A study on the reason why fast fashion isbecoming more and more popular despite itsnegative effects

NATIONAL ECONOMICS UNIVERSITY SCHOOL OF ADVANCED EDUCATIONAL PROGRAMS - * * * - A study on the reason why fast fashion is becoming more and more popular despite its negative effects Instructor: Ph.D Nguyen Thi Thanh Huyen Students: Nguyen Viet Ha 11221958 Le Quynh Trang 11226379 Nguyen Quynh Anh 11220444 Nguyen Minh Ngoc 11224715 February 2023 CHAPTER 1: INTRODUCTION Background In history, fast fashion was first invented in Galicia, Spain by reclusive businessman Amancio Ortega Gaona and his brands Zara and Inditex (Industria de Disendo Textil) in the 1900s The fashion industry has been transformed by this concept Fast fashion is considered as low-priced, trendy clothes that quickly fit customers' needs by copying design ideas from the runways and putting them in local shops Having total profits of $30 million, Ortega's company was a small, closely owned local business in the 1960s but in 2006, Inditex, which operates more than 2,700 stores across more than 60 countries and is an official corporation valued at $24 billion with $8 billion in revenues, was the second largest fashion firm in the world (Luis Alonso Alvares, 2006) Since then, numerous businesses have been imitating Inditex's distinctive business strategy as it expands In the late 1990s, fashion trends began moving at a dizzying speed, young people embraced cheaply made clothing to follow these new trends and reject the sartorial traditions of older generations As a result, the fast-fashion industry became more popular and eventually expanded around the world Major players in the market include Zara, H&M, UNIQLO, GAP, Topshop, Forever 21… Zara and H&M are two leaders According to data of 2019, Zara generated $22.5 billion this year, as of 2020, the company operated in 96 countries with over 2,000 stores under its various brands H&M is also a giant with over 5,000 stores in 74 countries over the world Thanks to its product development strategies, the company earned a huge profit ($24.8 billion) in 2019 and the trend of fast fashion is predicted to be more common globally and this market is expected to reach $39,84 billion by 2025 However, fast fashion has many negative impacts on the environment and workers To be more specific, most of the materials that manufacturers use in the fast fashion industry are non-environmentally friendly According to the United Nations (2018), 10% of greenhouse gas emission comes from the fashion industry In this report, the author also shows that the industry produces about 20% of global wastewater Moreover, the unfairness that garment workers must endure as a result of low salaries is presented through fast fashion Besides, employees have to work long hours in order to generate more products Not only does fast fashion industry has negative impacts on the environment and workers but also encourage intellectual property theft Some designers claim that their designs have been illegally copied and mass- produced by fast fashion companies Therefore, we decided to carry on this research Rationale and purposes Nowadays, fast fashion has become more popular than ever although customers can purchase better quality products from high fashion brands or local shops Therefore, in order to address this issue, a survey was conducted to give us some insights into the global apparel industry We chose this apparatus because we want to see how objective and subjective reasons affect customers’ behaviors The point of this research was to gain a deeper understanding of consumers’ awareness of fast fashion, also to analyze factors leading to their decisions of obtaining fast fashion clothing Research question This study addresses the following three questions: How are people aware of fast fashion and its effects? Why consumers still choose to purchase fast fashion items despite its drawbacks? Scope This research was conducted to identify the knowledge of consumers about fast fashion industry, and the reason why they continue to consume fast fashion items after having perceived its adverse effects We focused on 12-50 years old customers not only to gain a deeper understanding of people’s knowledge about the definition and specific traits of the fast fashion industry but also find out the reasons that made an impact on consumers’ decisions Research methodologies Data collection In conducting this research, we used both primary and secondary data In this research, the primary data came from a questionnaire survey The respondents to the questionnaires were asked about their knowledge of fast fashion, their opinions about its negative and positive impacts in order to find out reasons why they still choose fast-fashion clothing Secondary data was gained from online sources such as research, periodicals, and journals, all of which were marked as reference sources Data analysis The analysis was divided into two parts: Customers’ awareness and Reasons which affect consumers’ decision to continue using fast fashion items, according to our research question The analysis took advantage of empirical findings from the questionnaires with the goal of understanding consumers’ behaviors and opinions We also did document analysis to get more information that we could use to have more optimal results Research structure The study was divided into four separate sections: Part I: Introduction This part concludes with background, the scope of the research, research questions, and how this study was done Part II: Literature view In this section, the definition of fast fashion, the drawbacks of this kind of fashion, its development and