Profit
As an emerging industry, the fashion industry is gradually shaping people’s lifestyles and consumer attitudes. With its potential for high value-added and high returns, it is of undeniable importance to the health of the country’s economy. According to the latest research report from the Oxford Economics Institute, the UK fashion industry has contributed a massive 26 billion pounds, equivalent to 43.4 billion US dollars, to the UK economy in the past five years. This undoubtedly highlights the positive contribution of the fashion industry to the economy. From the economic perspective, a business’s primary objective is to maximise profits.
McKinsey’s forecasts suggest that global luxury fashion sales will see a 5 to 10 per cent increase by 2023, while other sectors could face negative growth of 2 to 3 per cent. This means that fashion companies will have to revisit their operational strategies. Many will update their organisational structures, bringing in new positions or upgrading existing ones to ensure they can seize key growth opportunities and respond more effectively to the unstable economic environment. Brands must also seek unique selling points to engage consumers and strengthen their supply chain strategies.
The fashion industry faces multiple challenges, mainly from uncertainty and volatility in the retail space. Against this backdrop, brands and businesses need to have accurate information about their target audience, the retail environment, competitor performance, and product analyses to ensure that their strategic decisions are based on reliable data, which will help to achieve more sustainable business models that cater to the products that people need to buy.
For the fashion industry, the first task is to conduct market research to identify target consumer groups and overall fashion trends. At the same time, market research must be consumer-focused but also balanced with competitor and brand analyses, through which data is used to assess competitors’ product performance and potential growth opportunities for new products and to identify gaps in the market so that brands can flexibly and quickly adjust their strategies to stand out by launching new products, services, or unique and innovative angles.
While business pursues clear and quantifiable goals, the fashion industry blends business and art. In this field, it is crucial to build a strong relationship of trust to protect the reputation of the company and the artist and ensure that the collaboration between the two adequately meets market demands and generates sufficient revenue while taking potential risks. As such, the fashion industry blends business and art and requires rigorous discipline to execute impressive work that appeals to people’s needs while generating significant profit for the company.
Reference
https://www.theguardian.com/media-network/media-network-blog/2013/oct/16/bridging-gap-art-business
https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion