Purpose

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With purpose being the final pillar out of the four, it is essential for brands to have an established vision in order to succeed. Purpose allows a brand to stand out and set themselves apart from other competitors. Whilst some brands focus on sustainability, others may have aims to subvert societal conventions through clothing. This not only gives the brand motivation as they are constantly looking to improve and chase a goal, but this also becomes a motivation for consumers to support the brand.

First and foremost, brand philosophy is important as it differentiates a brand from others and portrays them as unique, thus making consumers believe that they cannot find this elsewhere consequently leading to more sales and therefore more profit. Moreover, purpose forces brands to think about how to progress, especially during a period where the online world is taking over and inflation is becoming a more stressing issue. Many brands are beginning to rethink their values due to changes within society and one example of this is ASOS. During lockdown, ASOS began to shift towards a more inclusive mindset by employing a diverse range of models and creating a larger size range. As a result, ASOS continued to make sales which reinforces how a brand’s mission is key. Furthermore, brand philosophy is significant as it enables consumers, specifically Gen Z, to identify themselves with the brand. Gen Z collectively demands that brands take accountability, create more opportunities for minorities and act on sustainability. In one McKinsey study (2023), nine out of ten Gen Zers believe that companies have a responsibility to address environmental and social issues. Brands now have an obligation to have strong values due to the demands of Gen Z and this emphasises the growing changes within the fashion industry.

Brands communicate their purpose to Gen Z in several ways. Now, the most impactful method is through online platforms, more specifically social media. Brands have capitalised on social media marketing as it is a priceless tool in reaching mass audiences and relating to Gen Z. TikTok currently rules culture for Gen Zers, who make up 60 percent of the app’s one billion-plus users (McKinsey & Company, 2023), thus proving that brands have the chance to express their brand philosophy. Additionally, brands communicate their purpose by using influencers that share similar values to them which perhaps brings a new audience to the brand and increases popularity. This also reinforces the brands ethos rather than simply stating that the brand is sustainable or is looking towards change.

Reference List:

What is Gen Z? (2023) McKinsey & Company. Available at: https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-gen-z (Accessed 11/10/2023) 

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Establishing a sense of purpose is an integral and pivotal aspect of creating a thriving fashion brand. For a brand to achieve success, it must construct a cohesive framework encompassing a well-defined mission, a compelling vision, and a set of core values that resonate with its specific target market. This cohesive framework is commonly referred to as the brand philosophy.

Brand philosophy is essential because it gives a brand authenticity and allows them to share values directly with their target market – a good example of this is Vivienne Westwood. She has used her collections and catwalk shows as a platform to campaign for positive activism. The values the brand portrays reflects directly on their customer base and encourages consumers with similar values. Furthermore, brand philosophy helps brands stand out from competitors. Being authentic and communicating your purpose clearly with customers allows a trustworthy relationship to form between consumer and brand. This is vital to Gen-Z who demand transparency from brands. ‘’There’s a real authenticity to the Gen Z generation in saying they want to breathe new life into what corporate responsibility looks like.’’ (McKinsey, 2020). 

Brands communicate their purpose to Gen-Z through a variety of ways including the metaverse, VR, and social media channels. Gen Z spends about four and a half hours daily online. (WGSN, 2021). By using methods that resonate with the generation – brands are more likely to gain a loyal customer base and customer retention.

A brand’s purpose is rooted in its values, mission, and vision. In an era where Gen-Z consumers increasingly demand transparency and reliability, companies must establish clear goals and a guiding philosophy. This not only garners consumer support but also facilitates understanding of a brand’s purpose. As consumers become more socially conscious, fashion brands that embrace purpose will make a positive impact and thrive within the fashion industry.

References:

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 26th October 2023].

Napoli, C (2021). US & UK: Gen Z Digital Mindsets. [online] Wgsn. Available at: https://www.wgsn.com/insight/article/90340 [Accessed 26th October 2023].

‌www.viviennewestwood.com. (n.d.). Activism – discover more | Vivienne Westwood. [online] Available at: https://www.viviennewestwood.com/en-gb/sustainability/activism/. [Accessed 26th October 2023].

