A new survey, commissioned by Greenpeace, of the shopping habits of people in Europe and Asia finds that regularly buying too many clothes, shoes, bags and accessories has become an international phenomenon. This is especially striking in China and Hong Kong, but is also widespread in Europe, with up to half of consumers buying more clothes than they need and use.
Overconsumption of fashion is now deeply entrenched in our everyday culture, both in old European economies and in emerging ones such as China. In many ways, China is currently leading this trend, with more than half of Chinese consumers owning more clothes and bags than they need. Almost half of Chinese consumers buy more than they can afford – and more than makes them happy, and around 40 percent qualify as excessive shoppers, shopping compulsively more than once a week. Young, high-income women are the most vulnerable. The spread of online shopping and social media makes people even more susceptible to overconsumption.
These people are not shopping because they need something new – their motivation is the longing for excitement, satisfaction and confidence in front of others. Shoppers also seek to release stress, kill time and relieve boredom.
However, shopping does not make them happy; people already own too much and they know it. Around 50 percent report that their shopping excitement wears off within a day. A third of the East Asians feel even more empty and unfulfilled afterwards. They also seem to know they are on the wrong path; around half of consumers are hiding their purchases from others, fearing accusations of wasting money or other negative reactions.
Shopping behaviour is widely influenced by people’s social environment and media consumption. Social media platforms like Instagram, Pinterest, Facebook or WeChat in China are driving shopping mania, especially among young digitally connected East Asians. Browsing fashion blogs or following friends and celebrities triggers even more buying. After excessive shopping people experience regular tiredness and boredom – the binge is followed by a hangover.
About this survey
For this survey commissioned by Greenpeace, independent survey institutes Nuggets, TNS and SWG asked European and East Asian consumers about their shopping habits (China, Hong Kong, Taiwan, Italy, Germany) – how often, where and for how long they shop for clothing. We also wanted to know why they go shopping, what triggers them to buy new clothes – and whether they get fulfilled by doing so. All surveys are representative and were carried out between December 2016 and March 2017 amongst at least 1000 people aged 20 to 45 in China, Hong Kong, Taiwan, Italy and Germany.
Something I hear a lot from people is that they would love to shop more ethically, but ethical clothing is just too expensive. And I do get that. When money is tight it’s only natural to want that budget to spread as far as possible.
Is ethical clothing expensive though? When you look at it on the surface, yes, ethical clothing is expensive. This $120 dress (approximately £96 at time of writing), by Everlane, whose business model is based on ‘radical transparency’, is pretty similar to this £35 dress from a company with no ethical statement. Why would you spend £60 more on a dress that’s pretty similar? It’s hard to make the maths add up.
When you sit and think about that £35 dress though, you begin to think how manufacturers can possibly make a dress for £35, and still make a profit. If you’ve ever tried to make your own clothing you’ll know it’s pretty tricky to make a dress for that amount of money. By the time you’ve bought the fabric and the pattern, and the thread and any zips or buttons, and the electricity to power your sewing machine, you may well have reached or exceeded that amount, before even accounting for the cost of your own time.
So could the rise of fast fashion retailers have caused us to lose our sense of perspective, and our benchmarks and baselines on what is expensive?
You would expect to pay more for something now than in say, 1980, wouldn’t you?
Since the 1980’s the cost of housing, rent, food, fuel and other consumables has risen, in some cases dramatically. In 1980 the average cost of a home was £23,000 (around £89,000 in today’s money), whilst by the end of 2016 the average price of home was £205,000 according to the same report. The Telegraph reports that lager has increased in price by 336%, whilst a loaf of sliced white bread has increased in price by 235% and eggs by 286%.
It goes without saying then that you would expect to go into a shop and buy an item of clothing that was considerably more expensive now than it was in 1980.
What has actually happened with clothing is that since the 1980s, instead of rising in price in line with inflation, clothes prices have fallen and fallen to the point we’re at now where you can buy a top for less than £5 in 2017.
Prior to the 1980’s the majority of clothing was made domestically. I’ve struggled to find UK based data, but The New York Times reported in 2009 that in the 1960s, the United States made 98% of its shoes. They stated that in 2009 it was a completely different picture, with the US importing more than 90% of its footwear. This is more than likely mirrored in clothing manufacture too.
