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HOW FAST FASHION LOWERS PRODUCTION COST BUT INCREASES

ENVIRONMENTAL COST

Article · January 2024

DOI: 10.53748/jmis.v3i1.40

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 JOURNAL OF MULTIDISCIPLINARY ISSUES
Journal Website: www.jmis.site
J. Multidisc. Issues 3(1) 30 - 38 (2023)

HOW FAST FASHION LOWERS PRODUCTION COST BUT

INCREASES ENVIRONMENTAL COST

Malika Sema Zahira, Muhammad Lukman Alfakihuddin, Jenifer Alexandra Anwari, Jessica
Madelyn Hadi, Shiny Chutzpah Kuntadi, Jocelyn Lim, Fajar Nur Kholik
Sampoerna University, Jakarta, Indonesia
[email protected]

ABSTRACT - In an effort to meet the increasing demand for inexpensive, disposable goods, the fashion
industry has adopted a business model which prioritises cost effectiveness above all else. This
business model, known as ‘fast fashion’, had been reportedly known to encourage consumers
to discard clothing at an alarming rate which in turn burdens landfills, creating a cycle of
waste. This throwaway culture stemming from fast fashion raises alarms of the impact of the
incessant reliance of synthetic fibres and chemically intensive processes which exacerbates
environmental degradation over a long period of time.
Objective – This paper aims to highlight and explore the need for a shift in the fashion industry’s standards.
This paper also aims to further encourage sustainable business models, advocate for consumer awareness,
emphasising these factors as crucial drivers of change.
Methodology – The literature review method was employed to analyze the data in order to acquire a more
comprehensive understanding of the complex interrelationships among fast fashion, manufacturing costs,
and environmental impacts.
Findings – This paper has revealed the realistic hard and soft, short, medium and long-term solutions to
attack the problem at its root cause. Furthermore, fast fashion’s impact on the environment is
detrimental and requires a dire need of reevaluation of its practices to urgently ensure a more
sustainable and responsible future of the fashion industry.
Novelty – For companies which indulge in the fast fashion business model like SHEIN to implement
sustainable alternatives such as using eco-friendly materials and textiles, ethical labour practices, and
innovative recycling methods to be used as potential solutions in order to mitigate the environmental
damage caused by the fast fashion industry and possibly encourage their consumers to understand the
damage caused by the cycle of waste.

Keywords: fast fashion, environment issues, sustainability, green policy

JEL Classification: Q5, D12, H1, M14

Article Info: Received 23 Nov 2023, Revised 10 Dec 2023, Accepted 18 Dec 2023
Article Correspondence: [email protected]
Recommended Citation: Zahira et al. (2023). How Fast Fashion Lowers Production Cost but Increases
Environmental Cost. Journal of Multidisciplinary Issues, Issues 3(1) 30 - 38

I. INTRODUCTION

Fast fashion has become a prominent force in the modern retail industry, known for its capacity to
make the latest trends accessible rapidly and inexpensively to many people. Companies such as SHEIN
exemplify this pattern by providing a wide range of styles at very low prices. Nevertheless, this ostensibly
advantageous business model conceals a significantly pernicious reality: a considerable ecological impact.
Fast fashion practices are responsible for substantial environmental damage, a decline in biodiversity, an
upsurge in carbon emissions, and the exhaustion of local water supplies (Bick et al., 2018). Despite an
increasing recognition of these effects, the attraction of inexpensive and fashionable apparel still motivates
consumer actions, resulting in a worldwide predicament of environmental justice (Bick et al., 2018; Pringle,
2021).

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The selection of SHEIN as the principal subject of this research was based on its significant
influence in the quick fashion sector. SHEIN, being a prominent brand, exemplifies the operational methods
of the fast fashion industry, which involve swift production cycles, design emphasis on current trends, and
large-scale output. The brand's market dominance enables a thorough analysis of the environmental
repercussions associated with fast fashion, including resource-intensive manufacturing, pollution, and
unsustainable supply chain methods (Teowarang et al., 2022). The wide range of customers that SHEIN
has also offers significant information about how consumers behave and how successful sustainability
communications are. The disparity between SHEIN's assertions of sustainability and its tangible operational
procedures provides a distinct viewpoint on corporate openness and deceptive environmental marketing
(Toprak & Anis, 2018). Moreover, if SHEIN were to adopt more sustainable methods, it might establish a
standard for the whole fast fashion business, emphasizing the significance of exploring environmental
responsibility in this sector.

