Fast Fashion Business Model

Abstract

The greatest difficulty any apparel company encounters is managing demand uncertainty and controlling strategic consumer behaviors (consumers’ propensity to delay purchase intentionally until a sale occurs). Fast fashion retailers, however, have overcome these challenges by supplying the small quantities of latest fashion with agility, which has resulted in profitable revenue gains. This paper reviews what a fast fashion model is, why a fast fashion business model is becoming prominent in today’s apparel business, and how the supply chain is managed in a fast fashion business model. By examining the operation strategies of two successful fast fashion retailers (Zara and H&M), this study concludes with the elements of the fast fashion business model that can be effectively adopted by fashion retailers and future of fast fashion business model.