Profit
The profit pillar is grounded on effectively utilizing the company’s resources and using them to improve the financial performance and make profits, for the maximize profits. The fashion industry provides a large number of employment opportunities and generates a lot of economic mobility.
According to a report by Statista, globally, the revenue of the apparel market reached a value of 1.53 trillion U.S. dollars in 2022, in the UK was estimated to be just under 58.5 billion British pounds. As demonstrated by Fashion United, the industry has a labor force of 3,384.1 million. Its value is equivalent to 3 trillion dollars. That means, it corresponds to 2% of the world’s Gross Domestic Product (GDP). The Ellen MacArthur Foundation states that globally, the clothing industry employs more than 300 million people along the value chain, which can be understood to also include people that work in design, distribution and retail divisions of the fashion industry.
The fashion industry encompasses the design, manufacturing, distribution, marketing, retailing, advertising, and promotion of all types of apparel. (Steele el al.,2023) According to Forbes, on top of the biggest apparel companies rank is Louis Vuitton Moët Hennessy (LVMH), which includes enormous luxury brands such as Louis Vuitton, Christian Dior and Givenchy. Size of the global apparel market in 2022 is 1.53tr USD. In 2023, the global Footwear market is predicted to witness a revenue of US$398.40bn while the Accessories market amounts to US$551.10bn. (statistic, 2023)
On the authority of Mckinsey, in 2023, the global fashion industry will need to weather inflation while finding opportunities in shifting consumer patterns, channel and digital marketing strategies, and manufacturing approaches. （Mckinsey，2022）The lipstick effect describes the observation that consumers will still tend to buy small luxury items even during an economic downturn. Cash-strapped consumers want to treat themselves to something that lets them forget their financial problems.（Hayes，2021）In times of economic uncertainty, consumers tend to buy cheaper goods. Therefore, when the economic situation is not particularly good, brands can launch some products that are widely popular and relatively cheap. For example, luxury goods can introduce their cosmetics. Meanwhile, brands need to build strong customer relationships. In order to protect the existing client base, it is essential to provide exceptional customer service. Regular communication to understand their needs and concerns, coupled with efforts to make them feel appreciated, can foster customer loyalty. Even if some clients need to discontinue the service due to their own financial constraints, a strong relationship can ensure their return when circumstances improve.
Creative directors play a significant role in shaping a fashion brand’s products and image to align with consumer preferences. Whether it is creativity or commerce, the final choice rests with the customer. To cater to consumer preferences, creative directors need to first do market research and consumer Research, lock in target groups and markets, invest in market research to gain insights into consumer preferences. For example，creative directors can incorporate sustainable and ethical practices into their creative process. Trend analysis is also important. Staying attuned to fashion trends and consumer behavior is crucial. Meanwhile, some consumers prefer personalized or customizable products. Brands can offer options for customization, such as monogramming or color choices, to cater to these preferences. Furthermore, creative directors can also interact with consumers on social media to better catch consumer demands by consumer comments and attitudes to change sales strategies.
Bibliography
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