Anahitaa Hariyani

‘Money makes the world go a round’, it is a common phrase, we have all heard it before but why is it relevant this week? A positive cash flow is a fundamental part of a successful business and that is why we will be delving into how it affects fashion firms. Due to the pandemic the fashion industry alongside many others were hit and faced an unexpected decline as a result of ‘high inflation and decreasing consumer confidence’ (Smith, 2023). However, as we have progressed the global apparel market revenue was calculated to be $1.53 trillion and is expected to be over $1.7 trillion in 2023 (Smith, 2023). The highest demanding countries are China and America which isn’t surprising due to their large population yet China’s demand can also be traced back to the growth of the middle class and China’s emerging economy enabling larger amounts of consumer spending and in turn growth of sectors such as the fashion industry. ‘The second-hand apparel industry, which is forecast to grow as the consumer demand for more environmentally conscious apparel options increases. The luxury market is also a key market in the apparel industry; it is projected to more than double in size from 2022 to 2028.’ (Smith, 2023) This demonstrates the switch consumers are making in order to be more sustainable by shopping second hand, therefore highlighting to brands the importance of sustainability as it is one of the fastest growing sectors. As a result, initiatives and steps should be made to invest into these markets by brands as they are the future and in order to survive and ensure a profit they must stay on top of meeting consumer needs. Additionally, the growth of the luxury market further displays the rise of many nations’ middle classes and how countries are in the stages of emerging and developing which enables people to have higher levels of disposable income to spend on brands.  

Despite the predicted growth of the luxury market many brands face the problem of becoming obsolete and decline, an example of this is YSL. During the 90s Saint Laurent struggled with his mental health and the brand as a whole was unable to be a pioneer in trends as it had been but instead was just reiterating previous collections and relied heavily on a loyal clientele that were ageing, leading to the brand ageing as well (Mitterfellner, 2023). 2012/13 was the year of the much needed rebranding and repositioning of YSL, a greater focus was placed on getting in touch with younger generations and a brand name change caused a stir helping attract attention. The focus on the Asian market and multi distribution channels helped revitalise the brand and enable them to survive and regain their reputation of being pioneers, demonstrating the success of rebranding (Mitterfellner, 2023).

Economic uncertainty can cause panic and lead to lower consumer spending. In order to survive and maximise profit margins, brands should focus on analysing and innovating, whilst innovation requires large amounts of R&D and costs associated with it, it is vital in our age of rapid technological advancements especially in the manufacturing process as in the long term it can reduce costs. Alongside this brands should focus on convenience. Convenience is always a key customer need as we as humans are lazy by nature, therefore multiple distribution channels and associated ease are likely to enable higher selling prices and in turn profits. 

Creative Directors have one of the most significant yet stressful roles within a business and their numerous roles (brand ambassador, designer, manager) result in them leading in bridging the gap between creativity and commerce. Lagerfield was a visionary and directed brands such as Chanel and Fendi alongside his own label. An example of him bridging the gap was one of his most famous installations in Paris where he ‘re created  a supermarket, an airport in the middle of Paris’s Grand Palais, had a giant rocket in the room, a block of carved ice, a ginormous lion, desert sand and waterfalls – just to name a few examples’ (Mitterfellner, 2023). Not only creating a buzz around the brand but also thinking out of the box and doing it creatively, therefore creating a long lasting memory and impact. Subsequently, showing the importance of creatives being appointed to showcase the brand’s DNA. 

Bibliography

Mitterfellner, O. (2023) Luxury Fashion Brand Management and sustainability: Unifying fashion with sustainability. New York: Routledge. (Accessed: 21 October 2023).

Statista. (2023) Generation Z fashion market in the United Kingdom. Available at: https://www-statista-com.arts.idm.oclc.org/study/139027/generation-z-fashion-market-in-the-united-kingdom/ (Accessed: 21 October 2023).

Generation Z. Characterised as those born between 1995 and 2010 or also known as digital natives as they have grown up with and around the internet (McKinsey, 2023). They are a part of this week’s people pillar due to the significant amount of control consumers have over the supply chain and businesses. Not only do consumers have direct control over businesses and their stock but they also indirectly control workers wages and the ethos of brands to an extent. 

