Profit
Profit is the ultimate goal of any businesses. Profit determines how a business operates. Business owner can choose pocket the cash, distributes to shareholders or reinvest into the business. Including fashion business, the industry always create new stories in order to create more profit.
The size of the fashion industry being calculated appears to be 1.53 trillion US dollar in total. Market of Womenswear shows a significant amount of gap compared to menswear and children’s, approximately 163 billion dollars in revenue(SMITH,2023). Because of COVID-19, the industry was having a big impact but womenswear occupying an even larger market share as usual. In future projections, it is anticipated that the luxury segment will surpass other sectors within the industry. This is attributed to the propensity of affluent consumers to persist in their travel and expenditure habits, thereby offering them a degree of protection against the repercussions of hyperinflation(AMED,2023).
Fashion industry includes different sectors. From textile production to the retailing of products. Marketing appears to be the key sector of maximizing profits. Effective fashion marketing is predicated on a comprehensive comprehension of consumer requisites, predilections, and aspirations, ensuring alignment between product offerings and consumer demand. To inform designers and manufacturers about the specific nature and volume of products to be developed, marketers employ mechanisms such as sales trajectory analysis, scrutiny of media exposure, focus group discussions, and other methodologies geared towards discerning consumer inclinations(KIRON,2022)
There are few elements that a brand needs to consider in order to remain competitive in uncertain economic times. During the economic downturn of 2008-2009, a study of 700 enterprises revealed that 17% either faced bankruptcy, transitioned to private ownership, or underwent acquisition. Approximately 80% of these companies did not achieve a complete recovery until three years post-recession. Remarkably, 9% of the firms flourished during this period(GULATI,2010). One way to get better should be “Propose incentives to extant clientele as a token of appreciation for their allegiance and/or their endorsement of your enterprise to peers. In economically challenging times, a significant proportion of consumers exhibit heightened price sensitivity, seeking avenues for financial savings. Thus, it becomes imperative to provide them with a compelling rationale for preferring your offerings over those of competitors. A strategic approach to achieve this is by prioritizing and valuing your established customer base”(Graver,2022).
Creative directors harmonize creativity and commerce by conceptualizing innovative ideas while ensuring market feasibility. They integrate artistic vision with commercial objectives, optimizing brand resonance and maximizing financial returns.
Bibliography
AMED, I. (2022) The state of fashion 2023: Holding onto growth as global clouds gather, McKinsey & Company. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion (Accessed: 23 October 2023).
Graver, K. (2022) 8 tips to help manage a business in Uncertain Economic Times, Business Plan Writers & Startup Consultants. Available at: https://startgrowimprove.com/manage-a-business/#:~:text=Offer%20your%20existing%20customers%20incentives,and%20services%20over%20the%20competition. (Accessed: 23 October 2023).
Gulati , R., Nohria, N. and Wohlgezogen, F. (2014) Roaring out of recession, Harvard Business Review. Available at: https://hbr.org/2010/03/roaring-out-of-recession (Accessed: 23 October 2023).
Kiron, M.I. and Mazharul Islam KironFounder & Editor of Textile Learner. He is a Textile Consultant (2023) Key sectors of Fashion Industry, Textile Learner. Available at: https://textilelearner.net/key-sectors-of-fashion-industry/ (Accessed: 23 October 2023).
Smith, P. (no date) Topic: Apparel market worldwide, Statista. Available at: https://www.statista.com/topics/5091/apparel-market-worldwide/#topicOverview (Accessed: 23 October 2023).