How Could Changing Consumer Trends Affect Fast Fashion Leaders H&M And Zara?

by MR Magazine Staff

In recent months we’ve seen evidence that the seemingly unstoppable growth of fast fashion may be slowing, or at least changing. It’s more than just conjecture that many of the mall’s stalwart brands have suffered at the hands of fast fashion giants H&M and Zara, whose ability to significantly reduce time to market as well as undercut pricing of the once iconic brands, have added to the woes of many of fashion’s specialty retailers. Now, in an unprecedented move, H&M the world’s second largest clothing manufacturer behind Inditex’s Zara, announced the closure of 160 stores. The fashion giant was hit hard in mid-2018, after accumulating more than $4 billion in unsold inventory, forcing significant discounting to clear out the goods. The effect of this resulted in unexpected reductions in profits for the 6th straight quarter. Read more at Forbes.