Economy is more than just money and finances, it is series of system that moves around, selling good and service to insure we all can live, work and prospered.
In fashion industry, it produces and provides access to high-quality, affordable clothing. In a new textiles’ economy, clients have access to the clothes that they need. It captures the full value of clothing during and after use. In a new textiles economy clothes are used more often, which allows their value to be captured fully. Once clothes cannot be used anymore, recycling them into new clothes allows the value of the materials to be captured at different levels. To be able to capture the value of all materials are no longer worn, it is important to ensure that design aligns with recycling processes that are available today.
It reflects the cost of environmental and societal of materials in the price of products. Companies achieves fashion that does not pollution the earth, then that is economy of fashion. (MacArthur,2017)
Globally, 1.3 trillion clothing industry employs more than 300 million people along the value chain: the production of cotton alone accounts for almost 7% of all employment in some low-income countries. By moving to circular system, the industry can unlock a 560 billion USD economic opportunity. Realising the opportunity requires new collaboration across the value chain, such as production, marketing, and after sale care to keep the materials in use.
As the average quality and durability of clothing on the market increases, so will the opportunity of capturing its value through new business models. Clothing resale is already widely adopted across the world. If clothes are increasingly made to last, introducing attractive resale models suited to a wider customer base locally could significantly increase clothing utilisation. To achieve this, innovative resale models, partnerships, and the harnessing of digital technology are all required.
Economy is also paying employees fair amounts of money, companies to show leadership by embedding a living wage in line with benchmark throughout their supply chain and demanding the same from governments. Governments ensure that an increase in wages for workers is not taken by the powerful. (Gould,2014)
We live in a capitalist society whereby the concept of profit is rooted at the centre of most fashion companies. Profit can be defined as capital that an organisation acquires after the cost of selling goods and services are deducted. Fast fashion plays a considerable role in the idea of profitability; inexpensive clothing are being mass produced at the expense of poorly worked and paid factory workers, as a result, businesses are able to break-even quicker as the overall cost of producing one garment continues to stay at an unethically low level.
Covid-19 is a good example of when times were uncertain, it was a time in which many brands had to close physical stores leading to a rise in unemployment and instability. Most brands also experienced a large impact on the supply chain and demand. Three years on, we can analyse what measures brands took in order to remain relevant. The use of tech and e-commerce are major ways in which brands can stay competitive. One key emerging technology that played a large role in fashion’s recovery was Artificial Intelligence. By generating a substantial understanding of customer data through this technology, brands can provide unique experiences in which the focus is on the individual customer.
Fashion is an art; designers express their creativity through haute couture in which many feature in art museums. However, there needs to be a gap between creativity and commerce. This is done using Ready-to-Wear collections and Haute Couture lines. Haute Couture may be garments that seem less wearable to the average person, and it is also known as ‘high fashion’. Vogue describes Haute Couture as “walking pieces of art”. Whereas Ready-to-Wear provides a more realistic view of fashion and is viewed to be more wearable to consumers. The gap between creativity and commerce is crucial as it is common that ready-to-wear lines see a larger return on investment in comparison to couture collections. On the other hand, it is the couture lines that evoke attraction and exposure internationally.
The profit is related to the economy in the fashion industry. Especially the capitalism is the largest part, including financial, human and planetary, it will produce goods and services to people when they spend money. In 2022, according to the Fashion United that there are 3.384.1 million labors, like the value to 3 trillion dollars, accounting to 2% of the world’s Gross Domestic Product (GDP). And the Joint Economic Committee of United States show a survey in 2019, consumer spent nearly 380 billion on their clothes and footwear in the US. On the basic of statistics, 3 trillion textile and garment enterprises entering the market every day, and the rapid growth. (FASHINNOVATON, 2022) therefore, fashion goods become more and more popular, at the same time, it is a good way to improve the speed of the fashion economy.