The reason for this outsourcing is that in the 1980s clothing manufacturers realised they could manufacture abroad, in places where they could pay workers considerably less, and where workers could work longer hours in poorer conditions. This ultimately meant greater profits for manufacturers, and lower prices for consumers.
We’re now so used to cheap clothes that have flooded the market since the 1980’s, that this has artificially driven down the value of clothing. If you’re in your forties or younger you’ll have grown up in an age where clothing has gotten cheaper and cheaper. You won’t, or will barely remember a time when clothing wasn’t cheap. Yet going back to the £96 Everlane dress, I suspect that this is more like what the average dress should cost in 2017, if not more.
It’s also also quite clear the impact that the mass production of clothing overseas has had on household spending. I’ve again struggled to find UK statistics, but census data from the US shows that in the 1950’s households spent 12% of their annual income on clothing. Fast forward to 2015, and it’s reported that households spent just 3.5% of their annual income on clothing, even though Americans are buying more clothes than ever before. The same article reports that in 1930, the average American woman owned nine outfits, whilst in 2015 that figure was 30 outfits – one for every day of the month.
More worryingly, another report suggests the average item of clothing is worn just seven times before being discarded. Cheaper prices clearly mean consumers value their clothes less.
So what’s the answer? By suddenly removing manufacture from the countries that depend on clothing manufacture for the overseas market wouldn’t be good for those countries’ economies. In 2014 the ready made garment industry represented 81.13% of Bangladesh’s total export, and of the 4 million workers employed by this industry, 85% are illiterate women from rural villages. It’s a tricky situation.
I think part of the answer lies in our relationship with clothing. Buying less; not buying into trends; and investing in quality timeless pieces are more than likely the way forward. I’ve previously written in length about these aspects of consumerism – but in a nutshell ethical fashion isn’t expensive when you factor in the cost per wear of a quality made item, versus a poorly made fast fashion item of clothing that falls to bits after just a few wears.
As consumers we also have to act more responsibly. YouTube haul videos, like this one where the vlogger boasts to impressionable young viewers about how many cheap items of clothing they’ve bought only perpetuate the cheap disposable clothing myth.
Another part of it voting with your wallet. If more and more people start shopping with more responsible retailers then this sends a clear message to retailers that they have to up their game and make their clothes more ethically.
Perhaps we have to therefore have to work on regaining our sense of perspective when it comes to the cost of clothes. Spending more on each individual item of clothing we buy and spending better, but buying much much less is the only way to re-establish sensible baselines on what constitutes as expensive and what constitutes as good quality.
ADIDAS is envisioning a brand new way of adapting to the fickle trends of the fast fashion industry – the company has been trying out an in-store technology to knit customized 200 euro (US$215) sweaters for customers within the day in order to tap into fast fashion with a personal twist.
The technology has been implemented in a pop-up store in a Berlin mall, and allowed customers to customize their own merino wool sweater according to their desires.
The in-store machine scans the customer’s body to produce the right fit and size unique to each person. Customers would then choose a design from a range of possible options and then experiment with different color combinations. Once they had made their choices, the machine would knit the sweater in situ, and then the sweater is finished by hand, washed and dried before being collected by the customer.
This new venture is part of a plan to drive up the company’s operating margins to levels on par with rival Nike by 2020. The group is experimenting with strategies to cut short the delivery times of new designs down to 12 to 18 months.
It is a strategy which has worked in the sneaker industry, but now the “Knit for You” campaign aims to add individuality into the mix, aspect often lost in ready-made products.
But speed still lies at the heart of Adidas’s game plan. The sportswear company is aiming for 50 percent of its products to be made in a faster time frame by 2020 – double the rate it produced products in 2016 – which they expect will allow them to boost the products they sell at full price by 70 percent.
And they aren’t the only ones who are banking on speed to top their competition – Japanese basic wear giant, Uniqlo, are also hoping pushing for higher production rates and supplying their stores faster will help it usurp the fast fashion crown from Inditex’s Zara, who reported US$25 billion worth of sales in 2016.
“We need to be fast,” Uniqlo founder Tadashi Yanai was quoted saying in an interview with Bloomberg. “We need to deliver products customers want quickly.”
Like Adidas, Uniqlo is trying to leverage technology to launch forward fast.
