assignment 2b trend report report on fast fashion

In recent years, fast fashion is a new fashion trend that is used by more and more people because of its outstanding advantages, hitting the consumer''''s psychology.. Fast fashion began a

Assignment 2b Trend Report

Report on Fast Fashion

Lecturer: Ms My Trinh Bui Due date: 7th, May 2023 Nature of assessment: Group Task Group member:

Nguyễn Thị Lan Phương 21070075 Lê Phương Thảo Nguyên 21070173

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The fashion industry has always been a topic of interest to everyone In recent years, fast fashion is a new fashion trend that is used by more and more people because of its outstanding advantages, hitting the consumer's psychology However, besides the advantages and opening many development opportunities, fast fashion also brings negative impacts on the environment and society So, what is fast fashion, and should this trend continue? In the following essay, we will analyze this trend under six aspects: identification, trend drivers, target customers, aspirational touchpoints, trend locations, and opportunities answer the question to

Starting off, we'll define and clarify some of this trend's fundamental traits Fast fashion emerged in the middle of the 20th century, according to its history Previously, the garment industry was a low-capital, labor-intensive mass-market business Fast fashion began a new supply chain model in Europe to fulfill the desires of young ladies who want to follow fashion trends at affordable rates (Linden, 2016) Today, over 100 billion items are manufactured yearly in the fast fashion sector (Verified Market Research, 2022)

Figure 1 Timeline for history of fast fashion (Linden, 2016)

Although there are several ways to define fast fashion, its fundamental definition is an industry that creates inexpensive, quick, and stylish apparel in large quantities Fast fashion frequently aims to maximize profits while reflecting society's fast shifting trends (The Ultimate Guide to Fast Fashion in 2022) The major players in the fast fashion market include Zara, H&M, UNIQLO, GAP, Forever 21, Shein, Taobao, Fashion Nova, and New Look (Hayes, 2022) Cheap, quick, trendy, and mass-produced are the four defining traits

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of fast fashion This implies that fast fashion is constantly seeking ways to minimize manufacturing costs and time, such as inexpensive labor and materials, mass production Additionally, quick fashion promotes catching up with trends to assure a high demand while reflecting new fashion trends to draw in a wide number of purchasers (The Ultimate Guide to Fast Fashion in 2022)

Figure 2 Collection of logos of major players in the fast fashion market

Fast fashion, like many other trends, has both pros and cons On one hand, fast fashion offers four major advantages to manufacturers and consumers Firstly, producers and retailers earn greatly from quick fashion The constant introduction of new products will encourage customers to shop more, allowing more sales Furthermore, low production costs allow them to maximize profits Secondly, fast fashion enables new trends in clothing to reach consumers quickly People may now purchase "faster" apparel with a choice of inventive, one-of-a-kind, and trendy styles keeping up with current fashion trends Next, fast fashion offers wearables at affordable prices This enables those with low earnings to purchase numerous items and frequently switch up their clothing, adding variety and interest to their life Finally, fast fashion helps democratize the fashion industry and bridges the social gap Clothes are no longer a pastime for the wealthy and famous because anyone can wear fashionable attire and have a wide variety of clothes For instance, if a certain fabric is on the rise, even regular people can wear comparable clothing though it isn't made by well-known fashion houses On the other hand, fast fashion also brings many

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disadvantages to humans and the environment One of them is work that degrades the garment industry's quality Fast fashion is characterized by the use of low-quality materials, lack of true innovation, sloppy craftsmanship, unethical working practices, and violations of labor rules, such as the employment of minors, overworking 18 hours per day, and low pay As a result, the garment industry's inherent image suffers, as do genuine and original items Numerous fast fashion retailers have also been charged with and sued for violating fair labor laws and stealing intellectual property Another drawback is that fast fashion encourages a one-time consumption mentality, due to the abundance of items, the rapid change of trends and the quality of clothing Therefore, this disposable fashion is not only a waste of money in the long run for users, but also extremely harmful to the environment, contributing to turning fashion into one of the most polluting industries (Hayes, 2022)

