Ting Chen

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Profit

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The fashion industry is one of the most dynamic and influential sectors in the global economy, generating over $2.5 trillion in annual revenues and employing millions of people worldwide (Fashion United, 2021). However, the industry also faces many challenges and uncertainties, such as changing consumer preferences, environmental and social impacts, technological disruptions, and geopolitical tensions. 

According to the Lyst Index, which ranks the hottest brands and products based on online searches, sales, and social media engagement, the top performers in the first half of 2023 were Prada, Miu Miu, Moncler, Valentino, and Loewe. These brands have succeeded in capturing consumer attention and demand through outstanding show performances, collaborating with different brands to launch merchandise, and utilizing digital platforms as well as collaborating with and endorsing celebrities. Expanding on the impressive success of its flagship brands, Prada Group solidifies its position as a dominant force in the fashion industry. Prada continues to reign as the most sought-after brand globally for two consecutive quarters, experiencing a remarkable 22% surge in online searches. Simultaneously, Miu Miu ascends to second place in The Lyst Index rankings, achieving its highest-ever position since its inception. This accomplishment can be attributed partly to strong consumer demand for the pocket bag and an exciting collaboration with New Balance. Additionally, Miu Miu’s captivating showcase at Paris Fashion Week featuring renowned personalities Emma Corrin, Zaya Wade, Mia Goth, and Ethel Cain contributes significantly to its elevated status (Lyst, 2023).

However, not all fashion industry sectors are enjoying the same level of success. Some segments, such as luxury, sportswear, and casualwear, have shown resilience and growth amid the pandemic, while others, such as formalwear, occasionwear, and travel accessories, have suffered from reduced demand and sales. Moreover, some regions, such as China, North America, and Europe, have recovered faster than others, such as Latin America, India, and Southeast Asia. The uneven performance of the fashion industry reflects the different impacts of the health crisis, lockdown measures, stimulus packages, and vaccination rates across markets (McKinsey & Company, 2021).

In this context of uncertainty and volatility, how can a brand remain competitive and profitable? One of the key strategies that experts recommend is to invest in marketing. Marketing is essential for building brand awareness, loyalty, and differentiation in a crowded and noisy marketplace. Marketing can also help brands communicate their values, stories, and personalities to consumers who are increasingly looking for authenticity and purpose in their purchases. Moreover, marketing can help brands reach new audiences and segments through various channels and platforms, such as social media, e-commerce, influencers, podcasts, live-streaming events etc.

A good example of a brand that has used marketing effectively to remain competitive is Yves Saint Laurent (YSL). The YSL brand, led by its founder and creative director, gained admiration from a wealthy upper class who valued timeless living. However, when Hedi Slimane took over as the new creative director, changes were made not only to the name but also to the approach: embracing a “rock-and-roll” aesthetic endorsed by rebellious music industry celebrities and becoming associated with an indulgent Los Angeles lifestyle. This transformation was emphasized by relocating the brand’s headquarters from Paris to Los Angeles, attracting a new wave of consumers who identified with celebrity culture rather than understated elegance and refinement. (Mitterfellner 2023).

One of the most renowned creative directors in the history of fashion is Karl Lagerfeld, who worked for two major luxury houses: Chanel and Fendi. Lagerfeld was known for his prolific and eclectic output, as well as his ability to reinterpret and modernise the heritage and codes of both brands. For instance, at Chanel, he transformed the classic tweed suit into a versatile and contemporary garment that could be worn with sneakers, jeans, or pearls. He also introduced new elements such as logos, camellias, chains, and quilting that became synonymous with Chanel’s style. At Fendi, he revolutionized the use of fur by experimenting with different colours, textures, and techniques that made it lighter, softer, and more playful. He also created the iconic double F logo that represented the brand’s elegance and sophistication (Mitterfellner 2023).

In conclusion, the fashion industry is a complex and dynamic sector that requires brands to constantly adapt and innovate to meet the needs and expectations of consumers. Some of the ways that brands can achieve this are by investing in marketing and hiring creative directors who can balance creativity and commerce. These strategies can help brands to stand out and succeed in uncertain economic times.

Reference list

Fashion United (2022). Global Fashion Industry Statistics. [online] Fashion United. Available at: https://fashionunited.com/global-fashion-industry-statistics.

Lyst Insights. (n.d.). The Lyst Index: Fashion’s Hottest Brands and Products Q1 2023. [online] Available at: https://www.lyst.com/data/the-lyst-index/q123/.

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

Mitterfellner, O 2023, Luxury Fashion Brand Management : Unifying Fashion with Sustainability, Taylor & Francis Group, Milton. Available from: ProQuest Ebook Central. [22 October 2023].

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People

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People is one of the 4 pillars of the Planet, People, Profit, and Purpose. The fashion industry is heavily influenced by different generations and cultures. The impact of these groups on the industry is significant and cannot be ignored. People are the driving force behind the fashion industry. They shape the trends, demand the products, and influence the brands.

Gen Z is the generation born between 1996 and 2010, according to McKinsey & Company (2023). They are digital natives, socially conscious, and value-driven. They have high expectations for quality, racial justice, sustainability, and inclusivity from the brands they buy from. They are also highly creative and expressive, using fashion as a way to communicate their identity and values (McKinsey & Company, 2023).

