Rahma Annisa Dewi Riharso

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Profit

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Profit is one of the vital topics to address among the four pillars of the fashion business. In the fashion sector, it has been a common view to notice how the ‘art’ can be commercialised by a brand that ultimately can acquire a profit. Consequently, the role of creative directors is needed since, as explained by Mitterfellner (2023), they are responsible for managing the creative design process and the objectives to earn returns.

Additionally, creative directors should be able to bridge the gap between creativity and commerce, or a brand will begin to lose its clientele and fail to generate revenue in the future. They need to understand the distinctions between fine art and commercial art, where commercial art refers to the selling of goods or services (Iwasaki, 2022). One outstanding example of a creative director who can successfully bridge the gap between creativity and commercials is Karl Lagerfeld. He understands the ‘brand’s visual DNA and tries to meet the aesthetic needs of the current customers and the business outlook of management’ (Mitterfellner, 2023).

Furthermore, as stated by Amed et al. (2017), when discussing earnings, fashion has emerged as one of the significant global sectors that drives a crucial part of the world economy. It is proven by the size of the worldwide apparel market, which was estimated to be 1.53 trillion dollars in 2022, and it was predicted that revenue would reach more than 1.7 trillion dollars in 2023 (Smith, 2023)(Fig. 1).

Figure 1: Line Graph of Revenue of the Apparel Market Worldwide from 2014 to 2027 (Smith, 2023).

However, 56 per cent of fashion executives believe that business conditions will worsen in 2023 due to the industry’s current crises brought on by geopolitical difficulties (conflict) and economic issues (inflation) (Amed et al., 2022). This crisis will eventually impact consumer behaviour as they attempt to spend less, particularly on fashion items.

Figure 2: Expectations for how fashion industry conditions will evolve in the year ahead (Amed et al., 2022).

Conversely, the fear of a severe economic downturn and inflation has not bothered wealthy shoppers and tourists (Felsted, 2023). McKinsey Fashion Growth Forecasts (Amed et al., 2022) indicate that sales in the luxury sector will rise by 5% to 10% in 2023, in contrast to other categories.

Figure 3: Luxury fashion retail sales, year-on-year growth, 2020-2023 (Amed et al.,. 2022).

Therefore, when encountering an unstable situation, a brand must adapt its business strategy to stay competitive in difficult economic times. For example, Berg (2022) contends that businesses must transform from having stores in person to a more digitally-focused business strategy. By doing this, fashion brands can attract and increase potential customers online.

Figure 4: Digital transformation benefit (Firstfocus, no date).
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PURPOSE

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Purpose is the final foundational element of the fashion industry pillars that a brand should consider. A brand’s purpose is a crucial component in its establishment. Kowalewicz (2022) also emphasises that forming the brand’s purpose comes first before deciding on the philosophy (vision, mission, and values) of a fashion business.

Consequently, the importance of determining the philosophy of a brand can directly contribute to creating a solid identity, which enables a company to engage with customers and create lasting, meaningful relationships (Silva, 2020).

Furthermore, building a reliable and trustworthy business should be evaluated through an outline of brand philosophy – such as how they want to communicate their intention with the audience and connect it with consumer needs (Martínez, 2012). Accordingly, understanding the customer segments is required. Particularly now that the target market has shifted to Gen Z, where they are usually not only looking for tangible products; items that can be seen, felt, and touched, but also trying to see what the company wants to bring to the community and environment (Finneman et al., 2020).

Figure 1: How consumers define what makes a brand or company ethical (Martin, 2021).

Thus, through Corporate Social Responsibility (CSR), businesses can be responsible for their action and put their dedication to executing mission statements into practice by developing sustainability, claim Londrigan and Jenkins (2018). Moreover, the CSR strategy might be a chance for labels to showcase a brand’s sustainable objective since 58% of customers believe a brand would be ethical if it promoted environmental protection (Martin, 2021) (Fig. 1). On top of that, the CSR can be an excellent marketing tactic to tempt more audience in buying apparel or goods from the market.

Figure 2: Nike x Billie Eilish AF1 Low (Nike, 2022).

For instance, the shoe company Toms attempts to integrate sustainability and corporate social responsibility in its collections. They manufacture shoes made of vegan materials and utilise ethical production processes as proof of executing their mission statement: “We are in business to improve lives” (Toms, no date). Furthermore, companies like Nike serve as examples of how to communicate their mission to Generation Z. In 2022, Nike and well-known artist Billie Eilish collaborated to create “The Nike x Billie Eilish AF1 Low,” an environmentally friendly product released in 2022 (Nike, 2022). According to Muhammad (2022), Nike has proved their commitment to sustainability by making the shoe using ‘leftover material waste from the artist’s prior collaborative AF1 High’. As a result, fashion companies like Tom and Nike provide an actual example of the way to convey a mission to clients effectively.

