Profit
All fashion industries depend on the operation of profit. Margin needs to be present for a brand to be viable. Profit exists to establish how much a business makes and necessitates several intricate financial computations. Profit allows fashion companies to reinvest in their operations and keep coming up with new items while still competing in a constantly shifting market.
The fashion industry ranks as the fourth largest industry in the world. The fashion sector is still expanding favorably, notably in China and the US. China tops the list in terms of export value because, as we all know, it has a history of selling clothes to middle schools. In terms of garment imports, the United States is the only country after the European Union (Smith, 2023). The top garment companies, valued at $194 billion, are Louis Vuitton, Dior, Givenchy, and other Louis Vuitton Mot Hennessy (LVMH) brands, according to Forbes’ The World’s top garment Companies 2020 (Coyne, 2020).
A wide range of jobs, including skilled workers, fashion design and manufacture, fashion retailing, marketing and merchandising, fashion shows, and media and marketing, are all employed by the fashion industry. Each industry is committed to the objective of satisfying customer wants while allowing designers, producers, merchants, and marketing firms to turn a profit. While new entrants try to stress quality over quantity by adopting a more sustainable and long-lasting approach, the majority of businesses opt to follow the most recent fashion trends (Chavan, 2018). The rapid fashion model and the slow fashion model are typically the two business models that arise in the fashion industry.
In uncertain economic time, it is extremely important to maintain close relationships with current customers because they may act more as partners in crisis management than as mere buyers of goods or services. Furthermore, it is possible to analyze customer behavior during uncertain economic time and utilize the data to anticipate their needs (Clausen, 2020).
It takes skill to be a creative director. Additionally, creative directors are responsible with comprehending a brand’s visual DNA and modernizing it to fit the aesthetic requirements of the target market and the management’s commercial objectives. The Creative Director must choose the top models and celebrities, take images and short videos, and choose the structure of the advertising campaigns while also handling marketing and communication. Karl Lagerfeld, who passed away, is a perfect example of someone who performed the duties of Creative Director flawlessly. He simultaneously controlled three brands (Chanel, Fendi, and his own) (Mitterfellner, 2022).
Reference list:
Mitterfellner, O (2023)
- Chapter 2- From the Creative Director to the Fashion Show. Pages: 32-38.
P. Smith (2023) Topic: Apparel market worldwide, Statista. Available at: https://www.statista.com/topics/5091/apparel-market-worldwide/#topicOverview (Accessed: October 22, 2023).
Coyne, M. (2020) “The World’s Largest Apparel Companies 2020: LVMH On Top While Nike Gains Foothold,” Forbes, 13 May. Available at: https://www.forbes.com/sites/marleycoyne/2020/05/13/the-worlds-largest-apparel-companies-2020-lmvh-on-top-while-nike-gains-foothold/?sh=4408e8f30ed3 (Accessed: October 22, 2023).
Chavan, R. B. (2018) “Analysis of Fashion Industry Business Environment,” Latest Trends in Textile and Fashion Designing, 09 August. Available at: https://lupinepublishers.com/fashion-technology-textile-engineering/fulltext/analysis-of-fashion-industry-business-environment.ID.000144.php (Accessed: October 22, 2023).
Clausen, E. (2020) “Marketing Rules To Follow During Uncertain Economic Times,” Forbes, 3 April. Available at: https://www.forbes.com/sites/forbesagencycouncil/2020/04/03/marketing-rules-to-follow-during-uncertain-economic-times/?sh=3abfbc414a36 (Accessed: October 22, 2023).