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PURPOSE

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Purpose

This week’s discussion is on the last pillar of the module, “Purpose”. Fashion’s purpose for itself is more of a self-expression, declaring to the world who she/he is and what she/he believes in by expressing her/his personality, emotions and preferences. Fashion is always changing and evolving. What is in fashion today may be out of fashion tomorrow, but some styles are timeless and will always come back into fashion, the fashion cycle.

Figure 1. Rihanna in an Esso trucker hat(Allaire-VOGUE, 2021) Figure 2. Bella Hadid, this month, in an Ed Hardy tee(Allaire-VOGUE, 2021) Figure 3. Blumarine’s fall 2021 mini skirt and blingy belt(Blumarine, 2021)

Important Brand Philosophy

The brand philosophy is the core of the brand, defining its values, beliefs and purpose, shaping its image and guiding its actions. A strong brand philosophy resonates with consumers who are aligned with the brand’s values, thereby increasing brand loyalty and customer engagement and influencing purchasing decisions. Brand philosophy plays an important role in Corporate Social Responsibility (CSR) and sustainability efforts as it guides a brand’s commitment to time and environmental stewardship, appealing to younger generations of consumers such as Generation Z, who value authenticity and are quick to expose any inconsistencies. For example, designer label Stella McCartney has embedded a concept on its website: respect, trust, and the need for the fashion industry to practice reflection every day of its work. In short, brand philosophy is critical to building brand image, engaging consumers, influencing purchasing decisions, and guiding CSR efforts.（Londrigan and Jenkins, 2018; The McKinsey Podcast, 2020)

Figure 4. Stella McCartney on one of her retail shops Stella McCartney developed her business by focusing on caring and social responsibility. She prides herself on living the life that she espouses through her designs and is a role model for future fashion designers(Gwilt, 20200.

Communicate with Gen Z

Brands communicate their purpose to Gen Z through a variety of channels, including social media platforms such as Instagram, TikTok and YouTube, where brands can showcase their goals and values through visually appealing and relevant content, and can utilize Netflix marketing to effectively communicate them to their followers. Brands create a sense of community and authenticity through interactive experiences such as flash mobs, events and collaborations. They align their values with Gen Z’s (social responsibility, ethics, sustainability, etc.) while ensuring transparency and authenticity in their targeting programs to resonate with this generation（Gwilt, 2020; Mitterfellner, 2023)

Figure 5. Social Networking Sites(C180 Agency, No date)

Reference List

Gwilt, A. (2020) Use, University of the Arts London weblogin. Available at: https://www-bloomsburyfashioncentral-com.arts.idm.oclc.org/encyclopedia-chapter?docid=b-9781350067059&tocid=b-9781350067059-chapter6&pdfid=9781350067059.ch-006.pdf (Accessed: 25 October 2023). 

Londrigan, M.P. and Jenkins, J.M.J. (2018) Corporate Social Responsibility and Sustainability, University of the Arts London weblogin. Available at: https://www-bloomsburyfashioncentral-com.arts.idm.oclc.org/encyclopedia-chapter?docid=b-9781501317798&tocid=b-9781501317798-chapter3&pdfid=9781501317798.ch-003.pdf (Accessed: 25 October 2023). 

Mitterfellner, O. (2023) Luxury Brand Qualities, Brand Construct and Brand Touchpoints, ProQuest Ebook Central. Available at: https://ebookcentral.proquest.com/lib/ual/reader.action?docID=7260416&ppg=77 (Accessed: 25 October 2023). 

The McKinsey Podcast (2020) Meet Generation Z: Shaping the future of Shopping, McKinsey & Company. Available at: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/meet-generation-z-shaping-the-future-of-shopping (Accessed: 25 October 2023). 

