What is fast fashion?

The term fast fashion has become more prominent in conversations surrounding fashion, sustainability, and environmental consciousness. The term refers to “cheaply produced and priced garments that copy the latest catwalk styles and get pumped quickly through stores in order to maximise on current trends.”

The fast fashion model is so-called because it involves the rapid design, production, distribution, and marketing of clothing. This means that retailers are able to pull large quantities of greater product variety and allow consumers to get more fashion and product differentiation at a low price.

Fashion is also serious business. In 2023, the global industry’s estimated worth was $1.7 trillion. And more than 300 million people from all over the world work on clothes somewhere along the value chain. From 2000 to 2014, clothing production doubled, and the number of garments purchased per capita increased by about 60 percent. This is in part due to the rise of fast fashion. Fast fashion retailers move, well, faster than their traditional counterparts do. This means that they compress production cycles and turn out up-to-the-minute designs, enabling shoppers to not only expand their wardrobes but also refresh them quickly—and cheaply. And according to recent data from The State of Fashion 2025, fast fashion retailers have consolidated their position in the American market: retailers such as Shein and Temu are now the primary online fashion marketplaces in the United States—fast or otherwise.

What are the challenges with fast fashion?

The fast fashion industry, for all its extraordinary growth, is also responsible for considerable waste. People are buying more clothes than ever: by 2030, global apparel consumption is projected to rise 63 percent, to 102 million tons. And fast fashion consumers are quick to throw clothes away. Some estimates suggest that consumers treat the lowest-price garments as nearly disposable, discarding them after only seven wears. For every five garments produced, the equivalent of three end up in a landfill or are incinerated each year. And total greenhouse gas emissions from the production of textiles clock in at 1.2 billion tons a year—that’s more emissions than all international flights and maritime ships combined. Reports also indicate that some clothing factory workers are underpaid and exposed to unsafe workplace conditions. The true costs of fast fashion are coming into focus, especially for millennials and Gen Zers. Young people are becoming more mindful of sustainability with respect to how they consume. They’re also keenly aware that the fashion industry is a major contributor to global warming. Half of Gen Z shoppers in China, according to a survey about sustainable consumption, said they aimed to buy less fast fashion.

What is ultrafast fashion?

If fast fashion retailers speed up traditional product cycles, ultrafast fashion moves even faster. In the 1990s, the Spanish retailer Zara was one of the first fast fashion retailers to break the mold, offering hundreds of new items per week. As of 2023, the Chinese ultrafast fashion retailer Shein consistently churns out up to 10,000 new designs per day. And Shein’s products, on average, are considerably less expensive than its older fast fashion counterparts were. Shein’s average SKU price is $14, compared with $26 at fast fashion retailer H&M and $34 at Zara. Shein has grown dramatically in recent years. In part because of a surge in online sales and digital adoption rates, the company more than doubled its market share in the United States during the COVID-19 pandemic. It’s now the second-most-popular shopping website (after Amazon) among America’s Gen Zers. In 2022, Shein’s valuation peaked at $100 billion before dropping to as low as $45 billion in early 2024 due to the anticipation of increased regulation and legal issues.

How are fast fashion companies evolving the business model?

Ultralow prices are critical to the success of the fast fashion business model, as are condensed production turnaround times. Upstart fast fashion retailers are updating the model in several ways: — Agile, scalable manufacturer-to-consumer supply chains. Some next-generation fast fashion companies have developed large networks of suppliers that often manufacture exclusively for these companies. — Data-driven product design and testing. Some companies—Shein, for instance—use demand-driven trend modeling to design and select their products. This includes a range of data inputs, from current trends to viral products to customer perception. — Loyal and growing customer bases. Companies are feeding their customer bases through affiliate marketing influencer programs and organic social community building, which lower customer acquisition costs. — High app adoption rates and engagement tactics. Companies have gamified their app experiences, allowing customers to earn loyalty points by setting up accounts, leaving reviews, watching live streams, and more.

How are fashion organizations addressing sustainability concerns?

Most fashion companies, fast and otherwise, are behind on their 2030 decarbonization goals. In line with that trend, many fashion brands are scaling back their commitments. Shoppers have proved less willing than hoped to pay extra for eco-friendly products. But sustainability must remain at the top of the agenda. The fashion organizations that choose to approach sustainability with a long-term mindset—even while battling short-term problems—will ultimately be rewarded with a competitive advantage.

The brands that execute sustainability strategies most successfully incorporate sustainability components into existing roles rather than creating entirely new ones. And success as a sustainability executive can open doors to the top job, as in the case of Helena Helmersson, who served as CEO of H&M from 2020 to 2024 after being promoted from head of sustainability. How can fashion players meet their decarbonization targets? Keeping pace with sustainability targets has proved challenging across the fashion industry.