4.1.Findings from Secondary DataGiven a sufficiently large number of studies,the possible effects of external geopolitical factors on trends in the modernfashion industry were not considered, especially with regard to the newlydeveloped concept of fast fashion. Also, in recent studies of the phenomenon offashion, there is no conceptual unity in his understanding as a single globalsystem.
The study of the literature made it possible tosingle out the following approaches that were used to construct a fashion modelas a global system that reveals the uniqueness of its single semantic field. Inaddition, the concept of fast fashion is characterized by a strong exposure toexternal factors. In the first part of the work, the maincharacteristics of the Fast Fashion industry were revealed: dynamism of themodern fashion industry, the scarcity and appearance of the phenomenon ofimpulsive buying, a sharp reduction in the life cycle of fashion trends and anincrease in the number of fashionable seasons. Apparel brands related to fastfashion, are characterized by sharpness. Experts often detail the features ofproduction cycles in companies and how they manage to be always “on thetop” (Ghemawat, Nueno 2003). Fast fashion is alsoassociated with a one-time fashion, because it delivers a designer product tothe mass market at relatively low prices (Hines; 2007).
Since fast fashion issegment of the market which is aimed to target consumer at middle class people,the pricing availability of such a fashionable product is also a prerequisite. The second part is devoted to the factors and problemsthat cause changes in the fast fashion model and its dynamics. The mainproblems of the modern fast fashion industry have been identified as subject tochanges related to globalization and external factors.
It was revealed that the trends of the fashionindustry are influenced by such factors as economic downturns, geo-politicchanges, environmental issues and social factors (Gockeln, 2014), which in turninfluence dynamism and changes in the Fast Fashion business model.As a result, it became clear that the success of thefast fashion model is the reason for the acceleration of the entire fashion industryas a result of its dynamic growth and globalization in general. In addition,its dynamism affects the practices of people’s consumption in the world.The third part of the article describes the proposedways of solving problems in the modern fast fashion model and the maincharacteristics that convey information about the dynamics of the modernfashion model.The fast fashion has evolved from a concept where thedriving force is a production based on the “quick response” model, initiatedby American Clothing Association (AAFA) in the 1980’s (Lowson, King and Hunter;1999), to improve and shorten manufacturing processes in the textile industry, inorder to address the competitive threat of imported textiles from countrieswith cheaper labor force.
Thus, the scheme of existence of the companies is thesame: the own retail network selling only their own branded goods,well-established logistics, cheap production and rapid updating of collections(Hines and Bruce, 2007).Due to this model, the Spanish retail brand Zara, has become a global exampleof how to reduce the time between development and production. Thus, reductionin production costs allowed Zara to produce about 50,000 items annually fornearly 2,000 stores in 93 countries. As per studies Remy, Schmidt, Werner and Lu (2013) thereis even the claim that the global women’s apparel Market is set to grow andincrease by over 50% over the next 12 years. The main reason for such a claimis that the growth will be driven by the very fast growth rates seen in the emergingmarkets. Which according to studies are assumed to account for more than 50% ofthe global GDP growth by the year 2025. As a result of this understanding the mature and emergingMarkets would also be equally important in the given time frame (Remy et al., 2013).
Accordingto PWC (2017),six of the seven largest economies in the world are projected to be emergingeconomies in 2050 led by China (1st), India (2nd) and Indonesia (4th), seepicture 1 (Appendix).If to seecurrent GDP growth rate of 2016 among E7 countries, it is shown clearly thatrest of four countries are not doing well, however India, China and Indonesiaare in the top. Accordingto data currentleaders of 2016 are India, China and Indonesia: 1 India 7,1 2 China 6,7 3 Indonesia 5,0 4 Russia -0,20 5 Mexico 2,30 6 Brazil -3,60 7 Turkey 2,90 If tocompare to GDP growth rate of G7 countries which are characterized asdeveloped, the developing countries India, China and Indonesia have moreeconomic perspectives: 1 US (New-York) 1,50 2 UK (London) 1,80 3 Germany 1,80 4 France (Paris) 1,20 5 Japan 1,00 6 Canada 1,40 7 Italy (Milan) 0,90 Here we canobserve strong decrease during past decade in the UK and US, in the backgroundof emerging markets. Country 2006 2016 China 12,7 7,1 India 2,5 6,7 Indonesia 5,5 5,0 United Kingdom 9,3 1,50 United States 2,7 1,80 Accordingto PWC (2017) and Picture 2 (Appendix), the further rates of countries GDPgrowth rate will decline until the year 2050, but still developing countrieswill remain with higher rates.Picture 2 Hines, T. and Bruce,M. (2007).
