I've discussed the cons of Fast Fashion in an earlier post. Today I thought it might be useful to discuss the Fast Fashion strategy from a business perspective. Bob Fisch, president and chief executive officer of Cranberry teen retailer rue21 turned to a Fast Fashion strategy to keep the company solvent after coming out of a recent bankruptcy.
Most Fast Fashion is directed to a teen market. Teens are fickle and this year with a slowing economy, they have been purchasing less from perennial pleasers Abercrombie & Fitch, American Eagle Outfitters, Pacific Sunwear, Wet Sea according to August (Back to School) sales figures. Either the price or the product was off point for Fall 08.
Fisch points out that traditional fashion strategy is problematic when wrong. It takes a great deal of time to correct mistakes when you are designing and producing 12-18 months out. (In fact, many companies are already putting Fall 09 to bed.) Fast Fashion strategy offers the business a structure for correcting mistakes quickly which keeps the product mix more on trend. Since fresh, compelling product is key in the teen market, this quick change ability can save a selling season and be the difference between profit or loss.
The biggest challenge for Fast Fashion companies is to make sure they are known for trend merchandise and not pigeon holed into a narrow category. Teens want current trends NOW! rue21 works 3 months out on their denim program and several weeks out on their graphic tee program. This strategy allows the product to remain current and capitalize on trends from aspirational brands like Seven jeans and Steve Madden shoes. Product is ordered in small quantities which creates a "get it before it's gone" exclusivity. Of course speed and price adversely affect quality, but this market only wants the garment for a short time.
rue21 is a private company so there are no public figures to verify Fisch's claims that they are doing as well as The Buckle or Aeropostale, but the Fast Fashion strategy appears to be feeding rue21's growth. They have gone from 250 stores in early 2006 to more than 400 now, generally placed in strip centers or malls in smaller markets as well as in outlet centers. They could grow to 1,000 in the next five years.
As discussed before, Fast Fashion hurts the environment in many ways from the use of environmentally unfriendly raw materials, to the transportation of goods through the distribution system, to the discarding of goods in a rapid manner, not to mention, treating workers poorly throughout the chain. The strategy CAN be extremely successful to the bottom line. The challenge for business is finding the balance between environmental harm and customer satisfaction, allowing for responsible profit and growth.
Till next week--Restore, Refresh, Recycle, Renew
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In Catherine Byers' DSMR Seminar class we had a similar discussion about Fast Fashion. We mainly talked about Zara and H&M. It amazes me how fast these stores go from designs to actual product in such a short amount of time. I understand the negative environmental effects this has however, I have shopped at these stores. Mostly it has to do with finances and being a college student, my finances are limited. It bugs me that the quality of these products are not good and I end up shopping more than I would if I bought more expensive albeit better quality clothing but sometimes I don't have a choice. The fact that the product is so trendy is what I think helps these businesses make money. If you have somewhere to go and not enough time to shopping, you can go to H&M or Forever 21 or Charlotte Russe and pick up a cheap top or something and still look trendy. In Catherine's class we read a Harvard Business School study on Zara and surprisingly although they are not eco-friendly, they do not treat their employees bad and production is mostly done in Spain, the headquarters of the company.I found this interesting since in a way I consider the quality there to be better than someplace like Forever 21 although they are both Fast Fashion companies.