According to Deloitte’s 2023 Gen Z and Millennial Survey, Gen Z and millennials are rethinking the role of work in their lives, with work/life balance remaining a top priority. Flexible work arrangements, including part-time jobs, are growing in popularity. The cost of living is the top societal concern for these generations, with more than half of respondents saying they live paycheck to paycheck. Stress and anxiety levels remain high, driven by financial and environmental concerns, as well as workplace pressures. Gen Zs and millennials want employers to help prepare them for the transition to a low-carbon economy. The survey also reveals that while the pandemic clearly left significant negative legacies, it also ushered in some positive workplace trends. The report looks broadly at the progress these generations feel their employers have made, where there is still work to do, and where potential setbacks may occur. It also explores how Gen Zs and millennials continue to make lifestyle and career decisions based on their values. (Moran, 2023)

To attract Gen Z, brands need to understand their needs, preferences, and motivations. They need to offer products that are innovative, functional, and personalized. They need to communicate with authenticity, transparency, and relevance. They need to engage with them on multiple platforms, especially social media and e-commerce. And they need to show that they care about the issues that matter to Gen Z, such as diversity, equality, and environmentalism (Moran, 2022).

One example of a brand that has responded well to diversity is Nike. The sportswear giant has launched several campaigns and initiatives that celebrate diversity and inclusion in sports and fashion. For instance, in 2017, Nike introduced the Pro Hijab, a performance headwear for Muslim women athletes. In 2019, Nike released the Victory Swim collection, a range of modest swimwear for women of different backgrounds and beliefs. And in 2020, Nike partnered with Black Girl Ventures, a non-profit organization that supports black and brown women entrepreneurs.

To be successful in the fashion industry, brands need to have people skills that match their products and values. They need to have a clear vision of their target audience and their needs. They need to have a strong team of designers, marketers, and managers who can collaborate and innovate. They need to have a diverse and inclusive culture that respects and empowers their employees and customers. And they need to have a social responsibility that contributes to the positive change in the world.

Reference list
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.
Moran, G. (2022). Gen Z and Millennials 2022. [online] Drapers. Available at: https://www.drapersonline.com/guides/gen-z-and-millennials-2022.
Moran, G. (2023). Gen Z and Millennials 2023. [online] Drapers. Available at: https://www.drapersonline.com/guides/gen-z-and-millennials-2023.

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Planet

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Planet is one of the four pillars of the circular economy, along with people, profit, and purpose. The circular economy is a system that aims to eliminate waste and pollution, keep products and materials in use, and regenerate natural systems. It is a way of designing, making, and using things that benefit both the environment and society (Gwilt, 2020).

Sustainability in relation to fashion means creating and consuming clothes in a way that minimizes the negative impacts on the planet and its inhabitants while maximizing the positive ones. It involves considering the whole life cycle of a garment, from the sourcing of raw materials to the production, distribution, use, and disposal of the product (Hethorn & Ulasewicz, 2015).

One of the Sustainable Development Goals (SDGs) from the United Nations that has relevance and an impact on the fashion industry is SDG 12: Responsible Consumption and Production. This goal aims to ensure that people have access to quality products and services that meet their needs while reducing the environmental footprint of consumption and production. It also promotes resource efficiency, circularity, and innovation in all sectors, including fashion (Mitterfellner, 2023).

The fashion industry is one of the most resource-intensive and polluting industries in the world. It consumes large amounts of water, energy, land, and chemicals, and generates huge amounts of waste, greenhouse gas emissions, and toxic substances. According to a report by the United Nations Alliance on Sustainable Fashion, the fashion industry is responsible for 10% of global greenhouse gas emissions due to its long supply chains and energy-intensive production. The industry also contributes to water pollution, deforestation, and waste generation. Between 80 and 100 billion new clothing garments are produced globally every year, and 87% of the materials and fibers used to make clothing will end up in either incinerators or landfills. Only 20% of discarded textiles are collected, and only 1% of clothes will get recycled into new garments.

To achieve SDG 12, the fashion industry needs to adopt more sustainable practices throughout its value chain, such as using renewable and recycled materials, implementing efficient and clean production methods, designing for durability and recyclability, offering repair and reuse services, and educating consumers on how to care for and dispose of their clothes responsibly. By doing so, the fashion industry can reduce its environmental impact, create new business opportunities, and enhance its social responsibility.

A circular fashion model aims to keep materials in use for as long as possible, reducing waste and pollution.

In conclusion, sustainability is an important concept that is relevant to many industries, including fashion, and it’s also an important part of protecting the Earth’s environment. By adopting sustainable practices, we can reduce waste, promote ethical labor practices, and protect the environment.

Reference list:

Gwilt, A. (2020). A Practical Guide to Sustainable Fashion. London: Fairchild Books.

Hethorn, J., & Ulasewicz, C. (eds). (2015). Sustainable Fashion: What’s Next? A Conversation about Issues, Practices and Possibilities. New York: Bloomsbury

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

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