This intricate power balance has been explored heavily throughout the years and the emergence of Gen Z and their political and social awareness regarding ethical problems has further emphasised their role in the relationship between a brand and its consumer. Gen Z can be characterised as being more aware when compared to millennials leading to this reflecting in their spending techniques and habits and in turn has resulted in them placing a great deal of importance on the ever growing issue of sustainability. Additionally Gen Z are part of a ‘new wave of inclusive consumers and socially progressive dreamers’ (McKinsey, 2023). Subsequently they place a great deal of emphasis on ‘purpose and accountability, the creation of more opportunities for people of diverse and underrepresented backgrounds, and rigorous sustainable and green practices’ (McKinsey, 2023).

As a result brands have had to rethink and peel back their business models to meet their consumers needs in order to survive. As well as this they should continue to heavily invest into R&D regarding their e-commerce presence as due to the rise in technological advancements it is a growing and vital sector for Gen Z as it is part of their everyday lives and meets their consumer need of convenience. A study has found that Gen Zers have a screen time of six or more hours per day on their phone alone (McKinsey, 2023) and it can be argued that a vast amount of that time may be spent on social media apps such as Tiktok which 50.3% of Gen Z  use vs 25.7% of millennials (Moran, 2022). Additionally, ‘60% of both Gen Z and millennial groups now buy via social, up from 53% last year’ (Moran, 2022). Therefore, further highlighting the need for an active social presence from brands. 

One example of a brand that has responded to diversity is Skims by Kim Kardashian as she claims it is ‘part of their DNA’. Skims has become a trailblazer in the shapewear industry due to its use of models from a wide range of ethnic backgrounds and use of a variety of body types, aiming to appeal to the everyday girl. Kim has proudly worked towards the brand being for ‘everyone and everybody’ (Weinstock, 2021). This has been monumental for the shapewear industry as it was heavily dominated by spanx but the arrival of Skims and their provision of multiple sizes and colours of shapewear has enabled its success by simply making it inclusive for all.

In order for a fashion brand to be successful a key factor is communication. Communication to consumers via marketing or communication to workers via meetings, communication is key in fostering relationships. Communication involves listening and acknowledging the growing need for inclusion and producing results that satisfy the consumer which is why careful consideration and research must be done to ensure no one is harmed and will ultimately lead to a brands success. 

References:

McKinsey, (2023). What is Gen Z? (Online). McKinsey&Company. Last updated: 20 March 2023. Available at: https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-gen-z (Accessed 15 October, 2023).

Morgan , G., (2022). Gen Z and Millennials 2022 report. [Online] 

Available at: https://www.drapersonline.com/insight/drapers-bespoke/gen-z-and-millennials-2022-report

(Accessed 15 October, 2023)

Weinstock, T. (2021). ‘It Felt Like The Perfect Time To Bring A Fresh Perspective’: Kim Kardashian West On Revolutionising Shapewear. [online] British Vogue. Available at: https://www.vogue.co.uk/news/article/kim-kardashian-west-future-of-skims. (Accessed 15 October, 2023)

Decaying, declining and diminishing. These are all verbs that can be used to accurately describe the state of our current planet. Currently the fashion industry is responsible for over 10% of annual carbon emissions making it more destructive than international flights and maritime shipping (World Bank, 2019). This and many other frightful figures are the reason why the planet is one the four pillars of sustainability and we as an industry need to reflect on how we can combat this issue. Subsequently leading me onto what is a circular economy and how might this be the solution?

A circular economy is where materials are reused and recycled therefore eliminating waste and the need for overconsumption of already depleting resources. This may be the solution in combating the growing contribution the fashion industry is having on the planet as it is ‘estimated that 40% of all items produced by the sector are sold at a markdown, and tackling overproduction could reduce carbon emissions by 158 million tonnes a year (Moran, 2022). In order to progress as an industry a CE is a key player in changing our production and design practices to ensure a better future and align with the UN’s Sustainable Development Goals. 

