Purpose

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The fashion industry is significantly beneficial in regards to promote cultures, develop meanings and techniques into their designs. Purpose, which is one of the four pillars, links exceptionally well when we associate it to the meaning behind modern clothing. Brand philosophy is coherent in relation to their structure of associating to their brands values, which is significant in a world of fashion as brands should tend to rely on their resources, liberation and to also have faith in their own brand.

Brand purpose is socially a principal factor in relation to consumers. Brand philosophy determines this as Gen Z consumers tend to rely on business decisions. This heightens the importance on how consumers overall take on empowerment in their brand and how sustainability can be reasonable in the fashion world, as brands have to have a logical structure which is admirable to consumers. Mission, vision and value proposition is majorly important as the path of a business is clearly assembled. Mission proposition defines the brands achievements and set goals; “to help humanity thrive by enabling the world’s teams to work together effortlessly.” (sproutsocial, 2020). Vision and value proposition is proposedly revolved around sustainability, and how companies and their consumers should understand their purpose and value of their designs in the economy; ‘To meet sustainable environmental measures, small-and-medium-sized businesses (SMFBs) must also curb their environmental burden’ (MDPI, 2022). These propositions all have a purpose in the fashion industry, whether it is a brands philosophy which includes engagement of consumers with a brand to conclude a decision, or how sustainable a brand can be when reflected upon these propositions. 

When we associate how brands communicate their purpose to Gen Z, the value of quality and product designs is their main priority. Gen Z consumers rely on an higher importance of a brands purpose in regards to customer service for example; many set to have a more fundamental and radical approach. Attest have stated that 88% of Gen Z consumers are more intrigued about the purpose-driven work of brands (Attest, 2021), which shows in the world of sustainability how brands should communicate and have commitment towards their business. In our generation, the meaning of purpose is valued highly, and that a brands philosophy is a main priority to many who want to start a business and to also attract Gen Z consumers. 

Reference List:

Sproutsocial, (2021) What is a brand mission and how to define it

https://sproutsocial.com/insights/brand-mission/

MDPI, (2022) Value Propositions for Small Fashion Businesses: From Japanese Case Studies

https://www.mdpi.com/2071-1050/14/6/3502

Attest, (2021) How brands can win the trust of Gen Z

https://www.askattest.com/blog/attest-investigates/how-brands-can-win-the-trust-of-gen-z.

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Purpose

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“Purpose” is often misdefined. Especially so in fashion. Commonly confused with the concept of “result”, which in the context of a brand, would be money, “purpose” is a company’s “raison d’être”, the reason to be (Volkinburg, 2023).  

Purpose, also referred to as brand philosophy, is a brand’s mission, vision, and value proposition. This concept holds significance because of “differentiation”. With over 100 billion garments being produced annually according to the McKinsey & the Ellen MacArthur Foundation, standing out in the market is challenging. Having a well-defined brand philosophy is just what a brand might need to distinguish itself from competitors.  

A purpose that many brands and designers share is sustainability. Falling under the category of CSR, short for “Corporate Social Responsibility”, it is the concept of “companies taking responsibility for their impact on society” (Londrigan & Jenkins, 2018). CSR’s key components include being environmentally and socially sustainable, ethical business practices, and governance. Interest in CSR began in the 1950s with the discussion of the merits and values of responsible business practices. TOMS, a vegan shoe brand, for example, is a brand that has been considered an “industry model” for their CSR and philanthropic work (Londrigan & Jenkins, 2018). TOMS vows that “With every purchase, TOMS will help a person in need” (Londrigan & Jenkins, 2018), and has notable initiatives such as their “Shoes for Children” mission, clean water program, and more.  

Other brand philosophies in fashion include Patagonia’s “Build the Best Product, Cause No Unnecessary Harm, Use Business to Inspire and Implement Solutions to the Environmental Crisis”, which is centered around both environmental and social responsibility, and Dove’s “Real Beauty for All”, which revolves around promoting beauty and self-confidence. 

