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Saturday, July 27, 2024

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].  




24 comments:

  1. This article does a good job of bringing attention to the current problems with fast fashion. The disposable nature of these clothes makes fashion trends move fast along with the overpaid and under worked factory workers. The idea of recycling, repairing, and reutilizing clothes will help fashion trends stay at the forefront for longer and will allow workers to move at a more reasonable pace.

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  2. You article truly opened my eyes on the problems in the fashion industry that many are unaware of including myself. Your analysis truly shows how the industry’s practices. From poor labor conditions that cause damage to the environment to small historical patterns of colonialism. I agree with the fact that for ethical fashion and systemic change is both urgent and necessary. Overall your article helps to get a better understanding and helps address issues within fast fashion.

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  3. This article brings to light the prevalence of fast fashion in the modern world, and the effect it has on third world countries like Ghana. It is evident that colonialism still has a strong hold on third world countries, as they are pressured to adopt western fashion trends and conform to the ways of the West. This shows the strong hold colonialism has on many parts of the world and its history is still very prevalent today.

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  5. This piece is insightful and addresses critical issues within the fast fashion industry. Your suggestions for reimagining the business model show a proactive approach to addressing these challenges. Keep up the great work!

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  6. The issues with fast fashion that are currently present are effectively brought to light in this article. Fast fashion is a big industry that we see in our daily lives today. The concept of recycling, mending, and repurposing clothing will enable workers to work at a more fair pace and help fashion trends remain popular for longer. Because these garments are throwaway, fashion trends change quickly, outpacing the overpaid and underutilized factory workers.

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  7. Given how rapidly clothing is produced and discarded, the effects of fast fashion on the environment and laborers are extremely concerning. It's good to see suggestions for more environmentally friendly programs that could help cut waste and improve industry responsibility, such as upcycling and take-back programs.

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  8. Given how rapidly clothing is produced and discarded, the effects of fast fashion on the environment and laborers are extremely concerning. It's good to see suggestions for more environmentally friendly programs that could help cut waste and improve industry responsibility, such as upcycling and take-back programs.

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  9. This analysis draws attention to the colonial dynamics at work while providing a fascinating look at the moral and environmental implications of fast fashion. The suggested transition to recycling and product take-back programs could greatly reduce waste and advance a more sustainable industry. But for real change to occur, there must be a cultural shift in how consumers view fashion and its worth in addition to structural adjustments.


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  10. This comment has been removed by a blog administrator.

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  11. Your article opened my eyes on the issues in the fashion industry that people are not aware of. Your analysis shows how the industry practices unsafe and unhealthy labor conditions that cause damage to the environment. I agree with the fact that for fashion change is needed. Your article helps to get a better understanding of the issues of fast fashion and the harmful practices of labor conditions.

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  12. This article opened my eyes on the issues in the fashion industry that many people do not realize. The analysis shows how the industry practices poor labor conditions that cause damage to our environment. I agree that change is needed. Overall this article helps to get a better look at the harmful and unsafe labor conditions within fast fashion.

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  13. I found this article to be very interesting, this is primarily due to the reactions to the article. This article talks about how fast moving and cheap the clothes industry is and how negatively the industry is really impacting the world. Furthermore, the article never really spoke on anything groundbreaking or new. When you read the comments though people seem to be shocked by this news like they've had their eyes opened, which is strange to me.

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  14. This article really highlights the serious issues tied to fast fashion that many of us overlook. I'm shocked by the disposable culture of clothing and how it exploits factory workers. The ideas of recycling and upcycling clothes are practical steps toward creating a more sustainable fashion industry. It's also alarming to see how colonialism still impacts countries like Ghana in the fashion world. This article really makes us think about how we consume fashion and why it's important to support ethical practices in the industry.

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  15. I did not know the full extent of the negative impact the Fast fashion industry had on both their workforce and the environment until reading this article. Something absolutely must be done soon to minimalize this impact. I've heard of a company (though the name escapes me) that makes clothing out of recyclable materials. Perhaps a partnership with them or a similar company could be a start to the necessary change. As implied by your third recommendation point, a recycling/repurposing approach to the issue can significantly reduce these landfills.

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  16. This article did a good job stressing the urgency of the need to rethink how fast fashion operates, especially because of its environmental and ethical costs. It was put together very well in explaining the throwaway culture problems that are constantly ignored because brands are good at making people feel they need to buy quickly. I think this was very important as stated because by promoting upcycling, companies can reduce waste and help consumers make more sustainable choices, encouraging responsibility and respect for both workers and the planet.

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  17. The article did a wonderful job highlighting the negative impacts of fast fashion and the terrible culture it has created. I did not initially know about negative impacts that fast fashion causes to the environment, the culture in developing countries, or the value proposition fast fashion creates. This article helped me dive deeper into fast fashion and understand the concept from a different perspective.

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  18. This article showcases the underlying issues in the fast fashion industry that most individuals do not often consider when shopping for their clothes. This industry holds priority in making money instead of realizing the damage they are doing to the environment and labor workers. The changes mentioned towards the end of the article would be incredibly beneficial for making fast fashion more environmentally friendly and sustainable.

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  19. This review of fast fashion's hidden costs does an amazing job at analyzing the effects this industry has on our society. I personally have fell victim to the cheap prices and ability to quickly expand my wardrobe with the current trends, failing to consider the environmental impact it was having. I was shocked to learn that Shein adds 2,000 styles per day [1], further increasing the industry’s carbon footprint. Even though this is beneficial for consumers, it has a high cost to workers and our environment. Hopefully this perspective will increase corporate accountability and environmental responsibility in the fashion industry.

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  20. The impact that fast fashion has had on the environment is very eye-opening. It's crazy to hear the amount of clothes that end up in landfills and is so disheartening. Not to mention, the impact it has on local communities. Companies should have to take more responsibility for their toll on the environment and find some way to create more environment-friendly and sustainable options.

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  21. This article sheds light on the hidden costs behind fast fashion's appeal. The industry’s emphasis on rapid production and low prices often hides the ethical and environmental toll it takes, especially on communities in the Global South. Your recommendations around product take-back programs and upcycling highlight ways the industry can shift toward a more sustainable model.

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  22. I too, have fell for the cheap prices as a result of cheap fashion and do have the same mindset of one and done wear without knowing or really considering the effect it has on the clothing market and the economy. Consumers like myself should really take into consideration what our responsibility is and the true value of clothing in such a culture.

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  23. This article dives deep into the fast fashion industry's massive impact—socially, ethically, and environmentally. It brilliantly connects the “wear-it-and-toss-it” culture to issues like colonial exploitation and unsustainable practices, giving us a fresh perspective on why fast fashion has to change. The proposed ideas for take-back programs, rewear options, and creative recycling are practical steps that could shift the industry toward a more sustainable, responsible future.

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  24. This is a powerful critique of the fast fashion industry and its extractive business model. The connections between colonial exploitation and modern consumerism are eye-opening and raise important questions about sustainability and ethical practices in the fashion sector. For businesses aiming to improve their practices, a more responsible B2B marketing strategy can play a key role. By focusing on ethical sourcing, fair trade, and transparency in the supply chain, companies can differentiate themselves and appeal to conscious consumers and partners. A well-designed B2B marketing strategy can help businesses shift toward more sustainable practices while still achieving growth. Thanks for sharing these thought-provoking insights!

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