Fast Fashion Frenzy: The High Cost of Cheap Clothes

Nottingham Economics Society
Feb 20, 2023
2 min read

Updated: Aug 24, 2023

Did you know that the fashion industry is responsible for 10% of annual global carbon emissions?

What is Fast Fashion?

Fast fashion has revolutionized the fashion industry for the past two decades, where low-cost and trendy clothing are produced en masse quickly and sold at affordable prices. Famous brands include Zara, UNIQLO, SHEIN, Primark, H&M Group, and Forever 21.

The Economics behind Fast Fashion

Fast fashion brands utilize a vertical integrated supply chain, where they control all stages of production, from design to manufacturing and distribution. Hence fashion apparels are distributed on market rapidly in response to changing seasonal trends.

They often outsource manufacturing to countries with lower labor costs such as Bangladesh and Vietnam. Combined with economies of scale, they are able to keep the average production cost low and maximize profit.

The Effects of Fast Fashion

The efficient supply chain management allows them to sell the new products much faster, often with new collection releases every few weeks. Companies enjoy a higher profit from the massive sales volume. For consumers, fast fashion democratizes fashion, as stylish and trendy outfits are made available at a cheaper price.

However, fast fashion encourages customers to make frequent purchases, often leading to overconsumption. In a 2018 report by the US Department of Labor, evidence of child labor and forced labor in the fashion industry were found in countries like Bangladesh, Brazil, China and many more. Labor exploitation may occur somewhere along the production line as fast fashion brands often outsource manufacturing to countries with lower labor costs, and lenient labor laws. These workers may face unsafe working conditions, being exposed to harmful chemicals and dye. The Rana Plaza factory collapse in 2013 took away 1134 lives and injured 2500 people. The collapse of the garment factory in Bangladesh had brought worldwide attention to the garment industry which led to initiatives to improve workers’ rights and workplace safety.

Apart from social concern, the massive volume of clothing production by fast fashion brands also brings about environmental consequences such as textile waste, water pollution, and carbon emissions. In fact, the fashion industry is the second largest consumer of the world’s water supply, according to Business Insider. The use of synthetic fibers in clothing production is also a major contributor to microplastic pollution. Besides, the clothing produced are often less durable as lower quality materials are used in keeping production costs low down, contributing to textile waste in the long run.

The Solution to Fast Fashion?

Slow fashion is a movement that places an emphasis on sustainability and quality of clothing. This encourages consumers to be more mindful about their spending habits and to invest in durable high-quality clothing made with sustainable materials, although that may come with a higher price tag. At the same time, slow fashion also looks into ethical practices, ensuring labor rights are being upheld.