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Purpose

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Purpose in the fashion industry means to achieve a goal through the long-term strategy of a plan, strategy exists to help people to determine the purpose of the direction and scope of the purpose. for example, asos    set out their goal of achieving a net-zero emissions commitment by 2030, realizing that the brand’s products and packaging are made of sustainable or recyclable materials, product chain transparency and industry inclusiveness. And these are its STRATEGY, his PURPOSE is to protect the environment and the fashion industry, to realize the goal of sustainability. “Delivers positive benefits for people and minimizes its impact on the planet.” “As the next step in our sustainability mission, we’ll be working towards four 2030 goals, under two pillars-planet and people.”（Asos official website）. For those strategies, they need a destination which is the purpose. The brand philosophy also very important to a brand and it is divided into three parts which are mission, vision and values. These three parts represent the brand for the present and future and brand operation, it represents a brand in addition to the product and the competitiveness of the brand. The most important thing for a brand to do is to position itself, for example, they need to take a clear stance on social and political issues because social media is the most important source of information for current millennial and generation z consumers, according to the survey “76% of respondents said they have purchased, or would consider purchasing, from a company to show support for the issues the company supports, and 67% had stopped purchasing, or would consider doing so, if a company stood for something that didn’t align with their values.” (Curry, 2020). So, brands need to make good use of social media to communicate their brand messages to consumers. Brand integrity is also important for brands “mission before taking a public stand, lest they be accused of hypocrisy. Next, the company must invest in the issue in a comprehensive manner, meaning going beyond making donations or running a one-time ad campaign.” (Curry, 2020). And it’s also about how a brand operates, not only do they need to take a unified stance internally and externally, but they also need to utilize social media to make a statement to the public such as posting regularly about the racial diversity of their workforce or gender equality, so that the new generation of consumers will be supportive of the brand, and so that the brand can accomplish its profit goals. The brand supply chain is also a part of value, which is define for “the complex collaboration of suppliers, manufacturers, distributors, dealers, customers, and so on to ensure a seamless production and delivery of finished goods.”（Londrigan and Jenkins，2021）.Vision of brand also important cause It determines the future of ambition. For example, Stella McCartney is a brand where they say their vision is to “We are committed to doing our part in helping to create a better and more equal world, as envisioned in the UN’s Sustainable Development Goals.

We believe that the future of fashion is circular – it will be restorative and regenerative by design and the clothes we love never end up as waste.” （Stella M ccartney Webiste）.And for most of fashion brands the final destination is sustaibility. Then the fashion brand mission exists for the reason that designers created it in the first place and a promise to the consumer. For instance，Zara “Zara is committed to satisfying the desires of our customers. We pledge to provide new designs made from quality materials that are affordable” (Adam, 2014) and Gucci: “Gucci is a world-renowned Italian fashion brand dedicated to the exploration of modern luxury, producing fashion-forward, eco-conscious designs.”(Gucci Website). So those are the brand pjilosophy.

And nowadays, Gen Z has become a target demographic for many businesses. So they want to communicate the purpose to them. “Digital campfires became a force defining not only how Gen Z audiences connect, but also how they experience and shape the culture at large. For this reason, marketers can no longer afford to ignore them.” (Wilson, 2021) For the digital age, BUSINESS needs to take advantage of everything there is about DIGITAL. Not only use the digital things but also create some interesting brand story to attract them “personalized “for you” feeds on their phones, filled with photos videos and memes” “Cross boundaries to stand out” (Bails,2023) become different also a chance to attract them. And “this generation expects the brands they love to stand for something.’ (Fromm, 2019). Those are useful ways to attract them.

(Systrom,2010)

Reference List

  • Asos announces ambitious new 2030 ESG goals (no date) ASOS plc. Available at: https://www.asosplc.com/news/asos-announces-ambitious-new-2030-esg-goals/ (Accessed: 25 October 2023). 
  • Curry, L. (2020) How brands can follow through on the values they’re selling, Harvard Business Review. Available at: https://hbr.org/2020/08/how-brands-can-follow-through-on-the-values-theyre-selling (Accessed: 26 October 2023). 
  • Londrigan,M and Jenkins,J (2021) Fashion Supply Chain Management. Available at:https://www-bloomsburyfashioncentral-com.arts.idm.oclc.org/encyclopedia?docid=b-9781501317798 (Accessed: 26 October 2023). 
  • Our vision (no date) Social Sustainability | Stella McCartney US. Available at: https://www.stellamccartney.com/us/en/sustainability/social-sustainability.html (Accessed: 26 October 2023). 
  • Adam, P. (2014) The Strategic Management Analysis of Zara (relative to the case in developing countries), Academia.edu. Available at: https://www.academia.edu/5492552/The_Strategic_Management_Analysis_of_ZARA_Relative_to_the_Case_in_Developing_Countries_ (Accessed: 26 October 2023). 
  • About Gucci: Gucci® (no date) About Gucci | GUCCI®. Available at: https://www.gucci.com/us/en/st/about-gucci (Accessed: 26 October 2023). 
  • Wilson, S. (2021) Where brands are reaching gen Z, Harvard Business Review. Available at: https://hbr.org/2021/03/where-brands-are-reaching-gen-z (Accessed: 26 October 2023). 
  • Fromm, J. (2019) Gen-z and the three elements of Purpose Brands, Forbes. Available at: https://www.forbes.com/sites/jefffromm/2019/07/26/gen-z-and-the-three-elements-of-purpose-brands/ (Accessed: 26 October 2023). 
  • Bails, J, (2023) How the Best Brand-Influencer Partnerships Reach Gen Z. Available at: https://hbr.org/2023/06/how-the-best-brand-influencer-partnerships-reach-gen-z?ab=at_art_art_1x4_s02 (Accessed: 26 October 2023). 

