Katie Wraith

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Purpose

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Establishing a brand’s purpose is the initial shaping of success. By asking the question “why” companies can seek their values, creating alignment of stakeholders and engaging new customers. Identification of a brand’s purpose is vital for both internal and external stakeholders. Brand purpose aligns all internal stakeholders, creating a positive corporate culture but also builds a community where there is collaborative discussion between promotors and influencers, particularly when targeting Gen Z (Finneman, Spagnuolo and Rahilly, 2020).

Brand philosophy is a ‘brand’s way of doing things’ (Houraghan, 2020). Identifying a brand philosophy includes focusing on its mission, values and vision. Brands can use this as a tool of reflection, a way of shaping future goals and ambitions and recognising what’s important to the brand, in essence, their values. Furthermore, this can be used as a marketing tool as a way for brands to stay relevant and continually differentiate their product/service. Most importantly this develops a strong USP, giving the brand a distinct competitive advantage against potential rivals. 

Figure 1- Patagonia Logo
 
As shown in Figure 1, Patagonia’s founder, Yvon Chouinard, announced its recent brand purpose of giving away the US$3 billion company profits to non-profit organisations specifically targeting climate change and the global protection of undeveloped land (Don’t Panic London, 2023).
 
In relation to Gen Z communicating a brand’s purpose is more important than ever and differs from previous generations. Looking at the characteristics possessed by Gen Z can help the definition of this consumer group. With the need for authenticity and want to stand out, brands can convey their brand purpose to communicate that they are different and unique. This is particularly impactful for brands using CSR as a marketing tool, relaying the fact their practices are environmentally responsible. Brands must take advantage of this as Gen Zers are likely to pay a premium price for these products (Finneman, Spagnuolo and Rahilly, 2020). As a convenience-driven society using online platforms is vital for brands to share their brand purpose with Gen Z. However, brands must do so with real transparency, clarity and authenticity to avoid negative reactions, potentially damaging brand reputations.

References

Houraghan, S. (2020). What Is Brand Philosophy? [+How To Find Yours]. [online] Brand Master

Academy. Available at: https://brandmasteracademy.com/brand-philosophy/#:~:text=Brand%20Philosophy%20refers%20to%20the. Accessed 26th October 2023.

 Finneman, B., Spagnuolo, E. and Rahilly, L. (2020). Meet Generation Z: Shaping the Future of Shopping | McKinsey. [online] McKinsey. Available at: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/meet-generation-z-shaping-the-future-of-shopping. Accessed October 26th 2023.

Patagonia. “Patagonia Clothing: Made Where? How? Why? – Patagonia.” Www.patagonia.com, 9 Apr. 2012, www.patagonia.com/stories/patagonia-clothing-made-where-how-why/story-18467.html. Accessed October 26th  2023.

Don’t Panic London. “What Is Brand Purpose? 5 Great Examples.” Don’t Panic London, 22 Aug. 2019, www.dontpaniclondon.com/what-is-brand-purpose/. Accessed 24 Oct. 2023.

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Profit

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All businesses are profit orientated. Without profit, businesses will eventually fail. In the fashion industry, previously brands considered profit solely on the mark-ups they make from the sale of their garments. However, businesses are now faced with the more prevalent challenge of profit vs ethics. Brands may need to adapt their ethics to keep their customers, without losing their market position. By adapting in this way brands are responding to the dynamic market, with shifts towards customers being more aware of a brand’s ethical stance and their corporate social responsibilities (CSR), particularly Gen Z consumers (McKinsey, 2023).

The fashion industry is one of the most important industries in the global economy, generating revenues of $1.7 trillion dollars in 2021 (McKinsey, 2022). Projected revenue growth levels are expected to increase by 12% from 2023-2027 (Statista, 2023).

Figure 1- Revenue of the apparel market worldwide from 2014-2027
 
Due to rapid growth in the eCommerce fashion market, pushed by factors such as the pandemic and the demand for online shopping, it is no surprise that we see high growth rates within the industry. However, it is the luxury sector that outperforms the industry with sales projected to grow between 5-10% in 2023 (McKinsey, 2023). As the fashion industry grows, more people are becoming aware of appearance and are more willing to spend more money on luxury clothing to enhance their confidence and presence. Evidently, these factors coupled with the ease of accessing clothing online, have been hugely impactful on the growth of the luxury sector of the fashion industry, causing it to enlarge at such a fast pace.
 