The fashion industry involves the design, manufacture, production, marketing, retailing, advertisement, and promotion. The first key sector is Textile Design and Production, most of fashions are made by textiles. However, cotton and fiber are used in high rates, causing great harm to the environment. So, lots of people focus on find some materials in sustainability that it is a hot topic in the fashion industry. The fashion design and manufacturing are a second key sector, they find the popular trend of fashion and according to the consumer preference to design fashion products. Incorporating trend-setting styles into marketable clothing for the average consumer. the third Key Factor of Fashion Industry Retailing, promotion, and merchandising apparel. The aim of marketing is from the initial selection of the design to be produced to the presentation of the product to retail customers, the goal is to maximize the company’s sales and profitability. The main work with retailing takes place at the wholesale and retail levels. Companies that do not sell their products at retail must place them in the hands of retailers, such as boutiques, department stores and online sellers, at wholesale prices. And the last sector is media, helping to market and promote fashion products better, and presenting them as visuals in the form of advertisements. (BFashion, no year)
The first thing that loyal customers are crucial to building connections, because the whole industry has become more competitive, and brands are competing for smaller benefits. Therefore, perform everything to make current customers happy and thank them for their continued purchase of the company products. It can provide a good buying experience and impression for the customer. (horizonmarketing-co, 2022) Also, it is also important to constantly seek customer feedback and make changes, and there are numerous studies that show that it is more expensive to acquire new customers than to nurture current relationships. (Clausen, 2020) So, putting more effort into loyal customers saves money and allows you to better upgrade your brand and increase sales.
Business will bring art to the audience, which is the essential bridge. Starting with a dialogue, the designer can chat with the businessman as a way of getting to know the work better or finding some common ground. There is a need for trust between a good artist and a good business, both to protect their image strongly and to be careful about their image in order to accept the potential risks on both sides and to make something truly impressive happen. (Ahmed, 2013)
Sources
Ahmed. A. Bridging the gap between art and business. [online]. (Last updated 16 October 2013). Available at: https://www.theguardian.com/media-network/media-network-blog/2013/oct/16/bridging-gap-art-business [Accessed 20 October 2022]
Fashinnovation. (2022). FASHION INDUSTRY STATISTICS: THE 4TH BIGGEST SECTOR IS WAY MORE THAN JUST ABOUT CLOTHING. [online]. (Last updated 18 February 2022). Available at: https://fashinnovation.nyc/fashion-industry-statistics/ [Accessed 20 October 2022]
Fashion is responsible for no less that 2% of the worlds GDP (Vilaça, 2021), being one of the most influential industries in global economy. Seeing that, it is no surprise that “profit” is one of the pillars that the UNEP proposed as the mainstays of sustainability. This pillar is often interpreted as the careful, respectful and ameliorative management of capital and contributors within a business, but is it only that?
nmode.ca (n.d.)
In an economy that is solely based in capitalism and its money retrieving, spending and accumulating ethos, of course the capital meaning is an essential part. Fashion, as one of the main contributors to this concept of market, is responsible for many of the consequences it has on our environment and lives. The process of fashion production is divided into sectors; textile design and production, fashion design and manufacturing, fashion retailing, marketing and merchandising, and media and marketing (bfashionacademy, 2021)(Fig.1). It is frequent for fashion houses and labels to outsource some of the sectors, creating an uncertainty about the value of the garment, and therefore creating a big difference between its cost and selling price. Margins between 65 and 70% (Hethorn and Ulasewicz, 2015) are found in almost every sale. This price gap is not really felt in the first world, but is a major agent for the economic injustice in some of the second and third world countries.
Hence, the outsourcing of these sectors are common equally in the fast-fashion and luxury fashion market, with them both using the same manufacturers and materials (Corner, 2016). It is a very discreet fact, but for the consumer this means that the promise of higher quality and sustainability is not true, and without that advantage, why are those labels still considered “better” or “luxury”?
