Globally, the fashion industry is worth 3 trillion dollars or 2% of the world’s GDP. But it’s also one of the most controversial and polluting industries in the world, with many criticizing fast fashion as the main culprit.
This discourse against fast fashion started at the beginning of the century. Consciousness around sustainability in fashion was on the rise, but the pandemic added momentum to this movement, making it front and center of the fashion industry.
Changes in consumer practices
With COVID-19 and the many lockdowns, people were forced into a complete 180° of their habits in all areas of their lives. In fashion it simply meant: Out with the formal wear, in with cosy clothes. Shopping sprees turned from IRL meetings to shopping on your computer or on Instagram. But they also started becoming more environmentally conscious.
Chart from McKinsey & Company https://www.mckinsey.com/industries/retail/our-insights/survey-consumer-sentiment-on-sustainability-in-fashion
Before COVID-19, people spent more money on fast fashion labels like Zara or Primark. But during the first lockdown in Switzerland, “spending on clothes has fallen by more than half and spending on shoes by more than 80%.” according to swissinfo. Since no one was going out or going to work anymore, there was no need to buy new clothes to appear a certain way to your colleagues or friends. And then there was that Zoom experience – meaning pyjama bottoms and a more professional top.
With the pandemic, people moved away from a simply consumerist approach to fashion to a purpose-driven one.
“The fashion industry offers major untapped opportunities for investors and companies”: According to the Boston Consulting Group and Fashion for Good’s new report, investment opportunities in sustainable fashion could be estimated at $20 to $30 billion annually.
Chart from McKinsey & Company https://www.mckinsey.com/industries/retail/our-insights/survey-consumer-sentiment-on-sustainability-in-fashion
“The Covid crisis shed more light on the problems with fast fashion and consumers became even more motivated to support brands doing good”, said Sandra Capponi, co-founder of Good On You. COVID-19 also allowed for the “vote with your wallet” mentality to go mainstream, as people worldwide could see the impact they had on the world economy.
But is that change truly here to last? Or was it just a side-effect of the pandemic that is going to disappear as soon as we can go back to business as usual?
The opportunity of sustainable fashion
There is no way today to ignore sustainability and even less so in the fashion industry, where it is starting to become one of the top priorities.
“The fashion industry offers major untapped opportunities for investors and companies”: According to the Boston Consulting Group and Fashion for Good’s new report, investment opportunities in sustainable fashion could be estimated at $20 to $30 billion annually. This report also finds that only a small percentage of all available capital has been invested in the fashion and textile industry, thus reducing their capacity to innovate and become more sustainable.
Investment funds aimed towards making the fashion industry more sustainable are starting to be created, but that’s not all. According to Shopify, one of the answers could also be investing in the circular economy.
The solution may indeed be in reshaping our entire economy: Not only making, using and wasting, but making, using and re-using. And that goes beyond just the fashion industry. Circular economy is a concept that could apply to most of our economies worldwide if we can find a way to finance and make it work for everyone.
As stated by the Ellen Macarthur Foundation: “More and more companies across industries are adopting circular principles to reduce costs, increase revenues, and manage risks.” It seems like not only is circular economy the future, it is inevitable to sustain growth worldwide without producing any more waste.
So, what should I do?
There is more than just one way to put your ideas and values forward:
1. Vote with your wallet
This is the simplest and most accessible solution.
Instead of going on a shopping spree every couple of weeks, try and think about what you really need. Then do some research and buy only what’s needed from sustainable and local brands. You can also rent some clothes if you have any formal events to attend.
2. Investing
Investing in sustainable fashion isn’t just investing in brands.
It could also be investing in research for new materials, in infrastructure, in sustainable agriculture, or in greener transport; more or less every aspect of how clothing is made, from the raw material to the finished garment in stores.
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