PROFIT
Profit is the main aim of most fashion businesses out in the world. To maintain profit, fashion brands from small startups to established luxury brands all consider strategies for preserving competitiveness with each other in uncertain economic times. Also, in this, the role of creative directors is essential in balancing creativity and commerce.
THE SIZE OF THE FASHION INDUSTRY
The fashion industry is massive, both in terms of revenue and global impact. According to the statistics, the revenue of the global apparel market was calculated to amount to 1.53 trillion U.S. dollars in 2022, then forecast to increase in 2023, to more than 1.7 trillion dollars. (Statista. 2023.)
The industry encompasses a wide range of sectors, from fast fashion to luxury brands. It also employs millions of people worldwide, from designers and manufacturers to marketers and retailers.
THE PERFORMANCE OF THE VARIOUS SECTORS OF THE FASHION INDUSTRY
Due to how big the fashion industry is, it comprises various sectors, each with its own unique challenges and opportunities. Sectors may include fast fashion such as Zara and H&M that are on-trend and affordable however they do not consider ethical practices and sustainability. Luxury fashion such as Dior have high-quality products, but they need to adapt to the digital age and appeal to younger consumers. Sustainable and eco-friendly fashion brands are rising changing consumer values, but they are still considered as ‘pricey’ by younger consumers.
HOW DO BRANDS REMAIN COMPETITIVE IN UNCERTAIN ECONOMIC TIMES?
The industry is big and there are so many sectors so for the companies to be kept competitive in the field, it requires adaptability to new fresh approaches. The focus of the companies recently is the emerging concept of ‘digitalization’ and ‘metaverse’.
‘Metaverse’ is basically a ‘second world’ where the creativity is unlimited virtually (McKinsey & Company. 2022). Brands focus on the metaverse as it is where people work, socialise, and shop to engage more creatively with their customers and unlock new value streams (McKinsey & Company. 2022). Virtual clothing could also be useful for both consumers and companies because they do not require much consideration of environmental impact because they are digital, no real fabrics are needed. Furthermore, fewer employees are required to produce the garments compared to the real clothes.
As gaming increasingly becomes popular during the pandemic, it has become a prime target for fashion brands. One example of this could be a South Korean avatar simulation app Zepeto that is targeted to the younger generation, collaborating with Ralph Lauren. This shows that a strong online presence is essential. Brands need to invest in user-friendly websites or apps, social media such as TikTok or Twitter, online marketing to reach a wider audience.
THE ROLE OF CREATIVE DIRECTORS BETWEEN CREATIVITY AND COMMERCE
Not only being adaptable to new technologies keeps the industry competitive. Creative directors play a pivotal role in this by balancing artistic vision with commercial viability. (Mitterfellner, O. 2023)
A good case example is Karl Lagerfeld who worked as a creative director for Fendi and Chanel. In 1965, he designed the famous FF logo, transforming the brand’s name into a highly marketable and recognisable logo, giving creative vision to many aspects of the brand such as the design of the catwalk shows. (Mitterfellner, O. 2023)
The important characteristic of the creative director is to understand the brand identity very well. One of his key strengths was his profound understanding of the brands he worked for, which allowed him to create designs that resonated with Chanel’s loyal customer base while attracting new, younger consumers.
Furthermore, innovation and risk-taking are also important. Lagerfeld was known for his fearless approach to design. He continuously pushed the boundaries of fashion, introducing new ideas, materials, and styles while staying true to the brand’s DNA. His ability to balance creativity with risk-taking was significant in keeping Chanel alive and kept at the forefront of the industry.
BIBLIOGRAPHY
McKinsey & Company. (2022). The State of Fashion 2022. https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/state%20of%20fashion/2022/the-state-of-fashion-2022.pdf
Mitterfellner, O. (2023). Luxury fashion brand management: Unifying fashion with sustainability. Taylor & Francis Group.
Statista. (August 24, 2023). Revenue of the apparel market worldwide from 2014 to 2027 (in trillion U.S. dollars) [Graph]. In Statista. Retrieved October 20, 2023, https://www.statista.com/forecasts/821415/value-of-the-global-apparel-market