The Extractive Business Model of Fast Fashion: A Colonial Critique by Kanika Meshram * [47]

The concept of value creation revolves around aligning the interests of customers, stakeholders, and the organization itself. A successful business model effectively leverages these values. Central to this framework is the business model canvas, which outlines nine key elements such as customer segments, value proposition, and revenue streams. A robust supply chain, underpinned by strong partnerships, is essential for delivering this value proposition.

Fast fashion brands have become adept at responding to market demands through agile business models. However, this speed comes at a significant cost. A voracious appetite for textiles, coupled with declining garment utilization, has severe environmental implications. Furthermore, the industry’s reliance on low-cost labour in the Global South raises ethical concerns.

The Fast Fashion Value Proposition: A Disposable Culture

Fast fashion brands have revolutionised the clothing industry, offering trendy styles at rock-bottom prices. This seemingly irresistible value proposition, however, comes with a hidden cost. By constantly churning out new designs – Shein adds 2,000 daily [1], Zara produces 500 weekly [2] – fast fashion cultivates a culture of urgency, detachment, and ultimately, disposability towards clothing. This focus on fleeting trends disrespects the craftsmanship and longevity that garments can possess. It fosters customer value in “wear-once-and-discard” proposition that generates mountains of textile waste. The burden of this waste disposal, however, falls far from the trendy wardrobes of the Global North.

The fashion industry was built on the promise of cheap labour in the Global East. As wages in developed nations like the UK rose, brands shifted production to countries offering lower costs [3]. This pursuit of profit came at a human cost. To maintain low prices, companies chipped away at garment worker rights, suppressing wages, utilizing exploitative short-term contracts, and creating conditions akin to modern-day slavery.

This exploitation has deep colonial roots. The fashion industry frequently leverages state power to stifle labour unions and worker movements in the Global South. They justify these actions by painting a bleak picture – claiming these are the best opportunities available for workers in Global South, who might otherwise face even harsher realities. This logic maintains an exploitative system where Western companies reap vast profits while workers toil in unsafe environments for meagre wages.

Reimagining the Business Model: A Call for Responsibilisation

Most fast fashion business model doesn’t account for the lifecycle of its products. The responsibility for discarded clothing falls on the consumer, often leading to donation piles that end up in overflowing second-hand markets of the Global South. Places like Ghana’s Kantamanto Market and Kenya’s Gikomba Market become dumping grounds for world’s unwanted clothing[4]. This burden goes beyond logistics. The influx of cheap, trendy garments disrupts local economies in Global South and devalues their traditional clothing craftsmanship. Consumers in developing nations feel pressured to adopt Western styles, further perpetuating colonial power dynamics. So, demand for such types of clothes come from a system of colonialism where western style dresses will get you ahead in life perpetuating the notion of power and white supremacy.

The environmental impact is equally staggering. Unsold garments end up in landfills, contributing significantly to the global carbon footprint considering the long journey these clothes take to reach developing countries.  As it turns out, managing this dumped clothing comes at a cost to these countries. For example, the municipal government of Accra, Ghana spends over US $1 million annually on tipping fees for second-hand clothing waste in landfills alone; this includes expenses like fuel, maintenance, and labour. Imagine the burden if the world kept dumping clothes on your doorstep and your tax money was used to clean it up!

As the Figure illustrates, I utilized the H&M business model as a framework to illustrate how the model can be adapted to prioritize clothing circulation over landfill disposal. My suggestions are preliminary and do not comprehensively address the complexities of the issue, particularly the relentless pursuit of new styles. To shift the business model from an extractive, colonial approach to a more responsible operating model, three key areas for improvement are proposed.

Product Take-Back Programs: Retailers can partner with other stores or supply chains to collect used clothes. E-commerce platforms can inform customers about these drop-off points. Incentives can be offered to encourage participation.

Rewear and Upcycle: Brands can offer repair services for damaged clothing, extending their lifespan. Vintage sections in stores can give pre-loved clothes a new lease on life driving product extensions.

Repurposing and Recycling: Unsold clothes can be creatively transformed into packaging materials, cleaning cloths, or even new clothing lines. This requires collaboration with suppliers in the Global South to develop innovative recycling techniques.

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[1] https://www.gittemary.com/2022/07/shein-is-much-worse-than-any-other-fashion-brand-here-is-why.html#:~:text=Shein%20reportedly%20adds%20over%202%2C000,%2Dday%20period%2C%20for%20comparison.

[2] https://www.thefashionlaw.com/fast-fashion-sustainability-is-about-more-than-the-fabrics/#:~:text=As%20the%20largest%20fast%20fashion,20%2C000%20different%20styles%20a%20year.

[3] https://www.amazon.com.au/Consumed-Collective-Colonialism-Climate-Consumerism/dp/1538709848

[4] https://earthyroute.com/blogs/slow-fashion-series/4-places-where-our-clothes-end-up-when-they-are-discarded

 * Dr. Kanika Meshram is a Lecturer in Management and Marketing at the University of Melbourne. She may be reached at kanika.meshram@unimelb.edu.au. Note: the inspiration for this blog comes from Aja Barber's book, Consumed the Need for Collective Change: Colonialism, Climate Change and Consumerism. Read Professor Meshram's other posts on customer centricity [43, 31].  