To many, the thought that companies needed to prioritize vision, mission, and values was often dismissed and thought of as “old hat”, or a “been there, done that” exercise (Mirvis et al., 2010). However, Gen Z has recently had a hand in changing this narrative. Although this trend of highlighting brand purpose has been seen with millennials over the years, Gen Z has certainly accelerated the process (Spagnuolo, 2020). With this emphasis on company values, brands are looking for new, innovative ways to communicate their purpose to Gen Z. One such way is to “move beyond being omnichannel and more to this concept of being omnipresent” (Spagnuolo, 2020). The idea of being “present everywhere” rather than being narrow in their approach to the market allows transparency and authenticity between the brand and the consumers, ideal for communicating their true purpose to the world.  

Citations:  

Londrigan, M. and Jenkins, J.M. (2018) Fashion Supply Chain Management. New York: Bloomsbury Academic & Professional. 

Mirvis, P., Googins, B. and Kinnicutt, S. (2010) ‘Vision, mission, values’, Organizational Dynamics, 39(4). Available at: https://www.researchgate.net/profile/Philip-Mirvis/publication/247141794_Vision_mission_values/links/5a43ce11aca272d2945c07b9/Vision-mission-values.pdf (Accessed: 23 October 2023). 

Global Fashion Industry Statistics (no date) FashionUnited. Available at: https://fashionunited.com/global-fashion-industry-statistics (Accessed: 25 October 2023).  

Rahilly, L., Finneman, B. and Spagnuolo, E. (2020) Meet Generation Z: Shaping the future of Shopping, McKinsey & Company. Available at: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/meet-generation-z-shaping-the-future-of-shopping (Accessed: 23 October 2023). 

Patagonia: Mission & values (2018) Will Gardner. Available at: https://willgardner.co/patagonia-mission-values/#:~:text=Founded%20by%20Yves%20Chouinard%20in,solutions%20to%20the%20environmental%20crisis’. (Accessed: 26 October 2023). 

Volkinburg, N.V. (2023) ‘Intro to Purpose’. London: UAL, 23 October. 

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Purpose.

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Purpose can be defined as the deeper meaning and philosophy that brands follow and therefore apply to their practices, a Harvard review defining it as the overarching ‘goal of a business’ and the ‘essential reason’ that they have been established; purpose driving the decisions that are made and the outcomes that are desired. To achieve such a purpose, McKinsey (2020) identifies several key areas that should be focused on; portfolio and products, people, processes, performance, positions and engagement. By doing so not only can businesses elevate their purpose, but it also means that it can be clearly translated to the consumer and therefore influence their decision. Therefore, brand philosophy is a principal factor as it often determines the consumers response to the brand, the products they sell and the profits that they make – the current consumer being particularly demanding of social engagement and ethical practices.   

One example of a brand who have made efforts to communicate their brand philosophy is Stella McCartney. The overarching core message of Stella McCartney is one that focuses on sustainable practices that prioritise surrounding environments and those that are reliant on them. For instance, in 2021 Stella released its ‘capsule collection’ which aided Greenpeace in stopping deforestation. As suggested by Londrigan et al (2018), Stella McCartney’s practices have considered the growing demand for sustainability in its consideration of the environment; their continued action meaning a philosophy of sustainability has become embedded in their brand. 

Brand philosophy, demonstrated through practices such as sustainability, has been driven by Gen Z in their demand for ‘authenticity’ and redefinition of ‘corporate responsibility’ to consider ethics and values over profit (Finneman, 2020). To communicate such a purpose, Doyle (2021) notes the way in which brands have had to adapt their strategies to suit the platforms, such as TikTok, that are most typically used by Gen Z; 60% of TikTok users being Gen Z. Also, in their demand for authenticity and personal relationships Gen Z have turned to influencers such as Alix Earle, Emma Chamberlain and Olivia Neill who act as relatable characters through their vulnerability (Balis, 2023). Many brands have successfully leveraged such characters and incorporated them into their marketing approach, allowing them to reach and translate their philosophy and overall brand message to Gen Z of whom are particularly resistant to traditional advertising. For instance, Levi’s recently collaborated with Emma Chamberlain on a collection that emphasised patchwork and the importance of repairing clothes in creating sustainable practice.  

