Hungary is at the forefront of ultra fast fashion

By: Trademagazin Date: 2024. 08. 27. 11:57

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Ultra fast fashion companies are increasingly dominating the fashion industry thanks to their amazing technological background and quick response. In contrast to traditional fashion industry models, where designers work based on forecasts, ultra fast fashion companies conquer with data-based decisions and constantly updated designs. According to György Lakatos-Török, senior project manager of the Boston Consulting Group (BCG), this operating model gives them a significant advantage in the market, which has grown fivefold in recent years.

Hungary is an exceptionally large consumer of ultra fast fashion products: while in Europe these products make up 7% of the fashion consumer basket, in Hungary this proportion is 12%, which puts the country at the level of the United States. One of the reasons for this is that the level of environmental awareness is lower in Eastern Europe, and the younger generations also like to buy cheap and fashionable products. At the same time, the market for second-hand clothes in Hungary is also significant.

Ultra fast fashion companies react immediately to micro-trends on social media. Data collection and analysis is at the heart of their operation: as soon as a new color or style starts to become popular, such as neon green, they immediately incorporate it into their collections. In many cases, new products are first presented only in 3D photos, and if there is a lot of interest, they start production. This approach minimizes excess inventory and manufacturing waste.

Although the business model of ultra fast fashion is technologically and methodologically impressive, Emese Dobos, a staff member of the Hun-Ren KRTK World Economic Research Institute, emphasizes that sustainability remains an unattainable goal due to the operating rules of the fashion industry. The current model is a business structure that cannot simply be made sustainable. At the same time, it can also be instructive for traditional fashion companies, how ultra fast fashion companies respond to Internet trends and optimize their production processes.

The technological development and flexibility of the ultra fast fashion model clearly shows that the future of the fashion industry points in the direction of data-driven decision-making and rapid adaptation.