In order to address these environmental repercussions, it is crucial to embrace more sustainable

methodologies within the fast fashion sector. This encompasses the use of environmentally sustainable
products, the reduction of waste, and the optimization of supply chains to reduce negative impacts on the
environment (Shen, 2014). In addition to business responsibility, there is an urgent requirement for
consumer education. Consumers who possess knowledge and awareness are more inclined to choose things
of superior quality that may be recycled, thereby promoting a culture of ethical consumption (Wu & Islam,
2022). In order to effectively address environmental and social concerns, it is imperative that transparency
and sustainability be established as fundamental principles within the business models of the fashion
industry (Thorisdottir & Jóhannsdóttir, 2019).

Nevertheless, there are notable deficiencies in the journey towards achieving sustainable fast
fashion. An important problem is in the insufficient consumer awareness and education on the inherent
sustainability issues in this industry. Despite SHEIN's professed dedication to sustainable production, their
extensive manufacturing processes and lack of transparency have a substantial impact on climate change,
a reality that consumers frequently disregard (Ultra-fast fashion risks undermining progress in sustainability,
2021). The disparity between how consumers perceive enterprises like SHEIN, and the actual
environmental consequences underscores the necessity for enhanced comprehension and openness
regarding their ecological footprint.

This research seeks to address these disparities by conducting a comprehensive analysis of the
ecological expenses linked to the fast fashion industry, with specific emphasis on brands such as SHEIN.
The study will assess the efficacy of suggested remedies and pinpoint regions necessitating additional
measures. The objective is to not only illuminate the concealed ecological costs of fast fashion but also to
suggest a holistic approach for the industry and consumers to transition towards sustainability and ethical
standards. This article aims to emphasize the pressing necessity for a fundamental change in the fashion
industry, shifting from the conventional fast fashion model to a more sustainable and ethically accountable
approach. It does so by analysing the impact of design choices, customer attitudes, and environmental
concerns.

II. LITERATURE REVIEW

As a result of its negative effects on the environment, fast fashion has been a matter of increasing
concern. Fast fashion does have cheaper manufacturing costs, but the environmental costs are raised in the
process. The production of textiles has several negative effects on the environment and society, including
the proliferation of water-intensive cotton, the leakage of untreated colours into nearby water sources, low
pay for workers, and unfavourable working conditions (Bick et al., 2018). Customers who purchase fast
fashion have an intrinsic dissonance as, although caring about environmental concerns, they frequently
follow consumer behaviours that run counter to ecological best practices (Joy et al., 2012). Fast fashion
systems may be very valuable, especially when customers act strategically, but they can cause unfavourable
externalities at every stage of the supply chain, which poses a problem for environmental justice globally
(Cachon & Swinney, 2011).

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Although consumers of fast fashion have good attitudes about the environment, negative press on
the industry's labour conditions and environmental effect has a substantial impact on customers' sentiments
(Joung, 2014; Roozen & Raedts, 2020). In order to satisfy customer demand and reduce production costs,
fast fashion firms often offer items of "acceptable" quality. However, studies of consumers' behaviours and
habits regarding fast fashion products are few in the literature (Luximon & Chan, 2017; Gabrielli et al.,
2013). Fashion businesses frequently employ the fast fashion business model since it may boost their
competitiveness, lower manufacturing costs, and cut the lead time for production (Rahman & Gong, 2022).
The harsh reality of rapid fashion is shown by the fact that although the cost of apparel has been rising, the
costs to people and the environment have been falling (Ertekin, 2017).

Building eco-materials, offering safety training, overseeing sustainable production, cutting carbon
emissions during distribution, and promoting eco-fashion are all parts of the fast fashion industry's
sustainable supply chain, as demonstrated by H&M (Shen, 2014). According to Kim et al. (2013), several
fast-fashion shops are taking proactive measures to address environmental problems by initiating pro-
environmental campaigns or introducing slow fashion brands. It is possible to partially mitigate the issues
associated with fast fashion and reconcile the goals of environmental sustainability and fashion by charging
extra for items that satisfy consumer demands for greater transparency about sourcing and production
(Ertekin & Atik, 2014). However, there hasn't been much research done on the wider effects of fast fashion
and how consumers see the short lifespan of fast fashion clothing (Collett et al., 2013; Sheridan et al., 2006).