Balis, J. (2023) ‘How the Best Brand Influencer Partnerships Reach Gen Z’. Available at: https://hbr.org/2023/06/how-the-best-brand-influencer-partnerships-reach-gen-z?ab=at_art_art_1x4_s02 (Accessed: 28 October). 

Doyle, B. (2023) ‘Tik Tok Statistics’. Available at: https://wallaroomedia.com/blog/social-media/tiktok-statistics/ (Accessed: 28 October). 

Finneman, B. Rahilly, L. Spagnuolo, E. (2020) ‘Meet Generation Z: Shaping the Future of Shopping’ [Podcast]. 4 August. Available at: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/meet-generation-z-shaping-the-future-of-shopping (Accessed: 28 October). 

Joly, H. (2021) ‘Creating a Meaningful Corporate Purpose’. Available at: https://hbr.org/2021/10/creating-a-meaningful-corporate-purpose (Accessed: 28 October). 

Londrigan, M.P. Jenkins, J. (2018) Fashion Supply Chain Management. 1st edn. New York: Fairchild Books. 

McKinsey & Company. (2020) ‘More than a mission statement: How the 5Ps embed purpose to deliver value’. Available at: https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/more-than-a-mission-statement-how-the-5ps-embed-purpose-to-deliver-value (Accessed: 27 October). 

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Purpose

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In the constantly changing world of fashion, one aspect has emerged as a guide for the industry’s transformation – the “Purpose” pillar. It represents the core values of the fashion industry, built on a myriad of beliefs: that fashion is not just about creating beautiful garments and generating profits; it’s also about making a positive impact on the world and its people. Fashion now includes a range of core values, including environmental sustainability, social responsibility, community empowerment, and ethical consumption.

When it comes to different brands, the brand’s philosophy, mission, vision, and value proposition play a crucial role, particularly in the eyes of Gen Z. Firstly, the brand should set a primary direction and purpose. It reflects what the brand represents and what it aims to achieve. A clear purpose helps guide all business decisions and actions. Secondly, the vision outlines where the brand aspires to be in the future, painting a world where fashion is a force for positive change. Lastly, the value proposition communicates what makes the brand unique and why it matters to consumers, particularly in terms of sustainability and ethical values.

Gen Z is increasingly gravitating toward purpose-driven brands, and to effectively communicate the purpose pillar to them, brands should maintain authenticity, a digital presence, transparency, and collaboration. (www.linkedin.com, n.d.) To achieve the above, brands should utilize online platforms such as social media and blogs to share their purpose, emphasizing their sustainable practices and engaging in meaningful dialogues with their audience. (Zhao et al., 2022) Sharing the brand’s impact on the environment and society is crucial, enabling consumers to feel authenticity, integrity, and credibility. Gen Z values transparency, brands should be open about their sourcing, manufacturing, and sustainability practices, showcasing the entire supply chain and sustainability reports to build trust. (Shaw, 2023) Finally, brands can collaborate with influential figures and artists to jointly advocate for fashion trends and philosophies.

The Purpose pillar in fashion is not just a trend; it is a positive transformation. To resonate with Gen Z and future generations, brands must not only embrace the Purpose pillar but also ensure that their brand philosophy aligns with these values. Through authentic communication and a commitment to meaningful change, fashion brands can attract a new generation of conscious consumers and become a positive force in the world.

References:

www.linkedin.com. (n.d.). The Power of Authenticity: How Genuine Branding Drives Digital Marketing Success. [online] Available at: https://www.linkedin.com/pulse/power-authenticity-how-genuine-branding-drives-digital-mitch-goerdt [Accessed 28 Oct. 2023].