The company’s Ariake facility along Tokyo’s waterfront brings together marketing and design teams to streamline the operations, an outfit Uniqlo’s owner, Fast Retailing, wants to replicate in more locations. The hope is that much of the company’s operations can be slowly automated and artificial intelligence can be increasingly used to predict sales patterns.
The goal to ultimately unseat Zara might be a bit of a stretch for Fast Retailing who aims for US$26 billion by 2021, but Yanai believes Uniqlo’s focus on everyday clothing that keeps fashion forwardness and practicality in mind is a recipe for success.
Uniqlo’s no-frills approach to fashion requires less production time in general and the company could focus on upping the quality of the designs.
“Zara sells fashion rather than catering to customers’ needs,” Yanai said. “We will sell products that are rooted in people’s day-to-day lives, and we do so based on what we hear from customers.”
Fast Fashion margins are shrinking
Adidas and Uniqlo might be tapping into an industry that is already facing its twilight days.
Once the machine that drove the fashion industry, fast fashion is a term coined to describe clothes emulating catwalk trends that are quickly replicated for mass production, resulting in “micro seasons” and low wages for garment workers in some of the poorest countries in the world.
Fast fashion retailers such as Zara and H&M would churn out fresh pieces that would be rolled into stores on a weekly basis. Their rise crippled retailers that typically worked on a season-by-season basis, and relied heavily on brick-and-mortar stores to sell their clothes.
Fast fashion retailers harnessed the rise of e-commerce to peddle their wares online, spending less on advertising and relying on web analytics to chart consumer habits.
“If you are a fashion apparel retailer, you have to have a steady flow of newness,” Customer Growth Partners president Craig Johnson said. “You can’t just regurgitate what was hot last year.”
But that all seems to be changing.
Recently, Inditex said their profitability had shrunk to an eight-year low, while their rival H&M said their profits fell in March for the first time in four years.
The changing fortunes of the two companies have two implications: Firstly, consumer habits are changing. Large scale campaigns by activists and marketing efforts by retailers have resulted in greater awareness of the side effects of fast fashion – most notably highlighted by the devastating Rana Plaza factory collapse in 2013.
The change in sales numbers indicates more and more people are spending a smaller chunk of their disposable income on clothing, and are instead diverting those resources to other areas, such as electronics or travel. LA Times reports less than four percent of every dollar is now spent on apparel compared to the eight percent that was spent in the mid-90s.
Secondly, apparel companies are now finding their margins under siege from rising production costs as the quality of living in once-poor manufacturing companies – such as Vietnam and India – and the cost of materials increase.
Fast fashion no longer appears to be the huge money-making machine it once was, and retailers are now turning to new strategies to captivate buyers.
Value Fashion on the Rise
The emergence of Adidas “Knit for You” campaign speaks to the broader question of the change fashion is experiencing; clothes tailored to the individual is beginning to matter more.
The sweater campaign’s focus on customization indicates exclusivity is far more important than the ability to buy the same shirt in six different colors for a few dollars.
“It is very individual. It is like knitting your own sweater,” Adidas customer Christina Sharif told Reuters, adding she ordered shorter arms on her electric blue sweater than the standard model.
Despite the speed it aims to achieve, Adidas and Uniqlo are recreating the meaning of “fast fashion” into one that leverages technology to improve efficiency rather than sacrifices resources and engages obsolescence.
Uniqlo has maintained its commitment to the culture of normcore everyday wear, but expanded its range to include limited edition art-as-fashion pieces.
It engaged top-line designers such as Christopher Lemaire, supermodel Ines de la Fressange and New York’s Museum of Modern Art to produce lines that gave its everyday wear a fashionable and enduring twist.
It is a sign the company understands the power of fashion as an identifier and is moving into what Lemaire calls “slow fast fashion” – affordable (though pricier than Uniqlo’s main line) and accessible, with a know-it-when-you-see-it specialness
“People have been realizing [fast fashion] no longer can go on the way it used to – overconsumerism and overproduction are a disaster,” Lemaire says.
“You just need a good pair of pants. If you find a good pair, you don’t have to change every six months.”
ASBCI (Association of Suppliers to the British Clothing Industry) has announced to hold a Spring Conference 2017, which will take place on 5th April 2017 at the Marriott Hotel in Peterborough, Canada. Agenda of the conference will be ‘DOING THE RIGHT THING? – Best practices for sustaining our people, planet and profits’ and the event will be chaired by Simon Allitt, ASBCI Event Committee Vice Chairman and Head of Retail, TUV Rheinland.
