Profit blog
Profit is the ultimate goal for every existing industry, the major reason for people to run businesses, and this is the same for the fashion industry. Based on Fashion United, up to 3.45 labor force is related to the fashion industry, creating 16,300 dollars in GDP per capita. Based on these data we could conclude that the fashion industry can always cause a massive impact meaning the profit flow would affect a large population.
An interesting topic that people commonly discuss is the purpose of fashion, there is fashion for art and fashion for business purposes. It is important for the commerce part to occur, as it provides a great channel to promote fashion. However, it is still important for creators to display their work without connecting with any commerce. Therefore, in fashion shows the organizers will separate the catwalk show area from the commerce exhibitions to clarify the two types of fashion. (Bourdieu, 1993)
There are a few different sectors within the fashion industry, and each of them is indifferent to progress and status. For example, the luxury sector is currently in a great growing phase and is expected to have another 5-10% increase within 2023 (McKinsey, 2022). On the other hand, the fast fashion market is undergoing a decreasing trend. This reflects that the ability of basic customers is decreasing, and the industry needs to take action to change its strategies.
Impacted by economic uncertainties, consumers are likely going to adjust their spending habits and buying preferences, possibly opting for cheaper items or buying less frequently. Therefore, brands can conduct more market research to investigate the changes in consumers’ preferences and launch discount programs to increase consumer satisfaction and undercut the competition through lower prices.
Moreover, brands can focus more on areas with less economic uncertainty because the consumers there are likely going to have a greater ability to buy fashion products. A brand can be affected easily by its economic status, one of the related factors can be its geography. Different cultures and values will differ in fashion in certain areas, the well-known international fashion is mostly led by Paris, London, Milan and New York (Godart 2014). These places are also the areas where there are more target consumers who would purchase fashion products.
References:
Balchandani, Anita. “The State of Fashion 2023: Holding onto Growth as Global Clouds Gather.” McKinsey & Company, McKinsey & Company, 29 Nov. 2022, www.mckinsey.com/industries/retail/our-insights/state-of-fashion.
“Global Fashion Industry Statistics.” FashionUnited, fashionunited.com/global-fashion-industry-statistics.
Overdiek, Anja. “Fashion designers and their business partners: Juggling creativity and commerce”https://intellectdiscover.com/docserver/fulltext/infs/3/1/infs.3.1.27_1.pdf?expires=1697814281&id=id&accname=id22589229&checksum=28B937975F74EEA6C4B34C0871B1B80F