Profit blog
The fashion industry faces the difficult challenge of achieving an eco-social sustainable brand, while also obtaining a growth in profitability. Brands are regarded as successful by satisfying consumers desires, which enhances brand visibility in society and establishes economic status. A mediation between creativity and commerce must be maintained, whilst also achieving a positive customer experience.
In business, one of the main goals is profit. The sector of fashion has become one of the major contributors to the economy by being a “$2.5 trillion global industry” (Maloney, 2019), providing millions of jobs to people due to the variety of different sectors within the industry. Approximately 300 million people have been employed in the fashion “value chain” (Ellen MacArthur Foundation, 2017) and 1.7 million people have been employed in the “European manufacturing industry” contributing to an estimated profit of 166 billion euros (European Commission, 2022).
The COVID-19 pandemic interrupted traditional shopping and altered consumer buying patterns due to the restricted access to physical stores. This induced a shift to e-commerce, which provides quicker and more accessible purchasing options to customers. Shopping online has become the social norm of this generation, increasing profitability for both small and luxury brands through global exposure and the development of new technology. For example, “virtual clothing technology” has been introduced such as virtual fitting rooms and the creation of avatars (Guercini et al., 2018), which has been embraced by brands including “Uniqlo, Rebecca Minkoff and Timberland” addressing the issue of fitting online (Lee et al., 2020). Social media and online marketing tools also enable brands to utilize advertisements as a way of communicating their distinctive uniqueness and exclusivity through their designs (Ong et al., 2021) as once fashion reaches a status of art, it not only serves a creative value, but also becomes profitable. However, due to a growing awareness of the negative environmental impact, the fashion industry is discovering alternative methods including vintage and collectible items gaining a “global appeal”. Textile graders sort clothing for various markets, including “vintage collectibles” and “exports to developing countries”, generating over $700 million in annual sales (Hethorn & Ulasewicz, 2015, pp. 204–230).
In order to succeed, creative directors play an integral role within the fashion brand, balancing the needs and artistic values of the designer, whilst also taking into consideration financial management in order to generate economic capital. The designer’s task of symbolising a brand and creating an identity is supported by the creative directors handling of “business strategy, marketing” and operational logistics as the establishment of a “duel leadership” is a requirement to be “the most successful revenue generator” (Overdiek, 2016)
References
Abdelmeguid, A., Afy-Shararah, M., & Salonitis, K. (2022). Investigating the challenges of applying the principles of the circular economy in the fashion industry: A systematic review. Sustainable Production and Consumption, 32(1), 505–518. sciencedirect. https://doi.org/10.1016/j.spc.2022.05.009
Guercini, S., Bernal, P. M., & Prentice, C. (2018). New marketing in fashion e-commerce. Journal of Global Fashion Marketing, 9(1), 1–8. Tandfonline.
Hethorn, J., & Ulasewicz, C. (2015). Sustainable fashion : what’s next? : a conversation about issues, practices and possibilities (pp. 204–230). Bloomsbury, Fairchild Books, An Imprint Of Bloomsbury Publishing Inc.
Lee, H., Xu, Y., & Porterfield, A. (2020). Consumers’ adoption of AR-based virtual fitting rooms: from the perspective of theory of interactive media effects. Journal of Fashion Marketing and Management: An International Journal, 25(1), 45–62. https://doi.org/10.1108/jfmm-05-2019-0092
Maloney, C. (2019). THE ECONOMIC IMPACT OF THE FASHION INDUSTRY. https://www.jec.senate.gov/public/_cache/files/ffe17b78-b14d-4b23-8e19-fea4480959a3/economic-impact-of-the-fashion-industry.pdf
Ong, A. K. S., Cleofas, M. A., Prasetyo, Y. T., Chuenyindee, T., Young, M. N., Diaz, J. F. T., Nadlifatin, R., & Redi, A. A. N. P. (2021). Consumer Behavior in Clothing Industry and Its Relationship with Open Innovation Dynamics during the COVID-19 Pandemic. Journal of Open Innovation: Technology, Market, and Complexity, 7(4), 211. https://doi.org/10.3390/joitmc7040211
Overdiek, A. (2016). Fashion designers and their business partners: Juggling creativity and commerce. International Journal of Fashion Studies, 3(1), 27–46. https://doi.org/10.1386/infs.3.1.27_1