Exploratory research of the fashion industry supply chain strategies: practices in leading fast fashion and luxury brands

Abstract

Fashion is the third biggest industry in term of revenue worldwide. Although the industry is often pointed out for its controversial practices and consequences in terms of environmental and social issues, it is a growing industry, new entrants disrupt the market everyday. Lately, fast fashion and luxury fashion have been two growing segments of fashion and they both are historically really distinct from one another in terms of supply chain practices. Because of new dynamics in the industry and in the world in general, such as, advanced technologies, globalization, changes in customers’ behavior and more recently the covid-19 pandemic, the fashion market is going through abrupt and sudden changes. Furthermore, this discussion comes in a context of rising awareness about environment, social needs and sustainability in general. Traditionally, luxury fashion is a symbol of authenticity, exclusivity and a guarantee of quality. It has always being a distinct segments of fashion with its own codes, and supply chain management practices and strategies. On the other hand, fast fashion is a symbol of accessibility, ephemeral trendiness and affordability. The rise of fast fashion has redesigned the fashion industry for the pas 30 years and continue to do so with revolutionary practices. Regardless of the segment, the supply chain makes an essential contribution to value creation of the brand and it is important to understand it. While fast fashion retailers keep on gaining popularity amongst customers by pushing the limits in terms of supply chain, luxury brands adapt to a new type of consumerism by finding balance between historical traditions and contemporary practices. It is usually believed that luxury items are more reliable, of better quality and long-lasting because they are manufactured with the best raw materials and collected with the best care. While fast fashion items are believed to be easily disposable, low quality and treated like single-use item. Studying the current trend in supply strategies amongst world leaders of both the segments highlight the novelty in practices and expresses the current challenges of the industry. Indeed, while these generally widely different segments are often opposed and considered as two different worlds, there are many similarities that can be underlined as a results of the evolution of the industry and the auto influence of each other.