Fast Fashion’s Business Model Essay

 Specific Purpose: The presentation is meant to inform listeners about the

advantages and disadvantages of fast fashion as the business model and
discuss possible strategies retailers can use to increase customer
attraction.
 Thesis Sentence: Nowadays, potential fashion buyers tend to avoid
consumerism, deindividualization, and ecological irresponsibility
associated with mass production and, therefore, to increase customer
attraction, fast fashion enterprises should address changing customer
interests and preferences.

Introduction

Every individual has his or her own motivations in the selection and buying of
garments. Yet, the most common purchase drivers include such values as quality
and price. It is possible to say that, like in no other sphere, in the world of
fashion, customers value exclusivity, trendiness, design, and brand name.
However, with the accelerating pace of globalization and an increasing number of
global problems, fashion consumers start to demand various intangible product
values related to manufacturers’ socially responsible practices. Fast fashion
enterprises are especially threatened by the emerging changes in customer
interests and preferences due to the very nature of their business model.

The term “fast fashion” implies an accelerated production process, whereas

fashion items and new trends are supplied to the market as soon as possible and
at the lowest possible cost (“Fast fashion,” n.d.). Geczy and Karaminas (2013)
observe that fast fashion retailers operate in the mass market segment; they
immediately copy high fashion trends and ideas and produce clothes in large
volumes. So what particular advantages and disadvantages are associated with
the fast fashion business model, and how can they affect consumers’ perception
of the brand?

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 Body

I. The fast-fashion business model is rooted in recent innovations in supply

chain management.
A. For example, one of the most successful fast-fashion retailers, Zara,
aims to get its garments from “design concept to shop floor” in 10-15
days, while conventional fashion business models use a product
lifecycle that lasts for several months (“Fast fashion goes global,”
2015, p. 18).
B. Fast fashion companies locate manufacturing facilities proximate to
the distribution markets and source items requiring longer lead times
from Asian countries to achieve greater cost efficiency and flexibility
(“Fast fashion goes global,” 2015).
C. Zara uses automated inventory systems, which capture real-time
customer data and maintain continuous feedback loops that ensure
a rapid production response (O’Marah, 2016).
II. Low price is the main advantage and customer value inherent with fast
fashion.
A. Low pricing allows retailers to target large and diverse consumer
groups.
B. The given pricing strategy helps to reduce purchase failures due to
inaccessibility of clients to products − a common factor that can be
found in the premium and luxury segments (Kim, Ho, & Yoon, 2013)
(Kim, Ho, & Yoon, 2013).
III. The emphasis made on materialistic consumption − speed, quantity, and
size drivers − is that what creates problems for fast-fashion retailers in
terms of brand perception and customer attraction.
A. As stated by Kim et al. (2013), throughout the 20th century and with
the development of capitalistic economy, materialistic values were
disseminated in a way that many people started to believe that “the
more consumables one possesses, the better one’s life is” (p. 244).
B. However, nowadays, consumers have grown more conscious of
multiple global problems associated primarily with international
trade, excess production, etc. Some of these problems are:
1. Water and air pollution,
2. Soil erosion,
3. Child labor,
4. Unfair trade,
5. Social inequality, etc. (Kim et al., 2013).
C. Since consumers become more aware of the fact that cheap and
low-price products are faster to turn into waste, they express anti-
consumption attitudes and consequently tend to avoid fast fashion.

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 D. According to Kim et al. (2013), consumers often associate the mass
production of fashion items with “individualized styles” (p. 257). As a
person passionate about fashion, I can say without a doubt that the
uniqueness of a fashion item and its ability to contribute to my
personal style is that what I value most.
IV. The inauthenticity of the product design in fast fashion may be considered
another disadvantage. However, it is associated with controversial effects
on consumer perceptions.
A. Fast fashion is against the right of high fashion designers to
copyright their designs. As Geczy and Karaminas (2013) note, fast
fashion distributors simply take advantage of the mediatized
environment in which the images of authentic designers’ collections
are spread all over the world at a fast pace. Such an approach
provokes some ethical concerns.
B. However, research evidence indicates that awareness of product
unauthenticity does not contribute to brand avoidance much (Kim et
al., 2013). The fact that fast fashion retailers copy high fashion
trends at lower costs does not bother fashion lovers with limited
budgets.

(Overall, the analysis of fast fashion characteristics shows that the business
model has both pros and cons. Nevertheless, since customers’ attitudes are core
to sustainable financial performance, retailers should pay significant attention to
them.)
Conclusion
The major advantages of the fast fashion business model are cost-efficiency,
product accessibility, and low prices. The disadvantages, however, are
associated with their inability to meet consumers’ needs for environmental
sustainability and social integrity. As stated by Hill and Lee (2015), to capture the
interests of the new generation of socially conscious consumers, retailers must
overcome “both skepticism and product-related barriers to sustainable
purchases” (p. 206).

Nowadays, sustainable fashion products are largely underrepresented in the

market, but it is apparent that by increasing the number of “green” offerings,
retailers can attract more consumers who usually avoid fast fashion. In my
opinion, the given strategy will serve dual purposes: consumer education and the

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 development of a unique product line. In this way, fast fashion may increase its
value.

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