This explains why the perception of fashion as any other purchase is wrong, as a very influential artistic and self expressive matter takes part on it. The discussion of whether fashion is an art or a craft has been going for a very long time (Corner, 2016), and it is thanks to designers such as Yohji Yamamoto, Elsa Schiaparelli or Mark Duchamp that we have found a bridge between both (English, 2018). These designers collaborated with some of the best and most avant-garde artists (Fig. 2) to create a fashion that not only consists in clothes, but also in sensations, emotions and imagination. And that is also part of our “profit” pillar.
Kaya, O. (1949) ”Elsa Schiaparelli dressed as a raddish” (right) and her collaboration with Dalí for her ”Lobster Dress”
Profit is creating something new, it is learning and teaching and it is appreciating what has been done. Profit doesn’t only mean Company shares increasing their value, it also means innovation, sustainability, growth, beauty and art. And also does fashion design.
SOURCES:
bfashionacademy. (2021). What is Fashion Industry and it’s key factors of Fashion Industry? [online] Available at: https://bfashionacademy.com/key-sectors-of-fashion-industry/.
Corner, F. (2016). Why fashion matters. London: Thames & Hudson.
English, B. (2018). CULTURAL HISTORY OF FASHION IN THE 20TH AND 21ST CENTURIES : from catwalk to sidewalk. bloomsbury.
Hethorn, J. and Ulasewicz, C. (2015). Sustainable fashion : what’s next? : a conversation about issues, practices and possibilities. New York: Bloomsbury, Fairchild Books, An Imprint Of Bloomsbury Publishing Inc.
Kaya, O. (1949). Elsa Schiaparelli dressed as a Radish. Available at: https://www.researchgate.net/figure/a-Elsa-Schiaparelli-Surrealism-b-Salvador-Dali-Elsa-Schiaparelli-a-Left-Womans-Dress_fig1_352555193 [Accessed 20 Oct. 2022].
mmode.ca. (n.d.). Montreal and Québec Fashion Designers and Businesses | mmode. [online] Available at: https://mmode.ca/en/industry/players/ [Accessed 23 Oct. 2022].
Vilaça, J. (2021). Fashion Industry Statistics: The 4th Biggest Sector Is More Than Clothing. [online] Fashinnovation. Available at: https://fashinnovation.nyc/fashion-industry-statistics/.
The fashion industry has created new business models and cultural values from the combination of creativity and labour and the association of intellectual property (Popović,2017). The fashion factory in today’s capitalist society is in search of a balance between supply and demand. Many fashion items have increased their prices to increase demand. To illustrate, a small Chanel Classic now retails for £6,520, compared to £4,627 in January 2021 and £3,786 in 2019 (Dazed, 2021). Since the epidemic happened, luxury shops had to close for a while. Therefore, all luxury bags need to be kept in line with inflation to maintain a balance between the cost of labour and materials and the profit gained (Ni, 2021).Many brands have a large number of consumers who pay for them even if they increase their prices significantly. LVMH enjoys growing global revenues, reaching over 53 billion euros in 2019. in 2021, the group’s revenues grew by around 44%, eventually reaching 64.2 billion euros this year (Sabanoglu, 2022).
The UK fashion industry is expected to reach nearly £6.1 billion in 2022 (Fashion United, n.d.). The number of garments purchased in the EU has increased by 40% over the decades due to falling prices and increased availability. Global per capital textile production grew to 13 kg (Peter; Sandin; Spak, 2019). However, the increased consumption of textiles has also had a negative impact. According to data, textile treatment and dyeing accounts for approximately 20% of global water waste. It is responsible for approximately 7% of the loss of local groundwater and drinking water (Niinimäki; Peters; Dahlbo; Perry; Rissanen; Gwilt, 2020).
