Wanyue Cao

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Purpose

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The purpose of a fashion brand is not only to satisfy consumer needs but also to build brand identity, distinction and loyalty to achieve commercial success in a competitive marketplace. In addition, the mission of a fashion brand can include social responsibility and sustainability, which are crucial to the modern consumer. A brand’s social responsibility and sustainability endeavours not only appeal to consumers but also bring both commercial and social benefits.
A great brand concept increases brand awareness and loyalty, and according to a report by KPMG, a European fashion market research company, about 85 per cent of consumers say they are more likely to buy from and stay loyal to brands with a clear mission and vision. These brands are more likely to be recognised and remembered in the marketplace. And with the fashion industry being so competitive, brands with a clear brand philosophy are more likely to stand out in the market, according to L2, a New York-based fashion tech research organisation. This helps to reduce the pressure of competition in a homogenised market.
Fashion is no longer just about what you wear; it has evolved into a culture, a lifestyle and attitude. In this day and age, young Gen Z consumers expect more from fashion brands in terms of the brand’s philosophy, vision and value proposition rather than just the product itself. They are buying a lifestyle and a commitment to society. Therefore, brands need to construct and communicate these factors to create a strong connection with this critical consumer segment.
Fashion branding concepts help shape a brand’s identity and make it stand out in a competitive marketplace. Generation Z is a socially responsible generation. According to Vogue, about 73 per cent of Gen Z consumers are more likely to support brands actively involved in social issues. Gen Z cares about the manufacturing process and materials used to make products. They are more likely to support brands that are sustainable and transparent. Therefore, brands’ value propositions must emphasise sustainability, ethical production and transparency.
Fashion brands must, therefore, establish a positive social and environmental vision to appeal to this consumer segment. For example, Patagonia has attracted many environmentalists by speaking about its commitment to environmental protection.
Generation Z are digital natives who are very active on social media. Through social media, fashion brands can communicate their mission and vision to them. About 90 per cent of Gen Z members say that social media has a significant influence on their shopping decisions, so brands can use social media and digital platforms to communicate their ideas. Platforms such as Instagram and TikTok have become essential tools for brands to interact with young audiences, to whom the brand’s vision and pictures must be communicated through engaging content.
Brand ideas can go beyond products and services to create a deep emotional connection. According to Brand Keys, consumers are more likely to buy brands that align with their values and beliefs, and this emotional connection helps build long-term brand loyalty. Gen Z is typically more brand loyal if they feel the brand aligns with their philosophy. One study found that about 75 per cent of Gen Z consumers said they would more frequently buy products from brands that align with their values. With an emphasis on individuality and self-expression, they crave empathy with brands. A brand’s philosophy and values must match their beliefs. For example, Nike’s “Just Do It” slogan encourages boldness in the pursuit of dreams, which is in line with Gen Z’s spirit.

Reference

https://www.dontpaniclondon.com/what-is-brand-purpose/

https://medium.com/@luxure.lab/the-future-of-luxury-and-fashion-brands-depends-on-gen-z-heres-what-they-want-b41c993616c9

https://www.forbes.com/sites/forbestechcouncil/2022/11/29/brand-purpose-matters-but-sometimes-gen-z-just-wants-soap/?sh=72ab03131c3c

https://www.mckinsey.com/industries/retail/our-insights/the-influence-of-woke-consumers-on-fashion

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Profit

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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.forbes.com/sites/forbesagencycouncil/2023/03/01/5-strategies-to-keep-your-fashion-e-commerce-business-competitive-in-2023-and-beyond/

https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion

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People

People

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Gen Z, born between 1995 and 2010, is a digitally savvy generation growing up with the internet, social networks, and mobile technology. They excel at gathering and cross-referencing information from various sources, seamlessly blending online and offline experiences (McKinsey 2018). Sustainability in the fashion industry revolves around four pillars: planet, profit, purpose, and people, with a strong emphasis on consumer engagement.

Currently, Generation Z wields a purchasing power estimated at $143 billion (Business Insider).

In fashion, diversity is about creating clothes that cater to different races, categories, age groups and sizes and marketing them in a way that reflects this. For instance, Fenty Beauty, a makeup brand launched by Barbadian actress and singer Rihanna in 2017, has gained recognition as one of TIME’s 25 Best Inventions. It is celebrated for its high quality, affordability, and inclusive initiative of offering a range of forty foundation shades. This effort is particularly lauded for catering to a diverse spectrum of skin tones, addressing a common concern of prominent beauty vloggers. MAC Cosmetics is one of the first brands to offer a range of foundation and eye shades for various complexions. The MAC Studio Fix and other products from the brand are always made to give diversity a high priority.

54% of Gen-Z says social media influences them more than any other marketing channel  (CMO Council). And 52% of Gen-Z trust social media influencers for product or brand advice. (McKinsey & Company). The global Social Commerce Market, valued at $89.4 billion in 2020, is projected to reach $604.5 billion by 2027, signifying the profound impact of social media (The Influencer Marketing Factory). Burberry effectively utilizes Facebook and Instagram to engage its audience. They showcase professional, stylized images on Facebook and employ hashtags like #ThisIsBrit to promote products and events. On the other hand, Instagram features more casual and user-generated content, immersing followers in London culture.

Zara boasts an impressive social media following, with 51.59 million Instagram and 30.5 million Facebook followers. Their strategy relies heavily on influencer marketing, leveraging famous Instagram personalities to showcase their products, creating consumer interest with minimal paid advertising.

