Anna Stuermer

A business’s purpose refers to the ‘why’ behind the corporation. It clarifies a company’s core reason for existing and its resulting impact on the world (McKinsey, 2020). A company’s purpose, if authentic, demonstrates value. Brand philosophy involves critical consideration to how a business defines itself. This understanding of corporate identity, the basic character or ethos of the firm (Barnett et al., 2006, p. 33), is the blueprint for further brand decisions (Silva, 2020). Corporate identity is important because it determines how the organization presents itself to its stakeholders and responds to questions like “who are you?” or “what is the organization?” (Dowling, 2004, p. 21). A “company’s identity, and thus its core philosophy and values, can be communicated through mission and vision statements” (Yamauchi, 2001). The mission statement defines a brand’s purpose, objectives and how it plans to serve its audience, it is what makes the brand unique. The vision statement, on the other hand, is more “forward thinking” (Campbell and Tawaday, 1990; Yamauchi, 2001). It indicates the desired status of the company in the future. In addition to mission and vision, a company must summarize how the “benefit of the product or service will be delivered, experienced, and acquired,” in other words, the value proposition (CFI, 2022). As a whole, brand philosophy communicates the values of a brand to target groups such as consumers, shareholders, and employees, and therefore is of utmost importance. (Leuthesser and Kohli, 1997)  

Gen Z makes up 41% of the population (Poile, 2021). According to a 2021 report by social media platform Snapchat, Gen Z has a global spending power of $4.4 trillion. With a “purpose-driven approach to consumption,” Gen-Z consumers value authenticity over all else (Business of Fashion, 2020). It is therefore crucial for brands to communicate their purpose effectively to Gen Z. A joint study by the UN’s Development Programme and the University of Oxford found that 69% of teenagers believe climate change is an emergency. Thus, it is essential for brands to convey “clear and ambitious targets to combat the climate crisis” (Poile, 2021). Gen Z also cares deeply about diversity, with 75% considering themselves to be “inclusive.” For this reason, brands must say the right thing, but most importantly, take action (Poile, 2021). A primary mode of communication between brands and the tech sazzy Gen Z is social media. An example of evolution within the industry is the sharing economy (Marr, 2016). This is an economic model facilitated by a community-based online platform, based on sharing access to goods and services. 

Sources

Barnett, M.L., Jermier, J.M. and Lafferty, B.A. (2006) “Corporate reputation: The definitional landscape,” Corporate Reputation Review, 9(1), pp. 26–38. Available at: https://doi.org/10.1057/palgrave.crr.1550012. 

CFI Team (2022) Value proposition, Corporate Finance Institute. Available at: https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-proposition/ (Accessed: October 26, 2022). 

Dowling, G.R. (2004) “Corporate reputations: Should you compete on yours?,” California Management Review, 46(3), pp. 19–36. Available at: https://doi.org/10.2307/41166219. 

​​Leape, S. (2020) More than a mission statement: How the 5PS embed purpose to deliver value, McKinsey & Company. McKinsey & Company. Available at: https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/more-than-a-mission-statement-how-the-5ps-embed-purpose-to-deliver-value (Accessed: October 25, 2022). 

Marr, B. (2016) The sharing economy – what it is, examples, and how big data, platforms and algorithms fuel it, Forbes. Forbes Magazine. Available at: https://www.forbes.com/sites/bernardmarr/2016/10/21/the-sharing-economy-what-it-is-examples-and-how-big-data-platforms-and-algorithms-fuel/?sh=379e76557c5a (Accessed: October 27, 2022). 

Poile, M. (2021) Gen Z Priorities 2021, University of the Arts London weblogin. Available at: https://www-wgsn-com.arts.idm.oclc.org/insight/article/90391#page9 (Accessed: October 28, 2022). 

Silva, P. (2020) Why philosophy has much to do with brand-building (and what that looks like), Forbes. Forbes Magazine. Available at: https://www.forbes.com/sites/piasilva/2020/11/19/why-philosophy-has-much-to-do-with-brand-building-and-what-that-looks-like/?sh=20561c0071f9 (Accessed: October 26, 2022).

