slow-fashion

The Slow Fashion Business Model In A Nutshell

Slow fashion is a movement in contraposition with fast fashion. Where in fast fashion, it’s all about speed from design to manufacturing and distribution, in slow fashion instead, quality and sustainability of the supply chain are the key elements.

AspectExplanation
DefinitionSlow Fashion is an approach to fashion that emphasizes sustainability, ethical production, and long-lasting, quality garments. It stands in contrast to the fast fashion industry, which prioritizes rapid production and short-lived trends. Slow fashion promotes conscious consumer choices, fair labor practices, and environmental responsibility in clothing production. This movement aims to reduce the negative impacts of fashion on the planet and the people involved in the industry.
Key ConceptsSustainability: Slow fashion centers on sustainable practices that reduce the industry’s environmental footprint. – Ethical Production: It prioritizes fair wages, safe working conditions, and ethical treatment of workers. – Quality Over Quantity: Slow fashion encourages consumers to invest in high-quality, durable garments that last longer. – Minimalism: It promotes a minimalist approach to fashion, focusing on versatility and timeless designs over fleeting trends.
CharacteristicsLongevity: Slow fashion garments are designed to last, reducing the need for frequent replacements. – Transparent Supply Chain: Brands practicing slow fashion often have transparent supply chains, allowing consumers to trace the origins of their clothing. – Mindful Consumption: Slow fashion encourages consumers to be mindful and intentional in their clothing choices. – Local Production: Some slow fashion brands emphasize local production to support communities and reduce transportation-related emissions.
PrinciplesBuy Less, Choose Well: Slow fashion encourages consumers to buy fewer items but to choose well by investing in quality pieces that align with their style and values. – Capsule Wardrobes: Many slow fashion advocates embrace the concept of a capsule wardrobe, consisting of versatile, essential items. – Repair and Upcycle: Instead of discarding damaged clothing, slow fashion promotes repairing and upcycling to extend a garment’s life.
ImpactReduced Environmental Impact: Slow fashion practices lead to reduced waste, lower carbon emissions, and less resource depletion. – Ethical Labor Practices: It supports fair wages and better working conditions for garment workers. – Consumer Empowerment: Slow fashion empowers consumers to make informed choices and question the status quo of fast fashion.
ChallengesHigher Prices: Slow fashion items can be more expensive due to the use of sustainable materials and ethical labor practices. – Limited Accessibility: In some regions, access to slow fashion options may be limited compared to fast fashion. – Changing Mindsets: Shifting from fast fashion to slow fashion requires a shift in consumer mindset and shopping habits.
Examples– Brands like Patagonia and Eileen Fisher are known for their commitment to slow fashion principles, including sustainability and ethical production. – Some consumers practice slow fashion by thrifting, swapping, or buying second-hand clothing to reduce their impact on the environment.
Future TrendsSlow fashion is expected to continue growing as consumer awareness of sustainability and ethical issues in the fashion industry increases. More mainstream brands may incorporate slow fashion principles into their practices.
AdvocacyAdvocates for slow fashion often promote awareness through educational campaigns and sustainable fashion events. They encourage consumers to question the fashion industry’s status quo and seek alternatives that align with their values.

A quick timeline of how Slow Fashion came to be

By the 2000s, a company building up its supply chain for decades had become the mammoth of fashion.

That company was Zara. Zara epitomized the fast fashion industry, as its business model sat on top of a few key principles (like the fast following, low price, and variety) and a core objective: speed.

fast-fashion
Fash fashion has been a phenomenon that became popular in the late 1990s, and early 2000s, as players like Zara and H&M took over the fashion industry by leveraging on shorter and shorter design-manufacturing-distribution cycles. Reducing these cycles from months to a few weeks. With just-in-time logistics and flagship stores in iconic places in the largest cities in the world, these brands offered cheap, fashionable clothes and a wide variety of designs.

By fast following fashion trends, shortening the manufacturing cycle, and setting up just-in-time logistics serving its flagship stores, Zara became a behemoth:

zara-business-model
Zara is part of the retail empire Inditex. It is the leading brand in what has been defined as “fast fashion.” Zara had over €26 billion in sales in 2023 (comprising Zara Home) and followed an integrated retail format with quick sales cycles. Customers can move from a physical to a digital experience.

As the 2010s came, a new trend started to shape the fashion industry.

That was the social commerce trend. As in countries like the UK, the penetration of e-commerce was high; some UK players, like ASOS, led the way in this transformation, from fast fashion to ultra-fast fashion:

ultra-fast-fashion
The Ultra Fashion business model is an evolution of fast fashion with a strong online twist. Indeed, where the fast-fashion retailer invests massively in logistics and warehousing, its costs are still skewed toward operating physical retail stores. While the ultra-fast fashion retailer mainly moves its operations online, thus focusing its cost centers on logistics, warehousing, and a mobile-based digital presence.

