K A R A K I B B L E
Dissertation
Fast Fashion: The Development of a Sustainable Business Model
Abstract
This paper will discuss the issues of the current fast fashion model and how it has created an extensive supply chain that leads to not only a disconnection between brands and their consumers but also brands and their suppliers. It will explore how sustainability as a trend is affecting the high street and consumer purchasing habits. By analysing sociological theories such as Veblen’s theory of Conspicuous Consumption (Veblen, 1899), it aims to identify the cause of fast fashion consumerism. An analysis of how effectively retailers such as Primark and H&M market their minimal sustainable efforts to consumers aims to disclose the validity of their claims. The paper will assess the effectiveness of retailers’ actions against post consumer waste. It will discuss current channels available to dispose of textile waste and identify which work most effectively- supported by statistical data made available by organisations such as WRAP and Charity Retail Association. By identifying the most successful channels of disposing textile waste, I will use my findings to propose a new sustainable marketing model that would appeal to a high street retailer.
Introduction
The fast fashion movement of the nineties increased the accessibility of desirable runway styles by utilizing offshore manufacturing to cheapen labour and manufacturing costs (McCarthy, 2011). While the fashion industry is at a commercial advantage, the sequential damage it causes to the environment makes the existing model unsustainable.
The current model operated by fast fashion retailers increases the length of a products’ supply chain by using subcontractors to manufacture designs (Domberger, 1998). Inevitably, this practice leads to retailers losing accountability for the production of their merchandise and welfare of the employees who produce it. Despite stigma attached to the manufacturing processes of the fast fashion industry, it continues to be profitable (BFC, 2011).
Extensions of the fashion industry such as advertising and public relations constantly expose consumers to new products and promotions (Solomon and Rabolt, 2009). The availability of cheap merchandise has led to a ‘throwaway’ consumer culture crisis (Mintel, 2013). A disposable attitude towards fashion and identity has evolved through trend led fads and superficial ideologies of oneself (Veblen, 1899). In attempt to fulfill such ideals, mass consumption of unnecessary purchasing has caused concern for the environmental impact of post consumer waste.
The research selected for this paper aims to highlight the flaws of the present business model used by fast fashion retailers. It will also examine the effectiveness of their minimal efforts towards sustainability and identify façade branding and marketing strategies retailers use to mislead their consumers (Fletcher, 2010). By applying sociological theories such as Conspicuous Consumption (Veblen, 1899) and Self-Identity (Giddens) to fast fashion consumerism, the paper aims to identify exactly what motivates consumers to purchase mass quantities of new clothes. 2.35 million tonnes of clothes and textiles are wasted each year in the UK as a result of overconsumption (Fletcher, 2008). By examining the most effective ways to dispose of textile waste [i.e. charity shops and vintage stores], the collective research aims to articulate a potential new business model that reduces the adverse effects of fast fashion consumerism and responsibly utilizes the surplus of the current business model.
Conclusion
The existing fast fashion business model used by high street retailers undoubtedly has flaws. Cheap outsourcing and rapid production that supports the foundation of the model are funded by the fashion consumers desire to keep up to date with trends fed by to them by the industry (Yurchisin and Johnson). The research discussed in this paper has led me to consider the possible external influences that could lead to the decline of the current business model. Rising costs of commodities and offshore manufacturing are threatening to the profit margins of retailers (Engel, 2013). An increased consumer interest to the malpractice of subcontracting could also have adverse effects on the brands reputation and consequently sales.
From the research gathered, it is apparent that fast fashion consumption is driven by our innate sensibility to look and feel good about ourselves (‘Fashion, 2011’). Consumers of slow fashion would argue that they are equally as gratified spending a small fortune on one holistically sustainable item (Watson and Yan, 2013). The increased interest in affordable vintage and second hand merchandise could indicate the beginning of a more sustainable fashion revolution. If the emerging eco-trend were to tip, fast fashion retailers may have to revise their current business model in order to remain profitable (Gladwell, 2000).
Evidence suggests that despite retailers marketing ‘sustainability’, they are not proactive in their efforts to fulfill their claims. As consumers begin to grow wise to façade branding and marketing strategies, it would appear as though there is increased desire for transparency within a company.
Consumer purchasing power underpins how effectively the high street evolves in to a more sustainable era. Without a loss of profit, fast fashion retailers have no incentive to alter their business model. A collective consumer demand for sustainable business and encouragement of trends such as ‘transparency’ would ideally force retailers to review current practices and abide to the evolving preferences of not so ‘fickle’ customers (McCarthy, 2011). The proposed marketing model is a proactive response to emerging eco-trends such as ‘transparency’ and ‘vintage’, it is also an example of how a retailer can make a sustainable supply chain easy for the consumer to understand.
