The Economic Impact of the Fashion Industry
Fashion & Numbers

The Economic Impact of the Fashion Industry

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The economic impact of the fashion industry is huge. Altogether, fashion companies make up a multi-billion dollar industry. This greatly benefits the economy because of the number of jobs that it creates, and the amount of money it generates.

The fashion industry is not perfect. Some areas of it still in need of improvement. In other words, this is why it is important to be aware of important topics in the fashion industry, such as fast fashion and sustainable fashion.

Economic Impact

You don’t have to have a background in business in order to understand the economic impact of the fashion industry. Keep reading! 

The Economic Impact of the Fashion Industry: Employment

Because the fashion industry as a whole is worth so much, it is able to employ many people.  Jobs and the economy go hand in hand, and this is true in the fashion industry. When more jobs are created, the economy does better. If you’re interested in a job in the fashion industry, look no further! There are several options for you. Some of them may even be jobs you hadn’t considered before!

The job in the fashion industry that may be most well known is being a fashion designer. A fashion designer can specialize in any area of fashion, from handbags to children’s clothing or womenswear. As a fashion designer, you might even be inspired to start your own fashion line! But before that, you might start off as an assistant to a fashion designer. 

Economic Impact 1

There are plenty of other jobs in the fashion industry as well! Not everyone know about the job of a fashion illustrator. A fashion illustrator works closely with fashion designers, meeting their requirements to create new product lines. This person creates conceptual sketches and illustrations of a fashion designer’s products. Free-hand sketching or computer software are possible alternatives. 

Another job in the fashion industry that might not be as well known is the job of the fashion photographer. This professional works closely with fashion designers to see how the clothes they create look in pictures. This involves coming up with concepts for photoshoots. After creating it, the fashion photographer also has to set up equipment and lighting on set. A fashion photographer also directs models and chooses the best images or videos from the photoshoot. As a fashion photographer, you will most likely be working as a freelancer. Also, you might work either in a studio or from anywhere in the world. 

The Economic Impact of the Fashion Industry: Fast Fashion

Society and the fashion industry are more and more talking about Fast fashion. It has a huge impact on the economy. It is responsible for both the recent and future growth of the apparel industry. In fact, as of 2017, the market expected to grow by 5.91 percent. It also predicted to reach 1,652.73 billion dollars by 2020. However, the pandemic may have affected that number. 

Economic Impact 2

It is important for consumers to know about the impact of fast fashion. It has a great impact on the economy, and the environment as well. We have spoken about fast fashion and its social and environmental impact before. Even though it is not sustainable for the environment, the industry expects fast fashion to reach 713 billion dollars in 2022. 

The Economic Impact of the Fashion Industry: Sustainable Fashion

Sustainable fashion is also an area of the fashion industry that impacts the economy. A report from Global Fashion Agenda found that it would be beneficial to address the environmental and social problems created by the fashion industry. This would create $192 billion in profit, benefiting the global economy if it is done by 2030. 

Companies would need to design and invest in business models that make sustainable and reused clothes. This can be done in different ways. For example, some companies give customers the option of leasing clothes. While this may put an end to the idea of ownership of clothes, it is better overall for both the economy and the environment. 

The Pandemic’s Impact

The Covid-19 pandemic greatly impacted the fashion industry in a variety of ways. For example, e-commerce increased drastically in 2020. Because people had to stay home, they started buying clothes online. Fast fashion brands, such as H&M, reported increased online sales during the pandemic.

Before the pandemic, the fashion industry produced about 1.2 billion tons of carbon emissions. This is not sustainable for the environment, even if it does benefit the economy. If more fashion companies try to be more sustainable, it will benefit the economy and the environment as well! This is why it is important to know about the economic impact of the fashion industry.

Anna Swatski
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Anna Swatski
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