Sustainable Fast Fashion is a Three-Body Problem

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How much would you pay for a sustainable sweater?

For fast fashion companies, this is a crucial question. Manufacturing sustainable products is expensive, so firms want to know their investment will be worth it. But, according to recent research by Mehmet Gumus, Professor of Operations Management at McGill University, prices dictate consumer choices above all else – even if they value sustainability, in principle.

“Customers prioritize sustainability a lot,” said Gumus on the McGill Delve podcast.  “But when it comes to making that choice, they don’t reflect that original intention.”

This presents a conundrum for fast fashion companies. In an ideal world, they would implement a circular approach to clothes production, where materials are used and re-used as much as possible, explained Gumus. But this requires significant up-front investments, and companies are reluctant to incur these costs if they’re unsure about returns.

For sustainable fast fashion to become a reality, companies will have to think about their relationship with consumers.

Balancing the Cost of Sustainability

Fast fashion supply chains are fine-tuned machines, designed to introduce new styles every 13 weeks to keep up with changing fashion trends. They produce clothes at high volume with inexpensive, non-durable materials, keeping prices low for consumers. This is the model that propelled fast fashion into a 94-billion-dollar industry (USD) in 2022. It’s also part of why fashion is one of the highest-polluting sectors on the planet.

By some estimates, fashion accounts for as much as 10 percent of global emissions. It’s also one of the largest consumers of water, second only to the agri-food sector, and is a large creator of microplastics.

Sustainable clothes will be expensive in the short term for both manufacturers and consumers, explained Gumus. But these prices won’t last forever. The increased cost of a recycled tee shirt will help cover future investments in sustainability, which will lead to efficiencies and a return to lower prices.

But, if the transition is going to be a success, everyone needs to buy in – including consumers. And for that to happen, companies will have to rebuild trust with them.

Greenwashing, a practice where companies exaggerate their sustainability efforts, has been an issue in the past. Consumers may now be skeptical about future claims around sustainability, making them unlikely to pay for products labeled as such.

There are a couple ways to mitigate this, explained Gumus. First, companies can educate consumers about what they’re doing to improve their sustainability. They can show that, when consumers buy a more durable but more expensive sweater, they’re supporting the long-term development of a greener supply chain.

Second, a third-party organization – such as a governmental body or a non-governmental organization – could create an authentication system for sustainable products. They can verify that the sweater is indeed sustainable using a standard set of criteria. And, once approved, clothing manufacturers can put an official stamp on their tags, showing consumers that the company’s claims are legitimate.

“It’s a three-body problem,” said Gumus. Companies, consumers, and public institutions can work together to incentivize the transition to sustainable clothing.

Professor Gumus expanded on these points in his McGill Delve Podcast interview. Listen wherever you download podcasts.