Team, B.F. (2021) How to communicate and connect with gen-z consumers, The Business of Fashion. The Business of Fashion. Available at: https://www.businessoffashion.com/articles/retail/afterpay-communicate-and-connect-with-gen-z-consumers/ (Accessed: October 25, 2022). 

Reisman, D. (1990) “Oxford and Cambridge,” Alfred Marshall’s Mission, pp. 38–59. Available at: https://doi.org/10.1007/978-1-349-11542-6_4. 

Yamauchi, K. (2001), “Corporate communication: a powerful tool for stating corporate missions”, Corporate Communications: An International Journal, Vol. 6 No. 3, pp. 131-6. Available at: 

Rather than asking ‘What is the future of fashion?’ it is perhaps more meaningful to ask, ‘What is the future fashion designer?’ With an industry that values profitability over all else, designers are challenged with a responsibility to merge the creative and business sides of fashion (Palomo-Lovinski et al, 2022). The ‘profit’ pillar digs deeper and questions preconceptions around the traditional metrics that measure success.  

There is a direct correlation between the rise of global capitalism and the transition from clothing handmade by dressmakers and tailors to mass-produced garments and retail outlets (Major & Steele, 2018). The fashion industry is one of the largest employers, with a labor force of 3,384.1 million, according to Fashion United. It is a “highly globalized industry, with clothing often designed in one country, manufactured in another, and sold in a third” (Major & Steele, 2018). The industry has an estimated global revenue of between 1.7 and 2.5 trillion dollars (Fashion United, 2022).  

The various sectors of the industry are interconnected whether they belong to the creative or commercial side. In 2020, the pandemic disrupted each sector from production and design down the chain to retailing and marketing. A report from the Business of Fashion and McKinsey & Company, explained, “As the coronavirus pandemic sent shockwaves around the world, the industry suffered its worst year on record with almost three-quarters of listed companies losing money. Consumer behavior shifted, and supply chains were disrupted” (McKinsey & Company, 2021). 

However, the report also provided insight into how brands remained competitive during an uncertain economic time like the pandemic. When discussing profitability, it is crucial to acknowledge that brand competition is a driving force behind business decisions. According to Mckinsey & Company, “many fashion companies have taken time during the crisis to reshape their business models, streamline their operations, and sharpen their customer propositions” (McKinsey & Company, 2021). The Cambridge Econometrics Sector profile highlighted that businesses implemented “additional resources for understanding risks and putting in place solutions. This may include actions to boost productivity, promote operational flexibility, optimize digital, and instill financial flexibility. Companies that can lead on these priorities and focus on executing their strategic agendas are likely to emerge from the current slowdown ahead of the pack” (LLEP, 2020).  

Back to the previous question of ‘What is the future fashion designer?’ “To garner optimal profits, designers influence their consumers’ social-psychological motivations and synthesize these with their mastery of aesthetics. However, rather than relying on these actions to create profit alone, future designers must focus on creating profit through higher purposes and values” (Palomo-Lovinski et al, 2022). Making clear the purpose and value of a creative endeavor, creative directors can use both creativity and commerce to reach one united goal.  

Sources  

Donaldson, A. (2016). The power of fashion | British Council. [online] Britishcouncil.org. Available at: https://www.britishcouncil.org/research-policy-insight/insight-articles/power-fashion. 

Fashion United (2022). Global Fashion Industry Statistics. [online] fashionunited.com. Available at: https://fashionunited.com/global-fashion-industry-statistics. 

Graziano, G. (2022). Creativity vs Business: why you need both in fashion. [online] GLAM OBSERVER. Available at: https://glamobserver.com/creativity-vs-business-why-you-need-both-in-fashion/ [Accessed 22 Oct. 2022]. 

Major, J.S. and Steele, V. (2018). Fashion industry. In: Encyclopædia Britannica. [online] Available at: https://www.britannica.com/art/fashion-industry. 

