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1、McKinsey&CompanyMcKinseyExplainersWhatisfastfashion?Fastfashionretailershavespeduptheirproductionprocesses,gettingnewstylestocustomersatarecordpace-andcreatingsignificantenvironmentalandsocialchallenges.December2023Fashionisfun.Ifyou,veeverseenamakeovermontageinan,80smovie,you,rewellfamiliar.Tryingo
2、n,buying,andkeepingclothestoreflectourvariousmoodsfulfillscomplexhumanneedsforcomfortandindividualexpressionaswellasforconsumption.Fashionisalsoseriousbusiness.In2023,theglobalindustrywasestimatedtobeworth$1.7trillion.Andmorethan300millionpeopleallovertheworldworkonclothes,somewherealongthevaluechai
3、n.From2000to2014,clothingproductiondoubledandthenumberOfgarmentspurchasedpercapitaincreasedbyabout60percent.Thisisdue,inpart,totheriseoffastfashion.Fastfashionretailersmove,well,fasterthantheirtraditionalcounterparts.Thismeansthattheycompressproductioncyclesandturnoutup-to-the-minutedesigns,enabling
4、shopperstonotonlyexpandtheirwardrobesbutalsorefreshthemquickly-andcheaply.Andshoppers,itturnsout,loveanewlook:accordingtotherecentTheStateofFashion2024report,publishedbyBusinessofFashionandMcKinsey,40percentofUSconsumersand26percentofUKconsumershaveshoppedatfastfashiongiantsSheinorTemuinthepast12mon
5、ths.Ifyouincludeotherfastfashionretailers,thenumberwouldlikelybemuchlarger.Forallthegrowthitgenerates,thefastfashionindustryisalsoresponsibleforconsiderablewaste.Fastfashionconsumersarequicktothrowclothesaway:someestimatessuggestthatconsumerstreatthelowest-pricedgarmentsasnearlydisposable,discarding
6、themafteronlysevenwears.Foreveryfivegarmentsproduced,theequivalentofthreeendupinalandfillorareincineratedeachyear.Andtotalgreenhousegasemissionsfromtextilesproductionclockinat1.2billiontonsayearthat,smoreemissionsthanthoseemittedbyallinternationalflightsandmaritimeshipscombined.Reportsalsoindicateth
7、atsomeclothingfactoryworkersareunderpaidandexposedtounsafeworkplaceconditions.Thetruecostsoffastfashionarecomingintofocus,especiallyformillennialsandGenZ.Youngpeoplearebecomingmoremindfulofsustainabilitywithrespecttohowtheyconsume.Theyrealsokeenlyawarethatthefashionindustryisamajorcontributortogloba
8、lwarming.Andthey,rewalkingthetalktoo:halfofGenZshoppersinChina,accordingtoarecentsurveyaboutsustainableconsumption,saidtheyaimedtobuylessfastfashion.Howcanthefastfashionindustrygiveitselfasustainabilitymakeover?Readontofindout.1.earnmoreaboutMcKinsey,sRetailandSustainabilityPractices.Whatisultrafast
9、fashion?Iffastfashionretailersspeeduptraditionalproductcycles,ultrafastfashionmovesevenfaster.Backinthe1990s,theSpanishretailerZarawasoneofthefirstfastfashionretailerstobreakthemold,offeringhundredsofnewitemsperweek.Asof2023,theChineseultrafastfashionretailerSheinconsistentlychurnsoutupto10,000newde
10、signsaday.AndShein,sproductsarezonaverage,significantlylessexpensiverelativetothecompanysmoreestablishedfastfashioncounterparts:Shein,saverageSKUpriceis$14,comparedwith$26atfastfashionretailerH&Mand$34atZara.Sheingrewdramaticallyduringthepandemic.Dueinparttoasurgeinonlinesalesanddigitaladoptionrates
11、,thecompanymorethandoubleditsmarketshareintheUnitedStatesduringthattime;itsnowthesecond-most-popularshoppingwebsiteamongAmericasGenZ(afterAmazon).Ina2022fundinground,Shein,svaluewassetat$100billion(in2023,itreportedlydroppedto$66billion,likelyinanticipationofincreasedregulation).Howarefastfashioncom
12、paniesevolvingthebusinessmodel?Ultralowpricesarecriticaltothesuccessofthefastfashionbusinessmodel,asarecondensedturnaroundtimes.UpstartfastfashionretailerssuchasSheinandTemuareupdatingthemodelinthefollowingways:Agile,scalablemanufacturer-to-consumersupplychains.Somenext-generationfastfashioncompanie
13、shavedevelopedlargenetworksofsupplierswhooftenmanufactureexclusivelyforthesecompanies.Data-drivenproductdesignandtesting.Shein,forinstance,usesdemand-driventrendmodelingtodesignandselectitsproducts.Thisincludesarangeofdatainputsfromcurrenttrendstoviralproductstocustomerperception.1.oyalandgrowingcus
14、tomerbases.Thesearefedbyaffiliatemarketinginfluencerprogramsandorganicsocialcommunitybuildingfwhichlowercustomeracquisitioncosts.Highappadoptionratesandengagementtactics.Companieshavegamifiedtheirappexperiences,allowingcustomerstoearnloyaltypointsbysettingupaccounts,leavingreviews,watchinglivestream
15、s,andmore.HowarefastfashionorganizationsaddressingsustainabilityconcernsintheirC-suites?Onewayfashioncompanies,fastandotherwise,arepreparingforthesustainabilitychallengesaheadisbyrestructuringtheirC-suites.AccordingtoMcKinseyzSStateofFashion2024report,theC-suiteteamsatalmostallofEurope,s25biggestfas
16、hioncompaniesincludeatleastoneexecutivewithenvironmental,social,andgovernanceexperience.Theseexecutivesoverseeaseriesofsustainabilitystrategies,fromshrinkingtheircompanies,carbonfootprintstoreducingwastetoimprovinglaborrelations.Thebrandsthatexecutesustainabilitystrategiesmostsuccessfullyincorporatesustainabilitycomponentsintoexistingrolesratherthancreateentirelynewones.Forexample,theUK-basedfastfashionretailerPrimarkputMichelle