Laiba Sethi

The profit pillar plays a crucial role within the ever-changing fashion industry.  Without profit, it would be almost impossible for a business to run. The fashion industry is ‘one of the world’s largest and most fragmented industries’, (McKinsey) making the fashion industry incredibly important due to its profitability. Although after COVID the industry’s worth decreased from $2.5 trillion to $1.7 trillion, according to Mckinsey. This may perhaps be due to consumers not being as confident buying products from different brands. Nevertheless, profit is still a prioritized pillar within the market and every business ultimately strives to make a profit. 

The fashion industry is ‘divided into multiple product segments and categories’ such as sustainable fashion, luxury fashion ETC. It is clear to understand that these segments are driven by consumer trends, possibly making it harder for other segments to acquire profit. For example, in the most recent years sustainable fashion brands have increased as consumers have become more educated about the environment leading to ‘fast-fashion houses suffering [from] decline’ (Louise Newstead, 2023) and this is due to environmentally conscious consumers. Although fast fashion companies still obtain their profit as there are ‘affordable prices and instant gratification for consumers’ (Adam Hayes, 2023). Whereas luxury brands such as Chanel also obtain their profit by creating an ideology of their products being extremely exclusive and rare through their marketing, allowing them to have more overpriced products and consumers wanting them.  

There are multiple uncertainties within the fashion industry and its economy. COVID-19 was a long uncertainty for the industry’s economic status. The pandemic impacted many businesses, leading to many people losing their jobs and consumers not buying as much due to the lockdown; declining in profit. Arguably, this gave the fashion industry an opportunity to explore a whole new segment of fashion. The fashion industry pre-COVID, was ‘labelled out of date, broken and wasteful’ (Forbes) However, COVID has allowed fashion brands to enhance their knowledge about digital fashion and creativity. Coperni, for example took the world by shock in 2022 where they sprayed a dress on the famous model Bella Hadid, giving consumers an insight on how innovating the fashion industry is.  

Although, not only adapting to trends helps being competitive within the industry; creative directors also play a crucial role in the industry. For example, the British rapper Skepta, debuted his work for Mains during this year’s London fashion week. He created ‘staple, crazy, beautiful, wearable clothes’ (Vogue) which made consumers extremely happy allowing the brand, which had been ‘put on hold’ to be ‘revived’ again. 

Berg, A., Hedrich, S., & Leon, J. (2017). The two faces of fashion-industry performance. The McKinsey Quarterly. https://www.mckinsey.com/industries/retail/our-insights/the-two-faces-of-fashion-industry-performance#:~:text=Fashion%20is%20one%20of%20the,measured%20as%20economic%20profit%2C%201

Berg, A., Hedrich, S., & Leon, J. (2017). The two faces of fashion-industry performance. The McKinsey Quarterly. https://www.mckinsey.com/industries/retail/our-insights/the-two-faces-of-fashion-industry-performance#:~:text=Fashion%20is%20one%20of%20the,measured%20as%20economic%20profit%2C%201

Newstead, L. (2023). Fast-fashion houses suffer decline in brand value, while luxury and sporting brands see growth. World Trade Marker View. https://www.worldtrademarkreview.com/article/fast-fashion-houses-suffer-decline-in-brand-value-while-luxury-apparel-holds-strong#:~:text=News%20%26%20Analysis-,Fast%2Dfashion%20houses%20suffer%20decline%20in%20brand%20value%2C%20while%20luxury,and%20sporting%20brands%20see%20growth&text=Brand%20Finance%27s%20latest%20report%20provides,uncertainty%20and%20environmentally%20conscious%20consumers.

Hayes, A. (2022). Fast Fashion Explained and How It Impacts Retail Manufacturing. Investopedia. com [online], 16. https://www.investopedia.com/terms/f/fast-fashion.asp

Roberts-Islam, B. (2020). Virtual catwalks and digital fashion: How COVID-19 is changing the fashion industry. Forbes. https://www.forbes.com/sites/brookerobertsislam/2020/04/06/virtual-catwalks-and-digital-fashion-how-covid-19-is-changing-the-fashion-industry/

Leitch, L. (2023). British music artist Skepta revives Mains fashion brand. Vogue. https://www.voguebusiness.com/fashion/british-rapper-skepta-revives-mains-fashion-brand

‘People’ is arguably the most important pillar out of the four pillars of the fashion industry. Without it there would be no fashion industry, from workers to consumers; it inevitably constructs the fashion industry. 

Generation Z ‘Gen Z’ have ‘become a potent influence on people of all ages and income’ ultimately making them the most prioritized consumers within the global market. Gen Z is considered to be more outspoken and confident. They mostly express themselves through fashion and the clothes they wear; ‘its search for authenticity generates greater freedom of expression and greater openness to understanding different kinds of people,’ as Frances and Hoefel suggest making them the most unique and therefore most important consumers in the market. 

In the most recent years, fashion brands have conformed to Gen Z and their expectations in order to attract them. For example, brands such as Stella McCartney have become more sustainable through their practices due to Gen Zs ‘Identity [being] shaped by the digital age, climate anxiety, a shifting financial landscape and COVID-19′, making them more eco-conscience with the clothes they buy. Many other brands have also become more eco-friendly in the products they sell as ‘Gen Z have a strong commitment to sustainability’. 

