Transformation from Fast Fashion Retail into Fashion-As-A-Service Business Model: The Difference Impacts on Developed and Developing Countries
List of Authors
Hassan El Asraoui, Jun Jey Chong
Keyword
Circular Fashion Model, Developed and Developing Countries, Fast Fashion, Fashion-As-A-Service, Generation Y And Z
Abstract
Fast fashion retail and Fashion-as-a-Service (FaaS) model are business models on two opposing ends of the fashion industry spectrum. On one end, fast fashion retail is a model based on mass production, promoting rapid and excessive consumption. On the other end, Fashion-as-a-Service is a circular model with the principle of minimizing production and purchase, focusing instead on maximizing usage. This research aims to study the transformation from fast fashion retail model to Fashion-as-a-Service model and its subsequent impacts. Before analysing the impacts, this paper will first investigate the current structure and landscape in the fashion industry. Ultimately, the main objective is to identify how impacts of transformation from fast fashion retail model to FaaS model can be different or similar for different countries. By studying the data collected from 152 respondents from 32 different countries, alongside existing research made by scholars, the analysis revealed that in the transformation towards circular fashion model, developed countries tend to experience higher positive economic impacts, while developing countries will experience higher negative social impacts, yet both categories will potentially benefit from the positive environmental improvement that the transformation brings about.