Katie Pritchard

Profit is yet another pillar that upholds the fashion industry’s structure. This sector entails deliberations of success measures, growth perspectives and the ensuring of profitability in growingly challenging economic climates.

Fashion industry size

The global fashion industry has been valued at an enormous $1.5 trillion in 2022, whilst set to rise to $1.7 by the end of 2023 (Smith, P. 2023). The market is widely recognised as one of the most influential across the globe, with one of the most extensive labour-intensive forces worldwide. The Ellen MacArthur Foundation states that ‘globally, the clothing industry employs more than 300 million people along the value chain’. – This reflection translates across every division of the fashion industry.

Sector performance

Whilst some sectors of the industry are combating economic uncertainly positively, some are struggling to adequately keep up with the growing instability. One sector performing hopefully is the luxury fashion collective, where sales growth is expected to rise by 5-10%, as predicted by McKinsey. There are many potential causes/contributors of economic uncertainty, some with industry-wide effects and others more detrimental to minority sectors. For example, as reported by Euromonitor, the global apparel and footwear market grew by 18.1% from 2020-2021 following the gradual return from Covid-19’s confinements; just one of many catalysts of economic volatility in recent years.

Remaining competitive

‘In the BoF-McKinsey State of Fashion 2023 Survey, 85 percent of fashion executives predict inflation will continue to challenge the market’ (Ahmed, I. Berg, A. 2022). Brands sustaining themselves during these periods will face many difficulties in all divisions, so remaining competitive will be a key contributor to survival. Although many brands may fall behind market leaders, brand resurrection is far from unreachable with a set of techniques recognised by those in the market. According to key fashion insights, one of the most prevalent factors to achieve this is ‘investing in the brand’, amongst many others (Mitterfellner, O. 2023).

Creativity/Commerce

In recent years, it is clear to see that there has been a growing struggle to adequately harmonise sustainability, creativity and profit as a balanced collective. Despite this, we are seeing multiple collections surface that successfully bridge creativity and commerce. These are most commonly amongst luxury leaders, which is likely to be the case since their predicted sales growth as stated previously in the blog. A popular example of one of these collections is Dior x Kaws SS19 collaboration, where American artist/designer Kaws and worldwide luxury brand Dior created a compilation of cooperated garments. With certain brands continuing to incorporate such creativity into their collections, it upholds the key artistry of the industry whilst others work to become financially stable/comfortable.

Bibliography

Global apparel market – statistics & facts – P. Smith – August 31, 2023. (Accessed 21/10/23)

https://www.statista.com/topics/5091/apparel-market-worldwide/#:~:text=The%20revenue%20of%20the%20global,more%20than%201.7%20trillion%20dollars.

Global Fashion Industry Statistics – Fashion United – Nov. 2022. (Accessed 21/10/23)

https://fashionunited.com/global-fashion-industry-statistics

Euromonitor – Luxury and Fashion – Collective. (Accessed 21/10/23)

https://www.euromonitor.com/insights/luxury-fashion

The State of Fashion 2023: Resilience in the Face of Uncertainty – Amed, Imran. Berg, Achim. 30 Nov. 2022.

https://www.businessoffashion.com/reports/news-analysis/the-state-of-fashion-2023-industry-report-bof-mckinsey/ (Accessed 21/10/23)

Olga Mitterfellner, 2023 ‘Luxury fashion brand management : unifying fashion with sustainability’

People

‘People’ is arguably the most important pillar of the fashion world, for without people, the structure of the industry would collapse. ‘People’ make up every set of integral stakeholders needed to maintain the body of the industry. What would retailers be without suppliers? What would suppliers be without designers? What would designers be without consumers? – Undeniably the most influential group, those who drive or sink demand, buy into or ignore trends and ultimately decide whether or not to purchase what you produce.

Gen Z consumers

Gen Z consumers are, as it stands, the most ethically aware when it comes to spending and supporting fashion brands. Inclusivity, sustainability and brand awareness are all factors that a growing majority of Gen Z consumers are looking for when making purchases. This generation has a known, indisputable influence on current trends and demand, with a ‘purchasing power of around $360 billion in the US’ alone (Scheinder, B., Lee, D. 2022).

Attractive traits

From this, its clear to see that a brand with sustainable ethics, positive awareness and a purpose to promote inclusivity will become growingly attractive to Gen Z consumers. ‘Forbes discovered that 62% of Generation Z prefer to purchase from sustainable brands and are willing to pay more for ethically produced goods’ (Hope, B. 2022). Second hand retailers such as Vinted, Vestiaire Collective and Depop are gradually becoming leading sellers of the market, and are only set to grow more popular. ‘According to Thredup’s Resale Report 2023, the global second-hand market is expected to grow three times faster on average than the global apparel market overall.’ (Cook, J. 2023).