Gen Z also utilizes diversity within their fashion senses. Fashion brands have become more diverse than ever, and this is all because of Gen Z, making them the most influential generation. Brands such as ‘Nike, Asos and Old Navy [are] among the brands that [are] consider[ed] to be leading the way in driving inclusivity in fashion and challenging gender stereotypes.’ These brands have become extremely inclusive, from making modest wear more mainstream to plus size and petite models also being more embraced. Nike released the ‘Nike sports hijab’ in December 2017 and became one of the ‘most searched for item in the world’ since. Asos also have included hijabi models and plus size models making them gain a lot of attention, especially from Gen Z.  

Evidently, people skills are essential for a brand to be successful in the fashion industry. Critical thinking and analysis are crucial when studying consumer behavior and communication is also vital when speaking to consumers 1 on 1. ‘96% [of businesses] believe is a make-or-break factor when it comes to loyalty’. Having communication skills allows fashion brands to gain more publicity giving them the chance to strive within the competitive market.  

Bibliography:

Francis, T., & Hoefel, F. (2018). ‘True Gen’: Generation Z and its implications for companies. McKinsey & Company. https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/true-gen-generation-z-and-its-implications-for-companies

Francis, T., & Hoefel, F. (2018). ‘True Gen’: Generation Z and its implications for companies. McKinsey & Company. https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/true-gen-generation-z-and-its-implications-for-companies

McKinsey & Company (2023). What is Gen Z? McKinsey & Company.https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-gen-z

Kadence. Why Gen Z Values Sustainability: Tips for Marketing to the Eco-Conscious Generation. https://kadence.com/why-gen-z-values-sustainability-tips-for-marketing-to-the-eco-conscious-generation/#:~:text=The%20eco%2Dconscious%20generation,-Gen%20Z%2C%20born&text=As%20a%20result%2C%20Gen%20Z,their%20impact%20on%20the%20environment.

Rydzek, Camilla. The industry fashion (2022). ‘Gen Z Fashion Reports shows 65% want “gender neutral” search option online’. https://www.theindustry.fashion/gen-z-fashion-report-shows-65-want-gender-neutral-search-option-online/#:~:text=Nike%2C%20ASOS%20and%20Old%20Navy,and%20marketed%20as%20non%2Dgendered.

Prideaux, Sophie. The National News (2019). https://www.thenationalnews.com/lifestyle/fashion/the-nike-pro-hijab-has-become-one-of-the-world-s-most-popular-clothing-items-1.861183#:~:text=Nike%27s%20sports%20hijab%20has%20become,to%20fashion%20search%20engine%20Lyst.

Glion. (2023). ‘Communication skills for customer service and why they’re important’. https://www.glion.edu/magazine/communication-skills-customer-service/#:~:text=Effective%20communication%20in%20customer%20service,customers%20feel%20heard%20and%20respected.

“Unless we act now, the 2030 agenda will become an epitaph for a world that might have been.” As the fashion industry grows; it is about 3 trillion dollars and it employs 57.8 million people, the irresponsibility in the overconsumption of clothing also increases. The fashion Industry is one of the biggest contributors to climate change and damaging the planet. Dana Thomas in her famous book ‘Fahionopolis’ suggests how ‘domestic sweatshops have always existed’ resulting in ‘human trafficking and money laundering’ in the 1800s, however as time has evolved it is evident that there are still domestic sweatshops within the world today, impacting the planet negatively. For example, Shein; a fast fashion retailor that produces garments and accessories, has once again come ‘under fire for poor working conditions’ in which the company also includes high levels of toxic chemicals in its clothing, not only harming humans but also the planet.  

Although, many fashion brands such as ‘Neu Nomads’ constantly consider sustainable fashion which can help preserve the planet and its natural resources. Neu Nomads help climate action through its products and how it is produced. The company uses high proportions of eco-friendly materials such as Tencel lyocell, this therefore limits the amount of chemicals, water and water waste used in products allowing the UN to become one step closer to one of their 17 goals, ‘sustainable cities and communities’. Neu Nomads further illustrates their sustainability through using renewable energy in its supply chain reducing its climate impact and harm towards the environment, they do not use fur, leather or wool also safeguarding animals lives and not negatively impacting them. Though it is crucial to consider the prices of their products, which may be seen as quite expensive, perhaps increasing poverty thus making it harder for the UN to reach their ‘No poverty’ goal. 

Circular economy is an economic system based on the reuse and regeneration of materials and products which urges productions of products to be created in a sustainable or environmentally friendly way. Inditex, the owner of Zara, Bershka, Pull and Bear etc. declared that ‘[they] will not send anything to landfills in 2020’, the owner of these extremely big brands has pledged to increase the use of recycled fabrics, conforming the circular economy system and allowing consumers to buy at average prices for good quality and trendy clothes. This further brings to light the concerns of the damage on the planet through fast fashion, helping the fashion industry to become more sustainable and the UN to reach its goals as ‘sustainability’ would ultimately become a trend.  

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Bibliography:

https://unstats.un.org/sdgs/report/2023/ United nation website for 17 goals and quote

‘Fashionopolis’ by Dana Thomas

Good on you website- Neu Nomads- found: https://goodonyou.eco/#

https://www.thecut.com/article/shein-influencer-factory-tour.html#:~:text=Shein%20has%20repeatedly%20come%20under,items%2C%20and%20mishandling%20customer%20data. -Shein workers conditions

https://wwd.com/feature/fast-fashions-circular-economy-challenge-1202934416/#:~:text=Fast%20Fashion%27s%20Circular%20Economy%20Challenge,the%20use%20of%20recycled%20fabrics. Sustainable fast fashion brands which conform to circular economy