Profit
Profit is one of the four pillars that ensuring a balance between buying and selling in the fashion marketing. In other words, profit is the difference between revenue and cost which means profit is the most significant indicator for a profit oriented company. However, for a selection of companies, earning money are not the sole purpose. Some hidden factors like brand awareness, industry reputation are also worth bringing to the company’ s attention.
As the epidemic rages on, many businesses have been hit hard. In the fashion industry, brands and retailers are putting pressure on foundries, leading to an economic downturn as lower wages for workers at the bottom make it difficult to support basic living (Roberts, 2021). With the value of the fashion industry destroyed by 73% by 2020, leaders need to develop new strategies to deal with this disaster, and digital is seen as the key to recovery ( Fraser, 2020).
Social media as a tool to spread amount of time sensitive information has caught brands’ attention. In the traditional media era, people received fashion information through newspapers, TV or radio, which was very outdated. Nowadays, through various social media, people can not only learn about current fashion trends and factors from the annual fashion collections, but also break away to find different styles ( Peterson, 2015).
For another revival of the fashion market, the second-hand market is also an option. Although the logistics of recycling and cleaning are still a problem for retailers, once economies of scale are created, this could become a new profit model. In the US alone, the secondhand fashion market could grow up to 20 percent between 2020 and 2025 to reach $67 billion in size (BOF insights, 2022).
To conclude, the fashion market is still a bit blocked for various reasons, but the leaders of the fashion industry are sure to find a breakthrough and the future of the fashion industry is still bright.
Reference List
Chen, Cathaleen. “Can Fashion Resale Ever Be a Profitable Business?” The Business of Fashion, The Business of Fashion, 4 Apr. 2022, https://www.businessoffashion.com/articles/retail/can-fashion-resale-ever-be-a-profitable-business/.
Fraser, Kristopher. “McKinsey and Bof Find 90 Percent Profit Decline for the Fashion Industry.” FashionUnited, FashionUnited, 2 Dec. 2020, https://fashionunited.com/news/business/mckinsey-and-bof-find-90-percent-profit-decline-for-the-fashion-industry/2020120236835.
Peterson, Domenica. University of the Arts London Weblogin, 2015, https://www-bloomsburyfashioncentral-com.arts.idm.oclc.org/encyclopedia-chapter?docid=b-9781501312250&tocid=b-9781501312250-chapter4&pdfid=9781501312250.ch-004.pdf.
Roberts-Islam, Brooke. “The State of Fashion Report-Brands Prioritizing Profits over Ethical Supply Chains.” Forbes, Forbes Magazine, 22 Jan. 2021, https://www.forbes.com/sites/brookerobertsislam/2021/01/22/the-state-of-fashion-brands-prioritizing-profits-over-ethical-supply-chains/?sh=48a0cfd822c3.