Nike

One example of a brand responding to Gen Z’s growing demand for inclusivity is Nike. Nike is a leading brand for promoting and providing inclusivity across all of their ranges. This includes religious diversity- such as the Nike Pro Hijab for female Muslim athletes, inclusivity for differently abled bodies- such as their adaptive activewear for people with disabilities, and an inclusion of all body types, with a broad range of plus sized athleisure. Nike consistently promote a range of multicultural advertisements which speak unanimously to a global demographic.

Connecting with the consumer

For a fashion brand to successfully speak to its potential consumers, it should aim to be welcoming, unbiased and relatable. Gen Z is working towards a fashion world where no group of people feel alienated by brands or face limitations due to any component of their character. If brands continue to put effort into communicating to all identities, the fashion industry has the potential to become an undivided market for all consumers to invest in.

Biblioghraphy

BoF Insights | Gen-Z and Fashion in the Age of Realism – Schneider, Benjamin & Lee, Diana (11 Oct. 2022)

https://www.businessoffashion.com/reports/retail/gen-z-fashion-in-the-age-of-realism-bof-insights-social-media-report/ (Accessed 14.10.2023)

How Gen Z shapes sustainable luxury fashion through digital- Hope, Blaise. (28 May 2022)

https://sustainabilitymag.com/sustainability/how-gen-z-shapes-sustainable-luxury-fashion-through-digital (Accessed 14.10.2023)

Second-Hand Fashion: On The Rise But Will It Save The Environment? – James Cook (30 June 2023)

https://www.businessleader.co.uk/second-hand-fashion-on-the-rise-but-will-it-save-environment/ (Accessed 14.10.2023)

The Planet

The planet and its condition are some of the leading factors of discussion in today’s fashion industry. Globally recognised as a key focus where change is imperative, actions to positively contribute to the longevity of the planets health and restoration are now crucial considerations amongst those in the industry. According to the UN, the fashion industry is responsible for approx. 10% of global emissions, with the textiles industry alone having one of the most polluting ecological footprints in the world. These dire statistics demonstrate how vital it is for the fashion world to implement conversations, education, and constructive steps to sustaining our planet before the damage is irreversible.

Circular Economy

One of the leading changes considered across the industry is a circular economy, which aims to act as an environmentally conscious, regenerative production cycle that minimises waste through the restoration of components such as discarded material or leftover product. Gradually, many brands are putting this structure into effect and evaluating its benefits. Regardless of potential drawbacks, it has become notably popular amongst infant brands, where producing with secondary materials is standing as a worthy, cheaper alternative than buying new. ‘Sourcing deadstock materials means designers need to be open to being inspired by what is available, rather than seeking the perfect fabric match for their ideas.’ (Drapers, 2022).

Sustainability

Regarding fashion, sustainability entails essential elements relative to the well-being of our planet, including conscious choices to sustain environmental health- i.e., responsible sourcing and production, and ensuring our creative processes of any/all natures follow progressive ethics that minimise damage to the world around us. Every aspect of a garment’s lifespan must be considered when aiming to maximise sustainability, from factory to wardrobe- extending to wherever it ends up afterward. Some steps towards sustainability are more attainable than others, yet all count in contributing against the issue. ‘We are not saying that a brand needs to use materials that are different to current materials. An example of this would be cotton. The Better Cotton Initiative aims to provide a better standard of cotton that would destroy harmful pesticides.’ (Turner, H. 2022).

Sustainable Development Goals

The UN Department of Economic and Social Affairs has outlined 17 Sustainable Development Goals (SDG’s) which need to be carefully considered by all industries looking to improve their global impact- which ‘provides a shared blueprint for peace and prosperity for people and the planet.’ (UNDESA, 2015). 1 SDG with an undeniable relation to the fashion industry is Responsible Consumption and Production. Whilst arguably being applicable to a variety of industries, these factors are prevalent topics being adapted throughout the fashion world when taking steps towards sustainability. Prominent brand PANGAIA is highly praised for its sustainable ethic, due to their use of eco-friendly materials- (such as organic cotton), recycled offcuts, natural dyes, compostable packaging and efforts to limit wastewater during production. (Good On You, 2022). This is an exemplary brand making efforts to be part of the revolutionary cause to heal our planet, which all sectors of the fashion world should aspire to contribute to.

Bibliography

Moran, Graeme – Drapers: Collaborating for Change – Sustainability report 2022

drapersonline.com/insight/drapers-bespoke/collaborating-for-change-sustainability-report-2022 (Accessed: 7/10/2023)

Turner, Harry – The Benefits of Sustainable Fashion: Ethics and Environment – July 21, 2022.

unsustainablemagazine.com/benefits-of-sustainable-fashion/ (Accessed: 7/10/2023)

United Nations Department of Economic and Social Affairs: THE 17 GOALS –

https://sdgs.un.org/goals (Accessed: 7/10/2023)

‘Good on you’ Journal – (Last updated November 2022)

https://directory.goodonyou.eco/brand/pangaia (Accessed: 7/10/2023)