Figure 3 Revenue of leading fast fashion brands in Europe

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Second of all, we will analyze the main factors influencing and relating to this quick fashion trend The demand of the masses makes up the first factor People nowadays aspire to dress well and are more fashion-conscious, but not everyone can afford high-end clothes Because of its affordable costs, variety, and capacity to keep up with quick trends, fast fashion serves as a solution for them Fast fashion allows those from lower socioeconomic classes to follow trends and gain self-confidence As a result, there is a growing need for quick fashion, and the audience is steadily growing to include not only older women but also men, youths, and the elderly The second factor that has a big impact on fast fashion is trends and seasonal differences Fast fashion can adjust to stay current and maintain a competitive edge faster than trends change Furthermore, profitability is a sig nificant aspect influencing this industry Companies can go so far as to use harmful materials, give unfair labor contracts, and plagiarize products in order to increase profits (Rony, n.d.) In addition, social media had a significant role in the recent decade's explosive growth in the fashion industry A surge of consumers who want to experience and utilize "fast" products has been sparked by influencers like Kylie Jenner and Cardi B endorsing them on Instagram This has made fast fashion well-known and acknowledged around the world (Fox, 2019) The growth of online shopping websites like Taobao, AliExpress, Shein, and Shopee is another driver Anyone can now purchase fast fashion, which has made it easier to find customers in continents like Africa and America

Figure 4 H&M (a fast fashion brand) revenue in the first 3 quarters of 2021 (Statista)

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Due to the shift in public opinion, sustainability and ethics will have a significant impact on fast fashion both now and in the future In recent years, the fast fashion sector has come under fire for its harmful impact on the environment and bad labor conditions It's interesting to note that according to Hitwise analysis from 2017, the top 19% of fast fashion searches were linked to terms associated with ethics, sustainability, and the environment In reaction to this dilemma, numerous firms have introduced goods and activities that advocate for ethical and environmental issues, such as repurposing abandoned fashion products after each wave and utilizing raw materials cruelty-free, improving the workers' working conditions (Fox, 2019)

Figure 5 Percentage of microplastics in water caused by fast fashion compared to others (IUCN, 2017)

Third of all, in terms of customers, fast fashion has 4 main customers (Is Fast Fashion About Self-Expression or Consumerism?, 2022) The first group is teenagers with ages between 13 and 18, with low or no income, and most of them are students or have part-time jobs This is the age when they aspire to express themselves with many young, unique and different fashion styles, making them want to use fast fashion Teenagers will buy things when they have a salary or pocket money or save it for when there is a new trend Because they do not have a stable income, their shopping frequency is not high, with an average of 2 times/month The second group is young adults (20 - 26 years old) with average income, often have full-time jobs and want to have a lot of clothes at reasonable

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prices to change styles and update new trends Fast fashion is extremely attractive and suitable for them, so this is the customer group with the most frequency of buying, when many people in this group will buy clothes anytime, anywhere if it suits them The third group is middle-aged people from 31 to 39 years old with mainly medium or high income and have a fairly stable job This is the age of adulthood and has established a suitable fashion style, so they are less affected by new trends However, they will still follow and buy trending items as they see fit Their buying frequency is not much, only 1-2 times a month and when buying, they will also consider many other factors such as applicability, ability to mix with old clothes The final customer group is trendy elderly people from 47 to 55 years old They are nearing or retired and have a moderate to high source of income from a pension or children They are different from many people of this age when they have established their personal fashion style but still have the need to change or experience new things to freshen their lives Therefore, they still quite enjoy fast fashion, along with slow fashion

Table 1 Fast fashion shopping frequency in Switzerland (Yinyin, 2011)

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Table 2 Ranking of reasons to buy when customers making decision in Switzerland (Yinyin, 2011)

