KEY INSIGHTS:
The fast fashion market is expected to reach a forecast value of 123.9 billion USD in 2025, indicating sustained growth in the industry.
Inditex, the Spanish retail group that owns Zara and other popular brands, is the European fashion retailer with the highest turnover in Europe, highlighting the strength of the fast fashion business model.
H&M, another major fast fashion brand, had worldwide retail sales of 20.1 billion USD in 2020, underscoring the significant market share held by fast fashion companies in the global fashion industry.
Fast fashion has become a dominant force in the European fashion industry. With its ability to produce and sell clothing products at a rapid pace, it has attracted the attention of consumers looking for the latest trends at affordable prices. The industry has also undergone significant changes in terms of where products are sourced, produced, and consumed.
H&M and Inditex are the two largest fast fashion companies in Europe. In 2020, Inditex narrowly beat H&M in worldwide sales, with only luxury brand LVMH ahead of them. Both companies were also ahead of the chasing pack in terms of turnover in Europe in 2020. However, the fast fashion industry has faced criticism for its impact on ethical sourcing and sustainability.
One of the most pressing issues in the fast fashion industry is the ethical sourcing of clothing products. The factories where brands such as Inditex, H&M, Primark, ASOS, and New Look source their products are often located in the developing world, where labor costs are low and working conditions may not be of the highest standard. The collapse of the garment factory at Rana Plaza in Bangladesh in 2013 highlighted the need for better labor and production policies and practices in the industry. Since then, efforts have been made to ensure fashion companies are more transparent and accountable, and brands have collaborated to contribute to a fair fashion industry.
Sustainability is another major concern in the fast fashion industry. The production of huge quantities of clothing using environmentally-damaging materials and processes has a significant impact on the environment. Most of this clothing eventually ends up in landfills, contributing to the global waste problem. To address this, fast fashion retailers are pursuing measures to decrease their carbon footprint and source sustainable cotton in clothing products.
In the European Union, the number of companies in the business of textile and clothing manufacturing has fluctuated between 2009 and 2019. In 2019, the total number of textile and clothing manufacturers was recorded as 160,000. China has emerged as the leading global exporter of clothing, with over one third of the world’s clothing exports supplied by the country.
In conclusion, the fast fashion industry has revolutionized the fashion industry with its ability to produce and sell clothing products at a rapid pace. However, the industry faces significant ethical and sustainability challenges, which have spurred efforts to create a more transparent and accountable fashion industry. While fast fashion is likely to continue to be a dominant force in the European fashion industry, it is essential to address its impact on workers and the environment.
Leading fashion and clothing retailers in Europe in 2021, based on turnover in Europe(in billion euros)
- Inditex - 28.29 billion euros
- H&M - 20.38 billion euros
- Fast Retailing (owner of UNIQLO) - 6.75 billion euros
- Next - 4.19 billion euros
- Marks & Spencer - 3.92 billion euros
- Primark - 3.66 billion euros
- Mango - 2.7 billion euros
- C&A - 2.52 billion euros
- S.Oliver - 2.05 billion euros
- Tendam (owner of Cortefiel, Pedro del Hierro, etc.) - 1.5 billion euros
These retailers have managed to remain competitive in the fast-paced fashion industry by constantly updating their collections, offering affordable prices, and leveraging technology and social media to connect with their customers. However, with increasing pressure to address sustainability and ethical concerns, these companies are also taking steps to ensure their supply chains are more transparent and responsible.
