Profit

One of the fundamentals of the fashion industry is to empower prosperity, by simultaneously harnessing the planet and generating value. As it stands today, the $1.53 trillion industry excels in multiple sectors (Statista 2022) and continues to increase year by year. In order to maintain a successful business, designers are faced with the challenge of creating items that not only show their artistic and creative abilities, but also cater and will appeal to the many fashion sectors and their individual markets. The aim is to present products that are accessible and attractive. This is ensured through all stages of a garment’s life, from the production of the textiles right through to fashion shows and selling the goods. McKinsey reports that revenue increased by 21 percent in 2020-2021. They believe that the luxury sector will outperform in terms of success when compared to the rest of the industry, as consumers who are willing to spend continue to do so, sheltered from the effects of hyperinflation. (McKinsey) Versatility and sustainability are huge factors when looking at how a brand can remain competitive during times of economic uncertainty. Having two contrasting price brackets of products, H&M can garner profits from both consumers that are willing to purchase their more premium clothing, alongside those on a budget with their regular line. In doing so, a jacket from H&M can cost anywhere from £24.99 to £479.99, hence during uncertain economic times, the brand can benefit from those even on low budgets, so profit can flourish under any circumstance. During Karl Lagerfeld’s time at Fendi and Chanel, he re-defined certain garment’s identities, making the consumer see them in a different light in order to change the target market and thus increasing sales. For example, prior to joining Fendi, fur was seen as a luxurious and heavy depiction of a rich lady as to which Lagerfeld turned around into a light and playful material, completely transforming the persona of the garments. Bridging the gap between creativity and commerce is complex and requires extensive product and consumer knowledge. Karl Lagerfeld’s masterclass in transforming a brand’s identity can be seen as an excellent example of this. (Mitterfellner, 2023). Through recognising and analysing growth, along with respecting the ecosystem, a brand can grow profits exponentially as consumers in today’s age are ever-conscious of where their money is going and the brands they decide to support.