I have learned about Fast Fashion throughout my research conducted this past summer. Last year, a survey was given to every DSMR freshman student at Drexel. One of the questions asked the students to choose their top 5 retailers from where they regularly shop. Inevitably, Forever 21 and H&M, both Fast Fashion retailers, ranked in the top 5. Both of these stores each have quick-turn inventory, meaning that new merchandise is always available to the consumer. There is always something new and exciting to be found at these stores. Not only are the ideas fresh, but cheap as well. Though Forever 21 and H&M portray different brand images they both remain a favorite among young women because they offer trendy items at an affordable price. The aspirational shopper may shop at Forever 21 to get the latest Anna Sui knock off (and perhaps, without even realizing it) or shop at H&M to purchase a runway inspired outfit. In either case, the combination of trendy fashion at a low cost overrides any thought of ethical issues, especially when referring to the consumer who is on a budget but yet desires to obtain a chic, current wardrobe. Though college students are becoming more aware of ethical issues, they may not think of these pertinent issues while purchasing clothing. In fact, even for those who are concerned with ethical issues (whether it be the environment or good working conditions), are still at a loss because many companies, like Forever 21, make it impossible to find. In contrast, H&M boldly states on their website their environmental objective and sustainability policy, the good working conditions of their employees, as well as a CSR report for the general public to read. Though I am sure H&M has its ethical flaws, they at least highlight what good they are doing for the conscious consumer.
I agree that teenage consumers do have limited funds witch dictate where they shop. They want to purchase clothing that is trendy, chic, affordable and therefore fast fashion from stores like Forever21. However, I think the perspective of ideal clothing can shift to include ethical production at a level similar to if not higher than price. I understand that ethically produced goods tend to cost more than those produced by traditional retailers, however after a little research it is easy find alternative and affordable options. For example, a basic polyester/rayon blend scoop-neck tee can be found at Urban Outfitters for $24. An extremely similar scoop-neck tee made of 100% organic cotton and low-impact fabric die and wash can be bought at alternativeapparel.com for $28. The only difference besides knowing the $4 is going towards a good cause is that customers do not have the option of trying clothes on. As for those who can afford to spend money on clothing like designer jeans I feel there is no excuse to not shop ethically. Consumers can spend over $200 on a pair of designer denim or they can spend the same or less amount on denim made from organic cotton. This concept of purchasing clothing based on the environmental and social impact it has needs to be taught by parents and in classrooms to transform the way we shop for fashion. Deborah Brosdahl’s essay, “The Consumption Crisis” discusses how home economics classes need to transform to include ethical shopping habits (FutureFashion White Papers). What I thought was interesting about H&M after our research this summer was that no student identified it as an ethical retailer. H&M is one of the only retailers I have found that actually posts a CSR report and explanations of collaborative projects directly to consumers on their website. However, the surveyed students seemed to have missed this. I wonder what else could H&M do to promote their commitments to ethical fashion.
I think this is one of the largest issues in the Fashion Industry today. Fast Fashion is a result of our fast economy. Society as a whole has evolved to become accustomed to instant gratification. This phenomena did not begin with the fashion industry. Technology has been equipping us with everything instantly at our fingertips. If there is something we want in Europe, we can Overnight Air it to be at our doorstep in the morning. Because our minds have become accustomed to this simultaneous click and receive, why wouldn't fashion be the same? Not long ago the fashion year consisted of two seasons: Winter and Spring. Now we have 4 base seasons which does not include all the holiday seasons, and the shipments in between seasons. I know if I show up at a store a month after my first visit and see nothing new I probably will not be returning again. However that is how the industry began. In today's industry retailers and designers always have to be on top of the trends and moving to the next before the first even gets established. I think this is a major problem, and because of this good design is few and far between. Designers no longer carry a somewhat cohesive line season to season. Most designers come out on fashion week and show completely new concepts that are unrecognizable to the brand. Because of this, I feel that designers don't stand out like they used to because most of them blend together. It is extremely hard to make a mark in fashion because of the consumers constant obsession with change and new material. Detail is almost non-existent in comparison to where it began. I can't think of one designer that is currently similar to Coco Chanel or Louis Vuitton. No one is really KNOWN for a look, fabric, signature. Ultimately, I think that this issue trickles down to the largest and smallest retailers. Retailers like Forever 21 and Rue 21 feel this pressure to keep up with these constant trends designers are coming up with. Customers minds show no sign of slowing, so they cannot afford to hold the process. I don't think we can blame the sellers of the clothing for this. We as the consumer have made them successful and I don't think it is something we are just going to pick up and change. As much as we all wish everyone's going to go green, the reality is, its not going to happen until people have no choice. If people can get a $1,200 look for $29.95, they're going to choose the later. Especially with the economic struggles of today.
