Underpinned and driven by profitability, the fashion industry must appropriately balance the two elements of artistry and marketability to ensure profits and maintain relevancy. An understanding of the prioritisation of a long-term profitability strategy and its relationship with sustainability as an alternative to solely just revenue, is fundamental to success. Profitability encompasses innovating the efficiency of operations and resources whilst being conscious of and responsive to the external business environment – global economy and consumer shifts, consequently, it positions a business securely in times of economic uncertainty.
Operating within such an extremely dynamic climate, the fashion industry is an economic powerhouse amid an expected value of 1.7 trillion US dollars in 2023. Furthermore, the size of the industry is geographically dependent, with the US and China obtaining the uppermost industry demand (Smith, 2023).
However, being and industry being so susceptible and vulnerable has its disadvantages. The markets current opposition against a landscape of a threatening recession, hyperinflation and geopolitical tensions will be reflected by a change in consumer confidence, behaviour and a weakening of most demands (McKinsey, 2022). Consumerism will decline, thus so will industry value.
The division of the industry into defined segments is vital to ensure accurate measures of performance and enhanced management. Their ability to individually perform well can additionally be economically contingent as evidenced within the luxury sector, unaffected by the increasingly challenging climate, “outperforming the rest of the industry” as their consumers “remain more insulated from the effects of hyperinflation” (McKinsey, 2022).
Defending brand positioning during economic uncertainty is only viable when the brand is willing to adopt strategies to maintain competitiveness or refine their own. Progressing towards innovative, high perceived value products and securing a niche in relation to consumer needs is an example of this. Acclimatising to consumer needs is imperative when discretionary income is limited. Furthermore, studies show brands investing in marketing during economic downturns “gain market share over time”, preventing “smaller or weaker competitors to steal market share” (Clausen, 2020). Consequently, typically the foremost budget cut, must be used to a brands advantage.
A responsibility that shadows the entire perception of a brand is a creative director’s active fulfilment of bridging creativity and commerce through fulfilling and establishing an “artistic vision” (Mitterfellner, 2023), modernising it be relative to and to satisfy all stakeholders. If reflective, consumers will buy into and celebrate the vision, creativity and communication of a creative director, thus generating revenue.
Smith, P. (2023) Topic: Apparel market worldwide, Statista. Available at: https://www.statista.com/topics/5091/apparel-market-worldwide/#topicOverview
McKinsey (2022) The state of fashion 2023: Holding onto growth as global clouds gather, McKinsey & Company. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion
Clausen, E. (2020) Council post: Marketing rules to follow during Uncertain Economic Times, Forbes. Available at: https://www.forbes.com/sites/forbesagencycouncil/2020/04/03/marketing-rules-to-follow-during-uncertain-economic-times/?sh=3abfbc414a36
Mitterfellner, O 2023, Luxury Fashion Brand Management : Unifying Fashion with Sustainability, Taylor & Francis Group, Milton. Available from: ProQuest Ebook Central.