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Meaningful Consumption – Consumer Behavior Concepts and Applications by Aditya Gupta * [46]

 

What makes a purchase meaningful? Reflect on the things you spent money on recently. Perhaps, bar tabs, gas, groceries, rent/mortgage, takeout boxes, Starbucks and Ubers? While some of these purchases were made from sheer necessity (you need a roof over your head), others were made for pleasure (a Frappuccino on a broiling summer day? Yes please!). But how many (if any) of these transactions would you classify as meaningful?

For the longest time, consumer behavior researchers have invested considerable effort in understanding what makes a purchase useful (the utilitarian perspective) and what makes it pleasurable (the hedonic perspective). In contrast, there’s been scant research on what makes certain purchases – i.e., the products, services, and experiences we buy– meaningful to us. The research I undertook with my colleagues enables me to answer the question as follows: 

Ø     > A purchase is perceived as personally, deeply, and enduringly meaningful if it can enable at least one of three key experiences: rejuvenation, expansion, and consolidation.

The question of meaningfulness arises from a third perspective, eudaimonia. Introduced by Aristotle’s writings, eudaimonia explains how to lead a virtuous, purposeful, meaningful life. These days we see several related concepts in popular culture – flow, flourishing, holistic well-being, and self-expression. Meaningfulness is one of these facets and, as I describe below, it is possible to find through the time, effort, and money spent by consumers. There are three key themes associated with meaningful consumption: rejuvenation, expansion, and consolidation.

      1. Rejuvenation

Consumers are likely to find a purchase meaningful if it can provide a sense of renewal to them. This can happen in two ways: repair and reconnection. The key idea underlying repair is one of escape and healing from the stressors and strains of modern life. Whether it was a vacation getaway or a daily retreat to the gym, people valued experiences that enabled a temporary relief from the many demands of day-to-day life and allowed them to rest and recharge their batteries. In contrast, the central idea behind reconnection was about renewing relationships. People spoke fondly of annual reunions and basketball game tickets because those experiences were instrumental in helping them keep integral ties of family and friendship alive.

2. Expansion 

Many of us are likely to start finding life dull if there are no new horizons to explore. We saw several examples of how consumers would often seek out intellectual, pragmatic, or relational expansion. Simply put, consumers find meaning in purchases that enable them to broaden their intellectual horizons, learn or sharpen a skill, or forge new relationships. People enthusiastically recounted finding meaning through purchases of books on topics they were interested in, DIY furniture that they learned how to assemble, and thoughtful presents for loved ones as a way of building relationships. As can be seen, the central idea underlying expansion is that of growth, and purchases which can help bring that into consumers’ lives are more likely to end up being meaningful to them.

3. Consolidation

The final experience linked to meaningful consumption tries to capture how certain purchases lead to a deeper and richer understanding of who we are and the larger world we inhabit. We term the former crystallization and the latter contextualization. Much as how crystals form through a slow process of solidification, certain purchases lead consumers toward a better understanding of their own selves, strengths, weaknesses, and achievements. In essence, such purchases helped consumers to better crystallize their own sense of self. In contrast to this relatively more inward perspective, examples of contextualization underscored a more outward perspective as seen in certain purchases which allowed consumers to get a stronger grasp on their position relative to the larger contextual aspects of their existence such as the passage of time, the world they lived in, and even the cosmos. Several such examples originated, perhaps naturally, from experiences during travel. People recalled how visiting now-defunct mining caves gave them an eerie inkling of what life must have been like for miners who used to work there many decades ago. Others spoke of how seeing a rapidly diminishing glacier made climate change that much more vivid to them. Given how a lot has been written about how many of us wish to move toward a greater understanding of ourselves and our place in the world, it was no surprise that such purchases ended up resulting in cherished memories because of their consolidative nature.

Marketers Can Create Superior Value and Deliver Meaningful Consumer Experiences

Services (e.g., bike rentals, gyms, higher education, restaurants, spas) and experiences (e.g., amusement parks, concerts, marathons, theaters, travel packages) lend themselves well to building meaningful consumption. Such marketing applications imply that there will be active buyer involvement and co-creation of value opportunities. A great example of this is the tremendous success of Airbnb vacation rentals which disrupted the hotel sector. Under its ambit, a wide variety of meaningful classes/workshops, walking/food and wine-tasting tours, and interesting or exotic trips are offered to consumers worldwide.

You will find rejuvenation, expansion, and/or consolidation and breathe a sigh of relief as you get away from the office for a few days.  Perhaps, learn candle-making or glass-blowing or be inspired by the splendor of a natural wonder at the end of a hiking trail.

Companies should consider revising their value propositions to go beyond utility and pleasure motivations. To what extent can your company provide meaningful consumption experiences for their target markets? Goods, services, and ideas can be redesigned/ repositioned to increase the likelihood of customers finding your products truly meaningful. In turn, such gratitude will be highly rewarded with increased loyalty, word-of-mouth/word-of-mouse promotion, and enhanced business performance.

*Aditya Gupta, Ph.D., is an Assistant Professor of Marketing at Illinois State University. He may be reached at agupt16@ilstu.edu

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