The literature assessment concludes that there is a complicated interaction between consumer
behaviour, production processes, and environmental repercussions when it comes to fast fashion and its
effects on the environment. Fast fashion reduces manufacturing costs, but it also greatly raises the cost of
the environment, creating a worldwide environmental justice conundrum. In order to lessen the damaging
effects of fast fashion on the environment, the industry must respond to these issues by creating eco-friendly
supply chains and adopting sustainable methods.

III. METHODOLOGY

By conducting a literature evaluation, this study addresses the lack of research regarding the
environmental and production costs associated with fast fashion. Data was collected from an extensive
range of sources, including scholarly articles, journalistic articles, industry reports, and other relevant
publications. Extensive literature searches were undertaken by employing electronic databases, including
Google Scholar, and online libraries (Byrne et al, 2012). Our search terms included "fast fashion,"
"SHEIN," "sustainability," "environmental impact," and "waste management." Utilizing inclusion criteria,
resources that are directly relevant to the rapid fashion industry, SHEIN's manufacturing and waste
management processes, its environmental impacts, brand sustainability, and environmental degradation
were identified during the selection process. The sample was chosen from the latest and pertinent material
accessible online, employing keywords such as "fast fashion," "SHEIN," "environmental impact,"
"sustainability," and "waste management."

The literature review method was employed to analyze the data in order to acquire a more comprehensive
understanding of the complex interrelationships among fast fashion, manufacturing costs, and
environmental impacts. Undergraduates from the University of Jakarta, Indonesia, who were chosen for the
research team on the basis of their aptitude and enthusiasm for environmental studies, comprised the group.
The review focused on SHEIN and other comparable companies operating in the rapid fashion industry,
given their significant impact on manufacturing expenses and environmental impacts within the sector. A
meticulous adherence to citation references was maintained during the review process in order to ensure
the integrity and credibility of the material and findings attributed to their respective sources (Jahan et al,
2016).

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Figure 1. Literature Review Process

Additionally, a literature review is used to perform the study, in which experts in the relevant field
evaluate and analyse a research effort (see Figure 1). The goal of a literature review is to confirm the paper's
correctness and originality. It also ensures that the conclusions are drawn logically from the presented facts
and that the claims are supported by the evidence presented. This method works well in the field of fast
fashion, where striking a balance between production costs and environmental effects is a complex issue.
As a result, this study could establish if the issue covered in the paper has been successfully addressed.
Identifying any biases or prejudices that can compromise the reliability and accuracy of the study findings
is also very important.