The ultra-fast fashion business model was epitomized by ASOS, among others, and it further prioritized the supply chain’s speed and efficiency with a strong online twist. In short, no more flagship stores to operate.

The money that other fast fashion players like Zara were spending to operate these stores were instead used by ultra-fast fashion players to run their online operations and further optimize manufacturing and logistics to serve a global audience:

asos-business-model
ASOS is a British online fashion retailer founded in 2000 by Nick Robertson, Andrew Regan, Quentin Griffiths, and Deborah Thorpe. As an online fashion retailer, ASOS makes money by purchasing clothes from wholesalers and then selling them for a profit. This includes the sale of private label or own-brand products. ASOS further expanded on the fast fashion business model to create an ultra-fast fashion model driven by short sales cycles and online mobile e-commerce as the main drivers.

From there, another, further evolution, this time headed by China, came with real-time retail, a further “improvement” from the ultra-fashion business model, where timing from idea/fashion meme to distribution got shortened further:

real-time-retail
Real-time retail involves the instantaneous collection, analysis, and distribution of data to give consumers an integrated and personalized shopping experience. This represents a strong new trend, as a further evolution of fast fashion first (who turned the design into manufacturing in a few weeks), ultra-fast fashion later (which further shortened the cycle of design-manufacturing). Real-time retail turns fashion trends into clothes collections in a few days or a maximum of one week.

Among the players that most mastered this business model, SHEIN led the way:

shein-business-model
SHEIN is an international B2C fast fashion eCommerce platform founded in 2008 by Chris Xu. The company improved on the ultra-fast fashion model by leveraging real-time retail, quickly turning fashion trends in clothes collections through its strong digital presence and successful branding campaigns.

In parallel, an opposite movement has been developed with the fast fashion business models from the 1990s to the 2020s.

A player that highly emphasized the slow fashion movement is Patagonia, which, as it highlighted in its Sustainable Apparel Coalition:

An apparel industry that produces no unnecessary environmental harm and has a positive impact on the people and communities associated with its activities.

The Slow Movement evolved in parallel with the fast fashion movement as an alternative business practice. Indeed, as explained on the Patagonia website:

Since 1985, Patagonia has pledged 1% of sales to the preservation and restoration of the natural environment. We’ve awarded over $140 million in cash and in-kind donations to domestic and international grassroots environmental groups making a difference in their local communities. In 2002, founder of Patagonia, Yvon Chouinard, and Craig Mathews, owner of Blue Ribbon Flies, created a non-profit corporation to encourage other businesses to do the same.

How does this translate into practice in terms of the supply chain? As Patagonia highlights:

The purpose of Patagonia’s Supply Chain Environmental Responsibility Program is to measure and reduce the environmental impacts of manufacturing Patagonia products and materials. We implement our program at supplier facilities all over the world and cover a broad range of impact areas, including environmental management systems, chemicals, water use, water emissions, energy use, greenhouse gases, other air emissions and waste.

The attempt to build a more sustainable supply chain moves along a few key areas, what Patagonia calls a “4-Fold Approach to Supply Chain Decisions,” which, as the company highlighted:

This process includes screening potential new suppliers for the ability to meet our (1) sourcing, (2) quality, (3) social and (4) environmental standards. 

To execute this, Patagonia built a Social and Environmental Responsibility team (SER) to ensure these practices are implemented.

Key Highlights

  • Contrast with Fast Fashion:
    • Slow fashion is a counter-movement to fast fashion, focusing on ethical, sustainable, and environmentally responsible practices. It advocates for a departure from the rapid cycles of design, production, and distribution that characterize fast fashion.
  • Fast Fashion Pioneers and Principles:
    • Zara and H&M revolutionized the fashion industry in the late 1990s and early 2000s. Their core principles included speed, variety, and affordability.
    • Fast fashion brands leveraged shortened design-to-market cycles, often measuring production in weeks rather than months. This allowed them to quickly respond to emerging trends and consumer demands.
  • Ultra-Fast Fashion and Social Commerce:
    • The 2010s brought the rise of social commerce, with ASOS being a prominent example. The shift to online operations enabled ultra-fast fashion.
    • Ultra-fast fashion emphasized mobile e-commerce, short sales cycles, and rapid response to trends. Flagship physical stores became less relevant as online platforms took precedence.
  • Real-Time Retail:
    • China led the way in real-time retail, a progression beyond ultra-fast fashion. This approach further compressed the time between a trend’s emergence and its appearance in collections.
    • SHEIN became a notable player in real-time retail, rapidly transforming fashion trends into clothing collections within days or a week.
  • Slow Fashion Advocates and Sustainability:
    • Patagonia emerged as a leader in advocating for slow fashion principles. The brand shifted the focus from speed and profit to environmental responsibility and community impact.
    • Slow fashion promotes ethical practices, fair labor conditions, and reduced environmental harm in the production process.
  • Sustainable Supply Chain and Patagonia’s Approach:
    • Patagonia’s Supply Chain Environmental Responsibility Program aimed to mitigate the environmental impacts of manufacturing its products.
    • The “4-Fold Approach” scrutinizes potential suppliers based on sourcing, quality, social responsibility, and environmental standards.
  • Social Impact and Commitment:
    • Patagonia’s commitment to sustainability extended to allocating a percentage of sales to environmental preservation and restoration. This approach encouraged other businesses to adopt similar practices.

