Zara Case Study On Fast Fashion: Sustainability And Ethics

MGMT2726 Business Ethics and Sustainability

Discussion

Fast fashion is a much-talked issue in the fashion world. The fast fashion world is characterized by low cost, stylish, luxurious brand trends that also reflect the desires of individuals.  This particular case will focus on how the fast fashion industry trends are negatively affecting sustainability along with raising issues such as global warming.  

The case study ZARA: Fast Fashion by Ghemawat & Nueno (2016) provided an insight into  the overall structure of the global apparel industry with a focus on Inditex Company Zara and its competitors. The issue of sustainability and ethics are related to the modern fast fashion industry. Inditex, Gap (U.S.), Hennes & Mauritz (Sweden), and Benetton (Italy) are the major players in the fast fashion industry.  The fast fashion companies such as Zara are earning a huge profit but, they are also blamed for their ethical and sustainability misconducts.  Zara is the  largest chain of Inditex with over 2200 stores in 96 countries as of May 2018 (Forbes, 2018). The two of the major reasons behind the profitability of Zara in the fast fashion industry include its business system and an international expansion strategy. The fast fashion is trend sensitive and affordable that raises both the ethical and sustainability issues. In order to understand the issue of sustainability and ethics associated with the fast fashion brand Zara, it is essential to look at the definition of ‘sustainability’ and ‘ethics’.   Sustainability can be defined as the activity that does not harm others and also meet the needs of the current generation without compromising with the needs of future generations. Ethics, on the other hand, can be defined as the moral principles that govern the behaviour or the ways of conducting an activity (Ghemawat & Nueono, 2006).

The major focus of this case is on determining the sustainability and ethical issues in the context of Zara.  One of the most important aspects of Zara’s business system that is contributing to the sustainability and ethical issues includes its fast or quick response.  The fast fashion industry in which Zara is operating promotes low or high- cost clothing collections that are particularly based on the new fashion trends and it naturally encourages disposability as it involves a fast-response system. (Joy et al., 2012). The richer communication links across the globe have also led to the growth and promotion of fast fashion trends. The fast fashion companies such as Zara thrive on  fashion cycles that are fast and require a quick response. In the fast fashion cycle, there is a rapid prototyping, the variety of clothes is wide but the batches are small. In addition, the delivery and transportation are  highly efficient so as to meet the dynamic and rapidly changing needs of the customers. The case indicates that the cycle time of Zara is as shorter as 2 weeks in case of restocking and 4-5 weeks in case of new designs (Härtsiä, 2011). The bulk production of Zara can also be attributed to the fact that it is operating in a highly competitive industry. Zara is promoting a trend that focuses on disposing of the old clothes and using the clothes of new trends and fashion. In other words, the fast fashion trends indicate that the clothes are not meant to last longer but, they are meant to be bought in large quantities and are only used for a short period. This particular fast fashion trend promotes wastage and rapid disposal of the clothes. This trend can lead to serious environmental and sustainability issues that can ultimately lead to a clothing crisis and global warming both at the local and global level. The wrong disposal of clothes will lead to a rise in temperature of the climate system (Dockrill, 2018).

Global warming and Fast Fashion

Global warming is a global threat that is also referred to as  climate change.  Global warming is leading to a rise in the average temperature of the climate system across the world. The fast fashion companies are contributing in  climate change or global warming. According to a study, 5% of the greenhouse gas emission is attributed to the apparel industry or the fast fashion industry. The fast fashion companies are negatively affecting the environment in terms of polluting the air, water and the food we eat. In other words, the fashion carbon footprint is very large. (Scamans, 2016). The fast fashion company such as Zara are responding quickly to the demands and changing trends by producing a large number  of apparels that are ultimately wasted or disposed of in a wrong manner that further leads to environmental issues and global warming. In addition, the fast fashion companies such as Zara destroy the clothes that are unsold instead of selling the same at cheap prices. This is done so as to maintain the exclusivity of brand.   This unethical practice leads to global warming and other environmental issues. Therefore, there is a critical need to solve the issue of global warming that is caused by the apparel industry and fast fashion trends. The discussion below will focus on the recommendations that can be implemented  in the context of reducing the global warming caused because of the fast fashion or apparel industry both at the local and global level (Garcia-Torres et al., 2017).