Zhao, L., Lee, S.H., Li, M. and Sun, P. (2022). The Use of Social Media to Promote Sustainable Fashion and Benefit Communications: A Data-Mining Approach. Sustainability, [online] 14(3), p.1178. doi:https://doi.org/10.3390/su14031178.

Shaw, J. (2023). Why Gen Z Values Sustainability: Tips for Marketing to the Eco-Conscious Generation. [online] Kadence. Available at: https://kadence.com/why-gen-z-values-sustainability-tips-for-marketing-to-the-eco-conscious-generation/.

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Profit

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In the realm of sustainability, the “Purpose Pillar” stands as a foundation. This pillar embodies the importance of the brand’s values as well as establishing a clear and profound sense of purpose within the brand’s operations. Brand philosophy serves as the foundational framework underpinning the success of any brand. It operates as the articulation of the company’s raison d’être, elucidating the purpose behind its existence. A well-defined brand philosophy transcends simple profit-driven motives that is publicised among both internal stakeholders and consumers. Mission statements elucidate why a brand exists, its vision outlines what it aspires to achieve, and the value proposition communicates what it uniquely offers to its audience. Collectively, these elements create a narrative that resonates with consumers, offering them a deeper connection beyond the product or service. A well-crafted brand philosophy isn’t just about business; it’s about fostering a meaningful connection with the audience.

Gen Z, characterized by its social consciousness and digital status, is highly attuned to refresh the concept of corporate responsibility. In a podcast from McKinsey, Finneman (2020) states, “They’re looking beyond tangible products and actually trying to understand what is it that makes the company tick. What’s its mission? What’s its purpose?” This is where Gen Z and millennials differ. While millennials are more focused on what they buy bringing them status, Gen Z looks for pieces that will set them apart. They scrutinize a brand’s philosophy, valuing those that align with their own values. Looking at Stella McCartney’s work ethic, three fundamental principles prevail: responsibility, integrity, and forward-thinking decision-making. This entails adopting practices that not only ensure the longevity of the business but also prioritise the well-being of the environment and its inhabitants. (Londrigan and Jenkins, 2018).

For Gen Z, transparency is not a preference, but a principle that influences their decisions. They demand corporations to take explicit positions on social and political issues. They utilize their purchasing power and social media presence to influence corporate conduct (Curry, 2020). Likewise, authenticity is non-negotiable; Gen Z has a keen eye for detecting insincerity. Brands need to ensure that their mission, vision, and value proposition are not superficial catchphrases but genuinely embodied in their practices, encompassing sustainability efforts and social initiatives. Engagement is paramount in reaching and connecting with Gen Z, especially on platforms like TikTok, Instagram, and YouTube. Brands that successfully convey their purpose to Gen Z are more likely to foster lasting connections and resonate with this socially conscious and tech-savvy generation.

Reference List:

Curry, L. (2020). How Brands Can Follow Through on the Values They’re Selling. [online] Harvard Business Review. Available at: https://hbr.org/2020/08/how-brands-can-follow-through-on-the-values-theyre-selling.

Finneman, B., Spagnuolo, E. and Rahilly, L. (2020). Meet Generation Z: Shaping the Future of Shopping | McKinsey. [online] McKinsey Insights. Available at: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/meet-generation-z-shaping-the-future-of-shopping.

Londrigan, M.P. and Jenkins, J.M. (2018). Fashion supply chain management. New York: Fairchild Books, An Imprint Of Bloomsbury Publishing Inc.

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The 4 Pillars of Sustainability: Purpose

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As indicated in one article from Forbes, brand philosophy refers to how businesses define themselves, or how they exist. A brand’s existence is determined by its identity development and how this is communicated to consumers (Silva 2020). In another Forbes article it states how your brand must have a voice. Every action and communication from your business, whether through email marketing, social media posts, or blogs, carries a significant influence. Consistency is key when presenting content to consumers, ensuring that it constantly reflects the brand’s distinctive voice, establishing a personal connection with the audience (Meyer 2018). 

