Ultra-Fast Fashion, the fast path to the environmental disaster

That cute pair of pants you purchased for less than your morning coffee, wore twice and threw away because they are not trendy anymore or because washed once, they fell apart as soon as they hit the washing machine agitator. They will sit in a landfill, leeching pollutants for up to 200 years.

What is Fast Fashion?

Fast Fashion is the business model of replicating recent catwalk trends and high-fashion designs, mass-producing them at a low cost, and bringing them to retail quickly while demand is at its highest. The term fast Fashion is also used generically to describe the products of this business model, particularly clothing and footwear. Major players in the fast fashion market include Primark, H&M, Shein, Uniqlo, Fashion Nova UNIQLO, GAP, Forever 21, Topshop, Esprit, New Look and Zara. These companies sell their products through physical shop chains, websites, or online shopping platforms like Temu or ZAFUL. They have become large multinationals by driving high turnover of inexpensive seasonal and trendy clothing that appeals to fashion-conscious consumers.

Fast Fashion burgeoned in the late 20th century as clothing manufacturing costs plummeted. This was facilitated by more efficient supply chains, novel quick-response manufacturing techniques, and a heavier reliance on low-cost labour from the South, Southeast, and East Asian apparel manufacturing industries. There, women constitute 85-90% of the garment workforce. The labour practices in fast Fashion are often exploitative, and due to the gender concentration of the garment industry, women are more vulnerable.

In vogue, Fast and Ultra-Fast Fashion — terms referring to production speed— appeal to consumers because of their low price tags. To the individual, the financial burden is negligible. It may even feel like the responsible choice to buy from sites like Shein, Fashion Nova, or Zara.

Fast and Ultra-Fast production seems to have many advantages for consumers, manufacturers, and retailers. In fact, smart, innovative, imaginative new clothes and fun or even impractical items have become more affordable and widely accessible to all consumers. The constant introduction of new products encourages customers to frequent stores more often, which means more purchases and growing revenue. The retailer does not replenish its stock—instead, it replaces items that sell out with new items. Fast Fashion enables buyers to get the clothes they want when they want them.

But in almost every other aspect, this type of clothing comes with a steep price to the planet. Fast Fashion has contributed to a decline in the domestic garment industry, where labour laws and workplace regulations are more substantial, and wages are better than in other countries.

Fast Fashion has been called disposable Fashion. Many fast fashionistas in their teens and early twenties—the age group the industry targets—admit they only wear their purchases once or twice.

Critics contend that fast Fashion contributes to pollution, waste, and planned obsolescence due to its cheap materials and manufacturing methods. The garments can't be recycled because they're made predominantly of synthetics (over 60%).

Manufacturers in developing countries with little regulation may not oversee subcontractors, enforce workforce rules, or be transparent about their supply chain.

People who work in third-world subcontractor factories earn low salaries, endure poor working conditions, and are exposed to risky machinery and production processes.

Some designers allege that fast fashion companies have illegally duplicated and mass-produced designs.

The cost of the worldwide environment is enormous.

According to statistics from the United Nations Environment Programme and the Ellen MacArthur Foundation:

• The fashion industry uses 93 billion cubic meters of water per year.
• It takes 3,781 litres of water to make one pair of jeans.
• Of all the wastewater in the world, 20% is from textile dyeing and is highly toxic—many countries where clothes are made have reduced or zero regulations for wastewater disposal.
• Microplastic fibres in clothing enter the ocean, amounting to about 500,000 tons—nearly 50 billion plastic bottles.
• Fashion manufacturing emits more than 10% of global carbon emissions.

What is Shein?

In this competitive contest, an Ultra-Fast brand emerges as the new industry champion. Shein, the global textile giant based in China, is beating brands like H&M and Zara.

The online retail site Shein, originally called ZZKKO, was founded in China in 2008 by entrepreneur and marketing search engine optimization specialist Chris Xu. The company's first business venture was selling wedding dresses. Shein branched out into selling women's clothing in general, and the name was later changed to "Sheinside."

The company then sourced its items from the Guangzhou Clothing Wholesale Market, a central hub for many Chinese clothing manufacturers and markets.

In 2022, the company moved its headquarters from China to Singapore for regulatory, international expansion, and financial reasons – while keeping its supply chains and warehouses in China.

Today, it is a B2C Chinese online clothing and accessories retailer that sells globally but not in China. It offers women’s clothing for all occasions and sizes, with additional categories for men, children, and home life products. With a global warehouse network that allows it to ship to over 220 countries and regions worldwide, the Singapore-based e-commerce is one of the fastest-growing Fast Fashion brands.

Shein's success depends on a sophisticated business model with many innovative items beyond the usual Fast-Fashion model.

Shein's business model

Shein applies a business model based on innovative marketing and design development, effective production management, and logistical efficiency.

Shein sources its clothes from several suppliers. Most of its inventory originates from China, with a few manufacturing hubs in South Asia.