‘Supply Chain Strategies, Structures and Relationships’, Eds.Fashion Marketing Contemporary Issues 2nd Edn. Oxford, ElsevierHines, T. (2007). ‘Globalization: Global markets andglobal supplies’, Eds. Fashion Marketing Contemporary Issues 2nd Edn. Oxford,ElsevierLowson, B.
, R. King, and A. Hunter. (1999).
‘QuickResponse – Managing the Supply Chain to Meet Consumer Demand’. Chichester, WileyGhemawat, P. andNueno H. L.(2003). ‘Zara: Fast Fashion’, Online Harvard Business School.Available at: http://wehner.
Further Studies Being a follower of fast fashion strategy, meansto prefer branded clothes. Technologies will increase brand recognition andcustomer base. For example, companies may emphasize their distinctive featuresthrough social networks before they enter. For instance, fashion marketanalysts believe that the corporation Inditex, the owner of the brand Zara,delayed its arrival in others, as well as the demand for brands (Bailay andBhusan, 2015).As the main factors in the growth of fastfashion are the improvement of the supply chain, technology plays a key role inthe activation of brands and customers (Bruce, Daly, and Towers 2004). Usingdevelopments in the field of ascending technologies, in particular,intellectual analytics, fashion companies can collect and analyze more data toadapt their branding strategy.With the improvements of mobile gadgets andleading e-retailers such as Amazon, Asos and Alibaba, aggressively pursuing thedigital platform, which allows consumers to find attractive offers and theability to compare prices. The wide choice of multi branded apparel and quickdelivery to any spot of globe makes online fashion for consumers moreaccessible and convenient, that they are more inclined to purchase onlineinstead of traditional hiking to shopping malls.
Considering such developments,the Fast Fashion retailers will be for new growth. Key findingsFashion which is unsustainable In today’s world the media has created the trend in the customers, whoare more aware than ever before of the scandals and overall negative publicitythat happens with regards to big retailers not doing the proper Corporatesocial responsibility (CSR). which includes practices like child labour, verybad and inhumane working conditions, small sweatshops etc.
The above stated badcorporate social responsibility is some of the consequences of outsourcing. Totake an example we can look at the incident that took place in Bangladesh in2013. A factory named ‘Rana Plaza’ which makes garments for one of the big retailerslike Primark, had more than thousands of its workers dead when the buildingcollapsed on them (The guardian, 2013). Thiscauses the phenomena of sourcing the manufacturing and allied activities toother countries, this in turn helped the companies achieve substantial costcutting of the supply chain. Fast fashion assumes special characteristics of items andattitudetowards them.
The modern society can becalled a “waste civilization” because it is characterized by anincrease in pollution and more importantly, a change in attitude towardsconsumption. Today, overconsumption in various societies is spectacular andimbued with the influence of the media on mass buyer, where celebrities changetheir fashion looks daily. The fashion thus created isshort-lived, as the stars change outfits often, trying to avoid appearing inpublic in the same things as “unwashed masses” (Lynch, Strauss 2007). The followers of fast fashion retailershave positive perceptions towards them, when they do make the purchases they expect the latestand the most cost-effective rates available. Supporters of fast fashion are wellversed in brands and will rather give preference to affordable fashionablethings from brands that are familiar to them, without paying close attention toits quality, as they are often forced to frequent change of wardrobe accordingto quick update of assortment and seasonal tendencies. There are thousands of videos on YouTube where ordinary girls getclothes out of the mass market packages and comment on how it’s fashionable andcheap. The popular bloggers can collect on these videos for several millionviews. However, these three pieces bought at the price of one, will remain inpackages: something will be worn once, the rest will be throwed out after sixmonths – is a common way of consumption in developed countries.