popularity, and objective as well as subjective elements affecting consumers’ decisions were informed Part III: Data Analysis and Findings This part concentrated on the data which was taken from the questionnaire and conclusions which were deduced from the data Part IV: Conclusion In this part, the main points and the limitations of the research were summarized References Appendix CHAPTER 2: LITERATURE VIEW This review will look at general definitions of fast fashion before discussing its prevalence and rates of use Secondly, it will dig into the development and popularity of fast fashion Lastly, it will inspect the effects of fast fashion and its element affecting buyers’ decisions and fashion trends 2.1 Defination of the fast fashion A lot of researchers have declared the definition of fast fashion, and most of them agree with the idea that fast fashion is a kind of business model that aims to update new fashion trends as soon as possible, in order to attract customers According to Vertica Bhardwaj and Ann Fairhurst (2010), fast fashion brands update new trends by duplicating designs that appear on fashion runways and introducing them to stores in three to five weeks - while those designs are still gaining attention from fashion enthusiasts Meanwhile, Barnes, L., & Lea‐Greenwood, G (2010) have a slightly different idea They proposed that fast fashion brands have minimized their supply chain to bring out their product sooner than other brands A more recent paper (Caro, F., & Martínez-de-Albéniz, V., 2015) has dug deeper into this definition and given out a more specific definition They had distinguished “haute couture” and trend-setter and fast fashion While haute couture is luxurious and high-end-priced, fast fashion targets the mid to low price range, and rather than being a trendsetter, it only follows trends They also stated that fast fashion brands showcase their items in physical showrooms and online Their claim seems to be somewhat unreasonable since almost every fashion brand has their boutiques and websites to sell their merchandise, therefore it cannot be an identical characteristic of fast fashion Based on what has been researched, we define the so-called “fast fashion” as firms that sell trendy items at low prices Furthermore, these firms have a very short product life cycle, which means that the introduction, acceptance, culmination, and decline of the acceptance of a certain style should be as short as possible 2.2 The development and the popularity of fast fashion 2.2.1 The expansion of fast fashion business In the late 1990s, clothes began to change at ridiculous speeds, and youngsters adopted low-cost clothing to pursue those lattest trends and deny the garment cultures of previous generations (Sara Idacavage 2018) Therefore, the fast-fashion industry grew in popularity and eventually spread throughout the world According to Stephanie O Crofton (2007), starting with 125 employees, Amancio Ortega Gaona's company quickly expanded to 380 staff members and $30 million annually in sales during its first ten years Ortega established his first Zara store in La Coruña Since sales increased, Ortega expanded his company to the national level, converting it from a family-run business to one run by professional managers, and taking more actions toward vertical integration Inditex was founded in 1979 as a holding company for a vast network of affiliates Adam Hayes (2022) mentions that in 2021, the fast fashion market is worth $30.58 billion In 2025, it is expected to rise to $39.84 billion Zara is a leading brand in the fast fashion industry In the research, the author also finds out that Zara's annual revenue is €19.6 billion, and in the half of 2022, Zara owns 1,947 stores all over the world as well as online stores H&M Group is a famous company in the fast fashion industry Despite being founded in 1947, the H&M Group exists in 74 countries and has more than 4,000 stores as of 2022 According to H&M Group (2021), in 2021, their yearly sales revenue was SEK 199 billion (approximately $18.9 billion) Hayes, S G, and Jones, N (2006) note in their report that according to TNS FashionTrak, between September 2004 and June 2005, fast fashion clothing sales went up by 11% in March 2005 compared to the percentage of total clothing retail in previous months Fast fashion store sales have climbed 31% since 2001, compared to a 1% gaining from the womenswear industry overall, while more traditional retailers like Marks & Spencer have lost precious market share 2.2.2 The popularity of fast fashion Fast fashion brands are very popular on social media Koivulehto and Eeva Liona (2017) mention in his research that in 2017 Zara's Facebook fanpage owns more than 25 million interactions, and this brand have a nearly 16 million follower Instagram account Zara is also active on Twitter, YouTube, and Pinterest As a result, the brand reported an additional total of 1,999,829 online chats with customers and 86,641 interactions on social networks in 2015 The popularity of fast fashion also depends on the number of stores the industry has According to Dunjia Radonic (2022), internet users browsing fast-fashion websites accounted for 66% of all fashion-related internet traffic in the first half of 2018 Moreover, as Document continues below Discover more from: Viết luận- chương trình tiên tiến Eng100 304 documents Go to course BỘ ĐỀ HỒN TRƯƠNG BA DA HÀNG THỊT 57 Viết luận- chương trình tiên tiến 100% (15) NEU - Giấy báo trúng tuyển Viết luận- chương trình tiên tiến 100% (2) Doff A., Lloyd M English Unlimited A2 2011 Teacher s Book 124 Viết luận- chương trình tiên tiến 100% (1) LIÊN HỆ THỰC TIỄN GIAI CẤP CÔNG NHÂN VIỆT