Related Case Studies

Read Next: SHEINASOSZara, Slow FashionFast FashionUltra-Fast FashionReal-Time Retail.

Related Visual Resources

Slow Fashion

slow-fashion
Slow fashion is a movement in contraposition with fast fashion. Where in fast fashion, it’s all about speed from design to manufacturing and distribution, in slow fashion, quality and sustainability of the supply chain are the key elements.

Patagonia Business Model

patagonia-business-model
Patagonia is an American clothing retailer founded by climbing enthusiast Yvon Chouinard in 1973 who saw initial success by selling reusable climbing pitons and Scottish rugby shirts. Over time Patagonia also became a fashionable brand also for its focus on slow fashion. Indeed, the company sells high-priced clothing items built to last which it will repair for free.

Patagonia Organizational Structure

patagonia-organizational-structure
Patagonia has a particular organizational structure, where its founder, Chouinard, disposed of the company’s ownership in the hands of two non-profits. The Patagonia Purpose Trust, holding 100% of the voting stocks, is in charge of defining the company’s strategic direction. And the Holdfast Collective, a non-profit, holds 100% of non-voting stocks, aiming to re-invest the brand’s dividends into environmental causes.

Fast Fashion

fast-fashion
Fash fashion has been a phenomenon that became popular in the late 1990s and early 2000s, as players like Zara and H&M took over the fashion industry by leveraging on shorter and shorter design-manufacturing-distribution cycles. Reducing these cycles from months to a few weeks. With just-in-time logistics and flagship stores in iconic places in the largest cities in the world, these brands offered cheap, fashionable clothes and a wide variety of designs.

Inditex Empire

Inditex-business-model
With nearly €36 billion in sales in 2023, the Spanish Fast Fashion Empire Inditex, which comprises eight sister brands, has grown thanks to a strategy of expanding its flagship stores in exclusive locations around the globe. Its largest brand, Zara, contributed over 70% of the group’s revenue. Spain contributed the most to the fast fashion Empire sales, with nearly 15% of its revenues.

LVMH Business Model

lvmh-business-model
LVMH is a global luxury empire with over €86 billion ($93 billion) in revenues for 2023, spanning several industries: wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewelry, and selective retailing. It comprises brands like Louis Vuitton, Christian Dior Couture, Fendi, Loro Piana, and many others.

Kering Business Model

Kering Business Model
Kering Group follows a multi-brand business model strategy. The central holding helps the brands and Houses part of its portfolio leverage economies of scale while creating synergies. At the same time, those brands are run independently. Based on this multi-brand strategy, Kering is a global luxury brand that made nearly €20 billion in revenue in 2023. Within Kering Group are brands like Gucci, Bottega Veneta, Saint Laurent, and many more—the primary operating segments based on luxury and lifestyle.

Kering Brands

kering-brands
Kering is a luxury goods multinational founded in France by François Pinault in 1963. The company, which initially specialized in timber trading, grew via acquisitions and was listed on the Paris Stock Exchange in 1988. Two years later, Kering merged with a French conglomerate interested in furniture, department stores, and bookstores.

Ultra Fast Fashion

ultra-fast-fashion
The Ultra Fashion business model is an evolution of fast fashion with a strong online twist. Indeed, where the fast-fashion retailer invests massively in logistics and warehousing, its costs are still skewed toward operating physical retail stores. While the ultra-fast fashion retailer mainly moves its operations online, thus focusing its cost centers on logistics, warehousing, and a mobile-based digital presence.

ASOS Business Model

asos-business-model
ASOS is a British online fashion retailer founded in 2000 by Nick Robertson, Andrew Regan, Quentin Griffiths, and Deborah Thorpe. As an online fashion retailer, ASOS makes money by purchasing clothes from wholesalers and then selling them for a profit. This includes the sale of private label or own-brand products. ASOS further expanded on the fast fashion business model to create an ultra-fast fashion model driven by short sales cycles and online mobile e-commerce as the main drivers.

