Blog: PROFIT
Blog 3: Profit
At its core, the fashion industry is driven by making profits. Like any business, revenue is at the forefront; fashion’s close link to art does not change this fact. It can be a challenge to balance creativity and commerce, and this can be seen in Nike CEO Phil Knight’s quote “we put all our emphasis on designing and manufacturing the product. But now… Nike is a marketing-oriented company” (Klein, 1999). In order for a creative business to be successful, designers and marketers/commercial leaders must work together closely. Anja Overdiek refers to this idea as “dual and complementary leadership”. The qualitative and intangible ideas of a brand must be interlinked with those quantitative and tangible figures that allow a business to stay afloat. For example, Nicolas Ghesquière explains that his leaving from the designer role at Balenciaga in 2012 was due to a lack of merchandising skills within the industry. It seems that a business partner can be vital when it comes to the success of a designer (Overdiek 2015). It is usually the role of Creative Director that is tasked with bridging the gap between innovation and business value. Not only is the Creative Director a lead designer but also a staff manager, with many staff members below. They must create, supervise and most importantly they must generate revenue: “if the figures don’t impress, the designer can and will be exchanged for another one” (Mitterfellner 2023).
The fashion industry is ever growing, revenue figures reaching new heights with every passing year. According to the Lyst Index Q1 2023, “the Prada Group cements its status as a fashion powerhouse” with Prada and its sister brand Miu Miu being the hottest brands of the year, generating retail sales of €3.7 billion in 2022. Due to celebrity culture being so prevalent, luxury brands’ partnerships with these stars are establishing their impact evermore. For example, Lyst partly credits the Prada Group’s success to its partnerships with the likes of Kendall Jenner, Mia Goth and Ethel Cain. Capitalising on status seems to be the main way for brands to remain competitive in these uncertain economic times. Furthermore, Kim Kardashian’s shapewear brand SKIMS debuts in the list this year (with a valuation of $3.2 billion (Lyst Index Q1 2023), showing that the relevance of internet personalities is vastly increasing within the fashion industry. In an industry that values profit and a time where viral moments can make or break a brand, listening to the consumer is the most important thing a brand should be able to do.
Reference list
Klein, N. (1999). No Logo: Taking Aim at the Brand Bullies. Toronto: Knopf Canada and Picador.
Lyst Insights. (2023). The Lyst Index: Fashion’s Hottest Brands and Products Q1 2023. [online] Available at: https://www.lyst.com/data/the-lyst-index/q123/.
Mitterfellner, O. (2023). Luxury fashion brand management: unifying fashion with sustainability. [online] Library Catalog (Koha). London: Routledge. Available at: https://libsearch.arts.ac.uk/cgi-bin/koha/opac-detail.pl?biblionumber=1546849&query_desc=kw%2Cwrdl%3A%20Mitterfellner.
Overdiek, A. (2015). Fashion designers and their business partners: Juggling creativity and commerce. [online] browzine.com. Available at: https://browzine.com/libraries/479/journals/36584/issues/8230931.