In a podcast from McKinsey (2020), it is shown how there seems to be a shift in generations in terms of how value is delivered to a consumer. Previously, a product’s quality and price were considered the two most important factors by customers; however, Gen Z are now looking for something more. Bo Finneman states “They’re looking beyond tangible products and actually trying to understand what is it that makes the company tick. What’s its mission? What’s its purpose? And what is it actually trying to build for us as a society?” This statement refers to Generation Z and their desire to gain a deeper understanding of a company they are investing in, one that extends beyond the price and quality of a garment. 

For brands to establish their philosophies, they first must gain an understanding of who their target audience is. It is then up to brands to communicate their values through content that speaks to the consumer. It is also important for businesses to understand communication and shopping channels for their correct audience. For example, despite Gen Z being tech savvy, data from a report by Drapers (see figure 1 below) shows that 53% of generation Z prefer shopping in physical stores. In contrast, only 34% express a preference for online shopping (desktop), and a measly 13% want to shop on a mobile device. (Morgan 2023) 

[Figure 1] The A to Z of Gen Z and millennials: understand the next generation of consumers, Morgan. J (2023) 

Reference List: 

Finneman. B, (2020), Meet Generation Z: Shaping the future of shopping, McKinsey & Company, https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/meet-generation-z-shaping-the-future-of-shopping, Accessed: 27/10/23  

Meyer. E, (2018), How To Connect With Your Audience And Authentically Communicate Your Brand, Forbes, https://www.forbes.com/sites/forbesagencycouncil/2018/08/06/how-to-connect-with-your-audience-and-authentically-communicate-your-brand/?sh=cbe4a6773932, Accessed: 27/10/23  

Morgan. G, (2023), The A to Z of Gen Z and millennials: understand the next generation of consumers, Drapers, https://www.drapersonline.com/insight/analysis/the-a-to-z-of-gen-z-and-millennials-understand-the-next-generation-of-consumers, Accessed: 27/10/23 

Silva. P, (2020), Why Philosophy Has Much To Do With Brand-Building (And What That Looks Like), Forbes, https://www.forbes.com/sites/piasilva/2020/11/19/why-philosophy-has-much-to-do-with-brand-building-and-what-that-looks-like/?sh=241c5efe71f9, Accessed: 27/10/23 

[Figure 1] The A to Z of Gen Z and millennials: understand the next generation of consumers, Morgan. J (2023), https://www.drapersonline.com/insight/analysis/the-a-to-z-of-gen-z-and-millennials-understand-the-next-generation-of-consumers Accessed: 25/10/23 

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Blog: PROFIT

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Blog 3: Profit

At its core, the fashion industry is driven by making profits. Like any business, revenue is at the forefront; fashion’s close link to art does not change this fact. It can be a challenge to balance creativity and commerce, and this can be seen in Nike CEO Phil Knight’s quote “we put all our emphasis on designing and manufacturing the product. But now… Nike is a marketing-oriented company” (Klein, 1999). In order for a creative business to be successful, designers and marketers/commercial leaders must work together closely. Anja Overdiek refers to this idea as “dual and complementary leadership”. The qualitative and intangible ideas of a brand must be interlinked with those quantitative and tangible figures that allow a business to stay afloat. For example, Nicolas Ghesquière explains that his leaving from the designer role at Balenciaga in 2012 was due to a lack of merchandising skills within the industry. It seems that a business partner can be vital when it comes to the success of a designer (Overdiek 2015). It is usually the role of Creative Director that is tasked with bridging the gap between innovation and business value. Not only is the Creative Director a lead designer but also a staff manager, with many staff members below. They must create, supervise and most importantly they must generate revenue: “if the figures don’t impress, the designer can and will be exchanged for another one” (Mitterfellner 2023). 

