At the home of Zara, fast and slow fashion collide (2024)

A CORUNA, Spain/LONDON, Feb 28 (Reuters) - In Spain's A Coruna, two contrasting fashion business models collide - pitching the growing demands for the clothing industry to become more sustainable against the constant need to drive sales.

This rainy, windswept, city on the rugged Atlantic coast is the unlikely headquarters of Zara-owner Inditex (ITX.MC) - the world's biggest fast fashion retailer.

It also hosts small boutiques offering high quality, durable products that consider themselves an alternative to the fast and affordable fashion propelling Inditex's annual sales of 28 billion euros ($30 billion).

Inditex's massive output of garments was a factor behind the European Union's pledge last year to reverse the "overproduction and overconsumption of clothing". It wants all clothes sold in the bloc to be "long-lived and recyclable" by 2030.

The EU will announce its most significant proposals for the industry yet at the end of March, environment commissioner Virginijus Sinkevičius told Reuters on the sidelines of an event in Portugal last week.

The European Commission wants to ensure companies only manufacture the number of products they need. It will stop short of imposing restrictions, instead asking firms to police themselves to be called sustainable, Sinkevičius said.

"If you release tonnes and tonnes of clothes, textiles, shoes into the market, you will have to collect it," he said.

Around 5.8 million tonnes of textile products are discarded every year in the EU, equivalent to 11 kg (24 lb) per person. A truckload of textile products is landfilled or incinerated somewhere in the world every second, according to EU figures.

Inditex had 565,027 tonnes of garments on the market in 2021, more than the 528,797 tonnes in 2018, according to its annual report. The company may disclose a further increase when its 2022 annual report is published next month.

So far, Inditex shows no sign of slowing production. But it is changing some processes, aiming to reduce its environmental impact while sticking to its strategy of regular new ranges.

Central to that plan is using recycled materials and cutting water, energy and raw material usage, Inditex told Reuters in emailed responses to questions.

"We believe that it is not a question of how much (is manufactured), but of how," the company said.

Half of Inditex's garments were produced in a more sustainable way in 2021 - by for example using organic cotton or fibres that do not pose a risk to endangered forests - compared with 9% in 2018, the company said in its annual report, without giving specific data on how these materials reduce its environmental impact.

Inditex adjusts production to match customer demand and only 2% of stock needs to be recycled or donated, it said in its emailed responses to questions.

The company is targeting net zero emissions by 2040, and its strategy has been approved by the Science Based Targets Initiative (SBTi), a body which scrutinises companies' sustainability policies.

LEAVING LITTLE TRACE

Some of A Coruna's smaller boutiques are run by former Inditex designers or sales staff who left to set up their own operations, emulating Inditex founder Amancio Ortega who established his first Zara store in A Coruna in 1975.

Among them are Jorge Toba, 37, and Antia Montero, 31, who worked at Inditex in purchasing and design. They launched children's clothing brand The Campamento in 2018, producing just two, made-to-order collections a year, mostly with organic fibres.

They don't add new products mid-season and they charge online shoppers for returns to encourage conscientious shopping.

"This is a very polluting industry, so we try to leave as little trace as possible," Montero said at a warehouse in the heart of the city from which the business is run.

'A DROP IN THE OCEAN'

Inditex, itself, is working with more than 100 startups specialising in recycling fibres.

Circ, a U.S. company focusing on textile-to-textile recycling in which Inditex invested last year, is developing new technologies to separate cotton and polyester blended in most clothes, the first step to produce clothing from used or waste textile materials, its president Peter Majeranowski said.

But Circ and its competitors are only capable of producing 1% of the textiles needed to make the 109 million tonnes of clothes per year that the global fashion industry churns out.

"It's really a drop in the ocean," Majeranowski said. The goal is to recycle 10% of annual production by 2030, he said.

Marian Fernandez, 56, spent 25 years at Inditex, rising to become one of the top managers of its luxury brand Uterque before setting up her own fashion shop, Maazi, in downtown A Coruna. She posts weekly videos on social media teaching customers how to build a "responsible" wardrobe with dresses that can be used for multiple occasions and seasons.

Boutique labels in A Coruna could show the way to others.

"It's in new and smaller companies where innovation starts," said Achim Berg, a senior partner at global firm McKinsey & Co.