NAM NGÀY NAY Viết luận- chương trình tiên tiến 100% (1) CÁC LỖI DÙNG TỪ TRÊN CÁC VĂN BẢN BÁO CHÍ 25 Viết luận- chương trình tiên tiến 75% (4) Questionaire about Tinder Viết luận- chương trình tiên tiến 100% (1) mentioned in the above paragraph, since its inception, fast fashion brands in a short period have had a huge number of stores around the world 2.3 Drawbacks of the fast fashion producing 2.3.1 Effect on the surrounding environment Firstly, right after cultivation, the coloring and finishing manufacturing is the leading cause of water pollution According to R Kant (2012), this industry is composing more than 3600 different fabric dyes and using more than 8000 chemicals in many textile-making processes To be more specific, the dyeing process includes chromium, copper, zinc, cadmium, and so on (Rahman F, 2016) Then, these substances are released into the environment and contaminate water sources Furthermore, R Kant (2012) estimated that of 72 toxic chemicals which are found in water, 30 of them cannot be removed Therefore, even though the water used in the textile and dyeing industry has been treated through the most advanced technologies when discharged into the environment, it still harms water sources The World Bank measures that water pollution which comes from textiles coloring and finishing processes accounts for 17% to 20% of manufactured water pollution Secondly, textile manufacturing can cause greenhouse gas emissions The United Nations (2018) states that 10% of global air pollution comes from this industry (over 1.7 billion tonnes each year) Moreover, Greg Peters, Mengyu Li, and Manfred Lenzen (2021) find out that over two decades to 2015, the CO2 emission coming from consuming fashion items increased from 1.0 to 1.3 Gt greenhouse gas and China, India, and the United States of America are three places having the most CO2 emissions from the fast fashion industry Thirdly, textile waste in this industry is a matter of concern According to Kate Huun (2021), 5% of garbage lot space comes from waste from the fashion industry Additionally, the USA produces 25 billion pounds of fabrics annually on average 15 percent of that gets donated or reused, and the rest 85 percent ends up going to landfills That equates to 21 billion pounds of textile waste thrown into disposal area yearly It is measured that an American can throw away 70 pounds of textile on average These figures are rising at an alarming rate 2.3.2 Effects on human Not only does fast fashion have impacts on the environment, but also on human physcical health The chemicals which are used in the fast fashion industry are very toxic They are the source of many dangerous diseases in humans K Peters (2020) assumes that during the manufacturing process, the textile industry employs over 15,000 various substances, starting with the production of fiber He mentions that in the aspects of finance, pesticide uses in planting cotton crops accounts for 6% of total global pesticide uses, moreover, to have cotton waste (cotton waste is raw material in the fabric making process), during the planting process, farmers have to use insecticide use (16%), herbicides (4%), growth regulators, desiccants, defoliants and fungicides (1%) (K Peter, 2020) In this research, he also points out that agrochemicals are the main roots of nausea, diarrhea, cancers, and respiratory diseases, and acute poisonous chemicals murder nearly 1,000 people daily and creates neurological and reproductive issues such as fertility problems, pregnancy, and genetic abnormalities People in these fields of work are exposed to workplace standards that are unsuitable for their physical health and well-being Concerns about the health system come from exposure to humid fabric production and shredding/synthetic fiber processes associated with the fast fashion factory According to Khan, S., & Turnberg Malik, A (2014), dyes are another common source of health problems; 40% of clothing colorant have organically bound chlorine, a toxic chemical Besides, workers with ten years or more exposure to these same textile sectors have a higher risk of bladder cancer (Serra et al 2008) Not only the physical health of workers is affected, but their lives are also at stake In order to create cheap fashion items to sell to the market, retailers can minimize production costs, even not allowing workers to work in standard conditions Many factories collapse occurred, and many workers' lives are taken away John Hobson (2013) mentions in his research a terrible conflagration On the same day in September 2012, two wildfires in separate textile factories in Pakistan killed more than 300 laborers When a water heater blew up and ignited stored chemicals, 300 to 400 employees were working in the first factory According to officials, none of the exit doors at these two plants could be opened, and many of the window frames were barricaded with iron bars, making escaping hard for the workers As a result, several people died as a result of oxygen deprivation, and many workers were unable to be identified because they had no contract of employment Furthermore, in some fast fashion factories, employees must work 14 to 16 hours daily, days a week, and often face verbal and even physical violence from managers Claudio L (2007) writes: “According to the National Labor Committee of the United States, some Chinese workers get paid as little as 12-18 cents an hour while having to work in terrible conditions” To reduce production costs, businesses will hire low-cost laborers These businesses rely on the poor, they specifically target disadvantaged children According to an Indian mill survey, 60% of employees were younger