It's been 13 years since Shein entered the market, and they have expanded their portfolio from cheap wedding dresses to cover the entire apparel and accessories category.?

Shein initially had ties with a couple of manufacturers from the Guangzhou district in China, one of the largest hubs for ready-made apparel. Thanks to its founder, Chris Xu, the company developed a steady supply chain by partnering with different manufacturers and suppliers for their clothes. Now, Shein has a team of over 800 vendors who mass-produce clothes for them with a strict turnaround time of 10 days. New designs are created daily at Shein, and the concepts are then sent to these manufacturing chains to make the clothes in bulk.

This manufacturing process explains how this Ultra Fashion brand goes to over 200 countries worldwide at throwaway prices.

Shein does design its clothes, though this wasn't the case during its initial days, when the brand used to source ready-made clothes from a wholesale market in Guangzhou, China.

The company predicts trends and mass-produces items quickly after identifying a new trend, which is why many of Shein's clothes resemble new Fashion from other top brands. Manufacturing partners have their base in the Guangzhou district.

These manufacturers are an integral part of Shein's supply chain. They produce clothes and accessories in bulk based on the designs and schematics provided by Shein's design team.

Shein chooses the manufacturers and suppliers based on their quality, low manufacturing costs, and fast turnaround times. Low costs and quick turnaround are the only reasons the brand can cope with new trends while keeping costs low.

Shein has followed this strategy since its inception, making it the world's number one fast fashion brand.

Manufacturers and suppliers must be willing to adhere to a strict turnaround time of 10 days and deliver relatively high-quality apparel and accessories at cheap rates. Only if they can provide will there be a partnership between the two.

But while it all looks good on the outside, several trade malpractices occur at these manufacturing plants to meet their agreed target, leaving Shein at the centre of controversy.

The clothes sold on Shein are manufactured in bulk and shipped worldwide in record time.?

The process they follow is first to create a design within 1-2 days and then share that design with the manufacturer, who will, in turn, produce the clothes in bulk and ship them back to Shein within a maximum time frame of 10 days.?

These clothes are then tested for quality and sent to various warehouses worldwide.?

The manufacturing process varies depending on the type of clothing, so it can take 4 to 5 days to make simple T-shirts. In contrast, complex clothing like dresses, blouses, and wedding gowns may take 7 to 10 days to be produced in bulk.

However, as reported by the Swiss watchdog group Public Eye, to ensure the deadlines are met, employees in these manufacturing units are poorly treated and made to work up to 75 hours a week for minimal pay.

Shein was in the spotlight late last year when some of their jackets were to be recalled as Canadian health authorities suspected that they contained dangerously high levels of lead and other chemicals, making them unsafe to wear for children and adults.

There have been many other instances where the brand has been called out for using harmful chemicals such as organotins, phthalates, and antimony in its products, well above the government-regulated limits. The root cause is the suppliers themselves. Suppliers must cut corners to mass produce at the rate they're asked to; to do this, they tend to use chemicals to speed up the process.

For example, to make polyester, the supplier cuts the mix using antimony, and they can use more than the legal limit. Using too much antimony can lead to skin irritation and breathing problems, which is why it is deemed unsafe to wear.

However, since the screening process is lax, as with most Chinese companies, products go through Quality Control (QC) Checks and are sold in the open market.?

However, this is only the case with some of the clothes sold on Shein. It only happens once in a blue moon, making me think it could be a simple human error, not a deliberate act.

Shein Marketing and Promotion Strategies

Shein is now the most prominent Chinese cross-border fast fashion e-commerce company. The e-tailing brand reaches consumers in the United States, France, Russia, Germany, and over 220 other countries. In 2023, the app had over 261.9 million downloads, with over 53 million users worldwide. The e-commerce platform stands out as one of the most rapidly expanding fashion retail websites in the United States.

On TikTok, the hashtag #Shein has garnered over 84.4 billion views.

In 2022, the Chinese company earned a yearly revenue of USD 22.7 billion (up from USD 16 billion in 2021).

For Westerners, the app's obsession appears out of nowhere. However, this type of explosive growth is increasingly common among new Chinese companies that prioritize revenue and growth before profits.??

Shein has a sophisticated and successful marketing strategy.

Its curated collections, meticulously selected by its team of stylists, offer a catalogue with user-friendly navigation. The products are categorized based on gender, body type, promotions, fashion trends, seasonal collections, and styles for a seamless shopping experience. With a vast product range and frequent catalogue updates, the app appeals to young, price-conscious consumers seeking trendy selections rather than a lasting wardrobe.

Shein's target audience is price-driven customers worldwide who love online shopping. The website sees frequent purchases from Gen Z consumers, predominantly women and parents with children aged 1 to 15.

Since Gen Z is the platform's most crucial target consumer segment, which aims to be desirable, unique, and socially acceptable for young people, this demographic represents a significant market segment but requires tailormade strategies. For instance,?55% of Gen Z cite price as the most crucial factor when shopping for Fashion, emphasizing that they are remarkably price-sensitive. Shein provides an omnichannel experience with its website, app, social media, and a vast network of fashion influencers. Compared to other generations, Generation Z relies more on social media and targeted mobile advertising to discover fashion brands. Across the fast fashion retailer's social media presence,?17.84% of their followers are aged 18-24, and 30.65% are aged 25-34.

