In a recent discussion about the fast fashion industry, particularly in light of changing consumer habits and increasing regulatory pressure, Professor Sheng Lu from the University of Delaware shared some insightful perspectives. Fast fashion, which originated with brands like Zara in the 1990s, symbolizes the trend of purchasing high-end items at low prices. However, its environmental impact and wasteful practices have drawn widespread criticism, raising questions about the future of the industry.

The rise of fast fashion has been further bolstered by platforms like Shein and Temu in China. Professor Lu noted that traditional clothing retailers typically release about 1,000 new designs per year, while the first-generation fast fashion brands Zara and H&M launched around 20,000 each year. Shein has taken this to another level, introducing a staggering 1.5 million new items annually.

Consulting firm McKinsey & Co. has conducted numerous assessments of the apparel market and found that:

– The global fashion market is now valued at approximately $1.7 trillion, with production doubling between 2000 and 2014, and average consumer spending on clothing increasing by 60%.
– The volume of clothing sales is projected to rise from 62 million tons in 2019 to 100 million tons by 2030, equating to around 500 billion T-shirts.
– The production cost for Shein garments is approximately $14, compared to $26 for H&M and $34 for Zara. Alarmingly, less than 1% of the fabric used in this industry is recyclable, and 60% ultimately ends up as waste.

Fast fashion has sparked protests from environmental and labor groups, even prompting action within European and U.S. legislatures. In March, the French National Assembly agreed to ban advertising for fast fashion products, imposing fines for each item sold. France has also proposed a measure to the European Parliament to completely ban the export of secondhand clothing. In New York, state legislators are drafting proposals requiring large companies to disclose their supply chains in order to prevent labor exploitation and environmental damage.

According to McKinsey’s “2024 State of Fashion” report, 87% of executives believe that environmental regulations will impact their operations. Professor Lu emphasized that changes in regulations, combined with shifts in consumer behavior, are putting increasing pressure on fast fashion companies.

Shein, which employs predictive analytics to determine trends, argues that its model generates less waste compared to traditional retail because it produces items only upon receiving orders. However, many fast fashion brands, including Shein, are attempting to distance themselves from the fast fashion label. For instance, Shein has started selling secondhand luxury items, while Zara has pledged to transition to entirely sustainable, organic, or recycled materials by 2025.

Despite growing skepticism towards fast fashion, its influence shows no signs of waning. Professor Raymond Wong from Hong Kong Polytechnic University pointed out that before the advent of fast fashion, the production cycle for clothing took about two months, whereas it has now been condensed to less than two weeks from design to retail. This has shortened the lifecycle of new styles from “seasonal” to “monthly”.

Additionally, fast fashion companies enjoy higher profit margins than traditional retailers because they can better balance production and sales, avoiding the need for massive clearance sales due to overstock.

Experts believe that while there is continual criticism of fast fashion, relying solely on consumer advocacy groups to impact the apparel supply chain may not be enough, given their limited scale. McKinsey’s survey confirms this sentiment, revealing that 40% of Americans have purchased items from Shein or Temu in the past year, with expectations of increased future spending.

Sanchita Saxena, a scholar from UC Berkeley, likened the situation to a chicken-and-egg problem: companies claim they are meeting consumer demand, while consumers argue they purchase items because they are available. He stressed that someone needs to intervene to break this cycle, perhaps through government action.