In recent years, the fast fashion industry has faced growing scrutiny over its environmental impact and the problem of overconsumption. This concern remains strong, despite the criticisms directed at companies like Shein and Temu, which have intensified the fast fashion trend in the U.S. According to Professor Sheng Lu from the University of Delaware, traditional clothing retailers typically launch around 1,000 new styles each year. However, fast fashion pioneers like Zara and H&M have ramped this up to approximately 20,000, while Shein has taken it even further, introducing an astonishing 1.5 million new items every year.
A consulting firm, McKinsey & Company, has analyzed the fashion market and uncovered some surprising figures. The global fashion industry is now valued at $1.7 trillion, with production having doubled between 2000 and 2014. Consumer spending on clothing has risen by an average of 60%. McKinsey projects that the apparel sales volume will increase from 62 million tons in 2019 to 100 million tons by 2030—equivalent to around 50 billion T-shirts.
Despite the allure of fast fashion, the industry has encountered backlash from environmental and labor rights organizations. This discontent is echoing in Congress, both in Europe and the United States. In March, for instance, the French National Assembly passed a ban on advertising for fast fashion products, imposing penalties for each garment sold. Additionally, France proposed a total ban on the export of second-hand clothing to the European Parliament. Meanwhile, lawmakers in New York are working on a bill that would require major retailers in the state to disclose their supply chains in order to combat labor exploitation and environmental degradation.
McKinsey’s “2024 State of Fashion” report indicates that 87% of executives believe that environmental regulations will significantly influence their operations. Professor Lu emphasizes that this regulatory shift, combined with changing consumer habits, is likely to exert more pressure on fast fashion brands.
Shein argues that its use of predictive analytics to identify styles leads to less waste compared to traditional manufacturing, as they produce items only based on confirmed orders. Nonetheless, Shein and similar companies are attempting to rebrand themselves away from the fast fashion label. For example, Shein is exploring the resale market for second-hand luxury goods, and Zara has committed to transitioning entirely to sustainable, organic, or recycled materials by 2025.
Yet, the fast fashion influence seems unlikely to diminish. Professor Raymond Wong from Hong Kong Polytechnic University observes that, prior to the rise of fast fashion, the garment production cycle took about two months. Now, the process from design to retail can occur in less than two weeks, significantly compressing the lifecycle of new styles from seasonal to monthly changes.
Fast fashion also proves to be more profitable than traditional retail, as these companies are adept at balancing production with sales. According to Professor Wong, this equilibrium helps avoid overstock situations that often necessitate clearance sales, supporting the idea that introducing items sooner can drive higher sales volumes.
Despite ongoing criticism, experts suggest that the impact of small consumer advocacy groups on the garment supply chain is unlikely to be significant due to their limited reach. McKinsey’s research shows that 40% of Americans purchased from Shein or Temu in the past year, with intentions to buy even more in the next few years.
Sanchita Saxena from UC Berkeley encapsulates the issue succinctly, describing it as a classic chicken-and-egg scenario. Retailers claim to be responding to consumer demand, while consumers feel pressured to purchase due to the constant influx of new options. Saxena emphasizes the need to break this cycle, proposing that government intervention might be crucial for instigating real change.
