The slow death of fast fashion – and what comes next
Following the announcement of mutual tariffs, LVK CEO Maggie Barnett will analyze how fashion brands can navigate new landscapes with open letters
In the wake of President Trump’s drastic tariff announcement, the retail world is enduring earthquake changes redefine the inner logistics of fast fashion. With the production speeds and impossible turnaround times of backbreaks that have long threatened this retail category, we are faced with an inevitable reset of a system built on a thin margin of razors and a sense of lightning fulfillment. We are witnessing firsthand how this economic reality forces us to completely rethink standard industry practices.
This press release features multimedia. Check out the full release here: https://www.businesswire.com/news/home/20250402029041/en/
Why fast fashion must evolve:
- Triple Threats to Fast Fashion: Trump’s tariffs shut down minimal loopholes, USPS restructuring costs for lightweight packaging, changing consumer behavior towards sustainability and second-hand markets create a perfect storm for the industry
- Mathematics doesn’t work anymore: Fast fashion relied on the minimum to reduce costs by 20%, evaporates and makes very cheap and massive amounts of fashion economically unsustainable.
- Advances in the hybrid model: Smart brands will balance fast elements (trend-driven pre-selling models) and slow elements (timeless basics that can spend longer transit times) rather than trying a purely fast or slow approach.
- Immediate action is required: Diversify supply chains beyond China and Vietnam, implement pre-sales models to verify demand before production, strategically distribute inventory across the US, potentially distribute free trade zones, and build a customer community rather than focusing solely on transaction volumes
- An opportunity to change the confusion: This threat feels blatantly existential, but it is the chance for consumers to actually build a better financially and environmentally sustainable fashion business that better meets their shopping, clothing and feel.
Catalyst for Change (Murder Weapon)
Is this, as we know, a quick death of fast fashion models, a steady end, or a strategic transformation of retail infrastructure could become an unexpected lifeline? The full impact is still unfolding, but we know that these changes are not happening on their own. Multiple forces have been converged to create the perfect storm:
First, the administration’s executive order closed down the minimal loopholes that the fast fashion business relied on. This previously gave most fast fashion companies a savings of up to 20% on COGS. Mathematics no longer works with super stable and large amounts of fashion. Brands that built their empires in lean margins face existential threats as they rush to absorb costs that cannot be handed over to price-sensitive consumers.
Second, USPS’ recent restructuring of weight-based pricing quietly took another blow. Packages under £1 (fast fashion e-commerce bread and butter) now have significantly higher shipping costs. This seemingly technological change is cascaded through the supply chain, eroding already thin profit margins, and directly affecting the prices consumers expect. Let’s face it. Shoppers are less likely to spend $30 on a skirt they bought for $18 two months ago. But even more importantly, the overall appeal of fast fashion depends on immediate satisfaction and immediate access. It’s about getting them now, not just the trends themselves. The longer the wait, the less valuable the purchase will be. If shoppers are unable to obtain those periodisms, the instantaneous tendencies will dispel the driving force behind their purchasing decisions at the moment they actually appear. This essentially dismantles the entire appeal of trend-driven affordable fashion that democratized the world of style.
Finally, consumers themselves are accelerating their shift. Resale of US apparel grew seven times faster than traditional retail in 2023, reaching $43 billion as shoppers become more cost-conscious. This is not just a passing trend. The second-hand market is projected to triple the overall apparel market from 2027 to 2027. Behind these numbers is real consumer concern. Most Americans (83%) recognize the impact of tariffs, expect prices to rise (86%), and plan to adjust their shopping habits accordingly. Gen Z leads this shift, with over 80% accepting rifted products. Brands must recognize this fundamental shift in consumer behavior, as more than two-thirds of Americans plan to cut back on non-essential purchases like clothing.
Hybrid Fashion: A New Retail Paradigm
“Everyone is planning until he gets hit” – a famous quote from boxing legend Joe Louis has been allocated for years, from fellow heavyweight Mike Tyson to military generals and CEOs. The tariff gut punch has landed and the meticulously optimized supply chain that brands rely on is suddenly vulnerable. The question isn’t whether your business will be hit, but how quickly you can adapt after the impact.
The future is not a return to pre-internet retail, nor is it a continuation of disposable fashion models. Instead, we advocate what is called “hybrid fashion.” This is a more subtle approach that strategically balances fast and slow elements.
Fast fashion works like a casino. There are tons of bets on trends with quick rewards, but unselling, sustainability reputation and long-term losses in customer loyalty are inevitable. Slow fashion is environmentally and ethically conscious, but cannot compete with the hits of dopamine, a fast retail therapy in commerce that follows trends.
