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Fast fashion proves successful economically for the retail industry worldwide. The fast-fashion market in 2020 globally produced $25.1 billion. It was expected to increase at an annual compound growth rate (CAGR) of 21.9%, resulting in the global market increase to $31 billion in 2021. By 2030, it is estimated that the fast fashion industry will bring a revenue of $192 billion to the world’s global economy. 

This economic growth from fast fashion is demonstrated through how companies like H&M or Shein strategize in manufacturing. Most fast fashion clothes exporters are from developing countries across Asia, such as India, Bangladesh, Vietnam, China, Indonesia, and Cambodia. Developing countries’ economies rely on fast fashion consumption as most export earnings profit from ready-made clothes. China, for example, has gained a yearly profit of $158.4 billion from exporting such clothes. 

Additionally, the hazardous working circumstances these employees endure have an adverse effect on their health, as the employees have to regularly work with hazardous chemicals when manufacturing clothes. Toxic Chemicals, such as lead, phthalates, and per- and poly-fluoroalkyl substances (PFAS) are commonly used to preserve and increase the durability of clothes, however, too much contact with these chemicals puts employees and consumers at risk of getting deadly diseases. Alongside the risk of illness employees are more likely to suffer from accidents among their coworkers and having a negative effect on the labor force around the world. 

Manufacturing

The fast fashion industry can thrive economically through the low production costs of its manufacturers in Asia. One low production cost is the investment cost of materials to make a garment. Fast fashion invests in polyester and cotton fabric because they are inexpensive and durable. According to these statistics, polyester fabric is more affordable than cotton, but both are relativity cheaper than higher quality fabric such as silk or wool. One basic T-shirt would require .5 pounds of cotton material, resulting in less than $1 of cotton fabric used. 

Wage criticisms

The fast fashion industry faces criticism for hiring garments workers from developing countries for their low wages. There are more than 60 million workers that produce garments for fast fashion retail, and 80 percent of those workers are women.MVO Netherlands researched in 2019 that workers’ monthly wages in Ethiopia that manufacture for H&M, Gap, and JCPenney begins at $32 (equivalent to US$105 at U.S. prices), while an experienced worker is $122 a month (or US$400 at U.S. prices). 

Hence, workers’ monthly income would be about $858 if they worked 40 hours a week. This is a much higher salary than in developing countries but still lower than the U.S. standard of living in income conditions. To reach the target goals of consumer demands from the U.S. and Europe, garment laborers in developing countries, on average, are expected to work 11 hours a day.

 

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