Profit
Profit is one of the significant factors in the fashion industry. Whatever which industries, profit factor can determine many things or even might change the life of a brand. When talking about sustainability in fashion with profit, it is an important component that people should deliberate on as it will affect the whole supply chain in the industry.
It is well known that the fashion industry is one of the biggest industries in the world. As the data from Statista shows the UK apparel market was predicted to generate slightly under 58.5 billion British pounds in revenue in 2022, a slight down from the previous year. (Smith, 2022)
There are many key factors in the fashion industry, such as fashion design and manufacturing, fashion retailing, and fashion marketing. In the first quarter of 2023, the hottest product was a Uniqlo shoulder bag. (Q1, Lyst Insights, 2023) The biggest reason why this product became popular is using social media – TikTok is this intangible medium to gain attention. Or using the power of a celebrity or pop star. In Q2 Loewe became the first hottest brand in the fashion industry, overall, it increased 19% searches. (Q2, Lyst Insights, 2023) As the brand’s exposure grew, such as Kylie Jenner’s wearing a top from Loewe, increased the attention of people of this brand. Fashion chosen by celebrity might lead the related brand to become popular albeit released many years ago, such as Loewe basket bags.
The pandemic since 2019, the global market not only has reeled, but also many unpredictable issues happened. Although the economic has been experiencing a recovery period, inflation still is a big problem for the fashion industry. Rising energy and grocery prices would reduce consumer demand, causing consumers to cut back on their fashion purchases or switch to less expensive options. Therefore, it can adjust to the growing complexity by modernizing their operational models and altering its supply chain, sales channel, and digital marketing tactics. For example, to overcome the uncertainties and recessionary threats that lie ahead in 2023, fashion firms will need to make careful planning. (McKinsey, 2022)
Creative directors play a significant role in a fashion brand and can connect the fashion information with consumers. Creative directors as a communication bridge to help the design team to deliver fashion information to society, for instance, creative directors will be responsive the fashion show with designers which is the main fashion information is access way. What’s more through learning from books which took Karl Lagerfeld was an example. Mainly showing the development of a fashion collection from concept to runway is a key responsibility for the creative director and his team, with a focus on unique textiles and artisans. (Mitterfellner, 2023)
Reference list:
Lyst Insights. (2023a). The Lyst Index: Fashion’s Hottest Brands and Products Q1 2023. [online] Available at: https://www.lyst.com/data/the-lyst-index/q123/ [Accessed 20 Oct. 2023].
Lyst Insights. (2023b). The Lyst Index: Fashion’s Hottest Brands and Products Q2 2023. [online] Available at: https://www.lyst.com/data/the-lyst-index/q223/ [Accessed 20 Oct. 2023].
McKinsey (2022). State of Fashion | McKinsey. [online] www.mckinsey.com. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion#/ [Accessed 22 Oct. 2023].
Mitterfellner, O. (2023). Luxury Fashion Brand Management and Sustainability. 1st ed. Taylor & Francis Group: Mastering Fashion Management.
Smith, P. (2022). Topic: Apparel market in the UK. [online] Statista. Available at: https://www.statista.com/topics/3348/apparel-market-in-the-uk/#topicOverview [Accessed 21 Oct. 2023].