Profit

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The pillar profit is tightly linked into the fashion industry as all industries are driven by profit with no exclusion. The profit of the industry, breaks down into specific brands, this determines the level of success it gains.

The fashion industry is the fourth largest industry in the world, with the value of $2.5 trillion (Amed, Et al, 2020) . S.Major stated: “However, the fashion industry encompasses the design, manufacturing, distribution, marketing, retailing, advertising, and promotion of all types of apparel. ” (2023). This suggests the complexity of the fashion industry, as well as stating how different sectors within the industry are tightly linked together to work most effectively.

Being adaptive and respond quickly are essential skills in the fashion industry when facing uncertain economic situations. COVID-19 has been one of the most significant economic downhill in the recent decade. Although fashion industry has been one of the industries that was least effected, due to its uniqueness and irreplaceable element of fashion, actions were still needing to be taken to avoid any damage as possible. Multiple brands have decided to collaborate with brands that target slightly different group of customers, which would refresh the impression of the brands as well as sharing a wider group of potential customers. A great example would the collaboration between MM6 Maison Margiela and Salomon. The profits produced from this collaboration is well proved by its popularity and sales volume. It has been recorded by Lyst Index, rating the 10th on the “Q1 2023 Hottest Products” (2023).

Figure 1: Q1 Hottest Products. The Lyst Index, Fashion’s Hottest Brands and Products Q1 2023

Creative director of brands are also the key people to effect the profit of the brand. Karl Lagerfeld, is one of the greatest examples when showing what impact a creative director can bring to a brand. Karl have used different strategies on leading different parts of the brand. For example, as the creative director for Chanel, his involvement was extensive (runways and behind the scenes), whilst for Fendi, he was more involved on designing the collections. (Mitterfellner, 2023) By creating memorable elements, it can well balance between the commerce and creativity of the brand.

Figure 2: Chanel Spring 2019 collection, ELLE.

Bibliography

  1. Amed, I. , Balchandani, A., Berg, A., Hedrick, H., Jensen, J., Rölkens, F. The State of Fashion 2020: Corona Virus Update. 2020. [online] Mckinsey & Company. Available at: https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/the%20state%20of%20fashion%202020%20navigating%20uncertainty/the-state-of-fashion-2020-final.pdf
  2. Mitterfellner, O. Luxury Fashion Brand Management : Unifying Fashion with Sustainability. 31 July 2023. [online] Taylor & Francis Groups. Avaliable at: https://ebookcentral.proquest.com/lib/ual/reader.action?docID=7260416
  3. The Lyst Index: The Fashion’s Hottest brands and Products Q1 2023. [online] Lyst Insights. Available at: https://www.lyst.com/data/the-lyst-index/q123/ . Accessed 18 October 2023.
  4. S. Major, J., Steele, V. Fashion Industry. [online] 6 Oct. 2023. Encyclopedia Britannica. Available at: https://www.britannica.com/art/fashion-industry. Accessed 18 October 2023.

Image Reference

  1. Chernikoff.L.R, Chanel Brings the Beach to the Runway. [online] Published on 2 October 2018, ELLE. Available at : https://www.elle.com/fashion/a23560987/chanel-spring-2019-collection/
  2. Q1 Hottest Products. The Lyst Index, Fashion’s Hottest Brands and Products Q1 2023 [online] Available at: https://www.lyst.com/data/the-lyst-index/q123/ . Accessed 18 October 2023.
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