Main Fashion business strategies and their sustainable impact

The short history of the trade of textile products exposed above helps to understand the shape of the textile industry nowadays, and the dominant business archetypes that we can find in this sector. We will review here some of the most dominant fashion business models:

1. Fast and ultra-fast fashion

Strategy

This model emerged in the late 90´s with brands such as Zara or H&M. Fast fashion is a model that focuses on affordable prices for fashionable clothes that changes constantly. At the level of operations, it requires a highly responsive supply chain, shortening the design-manufacturing-distribution cycles, as the collection can change every 2-3 weeks. The fast fashion firms usually follow the fashion trends launched by luxury firms and make quick replications, use shortened manufacturing cycles and logistics, including distribution and marketing, so they are able to propose a high turn-over of clothes in the shops, and the consumers have a wide variety of products. This model derived in the 2010’s to the ultra-fast Fashion model, where the manufactured cycle was reduced to 1-2 weeks, and the online presence reduced the logistics costs of the distribution. Nowadays, the biggest players in the fast fashion world include Zara, Uniqlo, Forever 21 and H&M.

Sustainable impact

Fast fashion is associated with severe environmental pollution as well as a massive amount of clothing waste at the end of the product life cycle. According to the UN environment programme, the textile industry is the second bigger consumer of water and is responsible for 8-10% of global carbon emissions (as much as the European Union). The Quantis Internation Report (2018) identifies 3 main drivers of the industry global pollution impact: dyeing and finishing (36%), yarn preparation (28%) and fibre production (15%), with important consequences on natural ecosystems. In addition to the environmental impact, this model also poses societal problems. Indeed, fast fashion model has been blamed for creating labor abuses in the supply chain, where the production of apparel is compromised with forced and child labour. The fast fashion model was marked by the Dhaka garment factory collapse in Bangladesh in 2013, which caused 1.134 death.

Source: Image by lookstudio on Freepik

2. Real-time fashion retail

Strategy

The real-time retail, directly coming from Asian countries, and in particular China, with hundreds of millions of Chinese consumers getting online, is a further evolution of the fast and ultra-fast fashion models and can turn fashion trends into clothes collections in a few days, or a maximum of one week. This model makes full use of new technologies to detect trends and launch digital marketing campaigns, has a manufacturing cycle of 5-7 days, and sells online to any place of the world. One good example of Real-time retail firm would be Shein.

Sustainable impact

If the fast fashion model can be criticized for its environmental and social impact, real time fashion is just one step further in the unsustainable practice.

3. Luxury fashion

Strategy

These couture brands are good at predicting what people will wear in the future and are the ones that set the trends. Luxury business is a model that runs contrary to most other business models in fashion. It relies on principles that defend the uniqueness of the products, thus with a lower production rate. Here, the production cost is secondary, as customers can afford the price. This business model is characterized by local production, full control of the value chain and distribution, and developing direct one-to-one relationships with clients.

Sustainable impact

In contrast with the fast fashion model, luxury fashion products are exclusive, high quality, and long-lasting, for which we can thus expect this industry to be more environmentally and socially friendly. However, as always, things are a little bit more complex.  In order to create pieces with the highest standard of fabrics, dyes, and other materials, luxury brands consume large amounts of natural resources. The sector was criticized for the use of fur and leather from endangered species, or the use of toxic chemicals to dye the fur. Also, there have been cases where luxury brands have been incinerating fashion products that weren’t sold. In 2018, the fashion brand Burberry was for instance pointed out for burning over 30 million euros of bags, clothes, and perfumes.

Source: Image by marymarkevich on Freepik

4. Functional brands

Strategy

Functional clothing is one that is specific to users’ requirements and designed to be used under extreme conditions. Functional design is focused on the functionality, wearability, and desirability of the products. This is the case with sports equipment, but could also be clothing for firemen, automobile mechanics, etc. This business model gives an important role to R&D and innovation, which will increase the technical quality of the products. Then, the business model uses delocalization of production and outsourcing. For instance, Nike doesn’t actually produce the items it sells, its manufacturing is all outsourced, in more than 300 external independent suppliers over 35 countries such as Vietnam or China.

Sustainable impact

Again, the sustainable impact of functional brands is significant. Functional brands such as Nike or Adidas were denounced by Greenpeace as part of its Detox campaign, which identified that hazardous chemicals are present in textile and leather products as a result of their use during manufacture.

5. Slow fashion

Strategy

The term “slow fashion” was used for the first time by the design activist Kate Fletcher, in contraposition with fast fashion. K. Fletcher defines slow fashion as “quality-based rather than time-based, it encourages slower production, combines sustainability with ethics, and invites consumers to invest in well-made and lasting clothes”. In slow fashion, quality and sustainability of the supply chain are the key elements. Brands such as Patagonia or the North Face created an alternative casual style emphasizing comfort and the attention to the environment. This model advocates for buying better quality garments, that will last longer. It values the role of people and education.

Sustainable impact

Slow fashion is nowadays presented as the solution, and the sustainable choice to protect our environment and society. Slow fashion is characterized by slower production schedules, smaller collections, zero-waste designs, local production and the use of sustainable materials to reduce the impact of the production.