The fashion industry is ever growing, revenue figures reaching new heights with every passing year. According to the Lyst Index Q1 2023, “the Prada Group cements its status as a fashion powerhouse” with Prada and its sister brand Miu Miu being the hottest brands of the year, generating retail sales of €3.7 billion in 2022. Due to celebrity culture being so prevalent, luxury brands’ partnerships with these stars are establishing their impact evermore.  For example, Lyst partly credits the Prada Group’s success to its partnerships with the likes of Kendall Jenner, Mia Goth and Ethel Cain. Capitalising on status seems to be the main way for brands to remain competitive in these uncertain economic times. Furthermore, Kim Kardashian’s shapewear brand SKIMS debuts in the list this year (with a valuation of $3.2 billion (Lyst Index Q1 2023), showing that the relevance of internet personalities is vastly increasing within the fashion industry. In an industry that values profit and a time where viral moments can make or break a brand, listening to the consumer is the most important thing a brand should be able to do. 

Reference list

Klein, N. (1999). No Logo: Taking Aim at the Brand Bullies. Toronto: Knopf Canada and Picador.

Lyst Insights. (2023). The Lyst Index: Fashion’s Hottest Brands and Products Q1 2023. [online] Available at: https://www.lyst.com/data/the-lyst-index/q123/.

Mitterfellner, O. (2023). Luxury fashion brand management: unifying fashion with sustainability. [online] Library Catalog (Koha). London: Routledge. Available at: https://libsearch.arts.ac.uk/cgi-bin/koha/opac-detail.pl?biblionumber=1546849&query_desc=kw%2Cwrdl%3A%20Mitterfellner.

Overdiek, A. (2015). Fashion designers and their business partners: Juggling creativity and commerce. [online] browzine.com. Available at: https://browzine.com/libraries/479/journals/36584/issues/8230931.

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Profit

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Fashion and profit are intertwined and no industry can be separated from profit. The word fashion is noble, but essentially fashion is for profit.

Food, clothing and shelter are necessities for people , so the fashion industry is one of the biggest industries in the world. It is one of the key factors driving the global economy. After the Covid-19 pandemic in the last few years, the whole world’s economy has been hit hard, and the fashion industry has not been spared either, according to Euromonitor the global apparel and footwear market size shrinks According to Euromonitor the global apparel and footwear market size shrunk in 2020 by -18.1% (to $1.45 trillion). (Euromonitor, June 2021)

LVMH is by far the highest market capitalisation apparel company at around $479bn. LVMH tripled in size from 2016 to 2022. (Statista, May 2023) How has it remained highly profitable in such turbulent economic times? Firstly LVMH is involved in several industries like Christian Dior, Givenchy, Fendi, Bulgari, TAG Heuer, Sephora, Moët & Chandon, Dom Pérignon, Hennessy, and many others.This diversification allows the company to capture different consumer preferences and not run into a crisis by relying too much on one brand or division. Secondly, LVMH has a very precise brand positioning, which is aimed at the middle class and above, and the luxury sector is perhaps the least affected because the affluent will continue to buy luxury goods and will not be greatly affected by the poor economic situation.LVMH’s Louis Vuitton has built up a reputation for craftsmanship and exclusivity, and has gained a high degree of brand loyalty and global recognition from its consumers.LV has a very strong brand name. LV has a strong capacity for innovation and LVMH invests heavily in R&D, design and marketing. ” The French luxury goods conglomerate LVMH Group, primarily known for its fashion house Louis Vuitton, spent around 9.5 billion euros in advertising and promotion costs worldwide in 2022. The value corresponded to around 12 percent of LMVH revenue that year.”(Statista. January 2023) From this data it is clear that marketing is vital for a brand.

There is a big gap between creativity and business, designers have a lot of creativity but maybe the consumers won’t pay for it because the consumers most directly see what the product looks like and won’t look deeper into the meaning and background behind the product, so they need a person to show the story to the consumers and the Creative director is that person. The creative director needs to understand the visual DNA of the brand and re-present it in a modern way that meets the aesthetic needs of the current clientele and the business prospects of the management. (Mitterfellner, O 2023)

Reference List:

Euromonitor. (n.d.). Global Recovery Tracker: Q2 2021. [online] Available at: https://www.euromonitor.com/global-recovery-tracker-q2-2021/report [Accessed 23 Oct. 2023].

