THE NEW VALUE ECONOMY

There has recently been a high shift towards access rather than ownership of products; meaning that within the industry we now share, rent and borrow products instead of individually purchasing. This therefore creates a large impact on the reputation, trust and how we value the market. Because of this sudden shift of ownership, it has now effected the way that the younger consumers now curate their identities, as well as valuing products. 

There is now an element of fashion which is called the Sharing Economy; Consumers no longer therefore have the same relationship with goods and particular services. Meaning that with the rise of technologies such as Instagram and Vine, the younger generation are now able to craft their own images. Also, as there has been such a push with technology over the years there is no difference from Work and Home life, as we are all on smart phones, there is no definitive line of which stops when and where the other starts – meaning there is no down time. The new element of online stores and the combination of web magazines is due to the relationship with the younger generation and the way they communicate with brands – is it always accessible to shop online but not aways in person, meaning the face to face confrontation is becoming minimal.

‘In this World, in which we are constantly on Instagram on Twitter, on Facebook…it creates even more demand to wear aspirational clothing, to wear designer brands, to show up at cool places around the world – it fuels the experience economy.’

Consumers are now challenging the value of luxury goods, as copies and fakes are now so accessible – meaning that a negative link with luxury has therefore been formed. The new platforms that we have now, causes designers to move forward all of the time due to the fast moving market and the push from the audience – new materials are constantly being pushed, technology fashion.

High end designers area also approaching this playful approach, using new and fresh materials when creating to make the good more interesting and high end. Physical products have decreased in recent years, as smartphones have had such an impact in the way the shopping experience now occurs. It is now seen that owning a product is a burden, instead you want a temporary arrangement to constantly have the best up and coming, unique product or experience available. 

Economy

Economy fashion is fast moving fashion, but not all fast fashion is economical; meaning that some high end styles and catwalk looks can be sold on at a much cheaper price with economy fashion – such as Primark and H&M, they are constantly watching and keeping up to date with the fashion world, yet they aren’t in the same price bracket as the luxury brands. Economy fashion is for those who want an on trend garment at an affordable price, meaning full value for money is gained; it targets everyone, however within sub sections within stores they target different markets. Meaning that the entry price for this sector is £7, which is such a comparison to the 6 figure price tags found on certain Couture garments. The first sweatshop was apparent in the 20th century, after World War One, where there was such a large mechanical mass production for economical reasons, a lot of clothes were needed to be produced but at a much lower rate than previously – there was therefore a large gap int eh market for this. However, because it is such fast moving fashion, most garments make a ‘sell by date’ of 2 weeks, in comparison to months, if not years in the luxury and couture ranges.

The numbers behind Fashion

• The Fashion Economy has increased by £5 billion from 2009, this ranges from the increase in PR, fashion retailing and marketing, as well as promotion within the industry. However this does not include design; promotion is becoming such a large influence on the economy and is become more famously known for the impact it has on the economy.
• There are currently 800,000 jobs within the industry, which has decreased 2.3% from 2009. This is however due to the increase in technologies, the amount of jobs is therefore slowly decreasing as there is less of a need for shop staff, as it is predominately done online; which is an advantage within the increase of technologies – but for those who have the skills, such as hand stitch and print making, the demand for these skills are therefore smaller, which therefore leads to fewer jobs within the industry. 
• Within the fashion industry the employee’s wage income is estimated to have risen to over £46 billion – increased by 23% since 2009 – so although there is less people working in the industry, the cost of the people is increasing rapidly. Also, a lot of internships are currently not being paid for at all, which therefore means that there are people working in the industry, yet not receiving any money for it. 
• Around 50 years ago, it was common for a professional to work for the same business throughout their career, however nowadays this is unlikely to happen to do the fast pace industry, therefore people entering the industry now are more liked to move to different employers as well as different industries. 

the CREATIVE economy

Many people understand the ‘Creative Economy’ to be that of just art, however there is so much more within the industry. Film, media, music, galleries, gigs and not forgetting fashion. Within the different sectors of the economy, there are three main categories which you can distinguish different level within it. However, there has now been a big change in the way the the creative economy works to this day; a huge disturbance due due the internet. Large fashion houses have now created an online recourse of shopping, their own websites therefore disrupt the pattern of the creative economy – there is no experience of the economy anymore, instead an online experience has therefore been created. This is changing with the times, and evolving with the fast moving industries. Though, there are now companies, like notonthehighstreet which have worked to this advantage, and instead have the new online experience instead of that in store.

Originators:

This is where the creative economy starts, where you create one off’s, coming from the core of the business, creating the main features. These can be from fine art pieces, like Damien Hurst’s work; however this is where fashion comes into its element. Haute Couture garments are a prime example of this, one off pieces of incredibly in-depth and time consuming fashion, which aren’t created time after time again. However, fashion is also an origination; it is where the whole economy starts, with the individual pieces and garments. 

Experience Creators:

This is where the originators feed off the creators and create an experience, nothing tangible to touch, but something that you can visit, see and become part of. This can be from buying a ticket for a fashion show, you are experiencing the economy and the way the business works. Also, experiencing a new shop, or a window from promoting the originator is also an experience; such as the updated Burberry store on Oxford Street, the whole experience is a lot more sophisticated and powerful.

Content Producers:

This is the real business model behind the economy. This is where the content gets transferred across the platforms to increase exposure and money; every time an advert is shown for Chanel, it is not only promoting the brand but creating money for the economy. This is where the money is made within the economy.