Shopping for clothing was once considered an event.
Consumers would put money aside to purchase new clothing only at specific times of the
year.
Fashion shows, which showcased new collections and clothing lines several months before they
were available in stores, would provide the style-conscious a sneak peek at what was about
to come.
However, in the late 1990s, this began to alter as shopping became a form of entertainment
and discretionary clothes purchasing increased.
Fashion became more accessible to the general public, and it gradually evolved into a work
of art.
Low-cost design achieved its pinnacle in the late 1990s and early 2000s.
And then we entered the era of Fast Fashion—cheap, trendy knock-offs mass-produced at minimal
cost that allowed customers to feel as if they were wearing the same fashions that "walked
the runway" or were sported by their favorite entertainer.
It appears to be too good to be true.
All of these places sell cool, trendy stuff that you could buy with your free change or
an extra discount, wear a handful of times, and toss away after.
let’s discussion the economics of fast fashion and of course, the pros and cons -- or why
it is bad for the economy as well as the environment But before starting the long debate, first,
let us understand the definition of fast fashion, its business models and what makes them so
popular.
Fast fashion is a contemporary term used by fashion retailers that refers to clothing
designs that moves fast from the runway to stores in order to capitalize on current trends.
It helps ordinary people to get their hands on the latest hot looks or the next big things
or trends for a reasonable price point.
So…
Fast fashion became popular as a result of cheaper, faster manufacturing and shipping
technologies, increased consumer demand for up-to-date styles, and increased consumer
purchasing power—particularly among young people—to satisfy these instant-gratification
desires.
Fast-fashion retailers are known for introducing new products numerous times in a week in order
to stay on trend.
It is threatening the major clothing labels' practice of producing new collections and
lines on a regular, seasonal basis as a result of all of this.
H&M (established in 1947) and Zara (established in 1975) are two of the most well-known fast
fashion brands.
They are considered the Leaders of Fast Fashion.
UNIQLO, GAP, Forever 21, and TopShop are among the other major retailers.
Other up-and-coming online-only fast fashion brands include Boohoo, Shein, and Fashion
Nova.
It's no surprise that consumers were enamored with these businesses because of their fresh
designs, exciting inventions, and easily available merchandise.
To attract more clients, these firms duplicated the beauty and components of the best high-end
fashion sectors quickly and cheaply.
However, many businesses are both merchants and manufacturers, while the actual production
of garments is frequently outsourced.
We’re now coming towards the Fast Fashion business strategy…
Fast fashion is achieved by innovations in supply chain management (SCM) among fashion
retailers.
Its purpose is to make cost-effective clothes swiftly in response to (or ahead of) rapidly
changing consumer expectations.
The assumption is that consumers demand high fashion at a low price.
So, it is based on the notion of category management, which connects the manufacturer
and the customer in a win-win situation.
(Well, the speed at which fast fashion happens necessitates this type of collaboration)
So, they introduce clothing collections based on the most recent fashion trends, but designed
and made rapidly and cheaply to allow the general public to benefit from current clothing
patterns at reduced prices.
While the clothes are frequently sloppy, they aren't meant to be worn for years or even
several times.
The typical clothing-industry model operates seasonally, with the fall fashion week presenting
designs for the following spring/summer, and the spring fashion week showcasing looks for
the following fall/winter; there are also often pre-fall, pre-spring, or resort collections.
Fast-fashion labels, in contrast to these four seasons, generate around 52 "micro-seasons"
per year, or one new "collection" per week of items meant to be worn right away rather
than months later.
And if we talk about the economics or annual revenue of Fast Fashion Industry…
Aside from the anomaly of the 2020 pandemic year, the apparel business has been rising
at an annual rate of up to 8%, with fast fashion leading the way.
Since 2015, the worldwide fast fashion market was expected to reach about $68.63 Billion
in 2020.
The market is predicted to increase from $68.63 Billion in 2020 to $163.46 Billion in 2025.
From 2025 to 2030, the market is predicted to increase at a compound annual growth rate
(CAGR) of 5.3 percent, reaching $211.90 Billion.
The Asia Pacific region was the largest in the global fast fashion market in 2020, accounting
for 29.7% of the total.
Then came North America, Western Europe, and the rest of the world.
