Profit
Profit, the total cost deducted from the total revenue, is the engine that keeps businesses running, serving as a primary measure of a brand’s success and viability. A profitable business undoubtedly facilitates a brand’s expansion, augmenting its ability to survive and compete.
Revenue of the global apparel market 2014-2027 | Statista (oclc.org)
According to Statista, the revenue of the global apparel market was calculated to be approximately 1.53 trillion U.S. dollars in 2022, a slight decrease from the previous year however, it demonstrates a continuous increase between 2023 and 2027, to more than 1.7 trillion dollars by 2023 and reaching a new peak of 1.94 trillion U.S. dollars by 2027 (Smith, 2023)
The global fast fashion sector was assessed to possess a valuation surpassing 106 billion U.S. dollars in the year 2022. Per the data illustrated in the graph, a moderate uptick in market worth is foreseen for the forthcoming years reaching an estimated value of around 185 billion U.S. dollars by the year 2027. (Smith, 2023)
https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion
Mckinsey’s analysis of fashion forecast states that ‘the luxury sector will outperform the rest of the industry’, with a predicted growth between 5 and 10 % by 2023(McKinsey, 2022) the luxury goods sector is on the rise despite the uncertain economic climate triggered by events such as covid 19 and Brexit.
The unpredictable economic times present a plethora of challenges for fashion firms to navigate, and brands are forced to continually innovate in order to stay competitive. As consumer behaviour shifts towards digital engagement, leveraging technology and social media platforms is necessary to enhance online presence and brand awareness, integrating e-commerce and a potent online marketing strategy is vitally important for better accessibility and brand recognition. To remain competitive, brands must ensure high adaptability and responsiveness to market trends. Moreover, during uncertain economic times, it is imperative that brands reduce unnecessary expenditures and streamline their production processes, making sure each stage is cost-effective, reinforcing their position in a competitive marketplace.
The design museum’s REBEL exhibition exemplifies how creative directors adeptly bridge the gap between creativity and commerce. The exhibition not only showcased innovative fashion looks including Harry Styles’ Steven Stokey Daley outfit and Sam Smith’s inflatable latex suit by HARRI(Q42, no date) but also served as a strategic platform for commercial success, educating visitors about background stories, political message, allowing emotional connection with brands and garments, thereby strengthening a brand’s presence and potentially driving sales.
Citations:
Smith, P. (2023) Revenue of the Global Apparel Market 2012-2025, Statista. Available at: https://www.statista.com/forecasts/821415/value-of-the-global-apparel-market.
Smith, P. (2023) Fast fashion market value forecast worldwide 2022-2027, Statista. Available at: https://www.statista.com/statistics/1008241/fast-fashion-market-value-forecast-worldwide/#:~:text=The%20value%20of%20the%20fast.
Fast fashion market forecast worldwide 2022-2027 (no date) Statista. Available at: https://www-statista-com.arts.idm.oclc.org/statistics/1008241/fast-fashion-market-value-forecast-worldwide/.
McKinsey (2022) The State of Fashion 2023: Holding onto growth as global clouds gather, McKinsey. McKinsey & Company. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion
Luxury Goods: market data & analysis (no date) Statista. Available at: https://www.statista.com/study/55494/luxury-goods-market-data-analysis/. Q42, F. & (no date) REBEL: 30 Years of London Fashion, Design Museum. Available at: https://designmuseum.org/exhibitions/rebel-30-years-of-london-fashion