($1 = 0.9320 euros)

Reporting by Corina Pons in A Coruna, Spain and Virginia Furness in London; Additional reporting by Catarina Demony in LisbonEditing by Charlie Devereux, Matt Scuffham and Mark Potter

Our Standards: The Thomson Reuters Trust Principles.

At the home of Zara, fast and slow fashion collide (2024)

FAQs

What is the answer to fast fashion? ›

Here is a complete list of the top tips for avoiding fast fashion: Buy second-hand. Organize a clothing swap. Rent clothesGo shopping in your own closet.

What did Zara do to have its quick response capability? ›

One of the secrets to Zara's success includes using Radio Frequency Identification Technology (RFID) in its stores. The brand uses cutting-edge systems to track the location of garments instantly and makes those most in demand rapidly available to customers.

Why Zara is leading fast fashion? ›

Zara's success is based on its ability to adapt quickly. Unlike many clothing brands, whose designs are stagnant for the season, Zara is constantly assessing and reacting to the environment in a matter of weeks. The brand designs new styles and pushes them into stores while the trend is still at its peak.

What problem does Zara solve? ›

The company focuses on responding to current fashion needs rather than forecasting fashion trends for a distant future: 85% of its production is done during the current season. By doing so, Zara can avoid overproduction, an issue its rival H&M also faces, and become more sustainable.

Is Zara a fast fashion brand? ›

Yes, Zara is a fast fashion pioneer. It is one of those veteran brands that started the whole fast fashion concept of overconsuming apparel to keep up with fleeting trends. Garments produced by fast fashion brands are sold to the consumer at a low-price, and Zara follows this business model from the very start.

What are 3 examples of fast fashion? ›

What Are Fast Fashion Examples? Some examples of companies in fast fashion are Stradivarius, Victoria's Secret, Urban Outfitters, Guess, Forever 21, and many other popular brands.

What is Zara fast fashion business strategy? ›

When other companies were manufacturing their collections once per season, Zara was adapting its collection to suit what people asked for on a weekly basis. The idea was to offer fashionable items at a fair price and faster than everybody else. Part of its cost-cutting strategic priority was its marketing strategy.

How can Zara improve their strategy? ›

The brand could expand its customer base and encourage more shopping by investing more time to market themselves on digital platforms and improve its e-commerce sector's functionality. The biggest threat Zara is facing is the intense number and level of competition in the industry.

What are the recommendations for Zara to improve? ›

The recommended options that should be applied by Zara are to improve distribution by opening regional distribution centers and to achieve increased online sales volume by creating a unique selling point.

What is Zara fast fashion statement? ›

To give customers what they want, and get it to them faster than anyone else.” The fast fashion brand currently manufactures over 450 million items per year and 500 new designs each week. It's this exact fast turnaround that helped Zara become one of the largest retailers in fast fashion.

What is the biggest problem with fast fashion? ›

Plastic fibres are polluting the oceans, the wastewater, toxic dyes, and the exploitation of underpaid workers. Fast fashion is big business, and while the environmental costs are rising, experts say there is another way: a circular economy for textiles.

Who is Zara's target market? ›

The Zara target market includes women and men, mainly younger adults in the age range of 18 to 40. This places the Zara segmentation strategy as largely focusing on Millennials and Gen Z, who are both fashion conscious and tech savvy.

What are the three most critical factors of Zara? ›

Zara's Three Success Factors: Speed, Speed, and Speed.

What is the biggest threat to Zara? ›

Although Zara offers unique designs at a competitive price, the stiff market competition is a threat.

What are the main success factors of Zara? ›

The success of the brand lies where customers appreciate and desire the brand, which is over and above product level benefits and strongly driven by the brand experience. Zara uses its store location and store displays as key elements of its marketing strategy.

When did Zara become fast fashion? ›

In the 1980s Zara disrupts the fashion industry by radically reconfiguring the supply chain and creating the fast-fashion category. It is able to almost instantly react to fashion trends by vertically integrating its supply chain.

How does Zara affect the environment? ›

Put simply, brands like Zara are responsible for perpetuating a culture that encourages people to consume as much clothing as possible, allowing them to continue producing tonnes of clothing every day which likely will end up in a landfill with an extremely short lifecycle.

What is fast fashion vs slow fashion brands? ›

Fast fashion vs slow fashion: The key differences

Fast fashion companies churn out new clothes each season and often use cheap materials that cannot be reused. In contrast, slow fashion brands use high-quality materials and ensure that their clothes can be recycled or repurposed at the end of their life cycle.