Moreover, the Singapore-based retailer collaborates with Western celebrities adored by young people, including but not limited to Katy Perry, Lil Nas X, Rita Ora, Nick Jonas, and Hailey Bieber, to further engage with its target audience. In addition to these collaborations, Shein expanded its partnerships in other segments and regions.

The fashion retailer has established a unique collaboration approach by partnering with micro-influencers, often individuals with a modest following on Instagram, YouTube, or TikTok. These influencers receive complimentary product deliveries every month in exchange for their posts. Some can get up to 10 - 20% commission from the app's referral sales. This referral strategy is effective, as it helps spread awareness about the brand.

It has created armies of fashion bloggers supporting the brand with haul videos of their purchases under the hashtag "#shein". A constant stream of coupons and discount codes drives shopping purchases. Influencers get free merchandise every month for their posts on TikTok. Others earn commissions on sales directed to Shein.com, which are above the average affiliate rates that other small stores cannot compete with. Many bloggers, influencers, and YouTubers enjoy working with this platform due to the flat rate per video profit made rather than a "brand exclusivity" contract. This creates an easy and convenient?working experience for both parties.

The e-tailing platform has created an environment that allows shoppers to feel bright and savvy to find the perfect outfit in style. The sheer range of items sold through the store and not everything is always in stock create a somewhat?gamified experience. Customers are happy to film themselves unpacking their clothes to try them on and show how they found these inexpensive goods. Sometimes, these products may not be the right size or look cheaper than they appear on the Internet, but this risk adds to the fun of a customer's experience.

Moreover, the app offers customers the opportunity to join its affiliate program. Participants can earn commissions by promoting Shein on social media, where followers place orders through referral links. This program includes options like the Shein Official Affiliate and Partner Affiliate Platforms.

Maxine Silva, senior director of brand PR, mentioned that the Singapore-based fast fashion retailer intends to wait to open permanent stores. However, as a global online retailer, they aim to target cities with a high concentration of online shoppers, offering customers a unique and enjoyable in-person shopping experience. In line with the company's digital focus, their temporary stores feature social-friendly spots for customers to capture Instagram-worthy photos while shopping.

Shein's practice of generative AI

All customers interact with Shein through its app and website, social media, such as TikTok or YouTube, and influencers' platforms like Instagram, Snapchat, and other online channels. Consequently, Shein collects an enormous flux of data, which is used to refine the marketing segmentation and product development process.

At every step, data was created, collected, and analyzed. The fast fashion industry has begun embracing emerging AI technologies to manage all this information. Shein has invested huge capital in developing its AI tools. The company uses proprietary machine-learning applications—essentially, pattern-identification algorithms—to measure customer preferences in real-time and predict demand, which it then services with an ultra-fast supply chain. AI makes churning out affordable, on-trend clothing faster than ever.

AI enables fast Fashion to become the ultra-fast fashion industry, with Shein and Temu being the forerunners. It quite literally could not exist without AI.

Shein’s head of global strategy and corporate affairs, Peter Pernot-Day, said, “We are using machine-learning technologies to accurately predict demand in a way that we think is cutting-edge. " Pernot-Day said that all of Shein’s 5,400 suppliers have access to an AI software platform that updates customer preferences and changes what they produce to match them in real time. “This means we can produce very few copies of each garment,” he said. “It means we waste very little and have very little inventory waste.” On average, the company says it stocks between 100 to 200 copies of each item — a stark contrast with more conventional fast-fashion brands, which typically produce thousands of each item per season and try to anticipate trends months in advance. Shein calls its model “on-demand.”

AI technology helps the company detect “micro trends” that customers want to wear. It allows the company to act on these trends in a pioneering way.

The company uses AI market analysis tools in an industrial-scale scheme to systematically infringe digital copyright on the work of small designers and artists who scrape designs off the Internet and send them directly to factories for production.

Other significant brands ship items overseas in bulk, prefer ocean shipping for its lower cost and have suppliers and warehouses in many countries, which reduces the distances that items need to travel to consumers.

Conversely, most of Shein's garments are mailed to customers by air in individually addressed packages to guarantee fast delivery consistent with Shein's model “on-demand.”??

The largely unregulated technology allows brands to intensify their harmful impacts on workers and the environment. Shein's factories are now under incredible pressure to produce even faster.

If the company uses AI to boost sales without changing its unsustainable practices, its climate footprint will grow accordingly. This growth is the overall effect of offering more market-popular items and encouraging consumers to purchase more than in the past.

Climate advocates and researchers say the Singapore-based company’s lightning-fast manufacturing practices and online-only business model are inherently emissions-heavy, and using AI software to catalyse these operations could be cranking up its emissions.