MyCIMA

Disadvantages of fast fashion model in retail business

Replies : 1
Keywords: costs, fashion, income, retail
I have noticed that the most commonly talked about disadvantage of the fast fashion model in retail business is the cost of production due to the short production runs. What are the other likely disadvantages? I seem to find this model to assume or rather target people with readily disposable incomes which may make it difficult to plough money back if this group is small. In this context, can lack of disposable income on the part of customers be a disadvantage? What does the group think about this line of thought and what could other disadvantages be?

Fast fashion advantages/disadvantages

Lack of disposable income is inevitably a disadvantage in retail, but when customers leave one  market segment in favour of another there is a benefit to those operating in that segment - fast fashion retailers targetting the value market achieve large volume through their low pricing. By providing close copies at a fraction of the cost of the originals they appeal both to low incomes and also higher income groups, who purchase more frequently.

Other disadvantages include sustainability issues - short product lifecycle - more frequent purchases linked with more clothing going to landfill - more transportation - more natural resource usage.
Ethical issues - usage of lowest cost labour risks exploitation.
Reputational risk from infringement of intellectual property rights by making close copies of designs from other fashion houses.