London Fashion Week: An Exercise in Corporate Gluttony
With all the excitement and anticipation that a new dawn brings, in era of inclusion and sustainability, one would imagine that the world’s elite have well and truly joined the fight against unsustainable practices in the fashion industry. It is, after all, the foremost frontier; impacting billions around the world and as far as industry-wide figures go, it accounts for 10% of global emissions. Yet, this is the world we live in today. If we are to accept the premise that fast fashion is a part of modern culture and society, maybe it’s time to take a look at those in a position to enact real change; our idols, celebrities and opinion leaders. With London Fashion just gone and all it had to offer behind us, perhaps we should take a closer look at the habits and trends that are endorsed. How have celebrities evolved their brands to cater for an evolving appetite and the need to stay profitable and relevant? Enter the “Repeat Purchase Phenomenon”.
A Global Trend
Consumer psychology is all the rage. The ability to gain new customers is one challenge, but retaining an existing consumer-base is another entirely. Despite accounting for only 21% of the customer base, repeat customers contribute 44% of total revenue, making them extremely valuable to the bottom line. But in an age of undercutting, brand reputation doesn’t provide the same security it once did, hence the entrance of subscription services into the market. With the boom in online subscription services, be it streaming, music, F&B, e-commerce or tech, the fashion industry has seen an opportunity to lock in their customer base. By incentivising their subscription plans, companies are able to cloak sales as “loyalty bonuses” or simple as perks of being a part of the brand itself. Take Savage X Fenty for example —a luxury lingerie brand founded by Barbadian Pop Singer, Rihanna. The brand, which was founded in 2018 and boasts annual revenues in excess of $550 million USD, offers customers an optional membership program, Xtra VIP, for £49.95 GBP per month. The membership draws customers in with offers, discounts and early access to product releases; all in the name of generating routine and returned business every month. Similarly, Kate Hudson-led and (pop star) Lizzo-collaborated lifestyle brand, Fabletics, offers the same style of membership, for a slightly pricier £54.99 GBP per month. The Fabletics VIP Membership enables customers to redeem any outfit or item worth up to £80 GBP. The psychology here is fairly simple, once consumers feel like they have an obligation to buy and in this case, an incentive to buy, they will, even if under normal circumstances they would not make a purchase every month.
Unsustainable Sustainability
It may seem like an ingenious method of retention, and it is, but it by no means takes into account the significant impact on the environment. In an industry that already contributes so much to global emissions and in an industry that consumes enormous amounts of water, the profiteering seems only set to continue unless the legitimate concerns are addressed. Cheap labour, mass production and high wastage are already the cornerstones of low production costs; they cost next to nothing to make, but will be sold at high markups across the world.
Unfortunately, the extent of corporate tactics do not end here. Another harsh reality revolves around sustainability, and the idea that it is now a profitable endeavour if not financially, then from a shareholder/consumer moral perspective. What this means is that while companies will continue to promote and pursue a green agenda, the lasting impact of their production processes will continue to grow as consumers are under the impression that they are partaking in a ‘green’ exercise. In many ways, this is worse; merging the concepts of greenwashing and profiteering to create a money-spinning angle in the name of sustainability. As mentioned, the monthly subscription model is one that has seen immense success across sectors. While corporations have no obligation to reduce production capacity, an act of proactive responsibility would go a long way; given their profit margins, pledging a percentage of sales to remediation efforts would be an effective method of supporting the sustainability community.
The organisations enacting change across industries often go unnoticed. At Waste2Fresh our focus of operations is on the industrial side of the supply chain. Although we often explain how our solutions offer immense savings in water, the value-add from a PR and sales perspective is also a factor here. By employing innovative solutions, companies can create organic appreciation and respect for their efforts, which will undoubtedly open up new demographics for sales. Until the industry realises that genuine savings can be made, when they realise that the qualitative effect of promoting sustainability is greater than the quantitative value, we will be stuck in a cycle of degradation.
Fashion Week is the pinnacle of the calendar, maybe it’s time to change perspectives.