PROFIT
Without cause for explanation why, the fashion industry is built on profiteering. If the market were entirely not-for-profit, there simply wouldn’t exist the vast amount of creativity and fashion fluidity. It is estimated that by 2027, revenues will reach the two trillion U.S dollar mark; a large proportion will be from online sales (Statista, 2023). Clear from the post-pandemic slump, due to the cost of living crisis, the fashion industry is on an upturn. Brands will successfully profit from this by understanding the important relationship between fashion, art and commerce (C. Stevenson, lecture, 2023).
As predicted, in the 2023 ‘State of fashion report’ by Mckinsey and Business of Fashion, the various sectors of the industry’s performances differ. The luxury industry was predicted to grow between 5 and 10% as economic uncertainty affects wealthy consumers less; ‘insulated from the effects of hyperinflation’ (State of Fashion, 2023).
Consequently, the luxury sector outperforms the mass market; as an example, Louis Vuitton has a singular value of 44.5 million U.S dollars (Statista, 2023). This level of protected creativity keeps the brand competitive, and ensures continuous success. This is down to its premium quality which keeps wealthier clients travelling and spending regardless of uncertainty, therefore producing a ‘modest sales growth for the luxury sector’(State of fashion, 2023).
The mass market however, was predicted to continue declining in growth rates. Due to fall in trade for less expensive products, war in Ukraine disrupting trade routes, and hyperinflation depressing consumer sentiments, the entire mass market is weighed down (State of Fashion, 2023). As a market, it is more sensitive to the current existing global external shocks than the luxury sector.
Therefore, for brands to remain competitive in uncertain times they must stay relevant commercially, as a “brand is a living organism” (S. Tide-Frater, Lecture, 2023), evolving in response to its external conditions. Current integration of art and fashion across e-commerce platforms, changes the way fashion designers dominate design (S. Tide- Frater, Lecture, 2023), allowing creative directors to sculpt a vision for fashion to be an experience, outside of tailored structures, that will bridge gaps between authentic creativity and dynamic commerce advances.
‘Exposure to the new’- the Selfridges motto under Susanne Tide-Frater is the method to conjoining creativity and commerce; creating a vision that everybody can conform to in their own interpretation. Concluding, this is what will keep brand revenue and growth positive.
Reference list:
Statista, (2023), ‘Fashion & Accessories’ industry report
Available at: https://www-statista-com.arts.idm.oclc.org/markets/423/topic/463/fashion-accessories/#overview
Caroline Stevenson, (2023), Lecture, ‘Fashion: Art and Commerce’
McKinsey & Company and Business of Fashion, ‘The State of Fashion 2023’, (2022)
Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion
Susanne Tide-Frater, (2023), Lecture, ‘A Journey in Fashion’