Smith, P. (2022). Clothing Companies Market Capitalization 2022. [online] Statista. Available at: https://www.statista.com/statistics/1293538/clothing-companies-market-cap/.

Statista. (n.d.). LVMH Group’s ad spend worldwide, 2019. [online] Available at: https://www.statista.com/statistics/410677/lvmh-group-s-ad-spend-worldwide/.

Mitterfellner, Olga. Luxury Fashion Brand Management : Unifying Fashion with Sustainability, Taylor & Francis Group, 2023. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/ual/detail.action?docID=7260416.

Picture Reference List:

P1: Nast, C. (2023). A Blanket Scarf Is Your Quickest – And Cosiest – Route To Autumn Chic. [online] British Vogue. Available at: https://www.vogue.co.uk/article/scarf-trend-autumn-2023#intcid=_vogue-uk-bottom-recirc_03b469ff-d69d-4ce6-93c5-34d434c43f7c_similar2-3 [Accessed 24 Oct. 2023].

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  1. khaled: Very good

Profit: The new oxygen of life

Profit: The new oxygen of life

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Money, success, money, success and money again. Fashion is not just art, it is a business, and what is the fuel for every business? Money – which is gained by profit. Profit is the most predominant pillar of those which make up the fashion industry, it is an exigency for any business which endeavours success. Renovating and investing in new products can only be done once profit is turned, and for an industry such as fashion, with ever-changing trends, its accomplishment is based on profitability. 

Being one of the largest industries in the world, the revenue of the fashion industry stands at 1.53 trillion US dollars for 2022 and is forecasted to increase in 2023 to 1.7 trillion US dollars. (Smith, P, Statistica, 2023). In the UK, the industry was predicted to generate 58.5 billion British pounds in 2022. The significance of fashion for the global economy is proved in its workforce, out of the 430 million people in the global labour force, approximately 3.4 million work for the fashion industry. (Zippia, 2023). The varying sectors of the fashion industry makeup for its revenue, with US Women’s apparel generating the greatest amount – approximately 163 billion US dollars. (Smith, P, Statistica, 2023). External factors such as seasonal, environmental and economic greatly affect how the sectors of fashion perform e.g., the demand of loungewear is greater during colder seasons and piqued during the lockdowns due to COVID-19, (bbc.co.uk Covid – shoppers swap party clothes for loungewear) and therefore these sectors turn/turned the most profit due to the seasonal and environmental circumstances. 

A vital way of measuring a brands accomplishment is by assessing how they perform and cater to their audience during uncertain economic times. This is where several crucial business changes withhold responsibility in navigating the brand – increase in digital marketing tactics, modifying supply chains, reassessing product prices, distributing more consumer convenient products etc. For example, due to COVID-19, the economy was in a recession, the world went into lockdown and globally, everyone became more price-sensitive. In this instance, businesses; turned to social media platforms such as TikTok (which gained popularity during this stay-at-home period) to market their products, held vast sales to entice consumers who were cutting back on spending and sold more consumer convenient products such as loungewear. 

Creative vision and commercial reality. Art and business. The complex relationship between the two are challenging to bridge, but not impossible, as proved by luxurious fashion brands whose designers are influenced by artworks e.g., Versace, YSL, Gucci. The obligation of building a successful relationship between creativity and commerce lies with the creative director, who must acquire an unconventional artistic vision and knowledge of the logistics of business, and most importantly, have the ability to turn profit. The revenue figures must be high or the role of creative director will be filled in by another. (Mitterfellner O, 2023). In order to blur the lines between art and commerce, the creative directors must ensure that consumer requirements and preferences are met, market trends are understood and for the extra mile of success, ensuring the product makes it to runway and celebrity wardrobes gains traction and therefore maximises profitability. (Sharp, K, 2023). 