Reference List For Images

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blog 4: purpose

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The final of the four pillars, purpose, serves as a direct representation of a brand’s values and pursuits. And there are 5Ps that can embed purpose into brands’ circumstances to generate related initiatives: portfolio strategies and products, people and culture, processes and systems, performance metrics, and positions and engagements. Companies can apply their situations to the 5Ps to bring them forth and communicate them to consumers.

It is impossible to discuss ‘purpose’ without bringing up Corporate Social Responsibility. CSR is a way that companies take responsibility for their social impact. In the meantime, sustainability is also a concept that can’t be avoided and has a sophisticated connection with CSR. Stephanie Strom of the New York Times introduced Corporate Social Responsibility to the fashion sector for the first time in 1996. And for now, almost every brand and company is taking their CSR in their own way, especially in the sustainability aspect. The key now is how to please consumers today while differing from other competitors.

Consumer preferences are shifting quickly these days, especially for Gen Z, who are thought to be the main influencers that even have a considerable impact on both Millienials and Gen Xers. After understanding their demands, it comes to the challenging part: how to meet these demands while still delivering brand value in an alluring and flawless way at the same time. As of right now, brands typically opt to directly address the most fundamental concerns of Generation Z in regards to identity, values, and personal style, demonstrating their commitment to diversity, originality, uniqueness, and sustainability. Also, they invite Gen Z influencers to embed their ideas and act as ambassadors. For example, Nike collaborated with American artist Billie Eilish, who was born in 2001 and is well-liked by the younger generation, to introduce their AF1 LOW collection. This typical collaboration between Nike and Billie Eilish illustrates how corporations care about sustainability and leverage influencers’ fame and effect on younger consumers, both delivering their purpose and boosting their sales, reaching a win-win situation.

It follows that the brand philosophy is essential for presenting the brand’s mission, vision, and values, for it represents the needs of customers as well as those of society at large. In addition, it’s essential for brands to find their own positioning in the market, understand their target audience, and differentiate themselves from rivals by creating their own unique features and advantages.

To sum up, before expressing purpose, brands need to have a precise understanding of their positioning, target audience, and the market they are in. Companies and brands ought to actively fulfill their CSR obligations, respond to consumers’ concerns, and address customer expectations.

Reference:

Mitterfellner, O. (2023) Luxury Fashion Brand Management: Unifying Fashion with Sustainability. Milton, UNITED KINGDOM: Taylor & Francis Group. Available at: http://ebookcentral.proquest.com/lib/ual/detail.action?docID=7260416 (Accessed: 25 October 2023).

Corporate Social Responsibility and Sustainability (no date). Available at: http://www.bloomsburyfashioncentral.com/bfccoll/encyclopedia-chapter (Accessed: 25 October 2023).

Meet Generation Z: Shaping the future of shopping | McKinsey (no date). Available at: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/meet-generation-z-shaping-the-future-of-shopping (Accessed: 25 October 2023).

Billie Eilish Nike AF1 Low Collaboration — NIKE, Inc. (no date). Available at: https://about.nike.com/en/newsroom/releases/nike-x-billie-eilish-af1-low (Accessed: 24 October 2023).

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PURPOSE

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Purpose is an often overlooked but crucial aspect that shapes the style of a brand and its customer base. Much like a person’s character, a brand’s purpose reflects its sense of responsibility to society.