McKinsey & Company (2021). The State of Fashion 2022: In search of promise in perilous times | McKinsey. [online] McKinsey. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion. 

Palomo-Lovinski, N. and Faerm, S. (n.d.). 32 The future of the fashion designer: changing concepts of the designer and consumer relationship in the age of sustainable practice. [online] Available at: https://fashioninstitute.mmu.ac.uk/assets/uploads/2019/07/132-The-future-of-the-fashion-designer-changing-concepts-of-the-designer-and-consumer-relationship-in-the-age-of-sustainable-practice-Palomo-Lovinski-Noel.pdf [Accessed 22 Oct. 2022].  

Sector profile: Textiles and Fashion 1 Compiled on behalf of the LLEP by Cambridge Econometrics Sector profile: Textiles and Fashion in Leicester and Leicestershire Defining Textiles and Fashion Market and economic outlook Global market. (n.d.). [online] Available at: https://llep.org.uk/app/uploads/2021/09/Textiles-and-Fashion.pdf [Accessed 23 Oct. 2022]. 

Smith, P. (2022). Topic: Apparel Market Worldwide. [online] Statista. Available at: https://www.statista.com/topics/5091/apparel-market-worldwide/#topicHeader__wrapper. 

People are the focus of every organization. People ultimately make the decision of whether to purchase a given product, making them the main contributor to a business’s success. The people pillar deals with relationships within the management of the industry as well as between businesses and consumers.  

When choosing between brands, consumers typically support brands they resonate with. Gen Z is revolutionary in the sense that consumer behavior is intricately connected with socio-political values. Gen Z is defined as anyone born between 1996 and 2010 (Demock, 2019).  

Generations prior to 1996 had only experienced a fashion industry that targeted the dominant culture. Monocultural marketing historically was aimed at one certain demographic (Fitzsimmons et al, 2019). This occurrence influenced the industry for generations because the dominant demographic continued to “practice superiority to avoid vulnerability” (Caryn Franklin M.B.E, MSc). A study for the International Journal of Financial Research refers to Gen Z’s buying habits as “digital literate consumption” (Grigoreva et al, 2021). Mastering this highly digitalized world, Gen Z expects to access brand information across multiple media platforms and read reviews before purchasing (Grigoreva et al, 2021). Being the first generation with access to a larger global community, Gen Z embraces diversity and rejects the previous practices of monoculturalism.  

Inclusivity is increasingly becoming more critical to consumers, with 61% of Americans finding diversity in advertising important (Thompson, 2020). However, as brands scramble to alter their ad campaigns, superficiality, tone deafness, and cultural insensitivity can be seen. This is often due to a lack of diversity within the business team and a lack of authenticity (Thomspon 2020). ‘Diversity washing’ is the focus on representation at the expense of inclusion and equity. Nike is a brand that has not only responded to diversity in campaigns but also from within the organization. The company revealed its Black Community Commitment in 2020, focused on helping organizations dedicated to social justice, education innovation and economic opportunity for Black people. John Donahoe, Nike CEO, stated, “The Nike Inc. family can always do more but will never stop striving to role model how a diverse company acts. We will continue our focus on being more representative of our consumers while doing our part in the communities we serve” (Verry, 2022).  

Gen Z looks forward to co-creation with brands, participation in teams, and collaboration with managers; it expects innovation from its employers, leaders, and brands (Grigoreva et al, 2021). Authenticity and transparency are critical to a brand’s success. This generation is adept at accessing information readily off of the Internet and can therefore know whether a brand is living up to its promises. Diversity washing is not possible with a generation that can see through.  

Sources 

Dimock, M. (2019). Defining generations: Where Millennials End and Generation Z Begins. [online] Pew Research Center. Available at: https://www.pewresearch.org/fact-tank/2019/01/17/where-millennials-end-and-generation-z-begins/.  

Grigoreva, E.A., Garifova, L.F. and Polovkina, E.A., 2021. Consumer Behavior in the Information Economy: Generation Z. International Journal of Financial Research, 12(2), pp.164-171.   

