Profit Blog
The fashion industry is one of the biggest and most important industries, it is a huge part of the global economy. In 2020-2021 the global income of the fashion industry was estimated at $1.7 trillion, globally. In the UK the fashion industry was estimated at 58.5 billion British pounds, in 2022 (Smith).
The product is what makes the profit for the fashion brand. The profit margin is determined by calculating the difference between a product’s selling price and its costs. The way a fashion brand makes profit doesn’t only depend on the prices and the costs of a product, but it also depends on the competition, the popularity of a brand. Due to the fashion industry being extremely competitive, brands need to come up with new creative ideas in order for them to never ‘go out of style’. For example, Supreme, is a brand that instead of making more profit from their first release of a collection, they make the first drop have limited amount of products and so, later on when they release just a few pieces again, that it what benefits them more.
A brand needs to have a clear market target, the people they are trying to sell their clothes to and also try to avoid selling products that are already been made. For example, there are products that are so limited that only a certain amount of people can purchase them. Trying to establish your market target can be done by directly contacting the consumers in various ways and asking for their opinions. Also, by not following every new ‘micro-trend’ that becomes popular because that also takes away from the individuality and creative aspect of the brand. For the Gen Z consumers, individuality is very valued, so when Gen Z’s shop, they are looking for something that will stand out, but also be as sustainable as possible.
As much a trend can increase the profit for a brand, after the trend is substituted by another, that brand automatically loses most of its value. Following the trend can only benefit a brand so much, it turns to commerce instead of a creative project being done due to a person being inspired. So, the creative aspect has to be present at all times when aiming for higher profit. creativity brings the individuality of a brand. Of course, most brands follow trends and try to widen their market by targeting various generations, but fashion can and in most cases should be considered as art not ‘costumes’. That is mostly because nowadays fashion has become more about self-expression and therefore, more personal instead of just fabric that is used to cover the body.
References:
Smith, P. (n.d.). Topic: Apparel market in the UK. Retrieved from https://www.statista.com/topics/3348/apparel-market-in-the-uk/#topicOverview