PROFIT
The pillar profit represents how economic viability and financial health of businesses are two essential factors for the fashion industry. During profit week, we examine the obstacles and strategies that fashion companies employ to achieve financial success while respecting moral standards and encouraging innovation throughout.
The fashion industry is one of the largest global industries and was valued at about $2.5 trillion in 2020. This includes various sectors, such as apparel, footwear, textiles etc showing the industry’s global impact. However, the ”fashion industry is again facing a challenging climate”(Imran Amed et al., 2022).
The performance of various areas within the fashion business varies depending on consumer demands, changes in the economy, and new trends. The digital era has greatly increased e-commerce’s growth, but conventional retail has encountered difficulties that have given rise to creative solutions like omnichannel experiences.
In 2010, DOMENICA PETERSON ”cofounded the non-profit Global Action Through Fashion (GATF) with the vision to create a more equitable and sustainable world through fashion, and in 2014 Domenica launched Averti, a luxury loungewear and lingerie line hand made in Los Angeles, California” (Peterson. D, 2015). This initiative is an excellent example of strategic adaptability, a skill essential for a brand in unpredictable economic environments. Brands must make significant effort to have an online presence which allows them to successfully connect with the customers/ consumers. Moreover, brands can diversify their products and maximise their supply chains.
This results in higher efficiency rate and lower overheard costs (Locomexgroup, 2023).
The link between artistic expression and financial viability is provided by creative directors.
These directors must learn how to balance between originality and market viability by conceptualizing designs with an understanding of consumer demands and market trends.
This can help bridge the gap between creativity and, buying and selling thus optimizing a brand’s profitability.
References:
Imran Amed, André, S., Balchandan, A., Berg, A., & Rölkens, F. (2022, November 29). The State of Fashion 2023: Holding onto growth as global clouds gather. McKinsey; McKinsey & Company. https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion
J. Hethorn and C. Ulasewicz (Eds), Economic Impact of Textile and Clothing Recycling. Sustainable Fashion: What’s Next. A Conversation about Issues, Practices, & Possibilities. New York: Bloomsbury. Pp. 204-230.
Peterson, D. (2015). Social Media as a Tool for Social Change. Www.bloomsburyfashioncentral.com. https://www.bloomsburyfashioncentral.com/encyclopedia-chapter?docid=b-9781501312250&tocid=b-9781501312250-chapter4
Locomexgroup. Top Benefits Of Supply Chain Optimization. (2023, February 21). Locomexgroup.com. https://locomexgroup.com/top-benefits-of-supply-chain-optimization/