Profit
When defining the four pillars, profit refers to the revenue a business generates after covering expenses, such as manufacturing costs. With a total global revenue of $1.5 trillion in 2022 (Statista, 2023) the fashion industry can be described as one of the most profitable and largest growing industries with an estimated annual growth rate of 1.27% (Fashion United, 2023). When looking at specific brands, Louis Vuitton of the LVMH group is of the greatest financial value with Forbes (2020) estimating a total of $47bn in brand value and therefore suggesting the continued relevance of classic luxury brands. However, due to the rising popularity of streetwear and sportswear amongst Gen Z (Wong, 2019), as seen with the boom of brands such as Supreme, Nike and Palace in regard to menswear, and Lululemon amongst womenswear (Berlinger, 2019), Forbes (2020) listing Nike as the second most valuable brand, after LV, at a combined value of $216bn, many brands have attempted to capitalise off the athleisure wear boom through collaboration or unique collections. For instance, Gucci previously collaborated with Palace and most recently launched a collaboration with Adidas.
The previously mentioned examples demonstrate brands attempts to remain competitive through following and therefore capitalising off trends, often using trend forecasting and prediction tools, of which are available externally (e.g WGSN) but may also be internal to the business (Mitterfellner, 2023). Furthermore, the competitiveness of brands is also particularly reliant on their social media presence; for instance, Hethorn (2015) identifies the way in which social media is one of the most powerful marketing tools with 5/6 millennials stating that they use social media sites to interact and stay informed on brands and their practices. One brand who have successfully integrated social media into their marketing approach is Marc Jacobs with their launch of the ‘heavn’ Instagram page to promote the release of their ‘heaven’ collection, the page featuring many popular figures amongst Gen Z/Millennials such as Ice Spice.
Creative directors play one of the most important roles in bridging the gap between creativity and profit by not only generating sales and therefore revenue through successful collections, but also through demonstrating a strong and clear ‘artistic vision’ (Mitterfellner, 2023). Furthermore, it is also important that they incorporate and clearly reflect the ethos and vision of the brand, of which can often act as a major selling point. For example, Stella McCartney, designer of her self-titled brand, has ensured that their message of sustainability is continued throughout the brand in its products and practices; incorporating sustainable materials such as ‘vegan’ leather, organic cotton and recycled polyester. (Wolfe, 2022)
Reference List.
Statista, (2023) ‘Fashion & Accessories‘ Report. [online] Available at: https://www-statista-com.arts.idm.oclc.org/markets/423/topic/463/fashion-accessories/#overview (Accessed: 21 October 2023).
Fashion United. (no date) ‘Global Fashion Industry Statistics’ Report. [online] Available at: https://fashionunited.com/global-fashion-industry-statistics (Accessed: 21 October 2023).
Forbes. (2020) ‘The World’s Most Valuable Brands’. [online] Available at: https://www.forbes.com/the-worlds-most-valuable-brands/#562febdd119c (Accessed: 21 October 2023).
Wong, Z.B. (2019) ‘Supreme Appeal: How Brands Use Streetwear To Attract Gen-Z‘. Available at: https://www.forbes.com/sites/zoewong1/2019/07/31/heres-how-brands-are-using-the-streetwear-trend-to-attract-gen-z/ (Accessed: 21 October 2023).
Berlinger, M. (2019) ‘The next billion-dollar streetwear brand‘. [online] Available at: https://www.voguebusiness.com/companies/next-big-streetwear-brands-supreme-palace-off-white (Accessed: 21 October 2023).
Mitterfellner, O. (2023) Luxury Fashion Brand Management: Unifying Fashion with Sustainability. 1st edn. Milton: Taylor & Francis Group.
Kim, E. Fiore, A.M. Kim, H. (2011) Fashion Trends: Analysis and Forecasting. 1st edn. London: Bloomsbury Publishing.
Hethorn, J. Ulasewicz, C. (2015) Sustainable Fashion What’s Next?: A Conversation about Issues, Practices and Possibilities. 1st edn. London: Fairchild Books.
Wolfe, I. (2022) ‘How Ethical is Stella McCartney?’. Available at: https://goodonyou.eco/how-ethical-is-stella-mccartney/ (Accessed: 21 October 2023).