What is fast fashion?

The term fast fashion is used to describe the production of high volume, quick turnaround, low cost clothing. Fast Fashion first appeared in the 1990s as corporations, in an attempt to increase profits, invested in cheaper production methods to mimic fast paced fashion trends.

Fashion has always reflected something about the times in which we live. Brands respond to demand as much as consumers respond to what’s on offer and consumer behaviour reflects this. As market pressure increases to reduce development and production costs, along with expectations of fast turnaround times from brands and consumers alike, environmental corners are more likely to be cut. That is, unless attitudes and practices change. Irrefutable evidence of climate change and environmental damage has finally forced the industry’s hand to shift from a linear economy to a circular one where efficiency and ethics are aligned.

Disposable Fashion

In the UK, fashion is a big business, contributing over £32 billion ($39 billion) to the British economy each year. Proportionally, the country’s also become a hub for fast fashion, with British consumers buying more new clothes per person than any other country in Europe.

According to a survey by Fashion Revolution, British fashion shoppers spent about £3.5bn on Christmas party clothing last year – but 8 million of those sparkly items will be on their way to landfill after just one wear. Sustainability issues also arise when clothing is no longer wanted. A report by the Ellen MacArthur Foundation found that the growth of clothes production is linked to a decline in the number of times a garment is worn. The report also highlights how the fashion industry’s current “take-make-dispose” system creates greenhouse gas emissions of 1.2 billion tonnes a year—that’s “more than those of all international flights and maritime shipping combined.”

Single figures; single use?

With the normalisation of a shirt or dress with a single figures price tag, so-called fast fashion has ushered throwaway culture into the clothing business, with items so cheap that they’ve become single-use purchases with appalling pay-per-wear. According to the latest figures from WRAP, over one million tonnes of clothing was purchased in the UK in 2016. In the same year, fabric waste in the supply chain equalled an estimated 800,000 tonnes, while consumers discarded 300,000 tonnes of clothing. The correlation between cheap clothes and environmental damage is now beyond doubt.

In October 2018 the Intergovernmental Panel on Climate Change (IPCC) issued a final warning to politicians about the dire state of the planet, stating that there were 12 years left to reverse the effects of climate change. For Sarah Ditty, policy director at Fashion Revolution, it’s this sense of urgency more than anything that’s forcing the sustainable push. “It’s about survival,” she says. “If fashion brands don’t start working to mitigate their negative environmental impacts, fundamentally change the way they use natural resources and build climate resiliency into their business models, then they will not succeed in the near future.”

In broad terms, these are the four major types of impacts that arise from the fashion industry, clothing manufacturing and related activities such as transportation and consumer usage.

Water Consumption

In 2017, a Global Fashion Agenda report revealed that the fashion industry consumed almost 80 billion cubic metres of water. To put this in context, that’s enough to fill 32 million Olympic sized swimming pools. Moreover, this figure is forecast to reach 120 billion cubic metres by 2030.

Part of the reason for such extreme water usage is that these garments are traditionally made from cotton, which is grown in warm and dry countries, where water is scarce. It takes 20,000 litres of water to produce just one kilogram of cotton and therein lays the problem. In such arid countries, the amount of water required to produce one shirt – 2,700 litres – could provide drinking water for one person for 2 and a half years.

It takes 2,700 litres of water to produce a simple T-shirt and almost 10,000 litres for a pair of jeans.

Cotton makes up around 90% of all the natural fibres used in the fashion industry and because its production requires vast amounts of water for irrigation, the environment and nearby communities have been negatively affected.

The most notorious case is the Aral Sea devastation. Here, an increase in cotton production in the 1960s led to irrigation canals being created to divert water from the sea to the farmland. This proved unsustainable and resulted in the Aral Sea being reduced to just 10% of what it originally was.

Water Pollution

It’s estimated that 20% of the world’s water pollution is as a result of the fashion industry’s dyeing and cultivation processes, with over 800 chemicals used to transform raw materials into fabrics.

The production of natural fibres, such as cotton, is highly pesticide intensive. Let’s take cotton farming as an example. Cotton is grown on only 3% of the world’s farmland and yet its production consumes a disproportionately high level of chemicals: 16% of global insecticide and around 25% of the world’s herbicide use. These toxic chemicals are absorbed into the soil, before making their way into waterways, polluting rivers and water supplies.

Equally, every time a garment made from a synthetic fibre such as polyester is washed, microfibres are released which then make their way into the water system. With each wash, around 1,900 microfibres are leaked into small aquatic organisms. The natural food chain process – whereby larger organisms feed off the smaller ones – means that these microscopic plastics enter into the food chain and return back into the food we eat as humans.

