PROFIT BLOG

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‘Fashion is a multi-billion dollar industry’ (Corner, 2014, p.71).

The fashion industry is fueled by materialistic desire for profit and gain, despite its forefront of self-expression and connection. Understanding the ‘profit’ pillar, and the interrelated relationship between the fashion industry and the economy, can allow better understanding of how businesses continue to produce profit in our ever changing economy.

The industry currently sits at a value of 1.74 trillion US dollars worldwide, and is expected to continue to grow in coming years, despite recovering from the damaging effects of the COVID-19 pandemic in 2021, and facing the challenge of rising inflation in 2022 (Statista, 2023).

The women’s apparel market dominates all sectors, generating 907.40bn dollars worldwide, with a heavier focus on sustainable women’s apparel in coming years (Statista, 2023). The men’s apparel market, however, only brought in a revenue of 555.3bn dollars worldwide (Statista, 2023). The second hand apparel market has also seen an increase, with it generating 211bn dollars worldwide due to the increase in consumers desires to shop more sustainably and responsibly (Statista, 2023). McKinsey & Company (2022) explore how ‘97% of economic profits for the whole industry are earned by just 20 companies, most of them in the luxury segment’ (McKinsey et al, 2022); and research shows that the personal luxury goods sector generated 354.8bn dollars worldwide (Statista, 2023).

In the current economic climate, factors such as the cost of living crisis and inflation have disrupted regular buying patterns. McKinsey & Company (2022) explore how the global fashion industry needs to account for this, yet find opportunities in shifting consumer patterns, channel and digital marketing strategies and manufacturing approaches (McKinsey et al, 2o22). It is imperative that brands also focus on their existing customers, valuing loyalty over reaching new consumer markets, as well as keeping up to date with trends. Transparency is vital in the current social economy, with sustainability becoming ever more prevalent; it is interesting to explore how brands stay true to themselves and their customers whilst keeping up with the superficial, non-stop nature of the fashion industry.

Bridging the gap between creativity and commerce is crucial; not only will this allow brands to reach new markets and open up to new consumers, but it will also open opportunities for brands to explore new creative pathways without compromising on the identity of the brand itself. There are many pathways a brand can take on the route to collaboration; Louis Vuitton and Yayoi Kusama’s collaboration exemplifies this, and demonstrates how two creatives can unite to express themselves, whilst remaining true to each’s values and image.

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