Profit
Gain. Interest. Profit. Profit is one of the main factors collaborating into the fashion industry. It is how companies become a functioning business. Maintaining both environmental and economical profit. Different opinions of what profit varies from brands net income to investments to social income (Littleton, 1928), a brand nevertheless is run through its profits.
Through from the economical size to the organisational size, the fashion industry is always growing. Inflation in itself making it increase by the day (McKinsey, 2022). Moreover, from the economical growth of the fashion industry, is the consumers retail expanding from haute couture and luxury fashion through to high street fashion and mass market productions scales of different brands, all producing numerous jobs, as well as numerous amounts of money. The global cost of living crisis and Covid 19 having major impacts on the fashion industry’s income (Fashion United, 2022). Before Covid 19, the industries global revenue stood at around “$2.5 trillion. However, post covid, the revenue has gradually worked its way up to less still than it was before at “$1.95 billion” (Fashion United, 2022).
The fashion industry is made up of a collaboration of various different sectors, varying from marketing to design and to the actual production of a product. The biggest revenue at this time is the women’s clothing market, making up to over 50% of global retail spending (Fashion United, 2022). Another major sector of the industry comes before the actual product and is the collection of raw materials and production of textiles. All sectors generating millions of jobs globally.
Amongst uncertain economic times it is difficult for brands to remain seen, many fast fashion brands are staying competitive by mass producing “duplicates” of luxury designer/ more expensive items. For example, this Autumn many people may not be able to afford “Uggs” (www.ugg.com, n.d.) so mass production companies are selling these and producing for cheaper, meaning they are affordable for consumers and the company is being kept in the public eye by following the trends of the current season. Additionally, companies are starting to engage their consumers by producing loyalty schemes, offering email subscription vouchers, and doing collaborations with the biggest influencers and celebrities of the minute.
One way in which creative directors connect both creativity and commerce are by the use of social media and how to market a product. As well as collaborations from different brands, exhibiting two different styles together to create products for their consumers (Overdiek A, 2016). For example, a collaboration which shows this is Yves Saint Laurent and Pierre Berge working and co founding together, both creatively and commercially together for the benefit of their brand.
Bibliography:
Littleton, A.C., 1928. What is profit?. Accounting Review, pp.278-288.
McKinsey (2022). The State of Fashion 2023: Holding onto growth as global clouds gather. [online] McKinsey. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion.
Fashion United (2022). Global Fashion Industry Statistics. [online] Fashion United. Available at: https://fashionunited.com/global-fashion-industry-statistics.
www.ugg.com. (n.d.). Official UGG® UK Website | UGG Boots, Slippers & Slides. [online] Available at: https://www.ugg.com/uk/.
Fashion United (2022). Global Fashion Industry Statistics. [online] Fashion United. Available at: https://fashionunited.com/global-fashion-industry-statistics.
Overdiek, A. (2016) ‘Fashion designers and their business partners: juggling creativity and commerce’, International Journal of Fashion Studies, 3(1), 27+, available: https://link.gale.com/apps/doc/A472689356/AONE?u=anon~690e75cf&sid=googleScholar&xid=6f849962 [accessed 21 Oct 2023].
Image reference-
Twin Magazine. (n.d.). William Klein Archives. [online] Available at: https://www.twinfactory.co.uk/tag/william-klein/ [Accessed 21 Oct. 2023].