Why is brand philosophy important?

Recent research indicates that 82% of consumers desire consumer brands to reflect their values. Moreover, three-quarters of shoppers would boycott their beloved brands permanently if there was a dissonance in values, and 24% would break the relationship off for at least a temporary period. (New Research Shows Consumers More Interested in Brands’ Values than Ever, 2022)

Using the Dolce & Gabbana scandal as a case in point, The incident in 2018, which saw the brand release an video and the designer make racist remarks, resulted in the cancellation of fashion shows, consumer boycotts, and store vandalism. In response, “Not Me” posters were placed on the brand’s storefronts to ridicule their handling of the scandal. The company’s yearly financial report decreased by three percent following the disclosures.

Therefore, the value proposition and vision of the brand are closely interconnected, and contemporary consumers, particularly those belonging to Generation Z, desire brands to overtly vocalize their political stances. Moreover, they aspire to impact the brand’s actions through their purchasing decisions. (Curry, 2020)

How do brands communicate their purpose to Gen-Z?

Fashion promotion and public relations（ Mitterfellner, 2019, p. 24, Figure2.3)

According to research, 98% of Generation Z utilize social media channels (The Future of Consumer Behaviour in the Age of Gen Z, 2023), whilst 24% of Gen Z females specify influencers as their primary source of information for evaluating new products or services they desire to procure (Alyssa, 2022). Influencers are frequently leveraged to emotionally connect with a brand and stimulate consumer purchasing intent among Gen-Z. It is crucial to select the appropriate platform, given that according to Statista’s 2021 survey (Navarro, 2023), TikTok is the third most significant shopping channel for Gen-Z females.

(Young, no date)

Reaching out to the GEN-Z demographic is a crucial aspect of successful brand promotion, achieved through user involvement in activities to cultivate a sense of engagement. Focusing on this community, Fenty Beauty implemented a TikTok strategy, establishing a bespoke content creation hub and engaging specialist creators to promote the brand. Within three weeks, the #fentybeauty hashtag on TikTok had received more than 93 million views via the #fentybeautyhouse hashtag (the first ever TikTok beauty content house, no date). By encouraging users to create their content based on brand materials, Fenty’s promotional approach capitalizes on user-generated momentum and creates new value for the brand (Janet, 2023).

REFERENCE LIST

Alyssa, H. (2022) Last updated:3 November 2022. Available at:https://blog.hootsuite.com/marketing-to-gen-z/#Marketing_to_Gen_Z_vs_Millennials(Accessed: 26 October 2023).

Curry, L., 2020. How brands can follow through on the values they’re selling. Harvard Business Review.

Janet, B. (Last updated: 21 June 2023) How the Best Brand-Influencer Partnerships Reach Gen Z . Available at:https://hbr.org/2023/06/how-the-best-brand-influencer-partnerships-reach-gen-z?ab=at_art_art_1x4_s02  (Accessed: 26 October 2023).

New Research Shows Consumers More Interested in Brands’ Values than Ever. Last updated :27 April 2022. Available at:https://consumergoods.com/new-research-shows-consumers-more-interested-brands-values-ever(Accessed 25 October 25 2023).

Mitterfellner, O. (2019) Fashion Marketing and Communication : Theory and Practice Across the Fashion Industry, Taylor & Francis Group, Milton.

Statista(2023) Most influential advertising channels when making purchasing decisions among female Generation Z consumers in the United States as of May 2021. US. Available at: https://www.statista.com/statistics/1246840/most-influential-advertising-gen-z/(Accessed: 26 October 2023 ).

The Future of Consumer Behaviour in the Age of Gen Z（2023）Last updated:13 June 2023. Available at:https://www.mintel.com/consumer-market-news/the-future-of-consumer-behaviour-in-the-age-of-gen-z/(Accessed: 26 October 2023).

The first ever TikTok beauty content house(no date)Available at: https://shortyawards.com/13th/the-first-ever-tiktok-beauty-content-house(Accessed: 26 October 2023)

Young, A. (no date) . Available at: https://dp6mhagng1yw3.cloudfront.net/entries/13th/5581a7bd-55e3-4e99-b464-20f4c9f0c9e8.jpg (Accessed: 26 October 2023).