During economic uncertain times, such as Covid-19 where revenues declined to $1.4 trillion dollars (Statista, 2023), brands must engage in new strategies to remain competitive. As economic variables such as inflation increase, customers have less disposable income to spend on luxury and normal goods. Brands could implement lower pricing to remain competitive however many are reluctant to with the fear of reputational damage or decreases in perceived quality of products, particularly in the luxury sector. Instead, brands must drive their online platforms to engage with their customers and reach new audiences globally, maintaining brand awareness and ensuring customers are still willing to buy products.
When expanding a brand’s product portfolio innovation overseen by the creative directors is vital for the business to be profitable. Creative directors must bridge the gap between creativity and commerce to link the two together. This will allow designers and creative roles within the firm to coincide with the business roles, enabling them to create products that are not only different but also market orientated. This will develop a point of product differentiation and allow the business to achieve a competitive advantage against its rivals, which will increase customer loyalty therefore positively impacting revenues.

References

McKinsey (2023). What is Gen Z? | McKinsey. [online] www.mckinsey.com. Available at: https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-gen-z 

Accessed: 21 October 2023

McKinsey & Company (2022). The State of Fashion 2022. Available at: https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/state%20of%20fashion/2022/the-state-of-fashion-2022.pdf Accessed: 21 October 2023

Figure 1- https://www.statista.com/forecasts/821415/value-of-the-global-apparel-market

Statista. (2023). Revenue of the apparel market worldwide from 2014 to 2027 (in trillion U.S. dollars). Statista. Statista Accessed: October 21, 2023. https://www.statista.com/forecasts/821415/value-of-the-global-apparel-market

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PEOPLE

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When we think of the collective term ‘people’ many of us will have our own interpretation depending on our background, community, and beliefs. It’s very easy to use the word ‘people’ as a generalisation for all human beings, however it’s important that we consider people in relation to their generation, particularly when observing actions, to identify future trends and patterns. This generational gap between individuals can be used to explain differences in worldviews, politics and actions observed among different age groups.

Generation Z comprises people being born between 1996 and 2010. Known as ‘digital natives’ (Henderson, 2023), Gen Zers share similar characteristics that previous generations don’t possess. Perhaps this is due to the exposure to a world without internet, coupled with living through a worldwide pandemic and a cost-of-living crisis (Henderson, 2023), it is of no surprise that Gen Zers are of large researcher interest.

Gen Zers are situated in the lower income bracket in the working world, understandably due to their age (Henderson, 2023). However, this does not mean to say Gen Zers have failed to become ‘money smart’. In fact, ‘63% of this group want to save more money over the next 3 months’ (Henderson, 2023). As a result, we see a rise in spending patterns in travel, as Gen Zers value the importance of adventure and experience rather than ownership of a physical product (Henderson, 2023). Brands must accept these generational changes and must invest in ways to tailor their products and services to focus on enriching day-to-day lives of Gen Zers (Mckinsey & Company, 2023) This would differ to what brands what have done previously to attract other generations such as, creating a product or service of high value and luxury which millennials would potentially splurge out on (Mckinsey & Company, 2023).

From a brands point of view, marketing to Gen Zers involves a whole new target audience and implies different approaches in relation to the 4 P’s (product, promotion, distribution, and price) then previous generations. It is imperative a brand considers how they might attract the Gen Z audience. Brands must coincide their USP’s to fit Gen Z so that consumers can fulfil their search for authenticity through freedom of expression and a greater openness to understanding different kinds of people, both are concepts that are rooted in the values of Gen Zer’s (Francis, T. Hoefel, F. 2018). This is about creating a strong brand image that is consistent both in reality and marketing. In essence, a brand which does what they say they do.

For fashion and retail focused brands to succeed, the need to have a strong online presence and to be well established in terms of being sustainable is most important to attract the Gen Z audience (Moran, 2023). Online promotion is hugely beneficial for brands because it allows companies to reach Gen Zer’s fast. However, brands need to be aware of the risks that come with social media. For example, meanings of text and images can be easily misinterpreted which could be detrimental to a brand’s reputation and image. To avoid this, brands must create campaigns and posts with clear, positive messages and to be mindful when addressing controversial topics.