It may be mentioned here that sustainability is placed on top of the global fashion industry’s agenda and according to ASBCI, ten years ago Marks & Spencer launched its game-changing Plan A. Since then most big brands and retailers have implemented their own robust ethical and environmental sustainability programmes with the collective objective of protecting people and the planet.
The ASBCI sustainability conference has assembled speakers with unparalleled experience of the most effective and commercial, sustainable initiatives and innovations. The speakers will share their experience, insight and vision in a bid to give attendees a sustainable and profitable future.
The conference will have following sessions: Are You Doing the Right Thing (Rakesh Vazirani – Director of Product Traceability & Environmental Information Management TUV Hong Kong), Plan A 10 Years On (Mike Barry, Director Plan A, Marks & Spencer), Striving for sustainability in the clothing industry – an Overview of working with WRAP (Prof. Tim Cooper, Professor of Sustainable Design and Consumption, Nottingham Trent University), Fashioning Fibres for the Future (Robin Anson, Editorial Director, Textiles Intelligence), Cottoning On (Graham Burden, Director, Sustainable Textile).
Post-lunch session will cover topics such as, Water Use in the Textile Supply Chain (Elaine Gardiner, Sustainability Manager, Berghaus), Sustainability Together (Guido Rimini, Head of Marketing, Apparel Europe, Freudenberg Performance Materials Apparel SE & Co. KG Solutions), Closing the Loop (Ross Barry, Lawrence M Barry & Co) and Supply Chain Transparency – What have you got to lose (Tara Luckman, Fabric & Sustainability Manager, ASOS.COM)
As ‘new consumerism’ sees shoppers’ demand shift increasingly towards sustainability and ethically produced fashion, jeans, one of the worst offenders in terms of human and environmental production costs, will present some of the best opportunities to make a sound business out of ethically produced apparel. The peculiarities of the UK’s relationship with jeans will make it easier for brands to convince shoppers to trade up to higher quality and higher prices, mitigating the costs of ensuring more ethical production.
While jeans have been cemented as a staple garment for fashion and function, mounting evidence has spoken to the huge impact on people and the environment of supplying the UK’s appetite for cheap denim bottoms. Their mass production, which often requires highly toxic chemicals in order to produce pre-faded on-trend garments, has come under particular scrutiny from regulators and organisations such as the Clean Clothes Campaign.
As a result, apparel brands, retailers and manufacturers have rushed to quantify the commercial potential of ethical and sustainable apparel. The greatest challenge has been to meet growing demand for ethical fashion while dealing with the increased material and labour costs of monitoring supply chains and ensuring ethicalproduction.
Value Placed on Quality and Fit Makes Jeans a Stand Out
The characteristics of the UK’s relationship with jeans make this one of the best products to absorb increased production costs. Studies on ethical spending have shown that consumers are willing to spend more on products that provide improved quality along with the ethical guarantee. Because jeans are so ubiquitous and versatile, UK consumers place a higher value on product quality than they do in other apparel categories. While ‘fast fashion’ has reduced consumers’ desire for hard-wearing bottoms, many have still been willing to accept higher prices and remain loyal to brands that guarantee them comfortable materials and a flattering fit.
Compare this to the tops category, where trends change more rapidly and consumers spend less time wearing any single garment. This makes fit, comfort and durability less pressing and premium pricing more closely linked to branding. As a result, it’s more difficult to convince consumers that spending more will bring an added benefit. This happens to be where volume-driven, fast-fashion brands have led and consumers are decidedly disloyal.
As the UK becomes more mindful of its consumption, sustainably produced jeans present an opportunity for players to target a high-profile ethical issue, while supporting revenue with a product that can drive higher value sales. In many cases, the costs of ensuring ethicalproduction will overlap with the costs of improving quality. For example, near-sourcing production may allow closer monitoring of suppliers labour practices in addition to more control over quality assurance.
Jeans to Lead in Fast Fashion Fatigue
Getting consumers to accept higher prices for a product that a decade of ‘fast fashion’ has taught them to buy cheap and replace often will be a challenge. However, led by urbanised millennials, UK consumers are gradually buying into the ‘circular economy ‘and seeking to gain maximum value from less consumption.
