Sell Cheap…Wear…Dispose…Repeat: Fast Fashion’s Race to the Bottom!
Krishnan Ranganathan
All Things Finance + Risk | Market Bubbles and Global Financial Crises | Luxury M&A | Economic Sanctions | Trade Wars | B-School Advisory Board Member | Guest Faculty (Bridging the Gap between Academia and Industry)
“Wealth consists not in having great possessions, but in having few wants.” ~ Epictetus, Greek philosopher.
We know from the DNA of human-dwelling fleas that we've been wearing clothes since the latter part of the Palaeolithic period, 100,000 to 30,000yrs ago. There is nothing new about the idea of ‘fashion’. The Roman poet Ovid wrote in 8 AD, ‘I cannot keep track of all the vagaries of fashion, every day, so it seems, brings in a new style.’
In 1714, philosopher Bernard Mandeville argued, “What use was a rich man if he did not lavishly spend his wealth and stimulate the economy thru employment and consumption.” By 1776 Adam Smith could state almost without challenge that “consumption is the sole end and purpose of all production; and the interest of the producer ought to be attended to only so far as it may be necessary for promoting that of the consumer”.
The emergence of “fast fashion” represented a turning point; appealing today, unwanted tomorrow. It dealt not with utility or the artistry and quality of goods, but with their fleeting appeal. Never before had things been made with planned obsolescence in mind, a fixed shelf life post which the item, delightfully crafted and still perfectly usable, would be replaced. The world and its resources seemed vast and limitless.
Originally the phrase ‘fast fashion’ was coined for the speed with which the bigger brands could get a product to market, how quickly they could see a garment on a catwalk or worn by a celebrity, and turn a copy round and have it on sale. It was an NYT journalist who first coined the phrase, in 1989, referencing Zara’s boast that it took them just 15 days from first having an idea to getting it into their stores. Now the time taken to get to shops is irrelevant, it’s the churn which is fast.
It was easy to set up an online fast fashion brand. You needed a website, some product from a factory somewhere, a few models, a camera and a group of influencers. And you have the likes of Boohoo, Pretty Little Things, Nasty Gal, and Missguided. Welcome to shopping as entertainment and addiction! You watch the show, pay a few quid, get some stuff, wear it once, throw it away. The clothes are as disposable as the factories and the people that produce them. Sample some alarming facts:
Clothes have power. They remain part of our memory of life events. We become so closely connected with good-quality clothes over the many years we wear them, and in recent past we believed that some of our soul would pass into them. It’s probably for this reason that people would place an old shoe into a wall or under a floor of a newly built house becoz they believed that our spirit, held within the shoe, would bring the house good luck.
If your entire business model is built on churn, low prices, discounts and influencers, there will always be someone who is faster and cheaper than you are, and the influencers who sold your stuff yesterday will happily sell someone else’s tomorrow. Topshop enjoyed a 45yr run, then ASOS killed Topshop. It took Boohoo and Missguided 10years to kill ASOS. Shein killed Boohoo in six. These are fashion houses built on sand.
In 2023 over 100bn garments were produced globally. The fashion industry consumes 350m barrels of oil annually and produces 282bn kgs of greenhouse gas, equating to 10% of all global emissions. It accounts for 22% of global insecticide use. Its production systems release carcinogens, neurotoxins, heavy metals, phenols, phthalates, hexavalent chrome, formaldehyde and carbon disulphide, leading to eutrophication, acidification, and toxicity in the air, water and soil. The industry pays poverty wages and operates under terrible working conditions. And when wages rise, it simply moves elsewhere.
Our clothes may be cheap but they come with a HUGE cost. Greed and Envy are looked down upon in almost all world religions, except the religion of Capitalism.????
Thumbs up ???? for the article and thumbs down ???? for the contents of the article. We humans cannot be so greedy.