Profit
In order for business activity to grow and expand profit is mandatory. Encompassed within the fashion industry business performance can be analysed through the pillar ‘profit’. Analysing all sectors of the industry leads to discovering profitable opportunities which will consequently drive business activity.
Considering the fashion industry facing a decline in growth rates in the later months of 2022, due to challenging climates, hyperinflation leading to depressed customers, the industry is the fourth biggest in the world with a value of 3 trillion dollars. With these statistics the vast dimension of the industry is proven. Predictably, each sector in the industry will grow at its own rate which suggests primary sectors. McKinsey & Company states “the luxury sector will outperform the rest of the industry, as wealthy shoppers continue to travel and spend, and thus remain more insulated from the effects of hyperinflation.” (McKinsey & Company, 2023). Proven my the Lyst index Q2, It’s said that the luxury brands Loewe and Prada take the lead for “Hottest brands of 2022”
A crucial skills to to be successful when setting up a business whether it fashion or other is adaptability and quick response. In the current uncertain economic situation it is even more vital. Coming up with new an inventive ideas or marketing is key. Mitterfellner, O introduces us to the idea of using blogging in order to promote a brand. Looking for the rifght characteristics in a blogger can make all the difference towards the benefit it has for the brand. For example, “The fashion blogger x is intune with the current trend and his posts are highly relevant to his or her audience”, “ X comes across as authentic…”, “X has several thousand or hundred thousand followers and they are perfect for the brand”. To find a blogger with characteristics such as these the brand in return will gain engagement, reach and potential increase in product or service purchases. (Mitterfellner, O, 2019).
Within the chaos of the industry and social media, creative directors are responsible for keeping the brand alive with new innovative marketing strategies. balencings aspects such as creative visions and brand DNA is vital for a successful brand. Ensuring your brand doesn’t get lost in the amist of “new trends” is key. Staying authentic and true to your brand is an essential otherwise you can get lost in the industry therefore unrecognizable.
Bibliography:
The lyst index: Fashion’s Hottest Brands and Products Q2 2023 (2023) Lyst Insights. Available at: https://www.lyst.com/data/the-lyst-index/q223/ (Accessed: 21 October 2023).
Mitterfellner, O. (no date) Fashion Marketing and Communication Theory and practice across the fashion industry.
The state of fashion 2023: Holding onto growth as global clouds gather (2022) McKinsey & Company. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion (Accessed: 21 October 2023).