PROFIT
Despite the current state of global economic uncertainty, the fashion industry remains to have a net worth revenue of $1.7 trillion (Statista 2023). Within the industry, Profit is necessary driver for creativity and innovation. A brand needs to remain individual and continue to experiment with their creativity to be successful in the current “struggles of the cost of living felt by consumers worldwide” (Statista 2023).
Social media can be a key attribute to ensure a brand is successful. Creative directors should be encouraged to use this platform to bridge the gap between creativity and commerce. Studies have shown “the pull of dopamine is so strong that studies have shown that tweeting is harder for people to resist than cigarettes and alcohol”. The role of influencers is incredibly profitable to a brand as “two ads alone are a good fraction of a million dollars: more than a quarter million and less than half a million” (the Sartorialist). Social media can often be used successfully within the high street market, but luxury brands have instead seemed to focus on experimenting with creative art forms.
The wealthy consumers are less likely to be affected by the cost-of-living crisis and threats of a recession. Consequently, the luxury market will sustain its growth, as high-end consumers aren’t limiting their spending. Luxury brand Louis Vuitton has sustained a “brand value of $44.5 million dollars” (Statista 2023). This figure may not only be a result of the high-end clientele, but their ability to explore experimental ideas through means of creative direction. For example, “managing creativity can be profitable. Robert Duffy funded and grew the Marc Jacobs label in partnership with global brand Louis Vuitton” in the late 1990s. Jacobs and Duffy worked together for 29 years, highlighting the importance of a dual leadership between the designer and business entrepreneur to create a profitable business (Overdiek, Anja).
It can be argued that transparency within the industry will attribute to a greater profit yield. Sustainability is still at the forefront of consumers mind, despite the negative power of social media, where it can be a “powerful tool to fuel consumption and the fast fashion movement” ( Hethorn, J., & Ulasewicz, C). Despite this, Everlane is a key example of a brand supplying transparency within costs and pricing. They “provide an infographic for each item, breaking down the costs of materials, labour, shipping and Everlane’s markup”. This can be seen as profitable as it allows consumers to create a greater emotional connection with a brand, as they are exposed to the authenticity of the process behind both the brand and products.