Profit Blog

PROFIT: THE ECONOMIC PILLAR

The economic pillar, ‘profit,’ emphasises how important it is for companies to promote responsible economic growth that takes environmental preservation and social welfare into account. It’s about ensuring that our progress today doesn’t compromise the ability of future generations to meet their own needs. It’s about redefining success within the larger framework of sustainable development, rather than only in terms of monetary gain.

FASHION INDUSTRY: SCALE

“Fashion is one of the world’s most important industries, driving a significant part of the global economy. If it were ranked alongside individual countries’ GDP the global fashion industry would represent the seventh-largest economy in the world,’’ stated McKinsey in its State of Fashion 2017 report.

Revenue from global fashion amounts to almost 3 trillion dollars. Out of this, the e-commerce market was $668 billion in 2021 with the accessories segment accounting for revenues around $261.5 billion and that of footwear around $122 billion. As per Statista, the online clothing and apparel industry will reach a value of 1.2 trillion U.S. dollars by 2025. The online pie of the total revenue will reach 25 % by 2025 showing a steady increase from 19 % in 2021.

BRAND SUSTAINABILITY: NAVIGATING UNCERTAIN TIMES 

When the industry goes through uncertain economic times, to navigate and succeed, it’s critical to track how customers reassess priorities, reallocate funds, switch brands, and redefine value. This will help to maintain customers and remain relevant in the market.

As Dale Carnegie put it, “Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit at home and think about it. Go out and get busy.” (Dale Carnegie quotes, no date)

Fashion companies that can adapt and adjust their strategies for supply chains, sales channels, and digital marketing will be best placed to survive uncertain times. Equally important for the organisation is focusing on attracting and retaining top talent. The brands will need to prepare themselves to make strategic sacrifices while investing in agility and creativity to succeed when the markets eventually stabilise.

BRIDGING THE CREATIVITY AND COMMERCE GAP

Despite this size and the influence of the global fashion industry, finding the correct equilibrium between creativity and business is a critical challenge. 

While creativity fuels innovation and sets trends, commercial sense ensures sustainability and profit. The nature of this control is at the heart of effective product management from the high street through to the luxury of haute couture.

A collaborative approach by encouraging open communication between both creative and business teams ensures that creative ideas are grounded in sound business principles. Most importantly they must focus on the ultimate control that is in the hands of the consumer.

Strategic planning is the bridge that connects creativity with business success in the fashion industry. Having a definitive road map by identifying target markets, consumer preferences, and emerging trends and regularly re-evaluating and adapting will ensure that creative direction aligns with the business goals.

References 

Ahmed, A. (2013) ‘Bridging the gap between art and business,’ The Guardian, 16 October. https://www.theguardian.com/media-network/media-network-blog/2013/oct/16/bridging-gap-art-business.

Dale Carnegie quotes (no date). https://www.brainyquote.com/quotes/dale_carnegie_132157.

Geoff (2019) ACT. https://geoffblades.com/act-3/.

Global fashion industry statistics (no date). https://fashionunited.com/global-fashion-industry-statistics.

Muaz (2023) An Overview of the Importance of the Fashion Industry in Today’s World. https://blazon.revstance.com/an-overview-of-the-importance-of-the-fashion-industry-in-todays-world/#:~:text=The%20fashion%20industry%20is%20an,valued%20at%20approximately%20%241.53%20trillion.

Overdiek, A. (2016) ‘Fashion designers and their business partners: Juggling creativity and commerce,’ International Journal of Fashion Studies, 3(1), pp. 27–46. https://doi.org/10.1386/infs.3.1.27_1.

The three pillars of sustainability: people, planet, and profit (no date b). https://www.coolset.com/academy/three-pillars-of-sustainability.