What specific attribute defines a 'supernormal profit' within the context of the fashion industry?

Supernormal profit, also known as economic profit, in the context of the fashion industry, is specifically defined as profit earned above and beyond what is required to cover all explicit and implicit costs, including the opportunity cost of capital and entrepreneurship. This means a fashion brand is not only covering its direct costs (materials, labor, rent) and its normal rate of return on investment (the return required to keep investors happy), but it is also generating extra profit due to some competitive advantage. This advantage could stem from a strong brand reputation, unique designs protected by patents, exclusive access to distribution channels, or highly efficient operations that result in lower production costs. For instance, a luxury brand with a highly sought-after logo and strong brand loyalty can command premium prices, generating supernormal profits. Similarly, a fast-fashion company with a highly efficient supply chain and rapid product turnover can achieve supernormal profits by quickly capitalizing on emerging trends. This situation typically attracts new entrants into the market, or encourages existing firms to imitate the successful strategies, ultimately eroding the supernormal profit in the long run, unless the brand can maintain its competitive advantage. This is different from normal profit, which is simply the minimum return required to keep a business operating.