Profit
Profit, being typically defined as ‘the money you have left after paying for business expenses’ (Xero.com, n.d) is obviously one of the main drivers for most businesses. However, a business’s success doesn’t solely depend on finance, and other factors such as community and well being contribute into how well a business performs. The ‘profit’ pillar studies business performance throughout the entire fashion industry. The revenue of the global apparel market was calculated to amount to 1.5 trillion U.S. dollars in 2021 and was predicted to increase to approximately 2 trillion dollars by 2026. The apparel market is dominated by the biggest companies. For example, Nike had the highest brand value of any apparel brand in 2021, at roughly 84 billion dollars. LVMH is another company that consistently placed highly. (Smith, 2022). Sportswear brand, Nike is currently the highest earning brand in the fashion industry, reportingly earing $47,149 billiion. Nike is followed by luxury brands such as Louis Vuitton, Hermes and Gucci (Fashionunited.com, n.d). According to fashion accessories industry statistics, the global accessories market is projected to reach £375.49 billion in 2022. The largest fashion accessory market in 2022 is China with an estimated £76.5 billion in revenue (fashiondiscounts.com). Currently, womenswear is the largest category of clothing, as it is worth more than 600 billion dollars, and menswear is worth around 400 billion dollars.
In order to remain competitive in uncertain economic times, businesses must place more emphisis on inside sales, to their current customers. (Clausen, 2020) By reaching out to current customers will create a stronger relationship between the consumer and the business itself. It may create more of an incline for the consumer to want to purchase from the company again. Brands should also consider using their social media during uncertain economic times to commicate with their current customers. Social media enables seemingly unrelated people around the world to organize around common interests to bring about social change. It allows people to have a public dialogue directly with companies and hold them accountable for their actions. (Peterson, 2015) Another key action to consider throughout uncertain economic times, would be to focus on customer’s behaviour. You must achknowledge that customer behaviour is going to change as a result of the changing environment, and use data to anticipate what you believe your customer will be looking to do. (Clausen, 2020). Therefore, brands must incorporate fashion forecasting and trend predictions during econmic times as it is likely that throughout the period of economic crisis, people’s taste will change and there will be different trends due to social media. To bridge the gap between creativity and commerce, collaberations are the most effective way to interweave the two. Today’s most obvious examples of art and business overlap admirably, but they also thrive because of an uncomplicated fit between the audience for the brand and the artwork. Burberry and British music groups get mutual leverage through a shared sense of national style and sexy chic. Fashion labels from Cos to Cartier sponsor contemporary artists and art events because they all tap into a certain demographic’s sense of culture and credibility. (Ahmed, 2013)
References:
Ahmed, A (2013) Bridging the gap between Art and Business, Available at: bridging-gap-art-business (Accessed 19th October 2022)
Clausen, E (2020) Marketing Rules To Follow During Uncertain Economic Times, Available at marketing-rules-to-follow-during-uncertain-economic-times (Accessed 18th October 2022)
Peterson, D (2015) Social Media as a Tool for Social Change, Available at: encyclopedia-chapter (Accessed 18th October 2022)
Smith, P (2022) Global Apparel market – Statistics and Facts, Available at: apparel-market-worldwide (Accessed 18th October 2022)
Xero.com (n.d) What is profit? Available at: https://www.xero.com/uk/glossary/profit/ (Accessed 18th October 2022)
Fashiondiscounts.co.uk (2022) The most important fashion industry statistics in 2022, Available at: fashion-industry-statistics (Accessed 18th October 2022)