According to statista July 2022 analysis, there are 5 billion internet users worldwide, representing 63.1% of the world’s population, 59% of which are social media users. Social media is not only a tool to quickly deliver information, but also to expose problems in various industries. A reputable fashion brand company can gain the trust of consumers. For example, the company cares for its employees even in difficult economic times. A company in India would use child labour to make a profit and these children were mercilessly abused (Haryana, 2015). In comparison, John Lewis offers a range of benefits and perks to its employees (Dunne, 2017). When customers gather information and send it to social media, there will be a large number of supporters commenting and praising the company for the good treatment, not only creating a good image of the brand, but also gaining a lot of trust and followers from consumers
Art is rich in stories and meanings, and has always inspired fashion. To instance, Gentle Monster took a year of research to create model called “The Giant”. Designed to express humanity and emotion, the model The Giant communicates with consumers about human relationships and visions of the future of humanity (Designboom, 2021). The Giant is a contemporary art project that will appeal to a younger audience by imagining the future. Fashion is more than just fashion, it is the outworking of culture and awareness. People appreciate art and love fashion, and all the beauty presented is an expression of the creator’s ideas.
References
Popović, J. (2017). What defines the value in the fashion industry? [online] Medium. Available at: https://medium.com/@janja.popovic/what-defines-the-value-in-the-fashion-industry-52764da97f7c.
Peters, G.M., Sandin, G. and Spak, B. (2019). Environmental Prospects for Mixed Textile Recycling in Sweden. ACS Sustainable Chemistry & Engineering, 7(13), pp.11682–11690. doi:10.1021/acssuschemeng.9b01742.
Niinimäki, K., Peters, G., Dahlbo, H., Perry, P., Rissanen, T. and Gwilt, A. (2020). The environmental price of fast fashion. Nature Reviews Earth & Environment, [online] 1(4), pp.189–200. doi:10.1038/s43017-020-0039-9.
Dazed (2021). Chanel hikes its prices for the fourth time since the pandemic started. [online] Dazed. Available at:https://www.dazeddigital.com/fashion/article/54724/1/chanel-price-increase-handbags-pandemic-classic-flap-birkin-resell-market.
Ni, Y. (2021). The Frontiers of Society. Science and Technology, [online] 3(3), pp.78–82. doi:10.25236/FSST.2021.030314.
fashionunited.uk. (n.d.). UK fashion industry statistics. [online] Available at: https://fashionunited.uk/uk-fashion-industry-statistics.
Haryana, H. (2015). Fashion Industry: Labour behind the Labour. [online] Volume 2 (1&2), pp. 54-59. http://scientificresearchjournal.com/wp-content/uploads/2015/05/Home-Science-Vol-2_A-54-59-Full-Paper.pdf.
Dunne, S. (2017). Companies Who Take Great Care of Their Employees. [online] Bizimply. Available at: https://www.bizimply.com/blog/6-companies-take-great-care-employees/.
Statista Research Department (2022). Global Digital Population 2021. [online] Statista. Available at: https://www.statista.com/statistics/617136/digital-population-worldwide/.
Sabanoglu, T. (2022). Total revenue of the LVMH Group worldwide 2019. [online] Statista. Available at: https://www.statista.com/statistics/245852/total-revenue-of-the-lvmh-group-worldwide/.
designboom | architecture & design magazine. (2021). GENTLE MONSTER discusses the giant, a 2-meter-high uncanny face robot. [online] Available at: https://www.designboom.com/technology/gentle-monster-interview-the-giant-face-robot-11-18-2021/.
Profit by definition (according to Cambridge Dictionary, 2019) is “money that is earned in trade or business after paying the costs of producing and selling goods and services”.
According to Fashion United, the industry has a labour 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 Joint Economic Committee of The United States released a survey in 2019 affirming that, only in the US, consumers spent nearly $380 billion on apparel and footwear. The industry, which encompasses everything from textile and apparel brands to wholesalers, importers and retailers, employs more than 1.8 million people in the country. Its numbers have only grown and the post-pandemic scenario is optimistic. The fashion industry continues to have positive growth, especially in emerging markets within the Western, Asian, and European regions. Regarding the Asian market exclusively, it was forecast to have a 38% share of global apparel demand in the past year (Vilaça, 2021).
