PROFIT
The profit pillar introduces the idea of creativity and art being intertwined with commerce. The pillar looks at the industry as a whole, in terms of revenue and size. There is a focus on specific brands and sectors of the industry and how they cope with current issues and challenges.
Figure 1: Discover LOEWE Paula’s Ibiza 2023 Collection (Unknown, 2023)
The fashion industry brought in an estimated £56.5 million in 2022, this huge amount of money proves the scale of the industry. Various sectors of the industry are inevitably more successful than others, Lyst shows that Prada is number one in ‘hottest brands’ after announcing “3.252 million euros in retail sales in 2022” (Lyst Index Q1, 2023). Luxury brands are consistently performing well, even after detrimental events such as Covid. Covid created a backlog in desire for freedom in actions and expression, the holiday sector of the industry, for example swimwear, had opportunity to flourish in 2022. Loewe “released Paula’s Ibiza 2023 collection” (Lyst Index Q2, 2023), collection worked well in a time period of need for freedom and travel, “The annual collection that celebrates island life is back with ready-to-wear, bags and accessories that are the epitome of freedom and ease.” (Loewe, 2023).
Figure 2: Glossier’s new lipsticks are a summer staple (Lee, 2023)
In terms of how brands can remain competitive in uncertain economic times, brands are needing to adapt to consumer action in relation to relevant economic and political events. In terms of inflation, it directly impacts brands through the individuals disposable income, “others will seek out bargains, increasing the demand for resale, rental, and off-price products.” (mckinsey, 2022). Glossier can be used as an example of how uncertain times, due to events such as the pandemic, has left the brand being seen in a completely different light as to how it was originally set up. The brand, “that highlights skin” (Kilikita, 2022) left many loyal consumers feeling ignored when stress and pandemic related acne flare ups increased.
Creative directors are responsible for balancing the creative vision they have for a brand with the success of the company itself, “In most developed countries we are now used to fashion consumption as a learned behaviour”. (Mitterfellner, 2023). Due to the high demand in the industry for fast and trendy fashion, the creativity seems lost amidst the chaos of the industry to meet consumer and social demands. To bridge this gap, creative directors need to stay true to the brand they are working with, take inspiration from art around them and not dilute the vision they have.
Bibliography:
Berg, Achim. (2022). How current global trends are disrupting the fashion industry. Available at: https://www.mckinsey.com/industries/retail/our-insights/how-current-global-trends-are-disrupting-the-fashion-industry. (Accessed 17 October 2023).
Kilikita, Jacqueline. (2022). What Went Wrong At Glossier?. Available at: https://www.refinery29.com/en-us/2022/02/10854189/what-happened-to-glossier. (Accessed 20 October 2023).
Lee, P. (2023). Glossier’s new lipsticks are a summer staple. Available at: https://www.goodhousekeeping.com/uk/beauty/makeup/a43682667/glossier-g-suit-lip-creme/. (Accessed 20 October 2023).
Loewe. (2023). Paula’s Ibiza 2023. Available at: https://www.loewe.com/eur/en/stories-collection/fw23-paulas-ibiza-campaign.html. (Accessed 17 October 2023).
Lyst Index. (2023). Fashion’s Hottest Brands and Products Q1 2023. Available at: https://www.lyst.com/data/the-lyst-index/q123/. (Accessed 17 October 2023).
Lyst Index. (2023). Fashion’s Hottest Brands and Products Q2 2023. Available at: https://www.lyst.com/data/the-lyst-index/q223/. (Accessed 17 October 2023).
Mckinsey. (2022). The State of Fashion 2023: Holding onto growth as global clouds gather. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion. (Accessed 20 October 2023).
Mintel Store. (2022). UK Clothing Retailing Market Report 2022. Available at: https://store.mintel.com/report/uk-clothing-retailing-market-report#:~:text=UK%20clothing%20market%20size%3A%20The,£56%2C063m%20in%202022. (Accessed 17 October 2023).
Mitterfellner, O. (2023). From the Creative Director to the Fashion Show. Available at: https://www.taylorfrancis.com/books/mono/10.4324/9780429451591/fashion-marketing-communication-olga-mitterfellner. (Accessed 20 October 2023).
Unknown. (2023). Discover LOEWE Paula’s Ibiza 2023 Collection. Available at: https://www.designscene.net/2023/04/loewe-paulas-ibiza-2023.html. (Accessed 20 October 2023).