IV. RESULTS

This is the first study analysing the involvement of the fast fashion brand SHEIN in environmental
degradation through unsustainable practices, which have consequences on the planet. Like many other fast
fashion brands, SHEIN overproduced clothing items to meet the high and ever-changing demands of the
market. This led to excessive textile wastes where unsold items often end up in landfills (The True Cost).
As the name “fast-fashion” states, SHEIN released new clothing collections at a very fast pace, encouraging
their consumers to purchase more, thus disposing of their clothing much faster, resulting in the “throwaway
culture”. Not only did this contribute to the production of greenhouse gases, but the low-quality materials
that SHEIN used to maintain low costs are often non-biodegradable (Holman, 2023).
In SHEIN’s case, it was explored more thoroughly that in November of 2022, 15% of SHEIN’s products
exceeded EU regulatory limits for hazardous chemicals, highlighting the environmental and health risks
associated with the fast-fashion brand. A subsequent assessment in the following year found that SHEIN
had no publicly available climate targets, indicating a lack of commitment to sustainability. The brand only
further states, “Currently baselining energy consumption and establishing goals around renewable energy
use in our own operations. We look forward to publicly disclosing our baseline GHG emissions
calculations,” without actually disclosing numerical and qualitative information about their relationship
with synthetics (The Changing Markets Foundation, 2022). Furthermore, SHEIN’s rapid production model,
utilising virgin polyester and large quantities of oil, results in CO2 emissions equivalent to 180 coal-fired
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power plants, contributing to an annual carbon footprint of about 6.3 million tons (Rajvanshi, et al.). Though
it is true that SHEIN has publicly announced making donations over 3 years to a charity working at
Kantamanto in Accra, according to Barber (2023), around 15 million pieces of used clothing that is said to
be donated arrived every week in which, as stated by Britten (2022), director of the Or Foundation, a Ghana-
and US-konwarbased not-for-profit working with Accra’s textile waste workers, announced that 40% of
those 15 million garments were a waste as much of it cannot be reused. Rickets further elaborated that with
the absence of landfills in Ghana, the unused garments entered the environment and millions of the garments
went into the oceans resulting in the pollution in African nation’s beaches as the current pushes the garments
into the beach from the ocean floor (Britten, 2022).
It is crucial that fast fashion corporations such as that of SHEIN, be equipped with the capacity to
confront the environmental issues engendered by industry practices. This paper aims to gather empirical
data which alludes to the potential environmental degradation that is being caused by these practices, with
the dual objectives of being able to raise awareness and proffer sustainable, long-term solutions.
Bick (2018) discusses the negative externalities and environmental health hazards associated with the
fast fashion supply chain, emphasising the disproportionate burden on workers and communities near textile
manufacturing facilities. Niinimäki et al. (2020) emphasizes the environmental impacts of the textile and
fashion industry, including water, material, chemical, and energy use, as well as the large amounts of textile
waste generated by fast fashion consumption practices. Muñoz (2017) addresses the degradation of the
environment caused by the fashion industry’s production and consumption patterns, particularly with the
emergence of fast fashion. These papers provide evidence of the environmental consequences of SHEIN’s
fast fashion practices and highlight the need for sustainable production and ethical consumption in the
fashion industry (Bick et al., 2018; Muñoz, 2017; Niinimäki et al., 2020).
Konwar and Boruah (2020) emphasizes the use of hazardous chemicals in textile manufacturing, which
can be damaging to human health and the environment. Sondergârd et al.’s (1999) study discusses the
cumulative effects of industrial activities on ecosystems, emphasizing the need for economically and
ecologically sustainable pathways. Toprak (2018) focuses on the environmental pollution caused by the
textile industry, particularly the discharge of high amounts of chemicals and dyestuffs. These findings
suggest that fast fashion brands like SHIN contribute tremendously to environmental deterioration through
their wasteful production processes, including the consumption of water, energy, and raw materials, as well
as the generation of waste (Konwar & Boruah, 2020; Sondergârd et al., 1999).

DISCUSSION

The findings of this study are consistent with the prior research conducted by Bedard and Tolmie (2018),
which revealed that millennials and upcoming generations exhibit a preference for purchasing from firms
and brands that demonstrate a commitment to environmental sustainability and offer more ecologically
sound products. This indicates a rising consciousness and desire for ethical and environmentally friendly
fashion among consumers, particularly the younger demographic. Nevertheless, this study also emphasizes
the limited knowledge and comprehension among SHEIN's customers regarding the reasons and
mechanisms through which the corporation impacts the environment. A significant number of consumers
are either uninformed about or deliberately disregard the concealed expenses associated with fast fashion,
including the depletion of resources, the development of waste, and the emission of greenhouse gases. The
costs associated with SHEIN, like as environmental impact and labour exploitation, are not evident in the
low prices and fast fashion cycles that the company offers. This creates a deceptive perception of
affordability and convenience. Hence, it is imperative for consumers to acquire greater knowledge and
exercise accountability about their fashion selections, while also considering the ecological repercussions
of their purchasing patterns.
An effective method to enhance SHEIN's consumers' awareness and comprehension is to educate them
regarding the ecological consequences of rapid fashion production methods, and how they can mitigate
these consequences by embracing more sustainable approaches. Consumers can acquire knowledge on the
quantity of water, land, energy, and chemicals utilized in the production of various fabric varieties,
including synthetic and natural fibres. Additionally, they can get knowledge regarding the quantity of waste
and emissions that arise from the production, transportation, and distribution of fast fashion. Additionally,
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customers can acquire knowledge on alternate options to rapid fashion, like circular fashion, slow fashion,
and ethical fashion. These alternatives strive to mitigate the ecological effects of the fashion industry by
employing renewable materials, prolonging the lifespan of products, minimizing waste, and assuring
equitable labor conditions. Through the dissemination of knowledge regarding the ecological ramifications
of fast fashion and the viable alternatives to it, customers can acquire a greater understanding and exercise
more discernment when making fashion-related purchases, so acting in a more informed and responsible
manner.
The findings of this study align with the research conducted by Bedard and Tolmie (2018), which indicates
that both current and future generations have a preference for organizations that do environmentally friendly
measures and provide sustainable products. This suggests a rising consciousness and desire for ethical and
environmentally sustainable fashion among consumers, particularly among younger generations. However,
this study highlights the insufficient understanding and awareness among SHEIN's customers on the causes
and processes underlying SHEIN's environmental impact, such as the depletion of resources, development
of waste, and emission of greenhouse gases. SHEIN's ability to provide affordable and convenient options
through cheap costs and fast fashion cycles effectively masks the negative externalities associated with
their operations. Hence, consumers must exhibit greater consciousness and accountability when it comes
to their fashion choices, taking into account the ecological consequences of their buying patterns.

