Max Mellor

Profit serves as one of the four essential pillars of success in fashion marketing, preserving a delicate equilibrium between the purchase and sale aspects. Brands are facing the growing challenge of finding a balance between sustainable practise, creativity and significantly to the business sector profits. Fashion stands as one of the world’s largest industries (Amed. I et al, 2023), amassing an annual global revenue exceeding 1.7 trillion U.S dollars. The market encompasses a wide spectrum, spanning sportswear to business attire, from economical clothing to high-end/luxury statement pieces. In 2022, inflation surged, driven by escalating production costs and dwindling consumer confidence, attributed to the Ukrainian conflict which triggered a global surge in gas prices (Smith. P, 2023). Sustainability, concerning profit, revolves around devising resourceful methods to craft something of value to society, while forecasting consumer interests amidst fluctuating economic circumstances (Amed. I et al, 2023). 

Fashion industry is forecast to be worth $1.7 trillion by the end of 2023, a $17 billion increase from 2022 (Smith,2023); with the 2023 predicted revenue surpassing $1.7 trillion, as reported by Statista. This uptick can be attributed to the swift expansion of the e-commerce sector, driven by the heightened demand for online shopping in the post-COVID era. However, despite these astronomical numbers, online fashion sales decreased 6.1% in 2022 (Mintel, 2022) due to the continued resection of high street shopping post-covid. 

Different sectors of the industry perform to varying degrees depending on many factors such as the economic climate, social media driven trends and even the weather. In 2022 The U.K footwear market increased by 6% with trainers dominating sales with 38% of women purchasing a pair (Mintel, 2022). Interestingly, the luxury fashion Is the most consistent and highest performing sector; with LVMH being the top-performing fashion brand securing an impressive total profit of 32.875 billion dollars (Macrotrends, 2022). 

Brands can remain competitive in uncertain times through production of cheaper lines. Example of this is Comme Des Garcons more affordable and accessible line ‘Play CDG’; these more affordable lines allow brands to build a younger/diverse demographic. In the future when these customers could also purchase the higher end lines e.g., Commes Des Garcons ‘Black’. 

Creative Directors face the task of harmonizing creativity and commercial opportunities. They must respond to shifting market forces, welcome the latest ideas and sustainable projects, while also evaluating achievements using data-backed (AI driven) perspectives. Key duties within their purview encompass effective budget oversight, safeguarding the brand’s identity, therefore innovating. 

Bibliography 

Berg, A. and Andre, S. (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: 20 October 2023). 

McKinsey (2022) The State of Fashion 2023: Holding onto growth as global clouds gather. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion (Accessed: 21/10/2023) 

UK Fashion Online Market Report – Market Size & Forecast (2023) Mintel Store. Available at: https://store.mintel.com/report/uk-fashion-online-market-report (Accessed: 23 October 2023).  

Smith, P. (2023) Topic: Apparel market worldwide, Statista. Available at: https://www.statista.com/topics/5091/apparel-market-worldwide/#topicOverview (Accessed: 19 October 2023). 

Without people interested in fashion, the industry simply would not exist. People are key in deciding the direction of which trends flow and allow through purchasing clothes, generate the necessary funds for businesses to operate. 

Certain brands put a heavy on focus on appealing to different age demographics e.g., streetwear brands focus on Generation Z (gen Z). Gen Z, described as digital Natives (Francis and Hoefel 2018) (people born between 1995 – 2010) is quickly becoming the most influential demographic because of their Hypercognitive nature and being increasingly comfortable to collect and cross reference many pieces of information (Mckinsey, 2023). A study in Brazil (where Gen Z already makes up 20% of the population) by Box1824 found that Gen Z is more realistic than Millennials, being highly analytical when making decisions while also seeking out ways to be more individual (Mckinsey, 2022). 

Over 92% of Gen Z order clothes online or via mobile app (Drapes, 2023); this suggests that companies must put a focal point on improving their website infrastructure and online advertising if they are to attract Gen Z customers. Moreover, brands must benefit from the rise of influencers on social media sites like TikTok. These influencers have already spent time gaining the trust of the desired consumers this allows brands to target specific demographics within Gen Z, for example, brands like Gym shark collaborating with fitness influencers to reach their intended audience. Furthermore, to fulfil Gen Z’s need for individuality brands must think about introducing methods to personalise their products; brands like Uniqlo have successfully implemented instore customisation for tee shirts. This has contributed to Uniqlo annual profits increasing by 18% (Reuters, 2023) which suggests personalised can lead to increased revenue. 