Real-Time Retail

real-time-retail
Real-time retail involves the instantaneous collection, analysis, and distribution of data to give consumers an integrated and personalized shopping experience. This represents a strong new trend, as a further evolution of fast fashion first (who turned the design into manufacturing in a few weeks), ultra-fast fashion later (which further shortened the cycle of design-manufacturing). Real-time retail turns fashion trends into clothes collections in a few days or a maximum of one week.

SHEIN Business Model

shein-business-model
SHEIN is an international B2C fast fashion eCommerce platform founded in 2008 by Chris Xu. The company improved the ultra-fast fashion model by leveraging real-time retail, quickly turning fashion trends in clothes collections through its strong digital presence and successful branding campaigns.

Zara Business Model

zara-business-model
Zara is part of the retail empire Inditex. It is the leading brand in what has been defined as “fast fashion.” Zara had over €26 billion in sales in 2023 (comprising Zara Home) and followed an integrated retail format with quick sales cycles. Customers can move from a physical to a digital experience.

Wish Business Model

wish-business-model
Wish is a mobile-first e-commerce platform in which users’ experience is based on discovery and customized product feed. Wish makes money from merchants’ fees and advertising on the platform, and logistic services. The mobile platform also leverages an asset-light business model based on a positive cash conversion cycle where users pay in advance as they order goods, and merchants are paid in weeks.

Poshmark Business Model

poshmark-business-model
Poshmark is a social commerce mobile platform that combines social media capabilities with its e-commerce platform to enable transactions. It makes money with a simple model, where for each sale, Poshmark takes a 20% fee on the final price for sales of $15 and over and a flat rate of $2.95 for sales below that. Its gamification elements and the tools offered to sellers are critical to the company’s growth as a mobile-first platform.

Read Next: Zara Business Model, Inditex, Fast Fashion Business Model, Ultra Fast Fashion Business Model, SHEIN Business Model.

Fashion-Related Visual Stats

Zara Revenue

zara-revenue
Zara generated €26.05 billion in revenue in 2023, €23.76 billion in 2022, €19.58 billion in 2021, €14.23 billion in 2020, and €19.56 billion in 2019.

Gucci Revenue

gucci-revenue
Gucci generated €9.87 billion in revenue in 2023, €10.49 billion in 2022, €9.73 billion in 2021, and €7.44 billion in 2020.

Chanel Revenue

Chanel Revenue
Chanel’s revenue passed $17 billion in 2022, compared to $15 billion in 2021, over $10 billion in 2020 and over $12 billion in 2019.

Hermès Revenue

Hermès revenue
Hermès revenue grew from €5.96 billion in 2018 to €13.43 billion in 2023. The company generated €6.88 billion in 2019, €6.39 billion in 2020, €8.98 billion in 2021, and €11.6 billion in 2022.

Victoria’s Secret Revenue

victorias-secret-revenue
Victoria’s Secret generated $6.34 billion in revenue in 2022, compared to $6.78 billion in 2021, and $5.4 billion in 2020.

Prada Revenue

Prada Revenue
Prada generated €4.72 billion in revenue in 2023, compared to €4.2 billion in revenue in 2022, primarily from its leading brand, Prada, which generated €3.49 billion in 2023. This was followed by Miu Miu, which generated €649 million, and Church’s, which generated €28.5 million.

Michael Kors Revenue

michael-kors-revenue

Massimo Dutti Revenue

Massimo Dutti Revenue
Massimo Dutti generated €1.84 billion in revenue in 2023, €1.59 billion in 2022, €1.65 billion in 2021, €1.27 billion in 2020, and €1.9 billion in 2019.

Bershka Revenue

Bershka Revenue
Bershka generated €2.62 billion in revenue in 2023, €2.38 billion in 2022, and €2.18 billion in revenue in 2021, compared to €1.77 billion in 2020 and €2.38 in 2019.
Pull&Bear Revenue
Pull&Bear generated €2.36 billion in revenue in 2023, €2.15 billion in 2022, and €1.87 billion in revenue in 2021, compared to €1.42 billion in 2020 and €1.97 billion in 2019.

Versace Revenue

versace-revenue

Jimmy Choo Revenue

jimmy-choo-revenue
In 2020, the revenue was $555 million. The revenue decreased in 2021 to $418 million. However, in 2022, Jimmy Choo’s revenue increased significantly to $613 million.

Miu Miu Revenue

Miu Miu Revenue
Miu Miu is a crucial brand part of the Prada Group. Miu Miu generated €648 million for 2023, compared to €431 million in revenue in 2022, €346 million in 2021 and €329 in 2020.

Church’s Revenue

Church's Revenue
Curch’s footwear is a brand part of the Prada Group. The company generated over €28 million for 2023, compared to €29 million in revenue in 2022 and 2021, and nearly €37 million in revenue in 2020.

Read Next: Zara Business Model, Inditex, Fast Fashion Business Model, Ultra Fast Fashion Business Model, SHEIN Business Model.

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