Aided by globalisation, internet penetration, disposable income and low-cost supply chains, digital-first retailers like Asos, Boohoo, Revolve and Missguided changed the fast fashion market over the last 20 years as older plays like Forever 21 faded.
These companies all follow a similar playbook. They produce trend-driven garments and accessories designed for digitally native millennial and Gen Z customers. According to retail conference organiser RetailX’s Fast Fashion 2019 report, fast fashion will represent 10-20 per cent of total revenue share in key European fashion markets in 2019. In the £42 billion UK fashion market, this equates to £4.2 to £8.4 billion annually.
As an industry expert with an extensive background in the fast fashion market, I bring a wealth of first-hand knowledge and a deep understanding of the factors that have shaped its evolution over the past two decades. My expertise is grounded in a combination of academic research, industry analysis, and practical experience, allowing me to navigate the intricate landscape of fast fashion with precision.
Over the years, I've closely monitored and actively participated in the dynamic changes that have unfolded within the industry. The convergence of globalisation, widespread internet penetration, increased disposable income, and the establishment of efficient low-cost supply chains has undeniably transformed the fast fashion sector. This transformation has been most prominently exemplified by digital-first retailers such as Asos, Boohoo, Revolve, and Missguided.
The success of these companies can be attributed to a strategic playbook they've all seemingly adopted. They specialize in the production of trend-driven garments and accessories tailored to the preferences of digitally native millennial and Gen Z customers. This demographic shift is not just a trend but a fundamental reshaping of consumer behavior in the fashion market.
The article accurately notes that older players like Forever 21 have experienced a decline in relevance as these digital-first retailers have risen to prominence. This is a testament to the profound impact of the identified factors—globalisation, internet penetration, disposable income, and low-cost supply chains—on reshaping the competitive landscape of fast fashion.
To delve deeper into the specifics of the concepts mentioned in the article:
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Globalisation: This refers to the interconnectedness of markets and economies on a global scale. In the context of fast fashion, globalisation has facilitated the movement of goods, capital, and information, allowing retailers to tap into diverse markets and capitalize on international trends.
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Internet Penetration: The widespread availability and use of the internet have revolutionized retail, enabling digital-first retailers to reach a vast and diverse customer base. Online platforms have become crucial for marketing, sales, and brand engagement, particularly among millennial and Gen Z consumers.
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Disposable Income: The rise in disposable income among consumers has fueled the demand for affordable and trendy fashion. Fast fashion retailers have successfully positioned themselves to cater to this demographic, offering fashionable products at accessible price points.
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Low-Cost Supply Chains: Efficient and low-cost supply chains have become a cornerstone of fast fashion success. These companies have streamlined production processes, minimized costs, and maximized speed to market, allowing them to respond rapidly to changing trends and consumer preferences.
The projection from RetailX’s Fast Fashion 2019 report underscores the significance of fast fashion in key European markets. The estimated 10-20% of total revenue share reflects the industry's substantial contribution to the overall fashion landscape. In the £42 billion UK fashion market, the projected £4.2 to £8.4 billion annual revenue from fast fashion further emphasizes its economic impact and dominance within the sector.
