Now giants Zara and H&M to a lesser digits to write down, after all several other large fast fashion chains that did, it is time to take a moment to reflect on an important question: are we fast fashion tired?
Inditex SA, the company behind retail chain Zara, last week announced that its profitability today is at the lowest level in eight years, major rival Hennes & Mauritz AB had to tell that the monthly sales for the first time in four year’s time has fallen. The announcements have caused a decrease of both shares. Other chains, such as GAP and Banana Republic saw recently a drop in their sales.
The megaretailers were decades places that everyone now and then sometimes visited, for example, because there are basic pieces to find were that easy with other clothes could match. Nowadays seem such notice is, however, less clothing designs that people want to wear, as witnessed by the declining sales figures.
A first explanation would lie with the designers themselves. Some brands gave last summer, all that additional efforts were required for their products. A spokesperson for Ann Taylor, for example, that their clothing line “is a process undergone where the fit would be adjusted to a more modern approach to shine”. Banana Republic still had to admit that it’s a blazer, had designed that it was impossible for him to wear.
Also, the big emergence of online shops is according to Business of Fashion is a major threat for the big fast fashion stores. In addition, also according to BoF, consumers would always prefer to spend money on other things than clothes. Finally, are also more and more people to consider the consequences of fast fashion on the environment and human rights.
Or there is effectively a trend has started, is still just guess work. So says Inditex that her falling groeimarge mainly caused by volatile exchange rates. And for the sake of clarity: neither Zara nor H&M are loss-making companies.