IMPACTS OF FAST

FASHION ON THE
ECONOMY
 OUR TEAM

NICOLAS MILLAN LUCIANA MARÍA JIMÉNEZ

ARANGO
 CONTENT
01 what is fast fashion 02 economic growth

03 Increasing Unemployment
Rates
FAST FASHION
 FAST
FASHION
WHAT IS?
The term fast fashion refers to a
large sector of the fashion
industry whose business model
relies on cheap and speedy
production of low quality clothing,
which gets pumped quickly
through stores in order to meet
the latest and newest trends.
WHEN?
The term, “fast fashion” was first
used at the beginning of the
1990s, when Zara opened in New
York. The New York Times used
the phrase, “fast fashion” to
explain Zara’s goal to take a
fashion piece from the stages of
being designed to hanging on a
clothing store rack in a mere 15
days.
ECONOMIC
GROWTH
 ECONOMIC GROWTH
Economic Impact of Fast Fashion: Fast fashion's prevalence has significantly
influenced consumer behavior, leading to a preference for cheaper clothing
regardless of quality. This trend has contributed to a surge in consumer
purchasing power, resulting in substantial growth within the retail sector and
thereby boosting the gross domestic product (GDP) of nations.
Contribution to GDP: The rapid expansion of fast fashion businesses has translated
into tangible economic benefits, with the apparel sector now accounting for a
significant portion of national GDP. According to Fares & Lebbar (2019), the
apparel industry's current contribution to the economy stands at approximately
4.5%, with projections indicating further growth to around 5.9% in the future.
 INCREASING
UNEMPLOYMENT
RATES
 INCREASING
UNEMPLOYMENT RATES
Local Production Decline: Cheap, low-quality garments reduce demand for
locally made clothes, leading to lower manufacturing output and
increased unemployment.
Retail Job Losses: Second-hand stores face fierce competition from fast
fashion, resulting in reduced employment opportunities in the retail
sector.
Economic Growth Threat: Fast fashion's dominance undermines economic
growth by displacing workers and limiting manufacturing capacity,
requiring urgent solutions for sustainable development
 Resources
Rauturier, S. (2023, August 6). What is fast

1 fashion and why is it so bad? Good On You.

https://goodonyou.eco/what-is-fast-fashion/
4
The effects of the fast fashion industry on the world - 3885

2
words. (n.d.). IvyPanda. Retrieved April 17, 2024, from Gil, A. (2016, April 29). Zara entre las marcas
https://ivypanda.com/essays/the-effects-of-the-fast-fashion- con mayor presencia internacional. FMK -
industry-on-the-world/ Foromarketing.
http://www.foromarketing.com/zara-las-
Ferraz, T. (2022, March 1). 65+ fast fashion statistics in 2022 marcas-mas-presencia-internacional/

3
that are very alarming. HerBones - We Know That Beauty Is
More Than Skin Deep. https://herbones.com/fast-fashion-
statistics/