Fashion Waste

In 2018, £140 million worth of clothing was sent to landfill in the UK alone, equating to around 350,000 tonnes of unwanted garments. An average western household is estimated to dispose of 30kg of clothing annually, and of that 30kg only 4.5kg is recycled or donated – the rest is either sent to landfill or incinerated.

Synthetic and non-biodegradable fibres, such as polyester, are used in around 72% of garments and can take a staggering 200 years to decompose.

Equally, due to fabric cutting techniques, around 15% of the material intended for clothing production ends up as off-cuts, which explains the industry’s increased interest in zero waste pattern cutting techniques

It’s estimated that around 4% of a factory’s output is rejected during the quality check process. Given that some of the largest clothing factories output 240 million garments annually, this equates to just fewer than 10 million garments being wasted by one manufacturer alone.

Gas Emissions

The fashion industry contributes to around 10% of global greenhouse gas emissions, due in part to its energy intensive production processes, which exceed those of the aviation and shipping industries combined.

Different fabrics release varying amounts of toxic by-products, both pre and post-production. Synthetic fibres (polyester, acrylic, nylon, etc.), which are used in the majority of fast fashion garments, are made using fossil fuels. Their production accounts for 70 million barrels of oil used annually to produce the raw material polyethylene terephthalate (PET), before the fabric is further treated.

According to estimates, 262% more CO2 is emitted to produce a single polyester T-shirt than it is for a cotton shirt. One of the most damaging components of PET production is a chemical called antimony, which is used as a catalyst to create the plastic. Antimony is carcinogenic and, although “locked” into the fibres after production, it’s released into the water systems during manufacturing. The use of antimony is equally problematic when the garments come to the end of their life. When polyester fabric is incinerated, the antimony is released into the air as antimony trioxide. As such, the product lifecycle of synthetic fibres ultimately pollutes both waterways and the air.

Fast Fashion Statistics:

• ​Producing one cotton shirt uses around 2,720 litres of water; around the same amount as an average person drinks over three years. (Ejfoundation)

• ​Polyester production creates around 706 billion kg of greenhouse gases per year, equivalent to the annual emissions of 185 coal-fired power plants. (World Resources Institute).

• The average person buys 60% more items of clothing and keeps them for about half as long as 15 years ago. (Greenpeace )

• The number of garments produced globally exceeded 100 billion for the first time in 2014. (McKinsey )

• Garment manufacturing accounts for 20% of global industrial water pollution. (World Resources Institute).

• ​The UK alone disposes of 350,000 tonnes (£140 million worth) of clothing in landfills each year. (Greenpeace)

• ​By 2030, the total amount of fashion waste is expected to be 148 million tonnes – equivalent to 17.5 kg per person across the planet. (Global Fashion Agenda)

• It takes about 10,000 litres of water to produce enough cotton for a pair of jeans. (WRAP)

• The carbon emissions generated by the clothing of the average UK household is equivalent to driving an average modern car 6,000 miles. (WRAP)

• More than 50% of the emissions from clothing production comes from three phases: dyeing and finishing (36%), yarn preparation (28%) and fibre production (15%). (Quantis)

Why cheap fashion is costly

Back to that £8 shirt. In March 2019, the young-fashion brand Boohoo had over 50 men’s shirts available online costing less than £15. Meanwhile, rival Asos was also offering more than 50 shirts of all styles for less than £15. Many – like a button-down collar Oxford style shirt were listed at £7.50, meaning the delivery charge could be virtually the same as the contents of the package.

Elsewhere, companies such as H&M are making great strides towards sustainability with their ‘Conscious – Sustainable Style’ range and Sustainability Strategy. However, the causal link between fast fashion and environmental damage is now beyond dispute. Sustainability has become a core tenet of emerging designers and those starting a own clothing line, as the industry as a whole acknowledges that consumers do care and that fast fashion is most certainly not free.

While it’s important to tackle the wider issue of consumer behaviour and manufacturing processes, rather than singling out specific brands, it’s worth reminding ourselves of the words of Lucy Siegle, the journalist and ethical fashion campaigner:

”Fast fashion isn’t free. Someone, somewhere, is paying”

1. Understand the Commitment You’re Making

As the old saying goes “if it was easy, everyone would do it”, and that certainly applies to starting a clothing line. Two things you’re going to need when starting out are time and money.

You’ll need to account for clothing production costs, marketing, website development, photography and logistics costs, so it pays to fully research what you will need as it can take more financial commitment than you first anticipate.

When it comes to time frames, clothing brands are often started as sidelines to full-time jobs, so you can expect to spend some of your evenings and weekends building up your dream business.

How Long Will it Take to Start a Clothing Line?

Calculating how much time your project is going to take is crucial. People often underestimate the amount of time needed to start-up a clothing brand, particularly when they’re not familiar with the work that needs to be done. Calculating realistic timelines will help you to understand just how long it’s going to take to get your products to market.