Prices arefalling, turnover is growing. Thus, fast fashion caused a sharp increase in the damagecaused to the environment by the textile industry, and this problem willundoubtedly continue in the future if there is no reassessment of values in theminds of consumers. Obviously, clothing that involves a quick change doesn’t have to beexpensive. Relatively low price is usually achieved due to cheap labor forceused in factories in developing countries, where the orders for the productionof perishable clothing are placed in China, Bangladesh or India; or compensatedby very efficient logistics where orders are placed as closer to themanufacturer as it possible, for example, the North American market placesproduction in Mexico and the European in the countries of Eastern Europe. Costsare also reduced by the rapid turnover and savings in warehouses.
Most consumers areinclined to purchase “green” products, but in fact only few of thembuy these products, because most eco-friendly products are very expensive, andmore often buyers simply don’t experience direct effectiveness from theseproducts. There is number of growing advertising applications claim aboutcompanies’ ecological compatibility, which in fact not really that.Everything that is sustainable in other industries, brings directbenefit to the buyer, unlike organic cotton or requests to help women inUganda. Caring for the world is not about taking care of yourself, it’s hard tosell. Fast Fashion retailers in the mass positioning of their brands never claimopenly that they are “green.” In the end, the most important thing isthat the thing is beautiful and well-suited.
Potential of emerging marketsThe ever-changing demands by the consumers changes thedynamics of Fashion Industry, as well causing the industry leaders and theirbusiness models to get exposed to various macroeconomic factors and trends. In general, the fast fashion may bedescribed by the following characteristics: firstly, it is based on the globaldivision of labor in the world economy; secondly, it assumes the speed ofmanufactured designs, which is based on effective logistics; thirdly, reducedproduction costs due to transfer of production to countries with cheaper labor;fourthly, it is trendy items, which are repeated immediately from the leadingfashion shows; fifthly, involves a frequent change of designs, accordingly, thewardrobe of consumers. Today, FashionIndustry is more thanever exposed to various external factors, among them high market volatility,the widespread use of remote outsourcing, poor forecasting efficiency,geographical distribution of partners, which often lead to the fact that thespeed of response to changes in the market not high enough. Over the recent years the global shift and geopolitical policy changeshave led to a rise in protectionism and populism. The Fashion Industry representatives have reacted ontrade restrictions and mass disturbances, manifested during the vote for Brexitand the election of Donald Trump, and worrying about given impetus to dangerousanti-nomenclature populism in countries.
As a result, the global businessenvironment, including the fashion industry, will have to adapt to new rules,standards and methods (Fernandez, 2016b)In addition, s?memarkets are in the p?ak of mature stage and charact?rizedby slowing trad? growth and market saturation. These devel?ped c?untriesare underg?ing structural changes, such as an aging p?pulationand income inequality. This phenomenon indicates a decline in the purchasingpower of broad middle classes in advanced economies.Moreover, the development of global trade and thegrowth of affordable production in Asian countries, the competition among thebrands of the mid-price apparel has grown so much that a new strategy of marketpromotion has become vitally important. More and more Western brands arereleasing new localized products for consumers in emerging markets. First ofall, because emerging markets demonstrate rapid growth and allow to earn more,whereas the combination of quality of the western brand and small localizationis the best tool for this.
According to McKinsey, fifteen out of twenty citiesin which the prominent growth of apparel sales is expected are in emergingmarkets. Thus, the economic activities of world powers are shifting fromwestern to eastern landscapes.However, thegrowth of incomes and the development of fashion led to an increase in the costof clothing and the redistribution of demand in the direction of moresustainable clothing.
People in emerging market become wealthier, thereby wouldprefer to add a more expenses in favor to buy more qualified clothing, insteadseek of cheaper prices. Given theactive growth of urban centers in developing countries like China and India,stores in different areas within the same country are likely to have largedifferences in requirements, given that different populations have differentpreferences, for example, residents of large cities are more likely to try newones and trend products from other countries than the inhabitants of smalltowns.Customers become moreaware and expectations are much higher than earlier in markets. There are consciousand tend to be supporters of the “slow” fashion. They aremore aware and are more reluctant to spend on discretionary items, they prefer topurchase things seldom and approach this matter in thoughtful way, payattention to the quality instead of quantity and price.
The practical andethical characteristics of clothing for them are more important than trends.They are prone to longer use and inclined to be ecologically conscious. And such a request of a new generation, in my opinion, can lead to thefact that the fashion will step back and become “slow”.
New customerswill prefer to have one quality item instead of a dozen “put on and throwout.”