than the age of eighteen when they started working Because they are stuck in the cycle of poverty, these children are especially prone to be forced to work in sweatshops 2.4 Objective elements generating fast fashion trends There are reasons why fast fashion is becoming more and more popular According to Narendra Agrawal, Stephen Smith (2009), fast fashion can be defined as a business model that combines three elements: quick response, frequent assortment changes and fashionable designs at affordable prices Therefore, it is fun, (practical and it is very convenient for consumers In addition, social media marketing activities and “greenwashing” strategy of fast fashion brands also attract consumers to interact with them With the development of e-commerce, consumers can easily buy items of the brands on available online websites The characteristics mentioned above are objective reasons generating fast fashion trends Firstly, it is clear that fast fashion sensation has been very successful due to its inherent properties and advantages for modern consumers Fast fashion brands always concentrate on effectiveness, convenience and affordability They have the ability to produce massive amounts of clothing at lightning speed These companies replicate the newest fashion trends and create desirable styles weekly They can ensure that customers never get bored with inventory Audrey Stanton (2022) revealed that nowadays, fast fashion brands produce about 52 ‘’microseasons’’ a year, which means that they provide one new collection a week to consumers The latest fashion trends are updated then there are appearances of new collections designed in flash H&M and Zara have good dynamic assortment capabilities and have 120 new product introductions per week on average, according to Narendra Agrawal, Stephen Smith (2009,2015) Therefore, with affordable prices, consumers have many choices to find trending items that are suitable for them, which creates convenience and practicality 8.91% 22.77% 23.76% 15.84% under million (VND) from to 10 million (VND) 28.71% from to million (VND) >10 million (VND) from to million (VND) Figure 2.2: Monthly income of survey participants < million (VND) from to million (VND) from to million (VND) >5 million (VND) 2.00% 2.00% 20.00% 76.00% Figure 2.3: Survey respondents’ monthly spending on fashion When it comes to purchasing different products, consumers may consider various factors, for example, in buying a smartphone, the configuration is evaluated first, and then the brand name and the price; in buying a car, safety and gas usage as 3.2.1 Price When it comes to purchasing different products, consumers may consider various factors, for example, in buying a smartphone, the configuration is evaluated first, and then the brand name and the price; in buying a car, safety and gas usage as well as price are the most crucial criteria However, for most products, price is always an important factor to consider Based on our questionnaires, the most popular factor that makes customers keep purchasing fast fashion items in spite of knowing its detrimental effects is “affordable price” It is normal for consumers to compare the price of certain garments of different fashion brands and choose the cheaper ones Meanwhile, public events like fashion shows or fashion weeks, where high-end and luxury brands showcase their new collections are major inspirations for fast fashion designs Therefore, consumers may have items that are pretty similar to those expensive fashion brands at a reasonable price Furthermore, most of our participants have under million VND income (68%) and spend under million VND on clothes per month, therefore they tend to care about the prices of the clothing piece that they wear to ensure that they won't overspend 3.2.2 Style The reason which influences the decision of consuming fast fashion despite its drawbacks is style 12 to 18 years old 19 to 30 years old 31 to 50 years old 24.00% 29.00% 47.00% Figure 2.4: Age of survey participants Banister, E.N & Hogg, M.K (2004) find out that fashion consumption has a strong relationship with each person’s style People of cognitive age (the age at which people have awareness of themselves and their actions) tend to have various ideas on what generates fashion, and which forms of fashion are appropriate for them (Kastenbaum et al., 1972; Stephens, 1991; Wilkes, 1992) In figure 2.4, the third quarter of survey attendants are under their 30s At these ages, people pay heavy attention to their style The fast fashion industry has various items that can suit customers at a reasonable price to increase the number of consumers Therefore, most of the people surveyed choose that the reason they still consume fast fashion items despite their drawbacks is that this industry meets their requirements for dress-up style Firstly, consumers who continue to use fast fashion items in spite of negative impacts choose that this industry has various styles and sizes The percentage of surveyors choosing this reason is nearly 64%, double that of the trend (figure 2.2) This category ranks second only after reasonable price reasons It is clear that when consumers enter a fast fashion store, there are tons of available clothes in different sizes from small to large size for consumers to select from care about personal style no attenton to personal style 16.00% 84.00% Figure 2.5: The attention of surveyed consumers to their styles usually rarely never 2.00% 23.00% 75.00% Figure 2.6: The frequency of surveyed consumers reusing fast fashion items stll consume stop consuming reduce the frequency of consuming 16.00% 26.00% 58.00% Figure 2.7: The participants’ decision