money & economicsanalysisLSE Business Review

Customs rules let ultra-fast fashion overtake fast fashion

the gist

Ultra-fast fashion is a newer model than fast fashion. Fast fashion brands predicted what shoppers wanted and released collections a few times a year. Ultra-fast firms watch social media, then make what is trending, in some cases releasing up to 10,000 collections a year. They produce so much that even fast fashion can't compete. Customs rules helped it grow, because small parcels shipped directly to consumers can slip past the checks and safety standards that apply to goods imported in bulk, so importers can bypass them. The scale of waste and environmental impact is enormous.

so what

The trade-rule loophole lets cheap, rapidly changing clothing flood markets with little scrutiny, which is why regulators in several countries are looking at changing it.

fun fact

Shein and Temu are among the best-known ultra-fast fashion companies.

LSE Business Review · CC BY 4.0