South America and the Middle East will be the fastest-growing regions in the fast fashion
market in the future, with CAGRs of 32.4 percent and 28.9 percent, respectively.
Africa and Eastern Europe, which are predicted to expand at Compound annual growth rate (CAGR)
of 25.2 percent and 23.0 percent, respectively, will be the next markets to emerge.
Furthermore, in 2050, clothing sales are predicted to surpass 160 million tons, more than three
times what they are now.
Fast fashion firms employ tens of thousands of people in their offices, stores, and factories,
and they profit millions of dollars each year.
However, some critics say that fast fashion has long-term detrimental economic consequences.
When workers are underpaid or become sick or wounded as a result of bad working conditions,
it costs countries and economies.
So, is fast fashion bad?
Is it ruining the planet?
Fast fashion's advantages are obvious: increased consumer spending, increased profitability,
and the customer delight of being able to partake in a trend practically instantly after
seeing it in publications or on their favorite stars.
However, some critics argue that fast fashion creates a host of issues that make it more
troublesome than advantageous.
This industry leads to global warming, pesticide contamination, and massive trash production.
Clothing is filling landfills and waste dumps in large quantities.
The badly manufactured clothing does not age properly, yet it can't be recycled because
it’s mostly made of synthetics (over 60%).
As a result, when it’s thrown out, it rots for years in landfills.
Fast fashion has also been chastised for encouraging a "throw-away" mentality.
That's why it's also known as throwaway fashion.
You may argue whether such a throwaway mentality benefits the economy: if many purchases of
inexpensive fast fashion items end up costing the buyer more in the long run than buying
a few more expensive ones that last longer.
The enormous carbon footprint of the field can also be costly in terms of environmental
cleanup.
Certainly, it is more costly to the environment.
Cotton is in high demand as the need for garments rises.
As a result, the majority of fields become overworked and barren.
Furthermore, pesticides are widely used, which can be lethal to employees if they’re exposed
for lengthy periods of time.
Pesticides and other contaminants can seep into nearby water sources, contaminating drinking
water in the process.
Rapid fashion has also been criticized for infringement of intellectual property, with
some designers charging that their designs have been unlawfully copied and mass-produced
by the fast fashion industry.
Most fast fashion businesses outsource their product production—usually to manufacturers
in developing countries—and some have been lax in their oversight of subcontractors and
in their supply chain transparency.
As a result, opponents accuse fast fashion of being built on poor working conditions,
low pay, and other abusive, exploitative tactics.
Fast fashion is also perceived as leading to a downturn in the U.S. garment industry,
where labour laws and workplace regulations are tougher and wages are higher, because
the apparel is created overseas.
Ok,,, But…
Why is the fast fashion industry still growing rapidly despite its negative effects?
Well…
Fast fashion is a boost to the businesses.
Customers are encouraged to visit stores more frequently as new products are introduced
on a regular basis, resulting in increased sales.
Instead of replenishing stock, the store replaces items that sell out with new ones.
It's also easy to attract consumers back into stores or online to make further purchases
because the clothes its cheap as well as poorly manufactured.
Furthermore, the rapidity with which fast fashion moves helps merchants avoid markdowns,
which reduce profitability.
If any losses occur, fast-fashion enterprises can swiftly recover by introducing a new clothing
line, design, or product.
When it comes to consumer benefits, fast fashion has made it possible for customers to have
the things they want when they want them.
It has also reduced the cost of clothing—not just any clothing, but inventive, imaginative,
and beautiful apparel.
The newest look, being "well-dressed," and having a vast wardrobe are no longer exclusive
to the wealthy and famous.
In the last 20 years, fast fashion has exploded in popularity.
It has altered the way people shop for clothing.
Consumers are willing to spend more money on apparel each year.
Consumers in the United States prefer shopping for quick fashion 88 percent of the time,
followed by consumers in Europe (46 %), India (25 %), and China (25 %).
As a result, proponents claim that rapid fashion has revolutionized fashion and society as
a whole.
Even individuals with limited resources can buy new clothes on a regular basis, indulge
in amusing or impractical stuff, and wear something different every day.
So, whether the disadvantages of fast fashion outweigh the benefits, it is indeed a debatable
issue.
And the discussion is likely to continue as long as people enjoy shopping for high-end
fashion at inexpensive prices.
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