The Rise of Ago: How Fast Fashion Is Impacting E-Commerce Startups

Fast fashion online stores such as Shein and Temu are popular, and many people use these sites to buy most clothes and other items. The more fast food stores become “everything” stores, the more difficult they make life for small businesses and startups.

A recent case between the two companies highlights the intense competition and practices that smaller companies face. Shein sued Temu for intellectual property infringement, and Temu responded with an antitrust lawsuit alleging that Shein forced suppliers into exclusive contracts to enhance competition.

So not only do they put startups at a disadvantage, but they compete with each other in an effort to become the most popular choice for customers across different demographic groups.

Are consumers overdoing fast fashion?

That’s why various studies have been conducted on exactly how fast fashion might impact our planet. Are consumers overdoing it with these products? Well, the University of Manchester has found that the demand for fast fashion is driven by a constant cycle of new trends.

Emily Richardson-Moore notes: “Fast fashion trends are typically worn less than five times, which creates a staggering amount of waste.” Throwaway culture means that 85% of textiles end up in landfills every year, where they slowly decompose and emit harmful gases such as methane.

Environmental pollution from production

The fast fashion production process really pollutes the environment. Dyeing and finishing fabrics releases toxic chemicals into water systems, harming marine life and polluting water sources. A 2018 report by Quantis International found that the most polluting stages are dyeing, yarn preparation and fiber production.

Kamya Choudhary from the London School of Economics mentioned that the fashion industry actually produces more greenhouse gases annually than the shipping and aviation industries combined.

What do experts think about fast fashion for startups?

With environmental impacts in mind, let’s focus back on how exactly the growth of large companies impacts startups. Several experts shared their thoughts with us and here’s what they had to say:

Ria Chakrabarti, founder of Veristyle

“For a startup like ours, whose values ​​are based on helping customers find their best personal style and invest in clothes that will last them forever, fast fashion is a big challenge. Customers are encouraged to use fast fashion platforms, especially Temu, without a second thought because most people fill their carts tempted by how cheap everything is.

“There is no form of consideration as to whether something will fit, which is made worse by the fact that returns are often easy and free. At Veristyle, we want to help customers shop in a thoughtful and specific way so that they can build a wardrobe tailored to their physical characteristics and personality. At the core of our business is conscious consumption, not mass buying of fast fashion.

“This gives start-ups like ours many opportunities. We are able to anticipate the problems that arise with fast fashion and stay in touch with our target end customers to improve our product so that we can be in the right place at the right time to solve these problems.

“We can position Veristyle as a sustainable market alternative as well as a B2B service that fast fashion companies can use to deliver the right inventory to the right customers to ultimately reduce returns and promote the pillar of conscious sustainable consumption.”

Leo Gripari, CEO of That Gorilla brand

“The explosion of digital quick-trade marketplaces – providing consumers with hundreds of thousands of options at low prices – is making it harder for fashion startups to cut through the noise of industry giants.

“However, with recent research showing that consumers are more engaged than ever with brands’ social impact, and governments are punishing ultra-fast fashion to promote more conscious consumerism, the future is bright, which only further fuels our mission to create premium clothing that makes a positive impact on the communities we support in rural Uganda.”

James Poletti, strategic partner, 33 seconds

“Our Window on Net Zero Culture report” from Earthtopia – an eco-friendly TikTok community created by specialist communications agency 33Seconds – explores the views of 2,000 planet-conscious Gen Y and Z consumers in the UK and US.

“Interestingly, the report found that while there is awareness and enthusiasm for second-hand marketplaces such as Depop and Vinted, many Gen Z and Millennial respondents expressed concern, with 77% agreeing that these sites are increasingly you can find more fast fashion items at designer prices. higher prices than vintage products. Our report also shows that:

“Gen Z is slightly ahead of the curve, with 77% saying they regularly buy used and vintage clothes, compared to 72% of millennials.

“The main reason for buying second-hand was that it was a cheaper and more sustainable way of shopping.

“Additionally, only 34% of Gen Z customers said they viewed fast fashion brands in a positive light, compared to 47% of Millennials.

“However, Millennials were more likely to donate and recycle old clothes, with 47% compared to 39% of Gen Z saying they had taken this type of climate action in the past.”