Harvard Business Review. (2019). What Makes You ‘Multicultural’. [online] Available at: https://hbr.org/2019/12/what-makes-you-multicultural. 

Schneider, B. and Lee, D. (2022). BoF Insights | Gen-Z and Fashion in the Age of Realism. [online] The Business of Fashion. Available at: https://www.businessoffashion.com/reports/retail/gen-z-fashion-in-the-age-of-realism-bof-insights-social-media-report/. 

‌ Thompson, S. (2020). Data Shows Consumers Want Diversity In Marketing—Why Many Brands Struggle To Get It Right And How To Fix. [online] Forbes. Available at: https://www.forbes.com/sites/soniathompson/2020/02/05/data-shows-consumers-want-diversity-in-marketing-why-many-brands-struggle-to-get-it-right-and-how-to-fix/?sh=2a78e9f632f5 [Accessed 21 Oct. 2022]. 

‌ Verry, P. and Verry, P. (2022). How Nike Is Progressing With Its Diversity, Equity and Inclusion Commitments + Its Goals for 2025. [online] Footwear News. Available at: https://footwearnews.com/2022/business/athletic-outdoor/nike-diversity-equity-inclusion-2021-impact-report-1203262446/. 

Vogue Business (2021). Gen Z shopping trends uncovered. [online] Vogue Business. Available at: https://www.voguebusiness.com/consumers/gen-z-shopping-trends-uncovered-pay-pal. 

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Roughly 20 years ago, the conversation about climate crisis began and sparked increasing engagement in the topic of sustainable fashion. In this context, sustainability is defined in the Conde Nast Fashion Glossary as “a way of life in which human and natural systems co-exist in a balanced and non-destructive way that enables continuous prosperity and well-being for all.” (Condé Nast, 2020). When exploring the concept of sustainable fashion, it is crucial to think wholistically and consider the 4 pillars of sustainability: planet, people, profit, and purpose. What is the significance of the planet pillar? As a result of human actions such as burning fossil fuels, there are high concentrations of greenhouse gases (GHGs) in the atmosphere. Consequently, we face rising temperatures, extreme weather, rising sea levels, “loss of biodiversity and extinction of entire ecosystems” (Condé Nast, 2020). The United Nations announced in 2018 that we have 12 years before climate change becomes irreversible (Jonathan Watts, 2018). Furthermore, the UNs Intergovernmental Panel on Climate Change (IPCC) report in 2021 named this a ‘code red’ situation (United Nations, 2021). The planet and the fashion industry are linked in that “If the fashion industry has the power to influence trends, then it also has the power to play a positive role in protecting the planet” (Greenpeace, 2011). Sustainability in relation to fashion requires a complete reorganization of the economic structure of the industry. The current linear structure of ‘take, make, waste’ must be replaced with a circular economy (Circular Fashion, 2020). A circular economy consists of four main points: phase out substances of concern and microfiber release, increase clothing utilization, radically improve recycling, and make effective use of resources and move to renewable inputs. In 2015, the UN developed a set of 17 sustainable development goals (SDGs) for countries around the globe to complete by 2030. One SDG is ensuring availability and management of water and sanitation for all (United Nations, 2020). The production of one T-shirt requires 2,700 liters of water. In addition, due to dyeing, textile companies discharge millions of gallons of chemically infected water into waterways (The Conscious Challenge, 2019). Adopting a circular economy would ensure we reach this specific goal because phasing out substances of concern and microfiber release would decrease the amount of water used to produce clothing fibers and prevent water pollution. It is time for the fashion industry to be transparent and for consumers to consider whether their clothes bring dignity to the planet.  

Sources 

circular.fashion. (2020). circular.fashion. [online] Available at: https://circular.fashion/en/about/about-us.html. 

www.condenast.com. (2020). Condé Nast – Glossary. [online] Available at: https://www.condenast.com/glossary/climate-emergency. 