Bibliography:

  1. Finneman, B., Spagnuolo, E., Rahily, L. (2020) Meet Generation Z: Shaping the future of shopping. Available at: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/meet-generation-z-shaping-the-future-of-shopping. (Accessed: 27 October 2023).
  2. Kowalewicz, R. (2022) Defining Your Brand’s Purpose. Available at: https://www.forbes.com/sites/forbesagencycouncil/2022/01/12/defining-your-brands-purpose/?sh=778c588a1e43. (Accessed: 27 October 2023)
  3. Londrigan, M and Jenkins, J. (2018) Fashion Supply Chain Management. New York: Fairchild Books. Available at: https://www-bloomsburyfashioncentral-com.arts.idm.oclc.org/encyclopedia?docid=b-9781501317798. (Accessed: 27 October 2023).
  4. Martínez, P. (2012) The Consumer Mind : Brand Perception and the Implications for Marketers. Available at: https://ebookcentral.proquest.com/lib/ual/reader.action?docID=838132&ppg=27. (Accessed: 27 October 2023).
  5. Martin, K. (2021) Ethical Lifestyle UK 2021. Available at: https://reports-mintel-com.arts.idm.oclc.org/display/1092717/. (Accessed: 27 October 2023).
  6. Muhammad, L. (2022) Billie Eilish’s Latest Nike Collaboration Is on the Way: Here’s A Sneak Peek. Available at: https://www.billboard.com/culture/product-recommendations/billie-eilishs-nike-air-force-1-low-tops-release-date-where-to-buy-1235179148/. (Accessed: 28 October 2023).
  7. Nike. (2022) Nike x Billie Eilish AF1 Low. Available at: https://about.nike.com/en/newsroom/releases/nike-x-billie-eilish-af1-low. (Accessed: 28 October 2023).
  8. Silva, P. (2020) Why Philosophy Has Much To Do With Brand-Building (And What That Looks Like). Available at: https://www.forbes.com/sites/piasilva/2020/11/19/why-philosophy-has-much-to-do-with-brand-building-and-what-that-looks-like/. (Accessed: 27 October 2023).
  9. Toms. (no date) Impact. Available at: https://www.toms.com/uk/impact-emea.html. (Accessed: 27 October 2023).

Image Ref:

  1. Martin, K. (2021) Ethical Lifestyle UK 2021. Available at: https://reports-mintel-com.arts.idm.oclc.org/display/1092717/. (Accessed: 27 October 2023).
  2. Nike. (2022) Nike x Billie Eilish AF1 Low. Available at: https://about.nike.com/en/newsroom/releases/nike-x-billie-eilish-af1-low. (Accessed: 28 October 2023).

Martínez, P. (2012) The Consumer Mind: Brand Perception and the Implications for Marketers. Available at: https://ebookcentral.proquest.com/lib/ual/reader.action?docID=838132&ppg=27. (Accessed: 27 October 2023).

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People

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As the fashion business industry evolves, four fundamental pillars should be considered: the planet, people, profit, and purpose. Although these pillars serve distinct purposes, they must all work together to maintain this planet’s environmental, social, and economic components. Nonetheless, to ensure the aim is working, people who contribute to the fashion industry cycle, such as consumers and workers, are responsible for each of their actions.

Figure 1: Table of differentiation aspects for each generation (Francis and Hoefel, 2018).

Nowadays, fashion brands have shifted their target to Generation Z instead of millennials as their consumer base. “After millennials and Generation Alpha, Gen Z is currently the youngest generation”, according to McKinsey & Company (2023). Moreover, this generation has different approaches and behaviours of consumption compared to other generations. For instance, this generation is called “digital natives” by McKinsey & Company (2023) because they frequently use the internet to obtain information. It is proven from the data in Figure 2 that Gen Z is dominated by 98 per cent of social media users (McGrath, 2023). Hence, Smith (2023) stated that social media channels have become essential for brands to reach, interact with, and market to Gen Z consumers.

Figure 2: Graph of ‘which of the following have you used in the last 3 months?’ (McGrath, 2023).

