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Fast fashion is often seen as a new concept born from Zara's ability to sell trends quickly and cheaply, but it is actually a term for a production system that has developed over the years. 1800.
What makes the fast fashion supply chain so amazing?
Short delivery times – Fast Fashion is the process of quickly transforming the latest trends from social media or runway shows into a purchasable garment. So a few extra days between design and sale are crucial. Zara produces 12,000 new designs per year and its fastest pieces in 6 weeks. It seems quick, but compared to Boohoo, it's long. Boohoo can design, manufacture and ship unique design batches in two weeks. Short delivery times allow them to respond to trends and consumer demands.
Test and repeat: Fast fashion relies on changing trends. Many brands, especially online ones, use the test and repeat model to avoid having too much unsold inventory. Test styles and ranges before scaling up production. Before restocking popular lines, Boohoo will make 300 units of a line and see how they sell.
Outsourcing – To keep prices low, many fast fashion companies outsource their production to low-cost countries and then ship their clothes to their retailers. Asia is a major producer of clothing, but many fast fashion brands do not disclose their factories. ASOS and H&M use factories in China and India to make most of their clothing.
Sustainability
The fast fashion supply chain is thriving and its growth is largely responsible for doubling the clothing industry by 2030, but its sustainability record is particularly poor. Statistics show that the fashion industry is responsible for 20% of freshwater pollution and 10% of carbon emissions worldwide. The sustainable cotton statement aims to reduce the environmental impact of the industry.
Fashion ignores social sustainability. 24.9 million people are forced to work worldwide, but the UK imports $9,289,350 worth of clothing tainted by slave labor. In 2020, the fashion industry was accused of Uyghur forced labor in Xinjiang. More than 82 global fashion brands, including C&A, H&M and Zara, had ties to Xinjiang, tainting the industry.
While trade liberalization has made it easier for many fashion companies to relocate their production networks to countries where labor is cheap, fast fashion has led companies to relocate their production to be closer to national markets such as the United Kingdom. Despite strict regulations in many countries, lax restrictions and accusations of forced labor have occurred.
Boohoo is a company accused of forced labor in Leicester supply chains. A 2020 Guardian report exposed Boohoo's unsustainable sourcing practices, including paying workers between 3 and 4 hours. Despite the pandemic, Boohoo has seen sales increase despite poor branding and people not wanting to shop with an unsustainable brand.
Conclusions
Two things make the fast fashion supply chain incredible. Its short delivery times, low prices and efficient inventory management are commendable. This industry offers many supply chain lessons.
It is surprising, however, that an industry facing allegations of forced labor continues to expand without addressing it.
Which supply chains are amazing?
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