To better understand the customer segmentations of fast fashion, we will analyze some real-life examples from typical brands One of them is H&M, a brand that offers reasonably priced colorful fashion clothing to middle-class people and college students H&M targets young female generations - which accounts for more than 75% of the apparel market Concerning income, H&M targets low and middle-income customers Essentially, H&M does not segment its market depending on ethnicity, race, or national variables (Hellen, 2023) Another example is Zara Targeting middle- to high-income customers with busy lifestyles, Zara offers shoppers trendy and fashionable outfits with quick and convenient services both online and offline (Marketing Management Strategies for Zara, 2022) Not only that, but Zara also offers seasonal and trending combos so that customers don't have to think about mixing clothes or buying more accessories elsewhere, helping customers have an all- -one-place experience in

Figure 6 Zara’s target market (Start.io, 2022)

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Fourth of all, regarding aspirational touchpoints, four stages of the customer journey in the fast fashion industry are awareness, consideration, purchase, and post-purchase, each having its own touchpoints In stage 1 - awareness, customers have intentions to buy clothes With trend followers, when a new fashion trend takes over, they will want to shop for a trendy look This is one of the factors that leads them towards fast fashion - low-cost, trend-catching clothes In addition, those who need to change clothes a lot for work such as models, influencers, entrepreneurs…, also have the motivation to use fast fashion items The touchpoints that get them noticed of fast fashion are offline ads in malls, events, street; or online ads on social networking sites be displayed in a personalized way and based on the habits and interests of each person This results in fast fashion hitting the right consumer psychology and target customers more

Figure 7 Fast fashion overall customer journey map (Skema Research Center, 2021) In the second stage - considerations, customers compare fast fashion brands before making purchases There are many ways to create customer touchpoints now Fast fashion keeps up with market trends, so buyers will have more choices Many brands also create effective touch points by booking KOLs to increase product coverage Placing stores in good locations, for example, is also a good strategy However, not all consumers like to shop

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offline, many people will choose to shop online to save time and a deep customer touchpoint will be created by developing and perfecting shopping applications

The third stage is when customers buy a product At this stage, sellers can be almost certain of their revenue, but they can also lose customers if they don't offer customers a smooth checkout experience Application is one aspirational touchpoint in this stage The convenience of the application helps customers navigate during the purchase process In the final stage, post-purchase, customers will depend on the buying and using experience of the product to decide about the future purchase At this time, the touchpoints will be customer services, gifts accompanying the product, beauty, and long-term usability of the product Although most of the fast fashion products available today do not guarantee long-term use, their services and advice are quite good In addition, with the trend-following features and low prices, buyers will often feel surprised and happy with the accompanying gifts and discounts Therefore, this has hit the psychology of customers when they receive something unexpected, making them more likely to return

Therefore, fast fashion has more aspirational touch points that are more suitable for the masses Specifically, fast fashion touches on the pain of those who opt to buy cheap trendy clothes for contemporary use On the other hand, slow fashion is aimed at customers who prefer to buy quality, versatile or sustainable fashion, designed with care Moreover, in the post-consumption stage, while fast fashion customers buy because of temporary interest, so they will be satisfied with the original appearance of the clothes and accompanying vouchers and gifts, slow fashion customers buy clothes for the purpose of use lasting and emotional attachment to the clothes they buy Thus, although slow fashion has its own strengths, fast fashion is still more popular for the masses

Fifth of all, we will take a closer look at the places fast fashion trends have been, are and will be Fast fashion started in the 60s, when young people, to keep up with the cycle of life, began to choose inexpensive clothing In terms of time appearance, H&M is one of the earliest brands (Hai Yen, 2017) Founded in Sweden in 1947, it expanded to London in 1976 H&M was incredibly popular and became widespread in New York throughout the 1990s and 2000s Based on data in the fast fashion sector, fast fashion is most popular in