Unravelling Fast Fashion: A Closer Look at the Hidden Costs

In the volatile world of fashion, where trends come and go in the blink of an eye, Fast Fashion has emerged as a beacon of the industry, being able to deliver the latest trends at lightning speed, with astonishingly low costs. It promises the latest up-and-coming pieces of clothing straight from the catwalk and into your wardrobe without breaking the bank. However, this convenience and affordability masks a complex network of hidden consequences that don’t appear on your receipt but are paid by the environment, and the workers in the supply chain in countries such as Bangladesh. 

When a firm generates negative externalities, it incurs costs that exceed the socially optimal level. In the case of garment companies in Bangladesh, the market equilibrium occurs where the demand curve intersects the marginal private cost. However, due to negative externalities, the societal marginal cost is higher, as indicated by the red line. Consequently, the market optimal output surpasses the socially optimal level. Producing at the market equilibrium results in a welfare loss, represented by the area of the yellow triangle.

 

Environmental Toll

The environmental impact of fast fashion has increasingly become a critical issue. The rising consumer demand for fashion, fueled by fast fashion trends, has significantly amplified clothing production and consumption. With relatively low labour costs in Bangladesh, a substantial workforce is engaged in garment production. According to the BBC (2023), these manufacturing processes generate considerable amounts of waste at various stages, including spinning, knitting/weaving, dyeing, garment assembly, and finishing. In the absence of robust local legislation and adequate waste management infrastructure, this textile waste is often directly disposed of in nearby rivers or landfills, leading to severe soil and water pollution and degrading air quality. Such pollution gravely disrupts the local ecosystem (Maeen Md. Khairul Akter et al., 2022). These circumstances prompt us to examine the true cost of fast fashion: Does the private benefit of inexpensive clothing justify the extensive environmental degradation it causes?

Textile waste in Bangladesh. (Wright, 2021)

Human Cost

Beyond environmental damage, fast fashion also extracts a severe human cost. In Bangladesh, where labour laws are notably lenient, garment workers earn as little as 8,000 taka (£58) monthly—a rate unchanged since 2018 (The Guardian, 2023). These workers are exposed to hazardous chemicals and significant health risks on a daily basis. So what is the outcome? A cycle of poverty and disease that starkly contrasts with the glamour advertised in storefronts and online promotions. Such conditions highlight the broader social costs and negative externalities of the fast fashion industry.

Impact on Consumer Behavior

Fast fashion beckons with its wallet-friendly prices and ever-evolving styles, but beneath the surface lies a costly reality. The incessant rotation of throwaway garments perpetuates a cycle of trend-chasing and rapid disposals, exacerbating waste. Moreover, the allure of bargain-bin prices masks the truth of frequent replacements owing to subpar durability, ultimately resulting in inflated expenditure. The real cost emerges when we continually replace old clothes, essentially like tossing money away. Over time, what initially seems like a bargain actually ends up externally costing us more, not to mention the burden it places on our finances.

What we can do to make a change!!!

1)         Governments:

Many rules and regulations can be implemented to counter the exploitation of workers from other countries. If the countries where the exploitation of workers is occurring are reluctant to impose regulations themselves, importing nations could enforce ethical sourcing requirements or impose tariffs on garments from countries that don’t meet labour standards. For instance, acknowledging and acting against child labour in Bangladesh is crucial—not just opting for the cheapest outsourcing options (Gómez, 2021).

2)         Corporations:

Institutions such as the European Parliament are promoting products that are more durable, easier to reuse, repair and recycle (Cameron, 2023). Corporations shifting their focus to create higher quality products that last longer will reduce the overall waste produced by the whole fashion industry. This shift not only helps reduce waste but also enhances a brand’s appeal to increasingly conscientious consumers.

3)         Consumers:

Promoting the education and awareness of purchasing products from ‘green’ companies would reduce the negative externalities produced by the fast fashion industry. Additionally, addressing the impulse buying fueled by online shopping, a staple activity of the digital-savvy younger generation, could further diminish the industry's environmental footprint.

To conclude, fast fashion's allure, affordable and on-trend apparel, mask deeper issues. The superficial savings come at a high cost: environmental degradation and worker exploitation, particularly in regions dense with manufacturing facilities. To forge a path towards genuine improvement, a collaborative approach is essential. Governments must enact rigorous regulations and levy tariffs on goods from regions that flout ethical standards. Businesses should reinforce their commitment to ethical practices and prioritise long-term sustainability over short-term gains. Consumers, armed with better information, can drive change by choosing responsibly. Ultimately, the fashion industry must shift towards sustainable practices that support both the planet and its people. Embracing slow fashion could be the key to ensuring future generations inherit a healthier, more equitable world.

Bibliography

BBC,2023. Fashion brands paid Bangladesh factories less than cost - report [Online]. Available from:https://www.bbc.co.uk/news/business-64204759. [Accessed 22 March 2024].

Cameron, S., 2023. Sustainability: lawmakers begin to catch up with ‘fast fashion’ industry. [Online]
 Available at: https://www.ibanet.org/Sustainability-lawmakers-catch-up-with-fast-fashion
 [Accessed 23 March 2024].

Gómez, A. F. C., 2021. PRICING THE EXTERNALITIES: COMPARATIVE CASE OF FAST FASHION INDUSTRY WITH SUSTAINABLE PRACTICES IN AUSTRIA. [Online]
 Available at: https://unipub.uni-graz.at/obvugrhs/download/pdf/6861204?originalFilename=true
 [Accessed 23 March 2024].

Maeen Md. Khairul Akter et al. (2022). Textile-apparel manufacturing and material waste management in the circular economy: A conceptual model to achieve sustainable development goal (SDG) 12 for Bangladesh. Cleaner environmental systems, 4, pp.100070-.[Accessed 23 March 2024].

The Guardian,2023. Bangladesh garment workers fighting for pay face brutal violence and threats. [Online] Available from: https://www.theguardian.com/global-development/2023/nov/15/bangladesh-garment-workers-fighting-for-pay-face-brutal-violence-and-threats. [Accessed 23 March 2024].

Wright B(2021) H&M and M&S back project to reuse textile waste in Bangladesh. Available at: https://www.just-style.com/news/hm-and-ms-back-project-to-reuse-textile-waste-in-bangladesh/[Accessed 23 March 2024].