Triple your time estimate

If your launch is to be successful, anticipating and accounting for unexpected events is critical. As a rule of thumb, tripling time frames should help you account for unforeseen complications.

A startup timeline should be at the centre of your plan; it captures the essence of what you hope to accomplish and the way in which it will be done.

When creating a project timeline, aim to capture the following key pieces of information:

• A list of tasks which need to be completed in order to launch successfully
• The dates on which the tasks need to be complete
• How long you expect each task to take

2. Registering Your Clothing Line

Every company – no matter how big or small, must have a legal structure. You will need to either register a limited company or start operating as a sole trader. There are multiple things to consider when starting your business entity and both options have pros and cons which will differ depending on your circumstances.

Note – Before you make any decisions, we recommend you speak to a professional financial advisor or accountant about your personal circumstances.

Companies like The Formations Company can help you search for the perfect name for your business.

A sole trader is a self-employed person who is the sole owner of their business.

Being a sole trader means that you are completely responsible for the company and its liabilities with no legal separation between yourself and the business. Any of your personal effects can be considered a part of the business, and any of your business debts are personally yours.

You can still employ people as a sole trader, but you’re personally responsible for them as a liability to your business activities.

Pros:

• Easy and inexpensive to start up
• Online registration
• Few bookkeeping and accounting requirements
• Self assessment once a year
• All profit after tax belongs to you
• No personal details are on the public record

Cons:

• No legal distinction between personal and business finances
• Sole trader is personally liable for all business debts
• All taxable income is liable for income tax and national insurance
• Lenders prefer to deal with limited companies so it can be harder to raise funds
• “One man bands” can be viewed as amateurish by a consumer
• Limited companies are more tax efficient

What is a Limited Company?

A limited company is a type of business that has been incorporated at Companies House, forming a separate legal entity to the business owner(s). This “limited liability” gives various advantages in business, one of which being that if a limited company is taken to court and a ruling is made against them, the personal assets of its directors cannot be considered as a part of a claim.

This reduced financial responsibility of limited liability can act as a safety net for business owners, however there are also disadvantages like the increased accounting requirements. Limited companies have shareholders or guarantors, with shareholders being the most popular choice. You can therefore sell a portion of your company to raise funds, and give the investor a number of shares from which they will get dividends.

Companies have to pay corporation tax on all profits made, but this is after all expenses such as staff wages and running costs. A company is run by one or more directors who take responsibility for the accounting requirements set by Companies House and HMRC.

Pros:

• Separate legal distinction to it’s owners/directors
• Limited liability for personal finances and assets of shareholders
• Corporate credibility
• Shares can be sold to raise capital
• Tax efficient ways of paying yourself via salary and dividends
• Can exist even without the original owners – companies can grow for centuries

Cons:

• Must register with Companies House and HMRC for tax
• Set up costs involved
• Company names can be limited by what has already been registered
• Accounting and filing requirements can be complicated so an accountant may be necessary
• Directors and others involved with the business will have their service address stored on the public record
• Must have a registered office in the UK

3. Clothing Brand Start Up Costs

Obtaining funding in any economic climate can be challenging, and during the life of almost any business (especially in the early stages) the owner will need to seek out cash to help with its growth. There are plenty of options out there for getting your clothing line off the ground, it’s just a question of picking the right method for your venture.

Simply put, start up costs are non-recurring costs involved in setting up your clothing line.

Having a realistic idea of your online clothing store business plan start up costs is an essential part of business planning, and reduces the chance of running out of funding before your clothing line has launched. The most common way for start ups to fail is by not having enough capital to see them through the initial stages.

Examples Of Start Up Costs

• Business Registration
• Website Development and Hosting
• Editorial and E-commerce Photography
• IT Hardware
• Office Supplies
• Stock
• Storage Space (if needed)

4 Ways To Fund Your Start Up Clothing Line

• Crowdfunding

Crowdfunding is a way for businesses to raise funds by asking a large number of people for relatively small amounts of money. Websites like Kickstarter and Indigogo  have provided platforms for “backers” to peruse projects where they can usually purchase goods pre release for a favourable price. Backers are rewarded with an exclusive item or offer which they’re essentially purchasing in advance of production. Because there are “rewards” involved in crowdfunding, those who back a project will not own any shares in the company.

Crowdfunding can be a fast way to raise money with no upfront fees. Successfully crowdfunded projects can get huge amounts of online media attention, which can help them grow way beyond what the money raised alone could have done. However, it is not without drawbacks. Failed projects risk damage to the reputation of the business and people who have pledged money to them.

You can find some helpful tips on how to successfully crowdfund here.

• Angel Investment

An angel investor (also known as a private investor) is an individual who provides capital for a business start up in exchange for ownership equity.

