For the last decade, online fast fashion brands have dominated the fashion scene. Offering a more convenient way to shop and often cheaper prices, eCommerce fast fashion brands have been responsible for an influx of cash into the fashion industry. But after years of holding a tight grasp on the industry, the abundance of fast fashion retailers are experiencing various challenges in 2024.
Sustainability-focused consumers
The main criticism of fast fashion has always been its impact on the environment and the lack of sustainability within the space. Products aren’t necessarily built to last, more so to be affordable and give consumers ways to keep up with the latest trends at a cheaper price tag. As a result, critics would argue that consumers are pushed to overconsume, the act of buying more goods than they actually need.
In 2024, this criticism is louder than it ever has been before as consumers’ interests in sustainability rises. Younger shoppers in particular are more aware of sustainability issues, and their behaviours reflect this. Sustainable clothing brands have become increasingly more popular choices in recent times.
In an attempt to compete and shake off this tag, many fast fashion retailers have taken steps to improve their efforts when it comes to caring for the planet. Moves like no longer offering free returns and more sustainable delivery options help stress their commitment to making business efforts more sustainable.
Pre-loved fashion
Once seen as a cheaper alternative, the trend of shopping more sustainably has pushed second-hand and vintage clothing to be seen as trendy alternative too. Unsurprisingly, thrifting and acquiring clothes from charity shops is a common buying habit of younger consumers.
As a result of its recent glow-up, second-hand fashion is now more commonly referred to as pre-loved fashion, a rebrand that has helped the industry be perceived as a far cooler option than it was in years gone by.
The trend of purchasing pre-loved items has even developed its own hashtag on social media platform TikTok. The #ThriftTok trend is popular with shoppers wanting to share their hauls from vintage clothing stores and second-hand shops.
Nowadays, fast fashion brands are embracing this trend by offering their own second-hand marketplaces where consumers can use their favourite fast fashion brands while also increasing their sustainability habits.
Cheaper competitors
Fast fashion brands rose to prominence by undercutting more luxury brands by attempting to copy products seen in high-profile fashion shows but employing cost-cutting manufacturing processes. Now, it appears that competitors, often Chinese-owned, are playing fast fashion brands at their own game.
New online shopping brands like Temu and Shein are offering products like going out dresses at a fraction of the price seen in e-commerce stores belonging to well-known brands in the fast fashion space. While this trend goes against the aforementioned one of sustainable shopping, it just goes to show that price will always be an order winner in the fashion industry.
At this time, fast fashion brands must choose between continuing to compete on price or make conscious efforts to increase the quality of their products.
Creator-led brands
Another form of competition to fast fashion brands in 2024 comes in the form of creator-led brands. Companies set up by celebrities, influencers, and sports stars are becoming increasingly common. These brands often have the benefit of a loyal following from the beginning while they’re also able to draw on the backstory of their founder to increase people’s connection with the brand.
The likes of Prime, the energy drink founded by YouTube stars Logan Paul and KSI, has shown the power of creator-led brands. In the fashion world, Kylie Jenner, Kim Kardashian, and Rihanna are just a few of the famous faces that have successfully built competing brands to fast fashion houses.
Gen Z
For years, younger consumers were the target market of fast fashion brands. But today, appealing to Gen Z is one of the biggest challenges for high street fashion brands. As already mentioned, younger consumers demand more sustainable options when it comes to shopping these days and will not hesitate to avoid any brand not displaying sustainable practices.
On top of this, they’re not afraid to spend big on clothing. Studies show that 75% of Gen Z’s purchases are made in the fashion sector, highlighting just how much of their wealth they’re prepared to commit to clothing. While this may sound like good news for fast fashion e-com brands, it’s actually a challenge.
Teens and young adults aren’t as motivated by price when compared to millennials and previous generations. And being prepared to spend more on clothing means luxury brands are able to steal a slice of the Gen Z pie from fast fashion companies.
Whether this is merely due to sustainability, or possibly an effect caused by growing up in the social media era where there is demand to have the latest, best, or most expensive of everything, it’s certainly a challenge to win the hearts and orders of Gen Z consumers.