How inflation affects sustainable fashion
Soaring inflation is causing a lot of hardship to the economy and thus, of course, also to the fashion industry. Increased transport prices and material costs are driving up the price of fashion immensely. However, it is not the cheap fast fashion companies nor the expensive luxury brands that are affected but mainly small, fair and sustainable fashion brands that already pay attention to environmentally conscious and ethical production. In our article, we shed light on how inflation affects sustainable fashion and what we can do to support virtuous brands.
How inflation affects fashion
But inflation is not the only issue affecting the economy, our consumption and the fashion industry. Since the pandemic, the entire economy has been suffering from production and logistics disruptions. By itself, the pandemic has created an inflation of shipping and supply costs. The inflation that followed only perpetuates this state of instability for brands. But what does this mean for the fashion industry?
Well, since luxury brands regularly adjust and increase the prices of their fashion collections anyway, they are quite unaffected by inflation. Business as usual, so to speak. On the other hand we have fast fashion corporations and discounters who even profit from inflation, as people have to resort to cheap alternatives and low-priced goods. So the extremes in fashion are less affected by inflation. But the demand for sustainable fashion brands is much more sensitive to price. Consumers that are on the fence are more likely to resort to their old habits of buying fast fashion goods, as a result of higher prices for sustainable brands. So how do sustainable fashion brands deal with inflation?
How sustainable fashion brands deal with inflation
Many sustainable fashion brands are cutting their profits, as an attempt to not raise prices too much. In addition, many sustainable and fair fashion brands are opting for more local production with shorter transport routes. This way, at least the cost of delivery can be greatly reduced, and they can avoid disruption caused by the long-lasting effects of the pandemic. Furthermore, fashion on demand and limited collections are becoming more popular to avoid overproduction costs.
At Nabz Saad, we have had our collections produced in small studio in London since the beginning, which means high cost of production as we all know Made in the UK is a bit expensive but shorter transport routes. This means that we don't have fixed costs that we fluctuate as much and therefore more are affected by inflation.
How inflation affects our consumption
Besides the question of how inflation affects sustainable fashion, it is interesting to observe what inflation does to buyers. Has it really changed the way we buy clothes? Given that we consumed much less fashion during the pandemic, there is a lot of catching up to do at the moment for many. After all, we want to go out, show ourselves to the world, and be seen, don't we? And according to surveys, the topic of sustainable fashion is still of great importance, especially for Gen Zs. After all, it's about the future of our planet – inflation or not.
Inflation makes us much more likely to forgo luxury indulgences in everyday products. But when it comes to pent-up consumption, such as travel and fashion, the effects of inflation have so far been less noticeable.
Nevertheless, for many, sustainable fashion is a luxury they cannot always afford – and even less so if prices continue to rise. The higher inflation is, the more conscious consumers are turning to second-hand options to avoid putting too much strain on either their wallets or the planet.
How inflation affects sustainable fashion: conclusion
How inflation has and will continue to affect sustainable fashion is still unclear. But in order to prevent smaller brands from being bought up by larger corporations or disappearing altogether, it is important that we continue to support our favourite small brands. Shopping local and fair is more important than ever! At Nabz Saad, we recommend buying less but better, durable, high quality products that will serve you for a long time. Please share with your friends and family.