What are the 4 elements of fast fashion? ›

All of the elements of fast fashion—trend replication, rapid production, low quality, competitive pricing—have a detrimental impact on the planet and the people involved in garment production.

What is fast fashion and why is it bad? ›

Much modern clothing is not made to last. Due to super-fast production, designs are generally not well stress-tested before sale, and cheap synthetic fabrics are used in order to keep costs low. Much of it will end up in landfill after only being worn a handful of times.

Are Zara and H&M fast fashion? ›

Ultimately, while Inditex and H&M are both fast-fashion retailers, “Zara has been coming back to having a pretty strong product in store,” Ramirez said. “And I think when you look at H&M, we really haven't seen anything very strong come from them.” “At a time when there is inflation and…

What is the direct marketing strategy of Zara? ›

The first marketing strategy of ZARA is direct sales mode. Zara controls most of the stages on the chain supplying, designing, manufacturing, and distributing its products [2]. Another marketing strategy of ZARA is focus-cost strategy [3]. ZARA positions its goods as high-end products with low price.

Who is the creator of fast fashion Zara? ›

In the early 1960s, Ortega developed the business model that would later be called fast fashion—and when the first Zara boutique opened in 1975, it revolutionized the retail fashion industry.

What targeting strategy does Zara use? ›

Targeting of Zara

ZARA's target consumer is often between the ages of 18 and 40, with a medium-high income. Furthermore, it targets customers based on their fashion awareness. They are frequently busy individuals, which is taken into account in ZARA's strategy, which aims to get customers to buy on impulse.

What is Zara hybrid strategy? ›

Zara is building a hybrid business model, where it combines fast fashion with cues of luxury (curated capsules, art direction, photography, model selection, styling).

What is Zara's brand identity? ›

Zara's focus on fashion is in line with the vision of the entire Inditex group which defines itself as “Fearlessly Innovative Fashion” and “a family of brands that celebrate style, self-expression and the power of fashion to make a change”.

What has Zara done to be more sustainable? ›

Zara's parent company, Inditex, has started a repair and reuse program called Closing the Loop. The program offers customers the opportunity to drop off their used garments in-store or through the post in order for their clothes to gain a second life—which is a good initiative. The brand also uses recycled packaging.

What are the pros and cons of fast fashion? ›

In conclusion, fast fashion has both advantages and disadvantages. While it offers affordability, convenience, and variety, it also has a significant environmental impact, contributes to labor issues and unethical practices, and encourages a culture of excessive consumption.

Why is fast fashion a problem in society? ›

In addition to environmental issues, fast fashion garments spark a lot of ethical concerns. They are often made in sweatshops where underpaid workers are employed for long hours in unsafe conditions and are exposed to harmful chemicals used in textile production.

Why is fast fashion a social issue? ›

Fast fashion is severely criticized for its negative social impacts. It doesn't promote decent work conditions, gender equality, diversity, or inclusivity. Instead, retailers foster a culture of discrimination, harassment, and violence.

What is Zara's unique selling point? ›

Its core values are found in four simple terms: beauty, clarity, functionality and sustainability. The secret to Zara's success has largely being driven by its ability to keep up with rapidly changing fashion trends and showcase it in its collections with very little delay.

How loyal are Zara customers? ›

How loyal are the customers of Zara? Around 7% of fashion store customers in the United States say they are likely to use Zara again. Set in relation to the 9% usage share of the brand, this means that 78% of their customers show loyalty to the brand.

What is the customer experience of Zara? ›

Zara is the retailer with the lowest rating given by customers. The main reason for this is how they handle returns and refunds. The data shows Zara is consistent with the amount of negative feedback they are receiving while other retailers are seen to be making improvements.

What threats does Zara face? ›

Threats
  • Intensifying competition from high end fashion merchandisers locally and globally.
  • The loss of appeal within target customer segment.
  • Failure to meet fashion tastes and preferences of millenials.
  • Intensifying imitation of counterfeit Zara products.

What is Zara's competitive disadvantage? ›

The biggest disadvantage of Zara's supply chain is that since Zara owned all the channels of supply chain, it becomes difficult to expand to far location as it is very expensive to distribute such products.

Why is Zara not as successful in the US? ›

Zara's having trouble breaking into the U.S. because they don't participate in "vanity sizing," or labeling bigger clothes with a smaller size. Zara clothes are true to size, reports Amina Akhtar at Elle.

