Does The Forever 21 Bankruptcy Signal The End Of Fast Fashion?
Forever 21, once one of the preeminent names in fast fashion, filed for Chapter 11 bankruptcy protection after months of reports and speculation. While the retailer thrived throughout the 2000s, in recent years Forever 21 has been plagued with many of the same issues as its mall-based apparel contemporaries, including slowing sales and traffic, increasing competition and most recently, the introduction of newer, more sustainable business models, including subscription rental and secondhand apparel sales. The struggles at Forever 21 spotlight a potential weakness in the fast fashion business model itself.
In the wake of the Forever 21 bankruptcy, the RTP editorial team discusses whether fast fashion is on its way out, or if retailers that partake in it will be adapt to changing market and social trend conditions.
Adam Blair, Editor: With the caveat that one (or even two) retail bankruptcies don’t necessarily signal the end of a powerful retail trend, it does seem that “Fast Fashion” is slowing down. This may not be an altogether bad thing, at least as far as the environment is concerned. Consumers are waking up to the environmental impact of the choices they make — including the fact that so much apparel ends up in landfills — and recognizing that a sector based on a buy it/wear it/toss it ethos is unsustainable in both the economic and ecological senses. “Before if people bought an item for $10, they didn’t care about throwing it away,” said Sue Welch, CEO of Bamboo Rose. “Now they want to pass it on, recycle it or repair it.” (Read my full Q&A with Welch, being published on Oct. 3.). And when a subscription service named Wee Blessing adds a “like new” clothing category for babies and toddlers, as it recently did, that means even parents of the youngest kids — notoriously picky about what goes on their children’s bodies — are willing to purchase previously worn clothing. To me that signals a major shift in consumer sentiment, one that may continue to slow fast fashion’s roll.
Glenn Taylor, Senior Editor: Forever 21 certainly had its place as a top industry disruptor; it was a name everyone associated with fast fashion along with Zara, H&M and Uniqlo. But the latter three brands still appear to be going strong, with H&M turning around misfortunes of its own in 2019. Fast fashion doesn’t quite have the trendy connotation it may have had a decade or so ago, and resale and subscription rental programs are going to cut further into overall apparel sales, but I don’t think we can toss this business model to the wayside just yet. Forever 21’s issues also stemmed from an overexpansion of its brick-and-mortar capabilities (occupying much bigger stores instead of smaller-format locations) that seemed to go against the direction successful retailers have pivoted to in recent years. There’s still plenty of room for affordable fashion, but shoppers simply have different priorities in what they want out of an experience. If a store is too big and becomes too much of a treasure hunt, shoppers have plenty of other ways to do their clothes shopping.
Bryan Wassel, Associate Editor: I don’t think fast fashion is going anywhere tomorrow, but this year’s closings may mark the beginning of the end for the fast fashion industry. No trend is forever, and between dropping disposable incomes and rising sustainability concerns the market looks past its prime. The rise of luxury resellers and newer, more socially conscious apparel brands are giving today’s consumers fashionable choices well beyond the mall-based retailers that dominated in recent years. While the stronger brands will survive, I expect them to shift their focus to keep up with the new and upcoming trends. They got this far by staying relevant, not simply waiting for fast fashion to come into vogue, and they will continue by adjusting their business plans accordingly.