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PROFIT

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The Resurrection of Creativity and Commerce in the Fashion Industry

The fashion industry, like most industries, relies on economic stability to fulfil both creative and commercial aspects of fashion business. Arguably profit is the most important pillar in regards to operating a fashion business with factors such as “fabric, pattern-making, sampling, trims, sewing, handwork, packaging, duties, shipping”(Farra, 2020) all contributing towards the cost of producing a garment. With significant levels of profitability allowing businesses to explore expansion, sustainable practices and luxury quality, profit is most desirable for any industry.  

The relation between creativity and commerce is vital within the fashion industry and it’s important that fashion brand’s creative directors bridge the gap between creativity and commerce. It is valued for creative directors to look at potential ideas from a perspective of desire from the brands target audience. By doing this the brand’s creative content is more likely to consistently align with their essence and give them a competitive advantage

The performance of the fashion industry is experiencing steady decline after undergoing 18 months of robust growth from early 2021 through mid-2022 which was expected to continue throughout the year 2023. With irregular economic stability related to the COVID-19 pandemic and its disrupted supply chains, lockdowns and reductions in consumer spending, it is no surprise that the economic performance of the fashion industry was on a steady decline throughout 2023 (McKinsey&Company, 2022).

With premium-luxury brands seeing a steep decline in profitability throughout 2020 due to COVID-19, the financial state of the fashion and luxury industry was “not comparable to a financial crisis” and could have even been “closer to what people must have seen during the Great Depression”(Berg, 2021). However how is the fashion and luxury industry performing succeeding the global recovery of COVID-19? Stated by (Mitterfellner, 2023) one of the key factors contributing towards brand resurrection is ‘investing in the brand’, making the importance of commerce and profit increasingly prevalent within the fashion industry.

By remaining as competitive as possible in uncertain economic times fashion brands must adjust their creativity to match upcoming physical trends but also economic trends. If competitors within the industry begin adjusting price points to appeal to a struggling economy their brand is likely to see an increase in sales. Not only can a fashion brand adjust its prices to appeal to consumers but adjust its costs of production to lower their variable costs making them more competitive in a struggling economy.

Although profitability isn’t the key factor of a businesses success, it is one of the most important factors in regards to a brand putting their creative minds into practice. However does a business’s value of generated profits measure its true success?

Bibliography

VOGUE, by Emily Farra, 2020 ‘What is the Right Price for Fashion?’ (Article) (Online) https://www.vogue.com/article/what-is-the-right-price-for-fashion (Accessed 22/10/2023)

McKinsey & Company, 2022 ‘The State of Fashion 2023: Holding onto growth as global clouds gather’  (Report) (Online) https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion (Accessed 22/10/2023)

McKinsey & Company, by Balchandani and Berg, 2021 ‘The Post-pandemic State of Fashion’ (Podcast) (Online via Spotify) https://open.spotify.com/episode/0GuFzFtdmFwO6tVCq9I13N (Accessed 22/10/2023)

Olga Mitterfellner, 2023 ‘Luxury fashion brand management : unifying fashion with sustainability’ (Book), (Accessed 20/10/2023)

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Profit

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Within the fashion industry there are four economic cycle pillars of people, planet, purpose, and profit. The profit sector focuses on the financial aspects of business and economic systems. It emphasises the significance of achieving economic growth and sustainable profits while upholding ethical and responsible business practises.

The fashion industry is a huge and intricate field that includes manufacturing, design, and marketing in addition to retail, resale, and online sales. The industry has grown to be a multi-trillion-dollar industry as a result of globalisation. According to global fashion industry statistics (fashionunited, no date), the global fashion industry is currently worth $2.5 trillion and is expected to grow to $3.3 trillion by 2025.

There are several different areas that make up the fashion industry, and each one operates differently. The burgeoning middle class in emerging economies and the increased popularity of online sales have both contributed to the luxury sector’s tremendous expansion in recent years. On the controversy, the environmental effects of mass-produced apparel and fast fashion’s unsustainable business model have both been criticised. Therefore, sustainable fashion is becoming more well-liked as consumers become more conscious of the social and environmental effects of their purchase decisions.