Does Zara violate human rights? ›

Alarmingly, Zara is one of many fashion retailers that have neglected the rights of its workers, in exchange for lower production costs and increased sales. As an internationally recognised brand, Zara should not allow such degrading and cruel working conditions for its employees down the supply chain.

What is the Zara clothing controversy? ›

In 2014, Inditex was forced to withdraw a Zara T-shirt from the market because in Israel it was associated with the clothing of prisoners in Nazi concentration and extermination camps.

What is the US government doing about fast fashion? ›

Introduced by American Senator Kirsten Gillibrand (NY), the FABRIC Act aims to make sure that fashion companies abide by supply chain transparency, safe labor conditions, and fair wages, enabling stakeholders to hold fast fashion companies accountable for malpractices.

Why we should say no to fast fashion? ›

Clothing produced by fast fashion brands are oftentimes made from cheap materials, like polyester and acrylic, and not built to last. These materials shed when the clothes are washed and end up in our oceans, then in the food and drinks we consume. The fashion industry is the second most polluting in the world.

How do you solve sustainable fashion? ›

Sustainable Fashion: how to reduce your environmental impact
  1. #1 Choose organic or recycled fabric. ...
  2. #2 Repair your clothes instead of buying new ones. ...
  3. #3 Second-hand shops are useful. ...
  4. #4 Buy clothes made with organic flax or hemp. ...
  5. #5 Choose locally-made clothes. ...
  6. #6 Choose transparent brands. ...
  7. #7 Wash your clothes correctly.
Sep 19, 2022

How can we reduce fast fashion waste? ›

Top 10 ways to reuse, reduce and recycle your clothes
  1. Increase the number of times you wear your clothes. ...
  2. Repair your existing clothes. ...
  3. Look after your clothes. ...
  4. Buy quality over quantity. ...
  5. Buy clothes made out of eco-friendly materials. ...
  6. Rent. ...
  7. Shop preloved. ...
  8. Donate.

Is fast fashion destroying our environment? ›

These unsold garments are often burned, as it's cheaper and easier for the company than finding a way to reuse or recycle them. Apart from wasting resources, the fast fashion industry pollutes waterways with toxic dyes, and increases the number of microfibres in the ocean through the use of fossil fuel-based fabrics.

How is fast fashion bad for society? ›

Fast fashion promotes the throwaway culture, excessive consumerism, and makes clothes disposable commodities. Many consumers make purchasing decisions based on their emotions. Retailers use that behavior and tap into the subconscious of consumers.

What will happen if we stop fast fashion? ›

Ditching fashion would lift a huge burden off our planet. We'd save water (used in crop-growing and dyeing processes) and carbon dioxide emissions (from the industry's energy use). And we'd also prevent pollution from the fertilisers and pesticides used in cotton farming, and hazardous chemicals used in dyes.

Can slow fashion be affordable? ›

The thing is that ethical fashion will never reach the prices of ultra fast fashion — there are simply too many corners that have to be cut. That said, ethical fashion is not always more expensive. In fact, many fair fashion brands sell reasonably priced pieces similar to brands on the high street.

Is Nike fast fashion? ›

“Many of us are familiar with the news about Nike sweatshops, but they're just one of the many fast fashion brands violating human rights for the sake of fashion.” In addition to environmental impact, fast fashion affects the health of consumers and garment workers.

How do you think the fashion industry can improve? ›

How Can Fashion Brands Be More Sustainable?
  1. Utilise Sustainable Materials. ...
  2. Minimise Water Consumption. ...
  3. Protect Biodiversity. ...
  4. Avoid Harmful Chemicals. ...
  5. Ensure Fair Working Conditions. ...
  6. Supply Chain Transparency. ...
  7. Use a Sustainable Fashion Consultant. ...
  8. Buy Slow Fashion.
Jan 27, 2022

How many clothes are wasted due to fast fashion? ›

There are 92 million tons of clothes-related waste each year, which produces half a million tons of microplastics. 15% of the fabric used in production is wasted, and 57% of all discarded clothes end up in landfills.

What causes fashion waste? ›

Waste is prevalent in every part of the fashion industry, as a result of overproduction, over consumption and problematic end-of-life solutions. Every second, the equivalent of a rubbish truck load of clothes is burnt or buried in landfill.

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