In addition, the generation is also increasingly concerned about their purchases because of the industry’s effects on the planet and its ecosystems (Hethorn and Ulasewicz, 2015). Adding the data from Mintel, “34 per cent agree that brands should be boycotted if they do not act on social and environmental issues” (Smith, 2023). By this means, brands and designers should consider sustainability in their practices.

Figure 3: Graph of UK: agreement with attitudes towards diversity and society, by generation, 2023. (Smith, 2023).

Furthermore, according to Francis and Hoefel (2018), Gen Z wanted the fashion brand to be able to improve diversity; this is a result of the truth-seeking mentality of this generation, which values inclusivity and avoids labels. Companies that promote diversity, equality, and inclusion (DEI) internally are perceived as more appealing than those that do not, based on 52% of Gen Z customers (Smith, 2023). Nike is among the brands that have reacted adequately to diversity. For instance, in 2018, they introduced the “Just Do It” Campaign, featuring Colin Kaepernick as its face, urging people to oppose police brutality and fight against racism (Galluci, 2020). Therefore, one of the keys to attracting these younger people is embracing diversity and pushing forward with bold, authentic action to support minority groups.

Figure 4: Colin Kaepernick as the face of Just Do It Nike campaign. (Galluci, 2020).

In conclusion, for a fashion business to succeed, designers and other employees must develop the ability to understand what their clients want and be flexible enough to adapt to the rapidly evolving world of social media and technology.

Bibliography:

  1. Francis, T and Hoefel, F. (2018) ‘True Gen’: Generation Z and its implications for companies. Available at: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/true-gen-generation-z-and-its-implications-for-companies. (Accessed: 14 October 2023).
  2. Galluci, N. (2020) Nike urges people to stand against racism in striking new ad. Available at: https://mashable.com/article/nike-stand-against-racism-ad-george-floyd. (Accessed: 14 October 2023).
  3. Hethorn, J., & Ulasewicz, C. (2015) Social Responsibility and Innovation in the Sewn Products Industry. Available at: https://www-bloomsburyfashioncentral-com.arts.idm.oclc.org/encyclopedia-chapter?docid=b-9781501312250&tocid=b-9781501312250-chapter2&pdfid=9781501312250.ch-002.pdf. (Accessed: 14 October 2023).
  4. McGrath, R. (2023) Social Media: Influencers – UK – 2023. Available at: https://data-mintel-com.arts.idm.oclc.org/databook/1154787/. (Accessed: 14 October 2023).
  5. McKinsey & Company. (2023) What is Gen Z?. Available at: https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-gen-z. (Accessed: 14 October 2023).
  6. Mintel. (2023) The Future of Consumer Behaviour in the Age of Gen Z. Available at: https://www.mintel.com/consumer-market-news/the-future-of-consumer-behaviour-in-the-age-of-gen-z/. (Accessed: 14 October 2023).
  7. Smith, F. (2023) Lifestyles of Generation Z – UK – 2023. Available at: https://reports-mintel-com.arts.idm.oclc.org/display/1157485/?fromSearch=%3Ffreetext%3DGeneration%2520Z%26resultPosition%3D3. (Accessed: 14 October 2023).

Image Ref:

  1. Francis, T and Hoefel, F. (2018) ‘True Gen’: Generation Z and its implications for companies. Available at: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/true-gen-generation-z-and-its-implications-for-companies. (Accessed: 14 October 2023).
  2. Smith, F. (2023) Lifestyles of Generation Z – UK – 2023. Available at: https://reports-mintel-com.arts.idm.oclc.org/display/1157485/?fromSearch=%3Ffreetext%3DGeneration%2520Z%26resultPosition%3D3. (Accessed: 14 October 2023).
  3. Smith, F. (2023) Diversity, Equity and Inclusion – UK – 2023. Available at: https://clients-mintel-com.arts.idm.oclc.org/report/diversity-equity-and-inclusion-uk-2023?fromSearch=%3Ffreetext%3Ddiversity%2520product%26resultPosition%3D1#workspace_SpacesStore_ef7f6c3b-e327-4508-b670-3356f82a2514. (Accessed: 14 October 2023).
  4. Galluci, N. (2020) Nike urges people to stand against racism in striking new ad. Available at: https://mashable.com/article/nike-stand-against-racism-ad-george-floyd. (Accessed: 14 October 2023).
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Planet and The Fashion Industry

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As the fashion business industry evolves, four fundamental pillars should be considered: the planet, people, profit, and purpose. Although these pillars serve distinct purposes, they must all work together to maintain this planet’s environmental, social, and economic components. Therefore, the industry must emphasise fashion sustainability and circular economy to maintain it.

