Ultra-Fast Fashion Market Forecast, Trend Analysis & Competition Tracking - Global Industry Insights 2015 to 2031

Demand for Ultra-Fast Fashion from 2015 to 2020 Vs. Future Market Projections for 2021-2031

From 2015 to 2020, sales of ultra-fast fashion have increased at a stable rate, expanding at over 25% CAGR.

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Traditionally, the fashion industry operated on a seasonal schedule, i.e., it would come up with new garments three to four times each year. Major brands would showcase their seasonal collection on the runway, and it would take about three to six months for these products to be available, plus at high prices to the consumers. Brands like Zara and H&M, the "pioneers of fast fashion," upended the traditional market by selling cheap knock-offs right from the runway at a fraction of cost within six to eight weeks.

However, in this age of smartphones and the need for instant gratification, speed is the essence. The rise of fast fashion has been overtaken by ultra-fast fashion. Ultra-fast fashion differs from fast fashion in supply chain strategies, avoids surplus inventory, focuses on domestic sourcing, on-demand production, and shorter lead times from a few days to a week with a combination of agile and responsive supply chain strategies. Companies like Boohoo, Shein, ASOS, Fashion Nova and Missguided have catapulted to new heights with their unique success mantra. These companies have adopted a pull model instead of the conventional push model. Earlier in the push model, the manufacturers determined the products and pushed the retailers to market them, leading to a mismatch between the customers' demands and offerings from retailers. This also resulted in piled-up stock inventories, which eventually cleared in sales or on heavy discounts. On the contrary, in the pull model, companies are continuously provided with customer-centric data and the products are produced in a span of two to three weeks. For instance, Fashion Nova designs and manufactures its clothing within 48 hours and adds more than 1,000 new designs every week on its website, and Shein showcases 500-2,000 styles each day.

The ultra-fast fashion companies also follow a "test and repeat" model, wherein they produce a small batch of products as per the current trending fashion. If these products get a good response, the companies go on to mass produce; if not, they will shelve them. These companies also have a super-fast supply chain. Most of these companies have a domestic manufacturing base to shorten their lead time. Moreover, these companies cater to a diverse audience, with their websites featuring models of all different sizes and ethnicities. These companies have captured a broader customer base simply by offering extended sizes and targeting these consumers directly, that too at the lowest possible prices. For instance, Shein offers dresses starting from US$ 8 and Gucci, Dior, and Bottega Veneta replica bags at under US$ 30.

Global Ultra-Fast Fashion Market Revenue Outlook:

The global ultra-fast fashion market is valued at US$ 17 Bn in 2020 and projected to register а САGR of close to 30% by 2031.

The market is segmented on the basis of product type, end-use, distribution channel, and region. On the basis of the product type, the top-wear segment is expected to hold a majority share and register a higher growth rate over the forecast period. The womens' segment is anticipated to dominate the market in the coming years. On the basis of distribution channels, the online stores are likely to account for a significant share of the target market.

The growing influence of social media, availability of the latest affordable fashion, celebrity endorsements, the convenience of online shopping, faster delivery periods and high disposable income are critical factors driving the growth of the global ultra-fast fashion market. Most of these companies do not have retail stores and depend highly on their online channels to showcase their products, thus saving a considerable capital investment. These companies also use celebrities or micro-influencers on social media to create a buzz about their latest collections. Fashion Nova has 20 million followers on Instagram and has pulled in Cardi B and Kylie Jenner to promote their latest clothing lines.

However, such companies have been criticized for their unethical practices, including piracy, mass pollution and fraudulent profiteering. Ultra-fast fashion has created a problematic phenomenon, "disposable fashion." Most of the clothes are made from non-sustainable materials such as polyester. Some of the clothes are ill-fitted, the materials tend to fade or shrink after a few uses, resulting in these clothes ending up in landfills and creating a much bigger environmental issue. These companies also have been accused of human exploitation. The workers are paid lower than the average hourly rate and exposed to unsafe work environments and inhuman treatment. Despite these concerns, consumers have not stopped buying from these pocket-friendly brands, leading to record high revenues for these companies.

Regional Analysis:

North America is anticipated to hold a significant share of the global ultra-fast fashion market. The region is also expected to register the highest growth rates over the forecast period. The young population, glued to social media with high disposable income, is expected to increase demand for ultra-fast fashion. Asia-Pacific region follows North America in terms of revenue growth, owing to a large millennial population.

COVID-19 Impact Analysis:

On the contrary to the majority of industries, the ultra-fast fashion market thrived during the COVID-19 pandemic. Most of these companies continued to operate during the lockdowns and catered to their consumers with quick online deliveries. The lockdown also brought about a shift in consumer buying habits. Most people secluded in their homes had ample time to surf through social media and shop online. Visual platforms have heavily influenced the Gen-Z or the crowd between 18-25 years, who consider repeating an item of clothing twice a taboo, and these are the primary audience for the ultra-fast fashion industry. With clothing items priced at US$ 20 or less, the Gen-Z or even millennials can renew their entire wardrobe at a significantly lower price, which is why it is easier for them to turn a blind eye towards the corrupt practices of these companies.

Ultra-Fast Fashion Companies Pre and Post Covid-19 Performance

Boohoo Group plc Financials (US$ Mn), 2019 and 2020:

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ASOS Plc Financials (US$ Mn), 2019 and 2020:

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Competitive Landscape:

The ultra-fast fashion market landscape currently appears highly consolidated

• Shein
• Boohoo Group plc
• Missguided
• ASOS
• Fashion Nova
• Other Key Players

Report Scope

• Forecast Period: 2022-2031
• Actual Year: 2021
• Historical Data Available for: 2015-2020

Key Regions Covered

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Key Segments Covered

Ultra-Fast Fashion Market, By Product Type

• Topwear
• Bottomwear
• Outerwear
• Dresses
• Shoes
• Bags & Accessories

Ultra-Fast Fashion Market, By End-Use

• Women
• Men
• Children

Ultra-Fast Fashion Market, By Distribution Channel

• Online Stores
• Retail Stores
• Omnichannel

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