GreenPeace (2011). Greenpeace. [online] Greenpeace. Available at: https://www.greenpeace.org/international/act/detox/. 

United Nations (2021). IPCC report: ‘Code Red’ for Human Driven Global heating, Warns UN Chief. [online] UN News. Available at: https://news.un.org/en/story/2021/08/1097362. 

‌ United Nations (2022). The 17 Sustainable Development Goals. [online] United Nations. Available at: https://sdgs.un.org/goals. 

‌ The Conscious Challenge (2019). The Conscious Challenge. [online] The Conscious Challenge. Available at: https://www.theconsciouschallenge.org/ecologicalfootprintbibleoverview/water-clothing. 

Watts, J. (2018). We have 12 years to limit climate change catastrophe, warns UN. [online] the Guardian. Available at: https://www.theguardian.com/environment/2018/oct/08/global-warming-must-not-exceed-15c-warns-landmark-un-report. 

Acne Studios

Acne is an acronym of Ambition to create novel expressions. Acne Studios is a high-end Swedish brand, spreading Scandinavian style around the globe. In 1997, CO founder of Acne Studios, Jonny Johansson, stitched 100 pairs of raw denim jeans with red stitching and gave them to friends and family. From this, Acne Studios flourished from the mother brand Acne. Later, in New York City in 2012, Acne Studios opened its first flagship store. According to The Business of Fashion, Acne Studios currently generates over €200 million a year as of 2018.  

Who is Acne Studio’s target market? Being on the higher end of the price range, the brand is aimed at the middle to the upper class. A minimal and toned-down pallet combined with unique and abstract shapes attracts a chic client with a creative eye.  

When discussing the influence of a multi-million-dollar fashion brand like Acne, it is crucial to consider the brands’ contribution to the consumption of our planet’s natural resources. Acne Studios claims that its main responsibility is to “create desirable items that consumers value and can enjoy for a long time.” Acne developed a set of objectives that aim to direct the manufacturing sector of the brand towards a more sustainable future. The sustainability ambition is divided into key areas: products, suppliers, and operations. ‘Products’ refers to selecting high-quality materials to produce garments for long-term usage. In terms of ‘suppliers and operations,’ Acne Studios is a member of the organization Fair Wear Foundation (FWF). FWF’s role is to monitor and improve labor conditions at the factories where Acne products are made. It is important, however, to note that Acne Studios uses vague language in its mission statement and is far from providing full transparency. This could be improved if Acne included statistics to support any progress made.  

Acne Studios has estimated web sales of $25M-$50M. The brand competes with companies in the same price bracket like Eytys as well as brands that sell similar or complementary products like Eytys and H&M. Beyond the financial profit, what is the ‘why’ of the existence of Acne Studios? The Acne brand expects to communicate values such as high fashion, individuality and innovative style (Andersson & Robertson, 2008). 

Sources:  

The Business of Fashion. (n.d.). Jonny Johansson is part of the BoF 500. [online] Available at: https://www.businessoffashion.com/community/people/jonny-johansson. 

Highsnobiety. (n.d.). Acne Studios: What to Know About the Fashion Brand. [online] Available at: https://www.highsnobiety.com/tag/acne-studios/. 

Acne Studios. (2019). www.acnestudios.com. [online] Available at: https://www.acnestudios.com/uk/en/about/csr.html. 

‌ Andersson, H. and Robertson, F. (2008). Acne Jeans and Brand Associations : -A Study of the Coherency Between the Brand Identity and the Brand Image. undefined. [online] Available at: https://www.semanticscholar.org/paper/Acne-Jeans-and-Brand-Associations-%3A-A-Study-of-the-Andersson-Robertson/fd2e70d69829b6e8b3800f3aa3d2db21949e3a1d [Accessed 6 Oct. 2022]. 

Behance (n.d.). Acne Studios Ad Campaign. [online] Behance. Available at: https://www.behance.net/gallery/36725373/Acne-Studios-Ad-Campaign [Accessed 6 Oct. 2022]. 

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