25025077's blog

Author: Guanzhong Chen

  • Profit

    Profit is of vital importance in the fashion industry, as it determines whether a brand can survive in the long term. The fundamental motivation behind all the design, production and marketing efforts of a brand is to achieve considerable profits.

    The global fashion industry is one of the biggest of all economic sectors in the world. USD 1.84 trillion in 2025 (representing about 1.6% of world GDP). In addition, the fashion industry’s economic size is more than 430 million people currently employed in the fashion supply chain globally, or nearly 12% of the world’s entire labour force. Despite the market uncertainties, the industry is a growing one and is expected to continue to grow at 2.8% per year from 2025 until 2030.
    Fashion The industry’s sectors demonstrate mixed performance. Luxury is expected to represent most of the industry’s profit at 5% annual growth from 2019 to 2023, but only 2–4% as the demand slows in China and Europe (Business of Fashion, 2025). Midmarket and mass brands experience cost pressure and more careful consumers, despite regaining some profit through supply chain efficiencies (McKinsey & Company, The State of Fashion 2025). Fast fashion is popular for the reason of being price sensitive but also comes with sustainability issues and regulations (S&P Global, 2024). Resale and digital also become trends, implying a fundamental shift in consumer behaviour (McKinsey & Company, 2025).
    At times like these, when economies are turbulent, fashion companies need to enhance their competitiveness through rapid flexibility, digital strategy, and consumer credibility. Shifting, real-time supply chains and accurate forecasting will assist them to act quickly in volatile conditions and avoid any unnecessary production. Best of all: fast design-to-rack cycles and responsive inventory control (Li, Liu & Zhou, 2024; see Zara). Second, one is spending on e-commerce and artificial intelligence personalisation to provide a continuous experience even during less purchasing from stores (offline).
    The creative director was the liaison between creativity and commerce, as she or he translates aesthetic decisions and trends in terms of design to build stronger brand character and generate business. In collaboration with the marketing and merchandising director, she or he needs to make the creativity commercially acceptable. The balance between new designs and consumer expectations exhibited by Alessandro Michele at Gucci and Virgil Abloh at Louis Vuitton proved that the design can be about culture yet sustainable and profitable.

    References

    Business of Fashion (2025) The State of Fashion 2025. Available at: https://www.businessoffashion.com (Accessed: 25 October 2025).

    McKinsey & Company (2025) The State of Fashion 2025. Available at: https://www.mckinsey.com/industries/retail/our-insights/the-state-of-fashion (Accessed: 25 October 2025).

    S&P Global (2024) Industry Outlook 2024 – Apparel and Luxury Goods. Available at: https://www.spglobal.com (Accessed: 25 October 2025).

    Li, J., Liu, Y. and Zhou, H. (2024) Agile Supply Chain Strategies in the Global Fashion Market. Journal of Fashion Marketing and Management.

    Inditex (2024) Annual Report 2024. Available at: https://www.inditex.com (Accessed: 25 October 2025).

    FashionUnited (2025) Global Fashion Industry Statistics 2025. Available at: https://fashionunited.com/global-fashion-industry-statistics (Accessed: 25 October 2025).

  • Profit

    Profit is of vital importance in the fashion industry, as it determines whether a brand can survive in the long term. The fundamental motivation behind all the design, production and marketing efforts of a brand is to achieve considerable profits.

    The global fashion industry is one of the biggest of all economic sectors in the world. USD 1.84 trillion in 2025 (representing about 1.6% of world GDP). In addition, the fashion industry’s economic size is more than 430 million people currently employed in the fashion supply chain globally, or nearly 12% of the world’s entire labour force. Despite the market uncertainties, the industry is a growing one and is expected to continue to grow at 2.8% per year from 2025 until 2030.
    Fashion The industry’s sectors demonstrate mixed performance. Luxury is expected to represent most of the industry’s profit at 5% annual growth from 2019 to 2023, but only 2–4% as the demand slows in China and Europe (Business of Fashion, 2025). Midmarket and mass brands experience cost pressure and more careful consumers, despite regaining some profit through supply chain efficiencies (McKinsey & Company, The State of Fashion 2025). Fast fashion is popular for the reason of being price sensitive but also comes with sustainability issues and regulations (S&P Global, 2024). Resale and digital also become trends, implying a fundamental shift in consumer behaviour (McKinsey & Company, 2025).
    At times like these, when economies are turbulent, fashion companies need to enhance their competitiveness through rapid flexibility, digital strategy, and consumer credibility. Shifting, real-time supply chains and accurate forecasting will assist them to act quickly in volatile conditions and avoid any unnecessary production. Best of all: fast design-to-rack cycles and responsive inventory control (Li, Liu & Zhou, 2024; see Zara). Second, one is spending on e-commerce and artificial intelligence personalisation to provide a continuous experience even during less purchasing from stores (offline).
    The creative director was the liaison between creativity and commerce, as she or he translates aesthetic decisions and trends in terms of design to build stronger brand character and generate business. In collaboration with the marketing and merchandising director, she or he needs to make the creativity commercially acceptable. The balance between new designs and consumer expectations exhibited by Alessandro Michele at Gucci and Virgil Abloh at Louis Vuitton proved that the design can be about culture yet sustainable and profitable.

    References

    Business of Fashion (2025) The State of Fashion 2025. Available at: https://www.businessoffashion.com (Accessed: 25 October 2025).