Enhancing consumers' knowledge and comprehension can be achieved by educating them about the
environmental consequences of rapid fashion production and the potential for companies to mitigate these
impacts through the adoption of sustainable methods. Consumers can be informed about the quantity of
water, land, energy, and chemicals utilized in the production of various fabric kinds, whether they are
synthetic or made from natural fibers. Furthermore, regarding the amount of waste and emissions produced
by the creation, transportation, and distribution of fast fashion. In addition, consumers can get further
knowledge on alternatives to fast fashion, such as circular fashion, slow fashion, or ethical fashion. These
alternatives strive for sustainability by utilizing renewable resources, prolonging the lifespan of products,
reducing waste, and guaranteeing fair labour conditions. By imparting this knowledge to customers,
regarding the environmental consequences of fast fashion and its alternatives, individuals might become
better informed and thus more conscientious in their buying patterns.

V. CONCLUSION

It is apparent that the consumers of SHEIN are not aware of the company’s unethical practices which
have a significant impact on the environment. Taken from the company’s insistent use of materials which
are not eco-friendly, nor sustainable in the long term, such as synthetic fabrics which contain hazardous
chemicals and microplastics. In other words, SHEIN is responsible for producing a large amount of waste
and greenhouse gas emissions due to its fast fashion model. This act only further encourages
overconsumption and the throwaway culture from the disposal of clothing. These issues are not fully
understood by SHEIN’s consumer base, who are mainly attracted by their low prices and fast trendy styles
and marketing strategy.
This further dictates the insistence of large companies like SHEIN which hold a significant amount of
presence as well as holding power capable of impacting the environment in a large scale, to be taken
accountable. Their unsustainable business practice only furthers the degradation of the environment, and
their consumer base needs to be educated on the impacts of supporting large corporations like SHEIN.
Companies like SHEIN not only endanger the environment, but they also endanger their consumers.
In conclusion, implementing greener policies would not only be beneficial for the environment but also
provides a more sustainable business model. By reducing their environmental footprint, companies like
SHEIN would more likely be able to meet consumer expectations at a greater rate. As by staying ahead of
regulatory changes, these companies are capable of sustaining their position in an ever changing market
whilst contributing to a more sustainable future

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Limitation and Future Research.

Studies on the phenomenon of fast fashion, particularly in relation to labels such as SHEIN, have
pinpointed specific issues that require additional investigation. There is a notable lack of knowledge among
consumers regarding the environmental consequences of fast fashion, underscoring the necessity for
comprehensive research on consumer behaviour and the creation of impactful communication tactics.
Furthermore, there is a conspicuous absence of comprehensive quantitative data regarding the precise
environmental effects caused by these companies, such as measurements of water use, carbon emissions,
and trash production. Longitudinal studies are crucial for assessing the true dedication of organizations such
as SHEIN to environmental sustainability by tracking their compliance with sustainability commitments
over an extended period.

Moreover, the study emphasizes the significance of developing tactics to inform customers about the
ecological ramifications of their buying choices in the fast fashion sector. Conducting comparative studies
between fast fashion and more sustainable firms is essential for comprehending the differences in their
environmental footprints. Thorough analysis is necessary to assess the long-term effectiveness and
execution of sustainability measures in the fast fashion industry. It is crucial to analyse the economic
consequences of implementing sustainable practices, considering both expenses and consumer reaction.
Thorough examinations of fast fashion supply chains will provide valuable insights into the industry's
overall environmental footprint. Future study should prioritize policy analysis to establish effective
incentives for sustainable practices, as well as investigate technological advancements in sustainable
fashion, such as novel materials and production techniques.

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