Brands must be flexible and adaptive to stay competitive in uncertain economic times. This entails having the flexibility to quickly adjust strategy in response to shifting customer needs and market trends. For brands to expand their consumer base and enhance the customer experience, they must invest in technology and digital marketing. In addition, brands must uphold sustainability and social responsibility since customers are becoming more concerned with the effects their purchases have on the environment and society.

In the fashion industry, creative directors are essential in bridging the gap between creativity and commerce. They are in charge of managing the design process and making sure the final product satisfies both artistic and business goals. Creative directors must also stay current on developing trends, understand the market as a whole, in order to effectively communicate their vision to other stakeholders such as buyers, merchandisers, and marketers. They must be able to strike a balance between artistic expression and financial viability to produce goods that appeal to customers.

FashionUnited (no date) Global Fashion Industry Statistics. Available at: https://fashionunited.com/global-fashion-industry-statistics (Accessed: 21 October 2023).

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Profit

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Profit will be the third to introduce the fashion industry pillar. The term “profit” means the financial earning and gaining for a fashion brand or company, and it’s calculated by deducting all expenses and costs from the brand’s total revenue. The data of a brand or firm’s profit can reflect their successfulness and also sustainability of the business. And these data can always be evidence to prove a brand and attract more consumers to purchase. Fashion industry is one of the biggest industries in the world. The revenue of the global apparel market was calculated to amount to 1.53 trillion U.S. dollars in 2022. However, revenue was forecast to increase in 2023, to more than 1.7 trillion dollars (Statista, 2023).

The performance of different sectors in the fashion industry is changing rapidly. Especially the e-commerce and online sector is performing well in the fashion industry now. The Covid-19 pandemic has also boosted online shopping to become the most popular shopping method in the fashion industry (McKinsey Company, 2023). In order to increase the likelihood of people paying attention to their products and services, firms and brands make great emphasis to develop social media and online shopping platforms. Moreover, luxury brands and streetwear brands earning approximately US$354.80bn in 2022 are also having a win-win phenomenon in the fashion industry (Strategy&, 2023). As luxury brands have adapted to digital and aspirational marketing strategies to engage consumers, while street wear is maintaining its influence by collaborating with luxury brands and unique artists. Nevertheless, the Secondhand and “Resale Vintage market” sector is also experiencing a rapid growth at approximately 541.41 million U.S. dollars in 2022 (Statista, 2023) , as more and more customers are focusing on the sustainability of the fashion items and affordable price. 

Brands to remain competitive in different economic situations are always a challenging task., so they must be creative, innovative and adaptive. First of all, brands need to confirm products and services diversity by listening to customers’ feedback and opinion and increase product range in order to satisfy different wants and needs from different consumers and increase brand’s profit (CONDE NAST, 2023). Secondly, professional market research can also make brands remain competitive. Brands can create better identities and walk on the right path if they stay up to date with information, news, trends and economic conditions. Thirdly, high concern on a company’s sustainability and ethical practices is also a key major to remain competitive in the industry, which include clear and transparent data of brand’s sustainability operations. This can prove to consumers that the brand is a responsible and trustable business and gain profit as a result. On the other hand, creative directors need to have a clear brand identity and economic situation before adding new ideas to the brand because not all loyal consumers can understand unique artists’ artwork, so creating a directory should find creative opportunities and satisfy the brand’s core value, customer expectations and standard profit at the same time (Luxury Fashion Brand Management, 2023). 

Reference:

Berg, A., Hedrich, S. and Leon, J. (2017). The two faces of fashion-industry performance. [online] McKinsey & Company. Available at: https://www.mckinsey.com/industries/retail/our-insights/the-two-faces-of-fashion-industry-performance. 

Dillon, S. (2018) The Fundamentals of Fashion Management. 2nd ed. London: Bloomsbury.

e-book:https://libsearch.arts.ac.uk/cgi-bin/koha/opac-detail.pl?biblionumber=1449133&query_desc=

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

Mitterfellner, O. (2019) Fashion Marketing and Communication: Theory and Practice Across the Fashion Industry, Taylor & Francis Group, Milton.

e-book:https://libsearch.arts.ac.uk/cgi-bin/koha/opac-detail.plbiblionumber=1450606&query_desc=kw%2Cwrdl%3A%20Mitterfellner 

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

e-book: https://libsearch.arts.ac.uk/cgi-bin/koha/opac-detail.pl?biblionumber=1546849&query_desc=kw%2Cwrdl%3A%20Mitterfelln\er 

Overdiek, Anja. (2016). Fashion designers and their business partners: Juggling creativity and commerce. International Journal of Fashion Studies. 3. 27-46. 10.1386/infs.3.1.27_1.

https://browzine.com/libraries/479/journals/36584/issues/8230931

PricewaterhouseCoopers (2019). Streetwear: The new exclusivity. [online] PwC. Available at: https://www.strategyand.pwc.com/de/en/industries/consumer-markets/streetwear.html. 