With Gen Zer’s having their own views on diversity, it is important to consider ways to include all diverse groups both internally and externally within a business. Campaigns such as ‘Rihanna’s Savage x Fenty Vol.4 was staged in California in November 2022 (Cassidy, 2022), were created to celebrate diversity and inclusivity.

Figure 1
 
In the highly competitive fashion industry, leading individuals must develop strong people skills such as good communication and negotiating skills, to keep brands relevant and attractive to their target audience. Being able to communicate with customers enables brands to convey their visions, key messages and corporate aims to people which assists with the identification of the point of differentiation. Without this, key brand messages may become lost within their marketing and therefore may fail to reach new potential customers in new markets (market development). This may lead to decreases in sales revenues for fashion brands which could be hugely impactful on business performance.

Reference list

Henderson, A (2023). ‘7 characteristics of Gen Z in 2023’, Marketing Blog. Available at: https://blog.gwi.com/marketing/generation-z-characteristics/ . (Accessed 13 October 2023)

‘What is Gen Z?’ Available at: https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-gen-z#/. (Accessed 20 March 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: 12 October 2023)

Moran, G (2023). ‘Gen Z and millennials 2023’, Drapers. Available at: https://www.drapersonline.com/guides/gen-z-and-millennials-2023 . (Accessed 13 October 2023)

Cassidy, I (2022). ‘What went down at the savage x Fenty Show’. Available at: https://notion.online/savage-x-fenty-show/ . (Accessed 13 October 2023)

Figure 1 – https://notion.online/savage-x-fenty-show/

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Planet

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When we think of our planet, Earth, the word ‘fashion’ is never an initial association. However, it is now imperative that when we think of the Earth and its purpose, we look at the factors that most impact the functioning it. Fashion and its supply chain is the 3rd largest polluting industry. Society needs to carefully analyse their impact and implement change to daily life and fashion habits to minimise the negative effects of the industry on the Earth. 

‘Sustainable’ fashion refers to garments that have been made in ways that are mindful of many of the environmental problems such as, loss of biodiversity, pollution, waste, and climate change, the fashion industry contributes to. But what does it mean to be sustainable? The term ‘sustainable’ is increasingly being overused which often leads to confusion and inconsistency within the industry. For individuals, being sustainable when referring to fashion is making the right choices such as, buying less items or investing in ethical brands. For a society driven by convenience this could be deemed as a prolonged, expensive way to be more sustainable however, we must consider that in the long term the positives outweigh the negatives.

To create garments we take resources, use water and chemicals along the way. Many people buy, wear the garment, and then throw it away when they are done. Generally, many of these garments go into landfill or is incinerated. Today only 20% of those garments are recycled.

For the fashion industry to become more sustainable, brands and consumers need to develop the circular economy by basing their objectives around 3 principles:

  • Eliminate waste and pollution
  • Regenerate nature
  • Circulate products and materials

This departure from the original, linear economic model, which is based on a take-make-consume-throw away pattern relies on using large quantities of cheap, easily accessible materials and energy. This will reduce the pressure on natural resources and create sustainable growth and jobs.

By using the 17 SDGs (sustainable development goals) such as, responsible consumption and production, brands can shape their goals and business plans around being more responsible when considering production and consumption. These STGs are created to improve human lives and protect the environment.

Sustainable Development Goals (SDGs)

Slow fashion is one way which we can consider to help achieve the SDGs in terms of consumption and production. It is a concept which carefully considers the process and resources required to make clothing. Firstly, by considering the design. Garments can be made using recycled materials and products to reduce the number of wasted materials. Garments can also be made using better, high-quality materials to ensure clothing lasts for longer periods of time and to reduce the number of harmful chemicals. Lastly, brands should improve their working practices and skills to better their efficiency by implementing lean production methods such as Kaizen (a Japanese term meaning change for the better). This will help focus on eliminating waste, improving productivity, and achieving sustained continual improvement.

By doing all these practices brands can promote their positive CSR, which will help build a strong brand reputation and brand loyalty with their stakeholders. Brands have to rethink their objectives by considering ‘profit vs ethics’ and adjust their brand accordingly to aid the achievement of the 17 SDGs. This will help reduce their carbon footprints and decrease the negative impacts the fashion industry has on our planet.

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