In summary, Gen Z’s digital fluency, the importance of diversity in fashion, and the dominance of social media underscore the ever-evolving landscape of consumer engagement and brand promotion.

Reference

Francis, T., & Hoefel, F. (2018). True Gen’: Generation Z and its implications for companies. McKinsey & Company, 12, 1-10.

https://theinfluencermarketingfactory.com/wp-content/uploads/2021/03/social-commerce-report.pdf

https://www.forbes.com/sites/blakemorgan/2020/02/28/50-stats-all-marketers-must-know-about-gen-z/

https://blog.hubspot.com/marketing/fashion-brands-on-instagram

https://www.paceco.com/content/luxury-fashion-brands-social-media/

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Planet

Planet

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The four pillars of sustainability are planet, profit, purpose and people. The connection between the planet and the environment is emphasised in the development of the fashion industry, and the planet plays a vital role in sustainability.

The fashion industry is a vital part of our economy, worth more than $2.5 trillion. (McKinsey & Company, 2016). While the fashion sector is booming, increasing attention has been brought to the impressive range of adverse environmental impacts that the industry is responsible for. Fashion production makes up 10% of humanity’s carbon emissions, dries up water sources, and pollutes rivers and streams. What’s more, 85% of all textiles go to the dump each year. (UNECE, 2018)

Circular economy business models fall into two categories: those promoting reuse and longevity through repair, remanufacturing, upgrading and retrofitting and those transforming old goods into new resources by recycling materials. The circular economy will transform goods about to be used up into help for others, closing the loop and minimising waste in the industrial ecosystem. It will change economic logic by reusing what you can reuse, recycling what you cannot reuse and repairing what is broken. For example, in the Maison Margiela Autumn/Winter 2020 Defile Co-ed collection, the designer reworked second-hand fabrics and vintage clothing into new garments through a design technique that is conceptually a continuation of Maison Martin Margiela’s original Replica collection from 1994.

The fashion industry uses chemicals in production and manufacturing that are harmful to the environment, and sustainability is a concept that maintains a balance, aiming to be environmentally friendly and meet the needs of the moment, such as recyclable and reusable, meaning that products can be used again or multiple times. Fashion is widely recognised as the second most environmentally damaging industry after oil. Textile waste ending up in landfills has become a primary global concern. If every brand in the apparel supply chain started implementing ecologically friendly practices, the textile and fashion industry would become more sustainable.

The circular economy is one of the ways to achieve the United Nations’ Sustainable Development Goals (SDGs), which consists of 17 goals, mainly SDG 12, which focuses on sustainable production and consumption through the reduction of the use and efficient management of commodities and natural resources. (Gabriel and Luque, 2020; United Nations, 2016). For example, Stella McCartney’s Spring/Summer 2020 was the most thorough implementation of sustainability in the brand’s history. Seventy-five per cent of ready-to-wear garments were eco-friendly and sustainable, with all knitwear made from organic cotton, recycled polyester, sustainable rayon and traceable wool, and outerwear made using a blend of organic cotton and rayon.

Reference:

Stahel, W. The circular economy. Nature 531, 435–438 (2016).

https://doi.org/10.1038/531435a

https://www.genevaenvironmentnetwork.org/resources/updates/sustainable-fashion/

https://www.mckinsey.com/capabilities/sustainability/our-insights/style-thats-sustainable-a-new-fast-fashion-formula#

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My favorite fashion brand

My favorite fashion brand

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Balmain

Pierre Balmain (1914-1982) from a small alpine village in the Savoie region of France, is associated with the elite group of visionary designers that advised French fashion to its renaissance after World War two. Having briefly studied architecture Balmain chose to begin a career in fashion as an assistant to master couturier Lucien Lelong, working alongside Cristian Dior and Hubert de Givenchy in the autumn of 1945 Balmain left Lelong to establish his own fashion house.
After Balmain s death in 1982, the house has been managed by an array of designers, who have upheld the respect of the foundations and modern balance of the house. These designers consist of Erik Mortensen, Herve Pierre, Oscar de la Renta, Laurent Mercier, and Christophe Decarnin.
Balmain s profile has increased exponentially over the years since Rousteing became the creative director for the brand. Rousting being the first designer to reach a million followers on Instagram, Rousteing’s youth and famous fans, who he names “Balmain Army, teamed with an H&M collaboration in 2015 that brought global awareness, have associated with a newfound interest in the Parisian fashion house.
Balmain s unique selling point is that the brand ambassadors known as the “Balmain Army is ethnically diverse, showing consumers that the brand is ethical and encouraging them to support the brand. Rousteing believes that the rest of the industry is missing out if it fails to follow suit.
This distinct style of Balmain which usually includes gold medallions, buttons, and symbols, the brand’s unique liaison, ornament, and tassel creates his french house’s point of differentiation among its direct competitors.
The closer you look at Olivier Rousteing’s works, the more shocked you are by his superb craftsmanship. The craftsmanship of Balmain’s craftsmen lies in innumerable small details: the exquisite woven leather, the delicate embroidery, the intricate interweaving, the skillful pleating, the stunning corsets, and the delicate stitching. As a historic Parisian fashion house, Balmain continues its amazing craftsmanship while always maintaining a modern style, creating contemporary clothes for both men and women.

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