Hybrid fashion models take a different approach. It’s intentional about what you produce immediately, relative to what you can move at a more measured pace. Think of it like this:
-
Fast Fashion is click-by, instant, on-demand printing. This is an avenue that creates high-end costumes for your favorite celebrities 90% cheaper than the original. In hybrid models, these elements still exist in trend-driven pieces such as swimsuits and Y2K revival items, but are produced in more accurate quantities through pre-production sales models that test pre-production demand.
-
Slow fashion represents your tried and true work. This is the basis for being able to sit in a boat in the middle of the ocean for months without having to cycle from the trend. These focus on season-independent wardrobe foundations and versatile pieces. Caucasian tees, plain sweatshirts, socks, denim can provide longer shipping times and sustainable production methods.
The real moment of doing it
Brands thriving in this new era are a rethink of their entire approach to inventory. Older models of overproduction and discounts are financially unsustainable if 76% of Americans expect to make changes to their shopping habits in response to tariffs. These abruptly polished twists in the system can shock the spirals of uneasy thinking, trapping us all and numbing the company, but the opportunity lies in coordinating our perspective and the overall narrative. This is not an existential threat, but a deep change in rewarding adaptability, agility and foresight.
The road ahead
Hybrid fashion is a modernized approach. Successful brands still need to compete with mass retailers like Temu, who take advantage of impulse purchases, but they also need to balance it by excelling in durable, timeless pieces. Survival requires immediate adaptation.
- Diversify the supply chain: It is too dangerous to rely solely on Chinese manufacturing. Instead of optimizing for the cheapest and fastest routes, brands must prioritize flexibility. Mitigate risks due to supply from multiple regions and navigate changes in trade policy and geopolitical disruptions. The era of over-optimized, cost-maximized supply chains is over. The options are new optimizations.
- Accept pre-sale models: Advanced brands are already pioneering this approach. Revolve implements a marine rator option for pre-orders for high-demand items, while Telfar’s ubiquitous bags use a pre-order model that prevents over-production while ensuring accessibility. Small brands like Kitri build their entire business around selling out their collections, offering pre-orders that accurately match production with demand. Even high-end players like Jacquemus have adopted hybrid models that have several pieces ready to use. This approach converts inventory from responsibility to assets. This is especially important for small and medium-sized brands that do not have liquid capital to afford to make large quantities that could be sitting in warehouses for a long time.
- Rethinking the distribution: For fast fashion elements, the brand can continue to produce trend pieces and ship via the US 3PL or free trade zone for distribution via the air. In the less time-sensitive area, brands can take advantage of more cost-effective marine cargo to ensure longer transport times without compromising margins. Strategic inventory placement across the US and Canada allows brands to navigate the new customs environment while maintaining competitive delivery times.
- Building communities beyond consumption: The most resilient brands shift their focus from transactional volumes to customer lifetime value, creating emotional connections that transcend pricing pressures. Companies like Olivia have raised labels with bespoke models and Maison Cléo. This promotes deeper connections with consumers who only produce clothing after pre-orders and appreciate the intentionality behind their purchases.
While many may lament the evolution of $15 dresses and weekly collection drops, the opportunities ahead are far more exciting. Create a fashion business that is environmentally mindful, economically sustainable, and seriously responds to how consumers actually live and dress. Tariff whipping may threaten to paralyze small businesses that lack liquid capital, but don’t be afraid of the Grim Reaper yet.
You don’t need to view pivots as the end of a final midway effort or an exciting industry disruption. This is the beginning of the next phase of adaptive growth. Companies that are adaptable and recognize this shift early will shape the future of retail fashion by understanding options as new optimizations.
Join us in the conversation here.
Maggie Barnett, CEO of LVK; You can discuss:
-
How the triple threat of tariffs, USPS restructuring and changing consumer behavior is changing the first fashion industry
-
The emergence of “hybrid fashion” as a new retail paradigm Balancing trend-driven and timeless works
-
A practical strategy for brands to adapt supply chains, implement pre-sales models, and rethink distribution
-
Build a customer community that focuses on lifetime value rather than transaction volume
-
How brands turn this disruption into opportunities for more sustainable business practices
About LVK
LVK is a women-led, full-service, third-party logistics partner specializing in solving the complex fulfillment challenges of omnichannel brands. With 53% female workforce in seven warehouses in the US and Canada, LVK offers special projects such as DTC pick-and-pack fulfillment, FBM, B2B fulfillment, Kitting and Returns Management. LVK is a subsidiary of Shiphero, the leading warehouse management system (WMS) software provider for e-commerce brands and 3PLs. For more information, please visit LVK.com.
Media Contact:
Carly Bourne
lvk@bulleitgroup.com
View source version on businesswire.com: https://www.businesswire.com/news/home/202504029041/en/