The thing about Fast Fashion is that its all a cycle. Both the seller and consumer are to blame with how fast these items are being put on the floor. Consumers want the latest trends now, for cheap. Unfortunately, because the item is out on the market so fast, they are lacking in quality. Since you can only wear the clothes a few times, after that gets ruined you want to go out and buy new clothes for cheaper, which will also only last a few weeks. It's a cycle that will not end unless everyone stops what they are doing and actually invest in a garment that may cost a little more, but will be in your closet a lot longer, and will be more environmentally friendly.
I will admit I go into H&M on occasion if I need to purchase something last minute and only need to wear it a few times or for a certain reason. However, I have trouble going in and doing actual shopping there because nothing is unique anymore, everything looks the same. You may see the same pattern on different looking shirts, and on everyone in the street, because that week it was a trend and is all over the stores. Unfortunately that will be out of style in a few weeks and the clothes won't be nice enough to wear anymore so then it becomes waste. With all that waste building up of clothes that were thrown out after only being worn once, it could cause a real issue on being environmentally friendly.
Although Fast Fashion is bad for the environment and most of the conditions of the workers are below standard, I do see some benefits of it. Stores like Zara, H&M and Forever 21 prove to be a "quick fix." Things are cheap, new items are constantly being brought out, and I can test out trends without the commitment of a hefty price tag. I don't expect these items to be great quality because for the most part I can't afford for them to be. I don't need these pieces to last me too long because they are trendy and even if I bought their more expensive counterpart, I'd still only wear it a few times before growing tired of it. I'd rather spend more money and get better quality on a staple item such as a great fitting jean or a black cocktail dress. So in short, I just see Fast Fashion stores as my cheap quick fix til the next great thing comes out.
I agree with many of the comments stated above. Today we live in a world that is based on fast, easy, and convenient products. We as consumers demand the newest technologies and trends the second we are aware of them. Since standards and expectations of society have changed, the fashion industry is just one of many industries that are trying to keep up with it. Young, indecisive consumers like myself have indefinitely helped lead to the rise of fast fashion retailers like Forever 21, Zara, and Rue 21. Shopping and following trends has become a hobby for my generation, so we expect to see new products from week to week in order to keep us engrossed in a brand. One of the greatest contributing factors will always be cost, with continual changes in taste, we prefer to purchase quantity over quality. Thinking that it will be easier to get rid of the inexpensive item in a few months when we get tired of it, although we are well aware that there will be a consequence to the environment. On the upside, I do believe that consumers and manufacturers are becoming more aware of the impacts they are having on the environment. Today retailers are trying to capitalize on the eco-conscious market and are offering more eco-friendly products than ever. This gives consumers an alternative, but also makes me wonder if we are just producing eco-friendly products to take advantage of a trend. Which ends up overproducing and brings about the same problems of fast fashion. As a young consumer aware of the consequences, I would prefer to purchase more sustainable, higher quality fashion items but when a similar item is offered at a much lower price, the economic trade-off is overlooked. Overall I think the ecological effects of fast fashion will not improve till there is some major change or restrictions within the industry. As long as retailers “pump out” products at a rapid pace, consumers are going to try to keep up with those trends and as long as consumers demand new products retailers are going to meet their demands at any cost.
