NEW YORK, United States – Much ink has already been spilled over
the environmental unsustainability of cheap-chic, throwaway fast
fashion. But is the fast fashion model also economically
unsustainable? With t-shirts as low as $5 and jeans as low as
$10, many companies selling fast fashion have very low margins
and are particularly vulnerable to increases in materials,
transportation and labour costs. Will these vulnerabilities sink
the model? The short answer: for some, yes, but not for all.
Leading fast fashion firms such as Inditex (parent company of
Zara) and Uniqlo, owned by Fast Retailing, split their sales
between core, price-driven items that are made in China and
other long lead-time countries and quick selling fashion items
that have a heavy design investment and are produced close to
its key retail markets. But as wages in China continue to rise,
this sourcing matrix is becoming less competitive. Staying ahead
of the curve means better forecasting demand to maximise low-
cost capacity, without sacrif