Fast Fashion: How It Impacts Retail Manufacturing (2024)

What Is Fast Fashion?

Fast fashion describes low-priced but stylish clothing that moves quickly from design to retail stores to meet trends. The collections are often based on styles presented at Fashion Week runway shows or worn by celebrities. Fast fashion allows mainstream consumers to purchase a new look at an affordable price.

Fast fashion resulted from cheaper, speedier manufacturing and shipping methods, the consumer's appetite for up-to-the-minute styles, and increasing purchasing power—especially among young people. Fast fashion challenges the established clothing labels' tradition of introducing new collections and lines on an orderly, seasonal basis.

History

Shopping for clothing was once considered an event where consumers save to buy new clothes periodically. The style-conscious would get a preview of the styles to come via fashion shows that displayed new collections and clothing lines several months before their appearance in stores.

In the late 1990s, as shopping became a form of entertainment, discretionary spending on clothing increased. Fast fashion emerged, offering cheap, trendy knock-off garments, mass-produced at low cost, that allowed consumers to wear something similar to the runway.

Fast fashion was boosted by innovations in supply chain management (SCM) among fashion retailers. The assumption is that consumers want high fashion at a low cost. Fast fashion follows the concept of category management, linking the manufacturer with the consumer in a mutually beneficial relationship.

Fast Fashion Leaders

Major players in the fast-fashion market include UNIQLO, GAP, Forever 21, Topshop, Esprit, Primark, Fashion Nova, and New Look. Two leaders include:

Zara: Spanish retail chain Zara, the flagship brand of textile giant Inditex, is synonymous with fast fashion. Zara's designers can have a finished piece appear on store racks in as little as four weeks or modify existing items in as little as two weeks due to its short supply chain. Over half its factories are closely located to its corporate headquarters in A Coruña, Spain, and produces 11,000-plus pieces annually, vs. an industry average of 2,000 to 4,000 pieces.

H&M: Founded in 1947, Sweden-based H&M Group (short for Hennes & Mauritz) is one of the oldest fast-fashion companies. As of 2024, H&M Group operates in 76 countries with over 4,200 stores.H&M Group functions like a department store, selling clothing, cosmetics, and home furnishings. It does not own any factories but relies on independent suppliers for its garments overseen by H&M production offices with state-of-the-art IT systems to track inventory and communicate with corporate HQ. The factories are based all around Europe, Asia, and North America.

Advantages

• Profitable for manufacturers and retailers: The constant introduction of new products encourages customers to frequent stores more often, which means more purchases. The retailer does not replenish its stock—instead, it replaces items that sell out with new items.
• Quick to consumers: Fast fashion enables buyers to get the clothes they want when they want them. Also, it's made clothing more affordable—and not just any clothing, but innovative, imaginative, stylish clothing.
• Makes clothes affordable: Smart new clothes and fun or impractical items have become available to all consumers.

Disadvantages

• Decline in domestic manufacturing: Fast fashion has contributed to a decline in the U.S. garment industry, where labor laws and workplace regulations are stronger, and wages are better than in other countries.
• Encourages a “throw-away” consumer mentality: Fast fashion has been called disposable fashion. Many fast fashionistas in their teens and early twenties—the age group the industry targets—admit they only wear their purchases once or twice.
• Bad for the environment: Critics contend that fast fashion contributes to pollution, waste, and planned obsolescence due to its cheap materials and manufacturing methods. The garments can't be recycled because they're predominantly (over 60%) made of synthetics.
• Unregulated labor practices: Manufacturers in developing countries with little regulation may not oversee subcontractors, enforce workforce rules, or be transparent about their supply chain.
• Intellectual property theft: Some designers allege that their designs have been illegally duplicated and mass-produced by fast fashion companies.

Impact on the Environment

Consumers may find it difficult to avoid products manufactured by companies that practice fast fashion. However, due to the impacts on the environment, fast fashion consumers can investigate the brands to see if they use sustainable processes and fair labor practices.

Shopping for clothes at secondhand stores helps to reduce the amount of garment waste and extends their usage. According to statistics from theUnited Nations Environment Programmeand the Ellen MacArthur Foundation:

• The industry uses 93 billion cubic meters of water per year.
• It takes 3,781 liters of water to make one pair of jeans.
• Of all the wastewater in the world, 20% is from textile dyeing and is highly toxic—many countries where clothes are made have reduced or no regulations for wastewater disposal.
• Microplastic fibers used in clothing make their way to the ocean, amounting to about 500,000 tons—close to 50 billion plastic bottles.
• Fashion emits more than 10% of global carbon emissions.

The Bottom Line

Fast fashion increases consumer spending, profits, and the consumer's need to participate in a trend.However, critics say the industry contributes toclimate change,pesticide pollution, andwaste. The debate around fast fashion and its alternatives will continue as long as consumers seek to buy high styles at low prices.