As evidence of this, Euromonitor International’s apparel and footwear data shows that after consecutive years of decline, unit price growth has begun to stabilise across most jeans price segments. Notably, premium and super premium jeans have only just seen a marginal decline in price growth after maintaining markedly above-average historical growth.
UK Jeans : Price Growth by Segment 2011-2016
Brands such as Hiut Denim in the UK and Tuff’s in France have been gaining strength as a result. These players source all production internally and locally, keeping their supply chains short and guaranteeing the standards of production. Both brands have developed a fiercely loyal following of buyers who value the ethics and sustainability of their production as well as their high quality. Both brands pitch their jeans as a high value investment, justifying higher retail prices to account for the increased cost of nearer sourced production.
While it is always going to be a struggle to talk the average shopper into ‘breaking-in’ a stiff, heavy 19oz pair of raw selvedge jeans (waiting the better part of a year before washing them to get an authentic fade), high-quality denim can clearly sell big. The success of selvedge lines by Topshop and Uniqlo and H&M’s ‘conscious’ jeans has demonstrated that shoppers can be convinced to trade up on ethics and quality, fueling value-led growth.
Getting Ahead of the Curve
Sustainable jeans have thus far been limited to niche premium brands and high-profile, but small-scale, ‘green-washing’ efforts of major fast-fashion players. Those that prioritize ethics early will appear more authentic than those which seem to conform as a begrudging necessity; gaining favour with the increasingly influential millennial consumer. The challenge will be for winning brands and manufacturers to take bolder steps to make higher value ethical and sustainable jeansa more prominent feature in their product mix, before growing regulatory pressure and consumer outrage takes the initiative away from them.
New research on fashion trends and textile waste, released by Greenpeace on the eve of Black Friday, highlights the serious environmental consequences of overconsumption. Clothing is among the most sold products on the annual shopping day promoted in many countries, which, critics say, encourages impulsive overspending and unnecessary purchases through bargain ’ offers and discount prices .
“It is hard to resist the allure of a good bargain, but fast fashion means we’re consuming and trashing fashion at a higher rate than our planet can handle,” said Kirsten Brodde, head of Greenpeace’s Detox my Fashion campaign.
To counter excessive consumerism, growing numbers of people choose to abstain and observe “Buy Nothing Day” instead. As part of this movement, “trash queens” in dresses upcycled from discarded clothes are visiting shopping centres in three major cities in Asia and Europe to remind customers how many impulse buys of today end up as trash tomorrow.
The research, Timeout for fast fashion, published today by Greenpeace Germany, shows how the fast fashion business is rapidly expanding: Clothing production doubled from 2000 to 2014, with sales rising from US$ 1 trillion in 2002 to 1.8 trillion by 2015, and a forecast of 2.1 trillion by 2025. The average person buys 60 per cent more items of clothing every year and keeps them for about half as long as 15 years ago, producing immense volumes of textile waste.
Environmental impacts detailed include chemicals from textile factories polluting rivers and oceans, high levels of energy use and pesticides from cotton growing contaminating agricultural land. One of fast fashion’s biggest costs to the planet comes from the rising use of synthetic fibres, says Greenpeace, in particular polyester that emits nearly three times more CO2 in its lifecycle than cotton. Already present in 60 per cent of clothing, polyester can take decades to degrade, as well as polluting marine environments with plastic microfibres.
As of today, recycling is not a solution. Markets are overloaded with unwanted clothes and technological challenges mean full recycling of clothing into new fibres is still far from commercially viable. “Our research indicates that the second hand clothing system is on the brink of collapse. Fashion brands need to urgently re-think the throwaway business model and produce clothing that’s durable, repairable and fit for re-use. As consumers, we also hold the power. Before buying our next bargain item, we can all ask ‘do I really need this?’,” said Brodde.
Since 2011, Greenpeace’s Detox campaign has gathered support from 78 companies including fashion brands, retailers and textiles suppliers to achieve zero discharges of hazardous chemicals in the manufacturing supply chain by 2020 and many are making progress towards this goal. However, if the trend for more and cheaper clothing continues, any gains that are made on eliminating hazardous chemicals will be outstripped by higher rates of production and consumption in the industry as a whole.