The focus of the major industry players in the fast fashion should be on using the eco- fashion practices that can help in reducing the size of fashion carbon footprint. The eco- fashion practices include the use of natural pesticides dyes and fabrics for manufacturing of the clothes. The eco- fashion practices can be adopted  both at the local and global level.

In order to reduce the fashion carbon footprints, collective steps have to be taken both at the local and global level. In this context, the focus of apparel manufacturing and fast fashion companies should be on changing the patterns of their production, distribution and marketing practices. The companies should contribute to making the consumption patterns sustainable. This can be done by a number of methods that have already been adopted by some of the big fast fashion companies. The recommendations have been discussed below on the two levels- local and global (Yang et al., 2017).

At a local level, a rental system can be established that can be used for renting the clothes at cheap prices to the consumers. The rental system will help in preventing the wrong disposal of the clothes. This will help in reducing the fashion carbon footprints to a significant level as the clothes will not be burnt or disposed of in a wrong manner. Further, at a local level, the fast fashion companies can also adopt ‘recycling’ process for ensuring sustainability and effective disposal management of the clothes. (Macchion et al., 2017). Recycling can be defined as the process that is associated with the conversion of the waste material into a new object or material. Recycling is an alternative to the traditional method of disposal of waste. Some of the ways in which companies including Zara can practice recycling at a local level are as follows:

Recommendations for Reducing Fashion Carbon Footprint

The donation of the clothes can be encouraged by the fast fashion companies.  This will help in increasing the life of the clothes along with reducing the fashion carbon footprint. Further, the clothes can also be given to someone at the cheap or discounted prices. Further, the clothes can be recycled using a standard recycling procedure so as to convert them into a fabric that can be further used for manufacturing the clothes (Common Objective, 2018).  A textile waste diversion method can also be used for ensuring the sustainability of the fast fashion industry along with the reducing the fashion carbon footprint. In this method, the fashion waste can be diverted to the local municipal bodies that can further be forwarded  for the recycling process. In order to prevent the global warming arising out of the fast fashion industry, it is essential for the local bodies to support collectively for recycling or management of disposing (Economic Times, 2018).

Global level

The above recommendations can be implemented at a local level for reducing the fashion carbon footprint; the recommendations given below can be implemented at a global level so as to prevent  global warming. The committees and laws will govern the manufacturers and retailers in the context of both manufacturing and disposal of the clothes (Sustainability, 2017). In addition, the committees and authorities established for the investigation of manufacturing, recycling and disposal of the waste should also check the amount of waste generated by the companies along with the method they are using for recycling the waste generated from the fast fashion industry. At a global level, the focus should also be on promoting the use of an organic fabric such as the Algae-based fabric. Traditional fabrics like cotton can have a number of negative impacts on  sustainability because of large footprints. Lastly, each of the company involved in manufacturing and selling of the apparels such as Zara, should have a database to record the number  of products that have been disposed and recycled (Yang et al., 2017).

The recommendations discussed have a number of implications for governments, producers and consumers. The government across the world is putting continuous efforts to reduce the carbon footprints. The efforts from the fast fashion industry from both the local and global level will help the government in reducing the carbon footprints and the issue of global warming. The producers can use the eco -fashion practices discussed in the recommendations for improving their corporate image along with fulfilling their Corporate Social Responsibility (CSR) towards the environment. Lastly, the consumers will get a clean environment in which they can live a healthy life.