Burns (2019) defines sustainability as “the capacity to maintain or raise living standards without destroying or depleting natural resources for present and future generations”. In fashion, sustainability can be a method to preserve both the environment and those responsible for its production (Bringé, 2023). However, in reality, the fashion industry contributed to the collapse of natural resources, especially when fast fashion existed. Fast fashion systems have many disadvantages; the apparel industry proves its supply chain is the third most polluting, and “it released more carbon dioxide annually—1.2 billion tonnes—than the shipping and aviation industries put out combined”, according to Shukla (2022). Due to their attempts to deliver trendy items, fast fashion companies also produce twice as many garments as they did previously, which could result in a rise in textile waste (Shukla, 2022).

Fig 1: Circular Economic System Diagram (Ellen McArthur Foundation, 2019).

Implementing a circular economy in fashion is one of the solutions to tackle the issue. According to the Ellen McArthur Foundation (no date), a circular economy maintains the continuous flow of goods and materials through “maintenance, reuse, refurbishment, remanufacture, recycling, and composting.” As the illustration (see Figure 1) shows, this economic model can support sustainability and prevent adverse environmental effects. However, applying the systems can be challenging for companies or designers.

Nevertheless, a fashion designer, Patrick McDowell, applied circularity business strategies in his collection as an example. He utilises the old material garment to create a wonderful collection of clothing that appears to be brand-new. Likewise, he made the apparel based on people’s orders and committed to buying it because, as stated by Gwilt (2020), “once a garment is purchased, the owner is in charge of its maintenance.”

Another instance is Finisterre, a British sustainable fashion brand, which perfectly represents a business that carries out UNSDG objective 12 implementation. Instead of producing new items, since 2006, they have recycled their jackets and sold them on their website – they also offer pre-loved and repairing services (Rayment & Scanlon, 2022).

Therefore, the circular economy is positively connected to Goal 12 of the UNSDGs of Responsible Consumption and Production because Mowery (2021) concurs that this business strategy can impact the fashion industry by reducing carbon emissions and decreasing waste from the production chain.

Bibliography:

  1. Bell, A. (2016) The Circular Economy. Available at: https://www.wgsn.com/fashion/article/64869. (Accessed: 7 October 2023).
  2. Bringé, A. (2023) The State Of Sustainability In The Fashion Industry (And What It Means For Brands). 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=1c6120ff1c82. (Accessed: 7 October 2023).
  3. Burns, L. (2019) Sustainability and Social Change in Fashion. Available at: https://www-bloomsburyfashioncentral-com.arts.idm.oclc.org/encyclopedia?docid=b-9781501334092. (Accessed: 7 October 2023).
  4. Ellen McArthur Foundation. (no date) Circular Economy Introduction. Available at: https://ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview. (Accessed: 7 October 2023).
  5. Gwilt, A. (2020) A Practical Guide to Sustainable Fashion. Available at: https://www-bloomsburyfashioncentral-com.arts.idm.oclc.org/encyclopedia?docid=b-9781350067059. (Accessed: 7 October 2023).
  6. Mowery, L2. (2021) SDG 12: Responsible Consumption and Production. Available at: https://greenbusinessbureau.com/topics/sdg/sdg-12-responsible-consumption-and-production/. (Accessed: 7 October 2023).
  7. Rayment, Z and Scanlon, S. (2022) Designing For Circularity. Available at: https://finisterre.com/blogs/broadcast/designing-for-circularity. (Accessed: 7 October 2023).
  8. Shukla, N. (2022) Fast Fashion Pollution and Climate Change. Available at: https://earth.org/fast-fashion-pollution-and-climate-change/. (Accessed: 7 October 2023).
  9. Fig 1. Ellen McArthur Foundation. (2019) Circular Economy Systems diagram. Available at: https://ellenmacarthurfoundation.org/circular-economy-diagram. (Accessed: 7 October 2023).

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My Favourite Brand

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Christian Louboutin is a famous high-end designer brand for footwear and has expanded it to bags and beauty. As someone with a strong interest in heels and many fabulous shoes, Louboutin’s collection has caught my eye and become one of my favourite fashion labels since three years ago. I adore the Christian Louboutin brand because they produce iconic high-end shoes that some people can directly recognize in their red soles. Furthermore, I get more interested in their brand because they can create a strong brand identity from their signature red soles to get a broad background of customers, such as celebrities and other big names worldwide.

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