Diversity has been an extremely significant topic for Gen Z, so in turn brands must respond and ensure their entire customer base is made to feel included. Skims has achieved this through celebrating a diverse range of models of ages, ethnicity, and size, this empowers women to be themselves (Eddie Star, 2023). A lack of diversity can only hurt a brand such as when H&M used a black child as the model for a T-shirt with the phrase “coolest monkey in the jungle” on the front; this led H&M’s largest quarterly sales decrease in more than a decade (J Israel Green, 2020).  

In an Industry dominate by people, specific skills are needed to manage challenging situations; these include listening and empathy as being able to relate to designers, management or marketing will bear the most benefits from a relationship. However, I.T skills are becoming ever more important as the increasing rise of A.I suggests adaptability is needed to succeed in fashion. 

Bibliography 

Byers, R. (2023) What brands can learn from the evolution of influencer marketing, The Goat Agency. Available at: https://goatagency.com/blog/influencer-marketing/evolution-of-influencer-marketing/#:~:text=Influencer%20marketing%20is%20so%20powerful,credibility%20and%20maximizing%20their%20ROI. (Accessed: 13 October 2023). 

Starr, E. (2023) #breaking barriers: How Kim Kardashian’s skims became a symbol of empowerment, LinkedIn. Available at: https://www.linkedin.com/pulse/breaking-barriers-how-kim-kardashians-skims-became-symbol-starr/ (Accessed: 10 October 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: 11 October 2023). 

J Israel Greene, C. (2020) Lack of diversity: Here is what is at stake, LinkedIn. Available at: https://www.linkedin.com/pulse/lack-diversity-heres-whats-stake-j-israel-greene-lssgb/ (Accessed: 13 October 2023). 

Moran, G. (2023) Gen Z and millennials 2023 report, Drapers. Available at: https://www.drapersonline.com/insight/drapers-bespoke/gen-z-and-millennials-2023-report (Accessed: 13 October 2023). 

Swift, R. (2023) Uniqlo owner Fast Retailing sees 18% rise in annual profit, plans more stores in China, Reuters. Available at: https://www.reuters.com/business/retail-consumer/uniqlo-owner-fast-retailing-posts-28-rise-full-year-profit-2023-10-12/ (Accessed: 11 October 2023). 

With the focus on how fashion can become more sustainable it is increasingly significant to the fashion industry, wider media, and the public that changes are made to ensure the longevity of this planet. Emissions produced by the textiles and fashion industry are expected to rise 70% by 2030 (Achim Berg Et al 2020), indicating that a shift towards a circular economy are vital if the planet is to survive the next century. This is why the planet pillar holds vast significance, being the most relevant of the pillars to the current state of society. 

Attaining a circular economy appears to be the most effective method to cut the industry’s carbon emissions and reduce its environmental impact. A circular economy involves favouring activities that preserve energy and materials e.g., recycling materials, leasing. A circular economy has recently began to be incorporated by the fashion industry and buyers as it has experienced a shift away from the linear economy which dominated luxury fashion over the past 100 years. Online marketplaces such as Depop and vinted have made recycling clothing assessable to everyone, where in the past charity/thrift shops were limited and only offered a narrow selection of pieces.  

Today, 400% more clothes are produced annually then 20 years ago (Forbes,2014), this must change before the planet is damaged beyond repair; the rise of renting clothes could become a vital way to reuse clothes while also cutting costs for the consumer. Selfridges’ ‘Project Earth initiative’ aims to ‘close the lope on waste’, renting out luxury/high end designer pieces, this previously unfathomable move is key move in increasing sustainability through using a circular economy. 

In 2015 the United Nations (U.N) implemented 17 Sustainable development goals (SDGs) with of aim of ‘ending poverty and protecting the planet’ by 2030 (United Nations, 2015). Out of these SDGs, goal 12 has the most relevance in allowing a sustainable fashion industry to flourish. This goal significant as by 2050 the U.N predicts that humanity will require the equivalent of three planets to support the current output of the industry (United Nation, 2023). Despite these cold facts, if the responsible consumerism encouraged by SDG 12 is achieved the future generations will benefit greatly from this mindset that there is always more to be done. 

Currently, my favourite brand is Maharishi. Maharishi is a London based elevated streetwear brand founded in 1994. The brand focuses on producing high quality embroidered clothing which is accessible to buyers being neither overly exclusive nor expensive, with many pieces stocked in U.K High Street luxury fashion stores. I would choose Maharishi as my favourite brand due to their detailed oriental embroidery tee-shirts, hoodies, and iconic snoop pants (seen in picture below) which stand out in a streetwear scene where low-cost screen printing dominates due to the cost minimisation and the speed in which items are produced taking priority over quality. Moreover, high-quality production which crafts each piece creates a long-lasting product which looks better the more it is worn.