Sustainability is the long term goal of being able to prosper economically without compromising resources for future generations. Now if we put this into context within the fashion industry it can be hard to predict due to the disease of fast fashion creating hundreds of micro trends each season. Therefore retailers are forced to keep up leading to overproduction and further waste of materials as many consumers throw away garments once trends have passed, quickly ending the garments life cycle. Consequently, solutions such as a CE can help increase a garment and its materials life cycle by recycling, reusing or re-purposing. Whilst social media has been encouraging the disease of fast fashion many are striving against this and have promoted the use of shopping second hand through apps such as vinted and depop as well as even charity shops. Tik Tok can be thanked for the promotion of more sustainable shopping due to influencers spreading awareness of the environmental impacts as well as glamoursing second hand shopping which used to be looked down upon.  

The UN developed the Sustainable Development Goals  ‘to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity’ (United Nations, 2015). Goal 12 is one that heavily relates to the fashion industry as it focuses on  Responsible Consumption and Production. An example of a brand that has implemented more responsible practices is Nona Source founded by 3 LVMH employees and reduces high quality fabric waste by selling deadstock fabrics to other brands in need of smaller quantities. It has also proven highly beneficial as artists are instead inspired by fabrics available rather than trying to find their perfect match (Moran, 2022).

Bibliography

Moran, G. (2022) Drapers, Collaborating for Change: Sustainability Report 2022. EMAP Publishing Limited. Available https://www.drapersonline.com/guides/collaborating-for-change-sustainability-report-2022

(Accessed: 7/10/23)

United Nations Development Programme. (2023) Sustainable Development Goals. Available at: https://www.undp.org/sustainable-development-goals

(Accessed 7th October 2023)

How much do our wardrobes cost to the environment?. [Online]. World bank. Last Updated: September 23 2019. Available at: 

https://www.worldbank.org/en/news/feature/2019/09/23/costo-moda-medio-ambiente

(Accessed 7/10/23).

Djerf Avenue is a Swedish ethically produced clothing brand created by Matilda Djerf. Matilda and her boyfriend co-founded the business in 2019 as a side hustle and today the 25 year old has grown it into a multi millionaire business despite having no business plan.   I have chosen this brand specifically as their collection consists of basic yet luxurious pieces at the lower price range of luxury. The brand has created timeless and high quality pieces that are perfect for the ‘everyday look’ or can be elevated through the use of accessories, creating an effortless classy aura for their clients. An example of this is their iconic ‘Djerf Avenue Forever Blazer in Grey’ which has taken tik tok by storm due to its high quality and versatility in completing outfits. It has been labelled by many as their favourite piece and it is understandable due to the little aspects of it that have been carefully and intentionally designed to be of a high standard.

Many of the clothing pieces can be seen to have taken inspiration from cities such as Copenhagen and New York. I particularly love this about the brand as it helps translate their luxurious brand image onto their customers’ everyday style. Additionally, their approach helps fashion become more sustainable as not only does it appeal to many demographics but due to the basic nature of the pieces they can be reworn multiple times and passed down generations! Subsequently, the brand appeals to teens but also to those older due to the simplicity of designs meeting a vast amount of consumer needs. Therefore, maximising sales as well as their relevance as their clothes are also non seasonal which enables them to maximise their capacity utilisation whilst also minimising waste and is perfect for the circularity of fashion.

Alongside this Djerf Avenue have also taken major steps to be inclusive and diverse this can be seen through not only their campaigns but also through the various models used on their website. Furthermore, assisting them in becoming one of my favourite brands as, as a person of colour myself and being curvier, seeing representation of different bodies and people from different backgrounds is very important to me due to the lack of it in the industry whilst growing up. It is especially important as young girls are taught to idolise specific beauty standards but Djerf Avenue are helping normalise different versions of beauty by having a diverse range of models and offering a wider range of sizes compared to most retailers. Matilda also mentioned in an interview with Insider that all the models used for the website are all customers and none of the photos are retouched, which is very rare in the industry and in businesses in general. Matilda’s continuous support for change within the fashion industry is part of why Djerf Avenue is one of my favourite brands as she is vocal about many prevalent issues and even protests the lack of diversity in fashion shows by refusing to attend some! Therefore bringing much needed light to issues that have been brushed under the rug since the first ever fashion show in Paris in 1860.