Smith, P. (2023). Global apparel market – statistics & facts. [online] Statista. Available at: https://www.statista.com/topics/5091/apparel-market-worldwide/#topicOverview. www.condenast.com. (n.d.). Condé Nast. [online] Available at: https://www.condenast.com/diversity.

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Profit

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The fashion industry encompasses a vast and ever-evolving landscape of creativity, commerce, and profit generation. In order to understand the dynamics of profitability within this industry, it is essential to explore its various sectors, examine their performance, and investigate how brands can remain competitive amidst economic uncertainties. As the renowned fashion designer Ralph Lauren once said, “I don’t design clothes. I design dreams” (Kapner, 2018). This quote encapsulates the essence of the fashion industry, where profitability is intimately tied to the ability to fulfill consumers’ desires and aspirations.

Size of the Fashion Industry: The fashion industry is a global behemoth, encompassing a wide range of activities from production to retail. According to Statista, the global apparel market was valued at approximately $1.5 trillion in 2020 and is projected to reach $2.25 trillion by 2025 (Statista, 2021). This staggering size highlights the immense potential for profit within the industry.

Performance of Various Sectors: The fashion industry comprises multiple sectors, including haute couture, luxury brands, ready-to-wear, fast fashion, and accessories. Each sector possesses its unique market dynamics and profit potential. For instance, luxury brands often focus on exclusivity and craftsmanship, commanding higher profit margins. On the other hand, fast fashion brands prioritize affordability and rapid turnover to attract a wider customer base. Understanding these sector-specific trends is crucial for businesses seeking profitability.

Remaining Competitive in Uncertain Economic Times: In uncertain economic times, brands must adapt their strategies to stay competitive. Firstly, diversifying product offerings and implementing agile supply chains helps mitigate risks during economic downturns. Secondly, investing in technology and data analytics allows brands to anticipate consumer demands effectively. Finally, fostering brand loyalty through personalized customer experiences ensures sustained profitability amidst changing market conditions (Fashionista, 2020).

Bridging the Gap between Creativity and Commerce: Creative directors play a pivotal role in bridging the gap between creativity and commerce within the fashion industry. They are responsible for translating artistic visions into marketable products that resonate with consumers. By collaborating closely with design teams, marketing professionals, and merchandisers, creative directors ensure that artistic integrity is maintained while aligning the brand’s offerings with consumer preferences. This harmony between creativity and commerce is essential for generating profit and maintaining brand relevance (Kaplan, 2012).

Profitability within the fashion industry is intricately linked to the ability to understand and adapt to market trends, consumer preferences, and economic uncertainties. As the industry continues to evolve, brands must navigate these challenges by diversifying their offerings, embracing technological innovations, and fostering customer loyalty. The role of creative directors in bridging the gap between creativity and commerce cannot be overstated, as they are instrumental in transforming artistic visions into profitable realities. In the words of Ralph Lauren, “Innovation is my inspiration” (Kapner, 2018). It is through embracing innovation that fashion brands can drive profitability and secure their place in this ever-evolving industry.

Bibliography

(No date) What struggling American Beauty Brands can learn from … – fashionista. Available at: https://fashionista.com/2020/04/superordinary-julian-reis-chinese-beauty-retail-economy (Accessed: 21 October 2023). 

Kaplan, R. (2012). Fashion and Cultural Studies. London: Bloomsbury Academic.

Financial Times Home (no date) Financial Times. Available at: https://www.ft.com/ (Accessed: 21 October 2023). 

Smith, P. (no date) Topic: Apparel market worldwide, Statista. Available at: https://www.statista.com/topics/5091/apparel-market-worldwide/ (Accessed: 21 October 2023).

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