. Catherine University. Available at: https://www.stkate.edu/newswire/news/sustainability-in-fashion-industry (Accessed: 08 October 2023). 

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