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
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