    McKinsey & Company (2025) The State of Fashion 2025. Available at: https://www.mckinsey.com/industries/retail/our-insights/the-state-of-fashion (Accessed: 25 October 2025).

    S&P Global (2024) Industry Outlook 2024 – Apparel and Luxury Goods. Available at: https://www.spglobal.com (Accessed: 25 October 2025).

    Li, J., Liu, Y. and Zhou, H. (2024) Agile Supply Chain Strategies in the Global Fashion Market. Journal of Fashion Marketing and Management.

    Inditex (2024) Annual Report 2024. Available at: https://www.inditex.com (Accessed: 25 October 2025).

    FashionUnited (2025) Global Fashion Industry Statistics 2025. Available at: https://fashionunited.com/global-fashion-industry-statistics (Accessed: 25 October 2025).

  • People

    The pillar of the fashion industry lies in innovative design and concepts, as well as rapid market adaptability. The process of new product development is a complex one; each stage needs careful planning, good management and analysis of the financial implications (Dillon, S. 2018). From product design and screening to testing and commercialisation, every step requires an understanding of consumers’ needs. In the 21st century, ‘pillar’ also encompasses digital communication: social media communication network platforms to disarm consumers. And it is also necessary to have a differentiated positioning to meet the needs of niche markets and unique selling points. Secondly, there is small-batch production and personalised design. Finally, there are long-term strategies and financial plans.

    ‘Generation Z’ refers to people born between 1996 and 2010. They’re the second-youngest generation, between millennials and Generation Alpha. For a brand to catch the attention of Gen Z consumers, its product design must stand out among numerous items, featuring clothing with individual expression and possessing brand culture and brand core. At the same time, attach importance to the dissemination on the Internet.

    Equality, Diversity and Inclusion (EDI) in the fashion industry refers to creating fair opportunities, embracing differences in culture, race, gender, sexuality and ability, and ensuring that everyone feels represented and included across the sector.” (British Fashion Council, Diversity in Fashion Report 2023). The supreme brand is a typical example that can respond to products, diversity, and inclusiveness. This brand was born in the United States, a country that is already diverse. It draws inspiration from street culture, music and art, and collaborates with designers and artists of different races, skin colours and backgrounds from multiple fields. This has fundamentally resonated with many young people. This brand has also become a symbol of cultural inclusiveness and diversity.

    In Case 4 – Entrepreneurship and Management, Fashion Dillon, S. (2018), it is clear how people’s skills are very important for a fashion brand. Nabil Nayal’s career as both an entrepreneur and a manager at Burberry has a strong emphasis on networking and collaborating with others, as he worked with Christopher Bailey at Burberry and was acknowledged by Karl Lagerfeld for his role at Lanvin. However, communication skills and awareness of the brand in terms of self-promotion and networking are equally important, as he would use Facebook and Twitter to involve a customer and to communicate with influencers. He can simultaneously do creative design and business promotion, which demonstrates the entrepreneurial spirit and management skills. His tenacity and elasticity from university research to creative brand establishment demonstrate how a fashion enterprise should keep perseverance and persistence.

  • Planet

    Pillar: Earth
    The “Earth” pillar focuses on the environmental aspect of sustainable development in fashion. It emphasises ecosystem protection, waste reduction, and responsible resource use. Corner (2014) noted that while fashion enables creative expression, it also requires minimising ecological impact. This pillar promotes innovation in design, production, and consumption, prioritising environmental stewardship and planetary health.

    Circular Economy
    The circular economy moves beyond fashion’s linear take-make-use-dispose model by adopting a regenerative system based on durable design, repair, reuse, and recycling. Dillon (2018) stressed that effective fashion management must consider the full product lifecycle, including longevity and end-of-life strategies. This approach maximises material value, reduces waste, and decreases reliance on virgin resources, supporting environmental sustainability.

    The Relationship Between Sustainable Development and Fashion
    Sustainable fashion integrates creativity with environmental and ethical responsibility. As Corner (2014) stated, designers and brands must assess social and ecological impacts across the supply chain—from sourcing to manufacturing. Dillon (2018) added that sustainable fashion combines fair labour practices with eco-conscious production, balancing profitability, equity, and planetary well-being. Thus, sustainable development has become a framework prioritising long-term resilience over short-term gains.

    Laurence King Publishing, 2012.

  • Eastern Aesthetics

    I have a lot of favourite fashion brands. Among them, my favourites are Yohji Yamamoto, Issey Miyake, and CDG. The designs and brand cores of these brands deeply attract me. These brands share one thing in common: they are noble, mysterious, elegant and with an Oriental charm. Their outlines are usually understated yet powerful, using structure, folds and asymmetry to tell stories that words cannot express. What fascinates me most is how these brands strike a balance between restraint and rebellion. These brands do not follow trends and have always adhered to their own culture.

    I particularly like the way they interpret tradition. They innovatively employ tailoring, fabric textures and elements of traditional Eastern clothing, which endows each piece of clothing with cultural depth without evoking a sense of nostalgia. Wearing their clothes is like a dialogue, a dialogue with oneself and with history.

    For me, these brands do not use conspicuous logos, nor are they overly decorated. They represent a quiet force. This kind of low-key confidence is exactly what I long for – not through noise, but through intention and art to express individuality.