A brand can remain competitive in uncertain economic times by using social media as a tool to appear to the masses and stay up to date with technology and the younger generations. This is because “Social media has transformed the way we campaign as an organisation but also the way that people around the world can connect and unite behind a cause. Hundreds of thousands of people can come together and take action instantly, news can be shared faster than ever and, as an organisation, we are able to mobilise, inspire, and talk to our supporters like never before”(Hethorn and Ulasewicz, 2015). For example, when the Rana Plaza collapsed; killing at least 1,132 and injuring more than 2,500 people (International Labour Organization, 2017); the #WhoMadeMyClothes Twitter campaign was launched this is an annual social media movement that emerged after the collapse of the Rana Plaza, a building in Bangladesh that housed five garment factories, in April 2013. The global campaign serves as a remembrance day for the factory victims. It gives social media users an outlet to address ethical concerns towards retail apparel companies that were buyers of the Rana Plaza factories (Kim, 2020).
“Being good in business is the most fascinating kind of art” Andy Warhol stated, having famously spent much of his career bending the American consumerist system to work to his artistic advantage. Both an artist and a businessman, Warhol blurred the lines between art and commerce. Warhol’s success proves that the marriage of art and business is a savvy move that, perhaps, more of those in the business world should be considering (Meaning Conference, 2018).
UK fashion industry statistics (fashionunited.uk, n.d.)
References:
Cambridge Dictionary (2019). PROFIT | meaning in the Cambridge English Dictionary. [online] Cambridge.org. Available at: https://dictionary.cambridge.org/dictionary/english/profit.
Hethorn, J. and Ulasewicz, C. (2015). Sustainable fashion : what’s next? : a conversation about issues, practices and possibilities. New York: Bloomsbury, Fairchild Books, An Imprint Of Bloomsbury Publishing Inc.
International Labour Organization (2017). The Rana Plaza Accident and its aftermath. [online] International Labour Organization. Available at: https://www.ilo.org/global/topics/geip/WCMS_614394/lang–en/index.htm.
Kim, C. (2020). Social Media Activism’s Impact on Global Retailers. escholarship.org. [online] Available at: https://escholarship.org/uc/item/6gg6j13r.
Meaning Conference. (2018). Bridging the gap between art and business. [online] Available at: https://meaningconference.co.uk/blog/bridging-gap-between-art-business.
Vilaça, J. (2021). Fashion Industry Statistics: The 4th Biggest Sector Is More Than Clothing. [online] Fashinnovation. Available at: https://fashinnovation.nyc/fashion-industry-statistics/.u
Profit, according to the Cambridge dictionary, is “the good result or advantage that can be achieved by a particular action of activity.” In terms of fashion business, profit concerts money that is earned, as fashion is a consumerist industry, which is essentially focused on striving for financial success. This is because the current state of society is a capitalist economy, an “economic system that which uses ‘capital’: financial, human, and planetary (land) resources to produce goods and services to supply the demand of consumers.” (Buchan, 2022). However, in the future, the success of businesses should no longer be measured solely by traditional financial metrics, but by also taking into account the planet and the well-being of employees.
What is the size of the fashion industry?
The size fashion industry is monumental, and if it were to be “ranked alongside individual countries’ GDP the global fashion industry would represent the seventh-largest economy in the world,” (McKinsey, 2017). This shows the vast extent of the fashion and textile industry is a significant driver of the global economy, and is worth £2tn ($1.5tn) and, in the UK alone, brings more than £30bn a year in revenues.
The graph below shows the vast amount of financial income from some of the biggest brands, showing the large extent of money just one fashion company can produce in a year.
How are the various sectors of the industry performing?
All industries can be divided into four sectors; primary, secondary, tertiary and quaternary. In the fashion industry, the primary sector is concerned with the extraction of raw materials and natural resources, the secondary sector concerns design and production, the tertiary sector includes any services for other people post-production, such as retail and marketing, and the final sector, the quaternary sector consists of research and development.
