Profit
In 2023, companies need to prioritize the importance of maintaining their manufacturing approaches, and how this can be reflected upon in the economy. Profit in the Fashion industry is gratified to be processed towards certain strategies of digital marketing; and how brands compromise to fulfil the challenges into facing the climate. However, many companies will struggle to find opportunities in regard to the issues of climate change globally, and how this effects their brand as many contend to face their growth rates declining.
The Fashion Industry is specifically a large number; and this is evidently shown before 2023, where retail sales were significantly high. During the Covid-19 pandemic, the result of sales declining majorly affected the fashion industry due to it being one of the largest industries ever. Fashion United’s statistics criticise the importance of profit during this deadly pandemic, and how fashion brands compromised their global apparel in order to maintain their sale rates; ‘Before the Covid-19 pandemic, the fashion industry global revenue was estimated between $1.7 trillion and $2.5 trillion’ (Fashion United, 2022). This is substantially very crucial in relation to profit of the Fashion Industry over the years. According to McKinsey & Co’s report in 2022, their predictions for the ‘State of Fashion’ in 2023 is certainly predictable. ‘The fashion industry delivered a 21 percent increase in revenues in 2020-21’ (McKinsey & Co, 2022). This heightens the factor of currency rates before 2023, and whether if the profit would stay the same or increase in the following years. Although this report gratifies the previous fashion market; it also predicts the ‘year over year growth in fashion retail sales’ (McKinsey & Co, 2022), which shows the difference in profit from the Covid-19 Pandemic to 2023.
A brand during the effects of a deadly pandemic and climate change should reinforce their strategy of marketing in order to remain competitive in uncertain economic times. This can be achieved through the decline of their sale products; as the cost of living crisis prolongs the difficulties of many customers being able to afford certain products and garments. Forbes states that ‘cutting advertising dollars may appear the logical reflex to an economic downturn’ (Forbes, 2023). Also, in order to conjoin creativity and commerce, businesses must value their customers concerns, and the imbalance between this relationship should be changed through the prices of the products that the customers choose to buy.
Reference List:
Fashion United, (2022), Global Fashion Industry Statistics
https://fashionunited.com/global-fashion-industry-statistics#
McKinsey & Company, (2022), The State of Fashion 2023: Holding onto growth as global clouds gather
https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion
Forbes, (2023), Surviving A Recession With A Strong Marketing Strategy