The fast fashion industry has seen a massive shift towards Asia in the last decade. Countries like China, India, Bangladesh and Vietnam have emerged as key manufacturing and sourcing hubs for global fast fashion brands. Easy availability of low-cost labor and infrastructure has helped Asian countries dominate this highly dynamic sector.
Emergence of China as the Global Manufacturing Hub
China remained at the forefront of capitalizing on opportunities in fast fashion. It steadily built immense textile and garment manufacturing capabilities over the years. Several global brands like H&M, Zara and Uniqlo set up large production bases in China to benefit from its economies of scale. Today, China accounts for over 30% of the world’s textile and apparel exports due to its integrated value chain and efficient supply chain networks. Cities like Guangzhou and Shanghai emerged as global powerhouses for fast fashion manufacturing and export.
CoherentMI looks at various factors responsible for Asia’s rise in fast fashion and discuss key trends going forward Asia Fast Fashion Market.
Rise of Bangladesh and Vietnam
While China remains dominant, other Asian countries like Bangladesh and Vietnam have also emerged as major sourcing hubs for fast fashion brands. Bangladesh, in particular, has transformed into the second largest apparel exporter globally, thanks to its large and inexpensive workforce. It is now a major supplier for global players like Gap, Zara and H&M. Similarly, Vietnam has attracted significant FDI in recent years with footwear and textiles as major export sectors. It offers benefits like political stability, free trade agreements and relatively better infrastructure compared to other regional competitors like Cambodia or Myanmar.
India’s Growing Importance
India is slowly emerging as an important apparel and textiles producer for both domestic and international markets. It has a large and skilled workforce as well as a robust textiles industry backbone to support fast fashion growth. Major global brands are now sourcing readymade garments from India or setting up manufacturing facilities to cater to nearby markets like Middle East, Africa and South Asia. Cities like Bangalore, Tiruppur and New Delhi are witnessing rising investments in textiles and apparel sector from international brands. initiatives like Make in India and production linked incentives are also supporting growth of fast fashion manufacturing base in India.
Influx of Domestic Fast Fashion Brands
Rise of domestic fast fashion has also fueled growth in Asia. Several homegrown chains have emerged as popular destinations for affordable trendy apparel and accessories. Examples include Uniqlo and Zara from Japan, H&M from Sweden, C&A from Europe, Reliance Trends from India and numerous local chains across Southeast Asia. Their emergence has further strengthened textiles sourcing and manufacturing capabilities across Asia to meet evolving domestic demand trends. This acts as a big fillip for the region’s fast fashion talent pool, infrastructure and global credentials.
Rise of E-commerce
E-commerce revolution has deeply influenced fast fashion industry dynamics. Asia is at the forefront of this revolution led by heavyweights like Alibaba and Rakuten. They have turbocharged growth of both international and domestic fast fashion chains. Easy and effective online platforms have created hyper-connectivity between Asian producers, global brands, and consumers across regions. This has opened up massive opportunities for Asia by increasing sourcing volumes as well as facilitating exports to newer global markets. Countries are upgrading logistics, payments and supply chain infrastructure to grab a larger pie of the booming e-commerce fast fashion market.
Market Outlook
Going forward, Asia is expected to further strengthen its grip on the global fast fashion industry. Existing manufacturing and sourcing clusters are diversifying into adjacent segments like footwear, accessories and sportswear. Countries like India and Vietnam also aim to replicate Chinese success story. Meanwhile, expansion of middle-class in Asian regions will continue driving growth of homegrown fast fashion chains. Overall, Asia’s low-cost advantages, skilled workforce, appetite for latest fashion trends and booming e-commerce provide ideal conditions for it to dominate this high growth sector. For more insights on the exponential growth of Asia’s role in global fast fashion industry, refer to CoherentMI research report.