The primary and secondary sectors of fashion are currently focused on the rapid extraction and accelerated production of clothing, to keep up with the speed of fast fashion cycles. Although fast fashion has a huge economic impact, as it is “responsible for the recent growth (on average 4.78%) and future growth (5.91% in the next three years) of the apparel industry.” (Assoune, 2021)
Currently, the tertiary sector of the fashion industry, retail, is making major changes and the surge of “social shopping” and e-commerce has begun. This is seen as in the State of Fashion 2022 it was found that “in the US alone, annual sales through social commerce are expected to surge from approximately $37 billion in 2021 to $56 billion in 2023” (McKinsey, 2021)
The research and development sector of the fashion industry is making unbelievable advantages concerning sustainability, triggered by the sense of urgency to make changes seen at COP26. One example of these scientific findings is the Adidas X Stella McCartney bio fabric tennis dress created with vegan spider-style silk from Bolt Threads which is fully biodegradable. These advances in fashion technology are why “60% of fashion executives have already invested or plan to invest in closed-loop recycling next year” (McKinsey, 2022)
How can a brand remain competitive in uncertain economic times?
Fashion brands can remain competitive through the effective use of social media platforms as successful marketing to capture their consumers’ attention.
With social media, the speed of information is now immediate. Consumers can instantly watch live streams, listen to commentary and get updates from recent shows and trends. This increased exposure allows brands to create more trend cycles per year and sell more clothing, increasing profit.
As previously mentioned the primary consumer base for fashion concerns Gen-Z and millennials, these consumer groups are focused on ethical fashion, so companies can use their social media platforms to promote sustainibility on their platform to attract these consumers. This effect is seen in a 2011 Pew survey it was found that millennials are more likely to pay more money for “responsibly made products.” (Pew, 2011), resulting in more profit.
How do creative directors bridge the gap between creativity and commerce?
Fashion can be seen as an art form, and as an industry that is constantly undergoing artification. A prominent bridge between creativity and commerce is runway shows. Runway shows have changed from pure garment presentations to immersive art installations that show pure creativity. This is seen in Balenciaga’s Spring 2023 Ready-to-Wear collection runway which included a 4D experience including models walking through mud, unsettling music and all guests being sprayed with a bad scent. It can be interpreted that the “post-apocalyptic show” (Phelps, 2022) was to display themes concerning “Rising inequality, the return of fascism, the very real threat of nuclear war” and “to shake us awake”. (Phelps, 2022). This displays that runways are not only to display clothing for commerce but to be controversial and raise awareness for current world circumstances, which is commonly seen in the art world.
Fashion can also be linked to music, many musical artists have clothing brands to help create an atmosphere for their music. This is seen at Loyle Carner’s pop-up shop in London on the 22nd of October 2022, where exclusive merchandise was being sold and he was singing to raise hype in both the music and the art world (add my images when doing portfolio).
Hethorn, J., & Ulasewicz, C. (Eds.). (2015). Chapter 4-social media as a tool for social change Pages: 76–99 Kaplan, A. & Haenlein, M. (2010). Users of the world, unite! The challenges and opportunities of Social Media. Business Horizons
Hethorn, J., & Ulasewicz, C. (Eds.). (2015). Chapter 9-Economic impact of textile and clothing recycling Pages: 204–230
Rocamora, A. & Entwistle, J. (2006) “The Field of Fashion Materialised: A Study of London Fashion Week” in Sociology Volume 40(4): 735–751
Traditionally, in a business sense, profit refers to the difference between total revenues and total costs -however, this differs from business to business as some businesses are not solely focused on profit making as a means to justify their success.