about their “fast-fashion” consuming after reading about its drawbacks Secondly, this industry always supplies consumers with fashion items that are on trend According to the finding, approximately 40% of consumers using fast fashion items despite their drawbacks are trend-followers The majority of survey participants care about showing their styles through their fashion items (84%) However, only a quarter of respondents not or rarely reuse fashion items they have worn on previous occasions (25%), and more than half (58%) of consumers attending our survey choose to reduce their frequency of purchasing fast fashion items, and the answer that they will change to other types of fashion instead of fast fashion ranked second with 26% Thus, people, especially the young are more and more aware of protecting the environment by stopping or reducing the use of fast fashion items CHAPTER 4: CONCLUSION This research has been to investigate the awareness of fashion consumers about the fast-fashion industry and why they still consume these items despite drawbacks Fast- fashion has been an exciting topic among consumers Therefore, it has been interesting to investigate some factors that affect fashion consumers’ buying decisions Throughout the investigation, price has been portrayed as an essential factor in the decision to purchase fast fashion According to our research, the objective aspects driving the quick fashion trend are its inherent traits and customer benefits People can buy rapid fashion at an affordable price Therefore, they can usually change their styles or their daily clothes Moreover, the growth of technology also plays an important part in consumers’ decisions Fast-fashion brands use social networks to attract and introduce their collections to fashion consumers We can see that fast fashion brands take advantage of customer psychology These brands have tons of promotions to reduce the price of their products They also produce fashion items quickly to meet the consumers’ demand Most fashion consumers have the most basic understanding of fast fashion Howevere, they not have in-depth knowledge of this industry This is an industry that has been linked to negative environmental and worker health outcomes Obviously, consumers not know the "dark corners" of this industry There is still a part of the population that thinks that the fast fashion sector does not have a negative impact on environmental issues such as water, air and workers' health According to our survey, reasons for consuming were divided into two main types: price and style The main reason for this decision was the price Fast fashion brands are known to have reasonable prices and many deep discounts for customers during the holidays This is what excites buyers To have such affordable prices, most of the brands in the fast fashion industry use materials that are not environmentally friendly, difficult to decompose, and especially the income of the workers to the lowest possible level Some brands even employ underage workers Next comes the reason for style Most survey respondents are very interested in how to express their personality and style through fashion Therefore, the diversity of styles can help fast fashion brands attract the attention of consumers, especially young people Although the goal of the research is accomplished, we noticed that there are still some things that could be improved in our survey Firstly, the number of participants in our survey is 100 people This can lead to a decrease in absolute accuracy Secondly, the survey is not divided according to knowledge, evaluation as well as the use of fast fashion consumers by age group Therefore, we cannot have a deeper look into the reasons why people still choose to consume this kind of fashion by age Thirdly, the study has a geographical limitation We have to admit that the participants in our survey were from Vietnam and there was a lack of fashion consumers from other regions Therefore, we not have the date in other countries To eliminate these limitations, in further study, we will have more questions in the questionnaire to classify the understanding by age group Moreover, we will expand the merge of our survey to have the most comprehensive data about this industry References Agrawal, N., & Smith, S (2009, 2015) International Series in Operations Research & Management Science: Retail Supply Chain Management 255-256 Alonso-Álvarez (1963-2008.) 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You can choose more than answer o reasonable price o follow the trend o high quality o famous brands o environment friendly How often you wear the same clothes you wore on previous occasions? o frequent o rarely o never Have you ever heard of the phrase "fast fashion"? o already o not yet What you mean by "fast fashion"? o rapidly mass produced o used in long term o follow the trend o high price o environmentally friendly materials o designed by famous designers o affordable price In your opinion, which of the following fashion brands is a "fast fashion" brand? o H&M o Uniqlo o Boo o Zara o Patagonia o GAP 10.In your opinion, how does the use of fast fashion affect the following issues? uneffected negligibly affected Seriously affected Extremely affected Water pollution Air pollution Wast of water The increase of industrial waste Workers’ health 11.After reading about the harmful effects of fast fashion, would you continue to consume them? o Yes o No 12.Why you still choose to consume fast fashion despite knowing its harmful effects? You can choose more than o various items and sizes o have many special offers o easily approach o follow the trend o reasonable price