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  1. khaled: Nice

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Profit Blog

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PROFIT: THE ECONOMIC PILLAR

The economic pillar, ‘profit,’ emphasises how important it is for companies to promote responsible economic growth that takes environmental preservation and social welfare into account. It’s about ensuring that our progress today doesn’t compromise the ability of future generations to meet their own needs. It’s about redefining success within the larger framework of sustainable development, rather than only in terms of monetary gain.

FASHION INDUSTRY: SCALE

“Fashion is one of the world’s most important industries, driving a significant part of the global economy. If it were ranked alongside individual countries’ GDP the global fashion industry would represent the seventh-largest economy in the world,’’ stated McKinsey in its State of Fashion 2017 report.

Revenue from global fashion amounts to almost 3 trillion dollars. Out of this, the e-commerce market was $668 billion in 2021 with the accessories segment accounting for revenues around $261.5 billion and that of footwear around $122 billion. As per Statista, the online clothing and apparel industry will reach a value of 1.2 trillion U.S. dollars by 2025. The online pie of the total revenue will reach 25 % by 2025 showing a steady increase from 19 % in 2021.

BRAND SUSTAINABILITY: NAVIGATING UNCERTAIN TIMES 

When the industry goes through uncertain economic times, to navigate and succeed, it’s critical to track how customers reassess priorities, reallocate funds, switch brands, and redefine value. This will help to maintain customers and remain relevant in the market.

As Dale Carnegie put it, “Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit at home and think about it. Go out and get busy.” (Dale Carnegie quotes, no date)

Fashion companies that can adapt and adjust their strategies for supply chains, sales channels, and digital marketing will be best placed to survive uncertain times. Equally important for the organisation is focusing on attracting and retaining top talent. The brands will need to prepare themselves to make strategic sacrifices while investing in agility and creativity to succeed when the markets eventually stabilise.

BRIDGING THE CREATIVITY AND COMMERCE GAP

Despite this size and the influence of the global fashion industry, finding the correct equilibrium between creativity and business is a critical challenge. 

While creativity fuels innovation and sets trends, commercial sense ensures sustainability and profit. The nature of this control is at the heart of effective product management from the high street through to the luxury of haute couture.

A collaborative approach by encouraging open communication between both creative and business teams ensures that creative ideas are grounded in sound business principles. Most importantly they must focus on the ultimate control that is in the hands of the consumer.

Strategic planning is the bridge that connects creativity with business success in the fashion industry. Having a definitive road map by identifying target markets, consumer preferences, and emerging trends and regularly re-evaluating and adapting will ensure that creative direction aligns with the business goals.

References 

Ahmed, A. (2013) ‘Bridging the gap between art and business,’ The Guardian, 16 October. https://www.theguardian.com/media-network/media-network-blog/2013/oct/16/bridging-gap-art-business.

Dale Carnegie quotes (no date). https://www.brainyquote.com/quotes/dale_carnegie_132157.

Geoff (2019) ACT. https://geoffblades.com/act-3/.

Global fashion industry statistics (no date). https://fashionunited.com/global-fashion-industry-statistics.

Muaz (2023) An Overview of the Importance of the Fashion Industry in Today’s World. https://blazon.revstance.com/an-overview-of-the-importance-of-the-fashion-industry-in-todays-world/#:~:text=The%20fashion%20industry%20is%20an,valued%20at%20approximately%20%241.53%20trillion.

Overdiek, A. (2016) ‘Fashion designers and their business partners: Juggling creativity and commerce,’ International Journal of Fashion Studies, 3(1), pp. 27–46. https://doi.org/10.1386/infs.3.1.27_1.

The three pillars of sustainability: people, planet, and profit (no date b). https://www.coolset.com/academy/three-pillars-of-sustainability.

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  1. khaled: nice

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