The fashion industry is a mass produced, saturated, and dynamic industry worth $1.5 trillion in 2021 with demand being very high (Smith, 2022). It is an industry that is made up of various sectors including textile design and production, fashion design and manufacturing, fashion retailing and merchandising, media and marketing (Fashion Academy, 2021). The pandemic in 2020 caused these disruptions to these sectors and forced fashion brands to alter the traditional cycle of production, manufacturing, distribution and retail. Many brick and mortar stores have seen a massive decline in sales due to their lack of an online presence and closure periods (fig.1) leading to their extinction such as Debenhams and Topshop. Although many consumers started to shop online, their demand was not caught up with some online retailers as they struggled to “keep pace”. The e-commerce sector risked lots of disruptions due to reduced staff, social distancing, site cleaning and much more (Baum et al, 2020) leading to consumers having to wait for long periods of time to receive their orders. Many fast fashion brands like Missguided and Pretty Little Thing experienced a ‘boom’ during the pandemic due to the rapid rise of microtrends on TikTok which consumers wanted to participate in.
Figure 1 -graph predicting companies that may face monetary challenges depending on closure periods
During uncertain times, such as the Covid-19 pandemic or current recession we are experiencing, it may be very difficult for brands to stay afloat and remain competitive especially when customer confidence is low. In order for fashion to stay competitive they may have to utilise social media to their advantage such as blogging. Blogging has become very popular in recent years and many businesses have started to notice the significance of blogging such as Vogue Magazine; fashion brands can seep many rewards when working with a blogger such as engagement, reach, and even a potential increase in seales (Mitterfellner, 2019).
For many people, bridging the gap between art and commerce can be seen as a challenge, however, in the fashion world it should not be seen as much of a challenge especially since fashion is art in a sense. When the two concepts (arts and commerce) combine together, many opportunities open as collaborators and businesses come together to create fashion products.
REFERENCES
Colleen Baum, Pamela Brown, Emily Gerstell, and Althea Peng, 2020 -‘Perspectives for North America’s Fashion industry in a time of crisis’
In today’s global economy the fashion industry is widely considered to be one of the wealthiest industries across the globe. In 2021 the industry made a $1.55 trillion profit and is expected to reach $1.7 trillion by the end of 2022 (Radonic, 2022).
While there are countless companies that circulate the industry several brands evidently dominate the market. According to market research the company LVMH currently stands as one of the biggest establishments within the industry. LVMH is home to countless luxury brands such as Louis Vuitton and Dior. The brand has a market value of $194 billion amongst its brands (Coyne, 2020).
The manufacturing sector of the fashion industry employs 91 thousand people as of 2021 (Smith, 2022). Apparel manufacturing is essential to keep the fashion industry running however it has major flaws that are evoking discussion. Labouring issues within the industry has grown exponentially within past years. In many developing economies employees have poor working conditions, are underpaid, overworked and many are underage. As these issues has become more prevalent and have created issues for brands as many factories in these economies are unregulated. Fast fashion brand Shien is infamous regarding these issues. During an investigation of the corporation, manufacturing employees were found to be paid only 4 cents per garment while working 18-hour shifts (Marthe de Ferrer, 2022).
As the economy becomes increasingly uncertain, brands must find ways to remain relevant. Marketing remains a key factor to economic survival. All businesses goal is to make profit however they must first attract consumers. In recent years online shopping has seen a spike. 27% of consumers do almost all their shopping through online sources (Trevelino, 2021). Ecommerce within the fashion industry is estimated to reach a $672.71 billion value by 2023 (Orendorff and Dopson, 2022). Studies show that 71% of consumers discover brands through digital marketing (Wylie, 2018). Digital marketing is imperative to connect consumers with brands.
It has become increasingly hard for brands to remain creative when gaining profit has become the focus. Chanel is an example of this. While previous creative director Karl Lagerfeld always strived to stay true to the brands roots new creative director Virginie Viard has taken a different approach. New collections have received many critiques from consumers that the brand is focusing more on appealing to the public eye. The quality that the brand provides has not compensated for this moreover. In 2008 Chanel stopped using gold headwear on bags but prices have reached an all-time high. It is inevitable that brands will have to reprioritize their goals in the uncertain economic times.
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