The concept of fast fashion is something that almost all young people participate in. Stores like H&M, Forever 21, and even Payless have become places that people go in not only to shop but also when they need a specific item. Like Monet mentioned in her post, girls always run to Forever 21 when they need a quick top. New Years eve the store is packed with people just trying to find something cute or sexy that they don’t have to spend a lot on. I go to payless sometimes to buy heels that I know I’ll ruin wearing on the weekends in the city. The idea of fast fashion I both love and hate. I love going to Forever 21 and buying a lot of stuff for low prices. If it gets ruined after a couple of wears I don’t care because I only paid $29.00 for it. However on the occasion that I do save up or buy something very nice I do not like that Forever 21 often has it. A year or two ago I bought a DianeVF dress, which I watched for several weeks waiting for it to go down in price, and hoped they still had my size. I finally bought the dress and was so excited to wear it etc. A week or two later I go in Forever 21 and they have the same dress. And its not like it was a black cotton dress, it was a silk/ satin material that was a specific print! It was copied exactly. If I saw someone wearing it I would think it was the real thing. Something that I have realized is that several people that buy from H&M, and Forever 21 don’t even know that it is a knock-off. My roommate bought a pair of wedges from Forever 21 and the hardware on the shoes was the exact same as Gucci. I thought the shoes were Gucci. They even looked really expensive and well made. She had no idea what I was talking about until I showed her a picture on their website. It is just crazy how they are knocking of designers in some cases exactly and not everyone knows.
"Fast Fashion strategy offers the business a structure for correcting mistakes quickly which keeps the product mix more on trend." There are quite obviously positive and negative aspects to this. For businesses this allows for more profit as the consumer wants whatever is in style, so while things are constantly changing, products are constantly flowing out the store. However, as stated, Fast Fashion is evidently bad for the environment. It only augments the lengthy list of things that hurt the environment. There are many more companies and industries that do worse for the environment whose systems of productivity can be mended before making adjustments to the fashion industry, in my opinion. Once that compromise between business growth and environmental harm is reached, Fast Fashion companies will be seen in a very successful light, rather than the harmful and hectic strategy we see now. For example, if the stores such as H&M and Forever 21, which have very high turnover rates, were known to also be environmentally friendly, then other age groups, in addition to teenagers, would be eager to spend their money on a great copy of a Marc Jacobs top, even if they know it is going to fall apart after the first few washes.
I am definitely guilty of shopping at fast fashion retailers. My two favorites are H&M and Forever 21. I however, also purchase clothing from other retailers that arguablely are more environmentally friendly. This, I believe is a good balance and somewhat counteracts my shopping at fast fashion stores. I think the major problem routes from consumers shopping only in fast fashion stores. This then not only hurts other retailers, but also the environment. When a person buys cheap clothing from the fast fashion retailers, the piece is not meant to last for more than a season. At the end of the season the clothes are thrown away which then creates waste and a need for more clothing. This is a cycle that is really hurting the industry and the environment. At my co-op I realized how bad fast fashion is for companies that aren’t even high end. I had always looked at H&M to be harmful for higher fashion because they knock off so much of their products. This is also harmful to companies like DKNY Jeans, because their clothes are pretty cheap, but can be easily replaced with H&M because their customer is mainly looking for trendier clothes. Fast fashion companies can produce the newest trends, in a lot less time and for a lot less money. All of the advantages the companies like H&M have are virtually impossible for established brands to compete with.
I feel that we all have to admit we at least once in our lifetime have shopped at a fast fashion retailer. It almost sounds too good to be true, trendy clothes at such a great price. Of course there has to be a catch. As I’ve researched this topic for other courses, the drawbacks and negative effects of fast fashion have come out and made me rethink how I shop. Just like Emily stated in her response, there has to be a balancing act in how you shop. You can buy a few pieces here and there, but if your entire wardrobe consists of fast fashion pieces you’re feeding into the never ending cycle between the retailer and consumer as Jessica’s post described. While our current economy doesn’t help the cause, if you’re going to buy from fast fashion retailers, you should compare the retailers and understand which companies are trying to improve how they work. In researching Zara, I found that instead of keeping their cost down by outsourcing to poorer countries where they could get away with treating their workers poorly, they work domestically therefore cutting costs on transportation. While this may seem small, every small step that a company can do improve the current situation counts.
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