There are some strategic and operational dimensions that have to be considered while actually implementing the recommendations in the context of achieving  sustainability and reducing  global warming. The strategic practices include the setting of goals and commitment, stakeholder engagement, establishment of processes and systems, tracking the progress and communicating the expectations (BBC, 2018). The strategic practice of setting the goals and objectives will help in leading the communities and organizations towards a particular direction of reducing the carbon footprint and global warming effects. For example the objectives related to recycling will help  industry players in recycling most of their wastes and unsold garments (Kell, 2018). Further, the stakeholders such as the producers, suppliers, consumers, and workers should be engaged in the process of using the sustainable practices such as the use of organic fabric and disposing of the fashion waste in a proper manner. (Sustainable Jungle, 2017). Another strategic practice is setting a system such as a  database that can be used for the future reference in the context of ensuring sustainability in the communities and organizations. Lastly, the focus should be on tracking the progress. This can be done with the help of metrics such as reduction in carbon emission, the number  of disposed products and the number  of recycled products. This strategic practice should, however, be combined with the expectations regarding  future reduction in the fashion carbon footprints (Kaikobad et al., 2015).

Local Level Recommendations

Apart from the strategic practices, there are some operational practices that can be implemented by  fashion giants such as Zara and other players of the fast fashion industry. Zara should focus on recycling and diverting the wastes to the local authorities for the process of recycling. Recycling will help in reducing the waste that ultimately leads to global warming on being burnt or being disposed of in a non-environment- friendly manner. Further, Zara should focus on educating its customers regarding the recycling of the clothes by donating clothes to the needy. This will help in reducing the overall waste that is generated from the fast fashion industry. Lastly, Zara should also ensure the ethical treatment of the workers who are involved in the production of a large variety of clothes. In essence, it can be stated that an effective implementation of strategic and operational practices in the fast fashion industry will help in reducing the global warming effects on the climate (Inditex, 2018).

The fast fashion industry is associated with both opportunities and challenges associated with making the fashion industry a sustainable and ethical industry that has minimum fashion carbon footprints. It is essential to determine the opportunities present in the fast fashion industry so that they can be leveraged with the help of the strengths of giant players such as Inditex. Further, the determination of challenges will help in the determination of the ways that can be implemented for reducing the fashion carbon footprint to reduce  global warming (Macchion et al., 2017). The major opportunities that support the use of sustainable practices in the fast fashion industry and will help in implementing the recommendations include  customer awareness and technological innovations. With the advent of technology and social media, consumers are getting aware of  the malpractices that lead to global warming and the importance of reducing the fashion carbon footprints for the community (Perry, 2018). Further, there are a number of technological innovations that can be used for disposal management and recycling the waste generated by the fast fashion industry. (Elder, 2011). Apart from the opportunities that can be used for making the fast fashion sustainable in nature, there are some challenges associated with the same. For example the biggest challenge is associated with the cost of going sustainable, changing the legacy systems  along with changing the perception of consumers towards the fast fashion trends. The cost of cotton is high because of the shortage of yarn and labour and power shortages in the regions where there is a good quality of spinning (Live Mint, 2018). Therefore, it is difficult for  manufacturers of the fast fashion industry to switch to other fabric production. This will also lead to an increase in the cost of the apparels for both the manufacturers and consumers. Further, the fast fashion companies will face major challenges while changing their legacy systems and processes related to the traditional manufacturing process. Lastly, the challenges will be associated with changing the perception of consumers towards recycling and using the clothes for a longer time rather than disposing of them  after a short cycle (Todeschini et al., 2017).

Conclusion

The above paper has focused on the fast fashion trends and issues in the context of Inditex that owns the major giants of the fast fashion industry including Zara.  The case indicates that the fast fashion companies such as Zara respond quickly to the changes in the fashion trend by producing a  large quantity of fashion apparel. This gives rise to the sustainability issues, ethical issues and  global warming. The case recommends that there is a critical need to promote the sustainable and ethical practices such as recycling and use of organic raw material for the production of fashion clothes and accessories. The major recommendations of the case include the practices such as recycling, waste diversion and use of fabric other than cotton so as to promote sustainability along with reducing  global warming. The case study has provided a deep insight into  the issue of sustainability in the context of fast fashion brands like Zara along with the opportunities, challenges and recommendations associated with the same.

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