Angel investment offers low risks with potentially high rewards for a business owner, however there are both pros and cons to consider. The most obvious positive is that you’re not risking your own money, and that having invested financially in your brand, your investor will be keen to help you get to market. Another advantage is that if your clothing line did fail, you won’t have to pay any money back as your investor will have taken on all of the financial risk.

Angel investors usually come from a business background, and with that comes valuable knowledge and contacts. Sometimes this alone can be more beneficial to a business owner than the money invested. First however, you’ll have to convince them to hand over their hard-earned cash, and you’ll also have to give up a percentage of your clothing line, with this figure usually being high. The share of your business is how the investor will justify giving you cash up front for your idea.

One disadvantage to Angel investment is that your investor will be constantly looking over your shoulder, and will perhaps try to pressure you in to doing things which help them to regain their investment rather than push your brand in the direction you would like. It’s important to consider your investor a partner rather than just a financial entity of the business and to consult on decisions together.

• Start-Up Loans

The Start Up Loan scheme is a government-backed initiative helping individuals start or grow a business in the UK. The advantage of a Start-Up Loan is that it’s a fast and easily accessible way to get your clothing line off the ground whilst retaining full ownership of your brand. Although you’ll have to take out the loan and pay it back within an agreed time frame, the interest rates and payment terms are designed to give you as little pressure as possible, allowing you to concentrate on developing your clothing line.

Most delivery partners provide an experienced mentor and offer a support network – something which a lot of start-ups wish they have! True, if the business fails you will still have to pay the loan back, but no business is without risk and the benefits far outweigh the drawbacks.

Most start up loan delivery partners have helpful resources like calculators which you can use to calculate monthly repayments.

You should also research your competition as they will be able to give you a good idea of how to target those in your market. By researching through do my research paper for me your competition you can see what they’re doing and also identify ways to improve on their strategy.

Customer demographic checklist:

1. Age
2. Location
3. Gender
4. Income level
5. Education level
6. Marital or family status
7. Occupation
8. Ethnic background
9. Interests/hobbies
10. Lifestyles
11. Music Taste
12. Attitude

Choosing a Clothing Brand Colour Palette

The psychology behind how we perceive colours is complex, and most people do not realise the research that businesses (not just in the fashion industry) put into developing colour schemes which evoke certain emotions within their audience.

Clothing brands use this to elicit different emotions within their customers and to portray their products in different ways.

Colours are used as a way to subconsciously manipulate the decisions of consumers by brands, with different colours evoking different emotions, feelings, and purchasing decisions.

The Importance of a Company Logo in the Fashion Industry

Creating a logo is a vital part of your company’s marketing efforts, with a recognisable and familiar logo going a long way toward building brand identity. Logos help business owners establish brand loyalty that consumers want to interact with.

Your logo should –

• Make a great first impression

Logo designs are all about capturing the audience’s attention and impacting them in a positive way. This way, you ensure you’re remembered and chosen first over your competition. Your logo should make potential customers think “this is a professional company and I want to purchase from them”.

Additionally, a visually-striking logo can be intriguing for potential customers, making them curious about the company behind the design.

• Distinguish you from the competition

With competition being fierce in the fashion industry, your logo should be instantly recognisable as your own. There are some very well-known logos in fashion which are used by established brands – the Fred Perry wreath and the Nike tick are great examples.

Ensuring your logo is completely unique and unlike other well-known logos is a way to establish yourself as a brand in your own right, as opposed to some kind of copycat brand seeking to benefit from the success of others.

• Facilitate brand loyalty

A well-designed brand logo will help to make your customers instantly think about your brand and your products when they see it. If your brand is associated with good things, like high-quality clothing, every time a potential customer sees this logo they will think about that too, with the repeated exposure to your logo reminding them of that every time they see it.

• Take into account technical limitations

You also need to consider the technical limitations that your logo may have. For example, if your logo is extremely intricate, it could be impossible to translate that into embroidery. Rather than making a second logo specifically for the embroidery, it would be better to make one logo for everything with this in mind right from the start.

To see an example of branding executed correctly, read more about how Ralph Lauren created a timeless fashion staple.

How to Determine a Pricing Structure

Pricing your garments is one of the most important decisions you’ll make, as it impacts almost every aspect of your clothing line. In order to turn a profit, you need to ensure you’re making more than the fixed and variable costs of your clothing brand. Fixed costs are costs that don’t change such as purchasing new equipment or business premises. Variable costs are those that change, such as the difference in manufacturing costs between various product lines.

The first thing to do when calculating your pricing structure is to work out your cost per unit. For this, you should look at the following:

• Garment Manufacturing Costs
• Import Tax
• Packaging
• Promotional Materials
• Shipping
• Marketing

Once you know how much your total costs are for the product, you need to add a profit on. Typically, a profit margin of between 30% and 50% is considered good for a clothing business, but you need to make sure that your branding and perceived value are taken into account when deciding on a price point.