Traditional fast-fashion companies such as Zara and H&M rely on quick production cycles to keep up with consumer demand. A new business model supercharging that approach, called "ultra-fresh fashion," offers clothing collections on an almost daily basis and is revolutionizing the fashion industry.
New research from Cornell SC Johnson College of Business explores how Asian companies are producing ultra-fresh fashion with rapid product launches, digital supply chains and customer engagement strategies - but also presents sustainability challenges.
"What makes ultra-fresh fashion different is its ability to not only respond to trends but actively create demand," said lead author Li Chen, the Emerson Professor of Manufacturing Management at the Samuel Curtis Johnson Graduate School of Management. "By constantly releasing fresh styles, these brands encourage consumers to make frequent purchases, often for items they may not have originally planned to buy. This strategy taps into customers' desire for novelty, keeping them engaged and returning for more."
The paper, "Ultra-Fresh Fashion: Creating Demand with Freshness and Agility," published Aug. 20 in Management Science. Chen's coauthors include Hau Lee of Stanford University, and Shiqing Yao of at Monash Business School, Australia.
Chen and his coauthors focus on the companies Shein, based in Singapore, and Temu, based in China, which introduce thousands of new products each day, far exceeding traditional fast fashion's launches and how this is impacting the industry and raising sustainability concerns.
They found a key factor behind the success of ultra-fresh fashion is the use of digital technologies in supply chain management. These companies rely on advanced algorithms, mobile apps and real-time customer data to predict demand and adjust inventory accordingly. For example, Shein collects instant feedback on customer preferences through its app. When a product performs well, production is increased. If an item is less popular, it is quickly phased out. This level of agility minimizes unsold inventory and allows brands to keep up with shifting consumer tastes.
Additionally, the study found these companies maintain strong digital connections with suppliers, enabling them to place small production orders and scale up quickly when needed. This differs from traditional fast fashion, where bulk production is planned months in advance, increasing the risk of overproduction and waste.
The researchers said ultra-fresh fashion brands thrive by offering three key benefits to consumers: high variety, low prices and a personalized shopping experience. By combining these elements, ultra-fresh fashion companies turn shopping into a form of entertainment, where consumers feel encouraged to browse and buy frequently.
But this approach poses serious threats to the environment, they said.
"The rapid production cycles and short product lifespans contribute to several environmental and social issues of increased textile waste, carbon footprint from shipping and labor concerns," said Chen. "These issues highlight the need for more responsible production and consumption practices within the industry."
Chen believes in order to address environmental concerns, ultra-fresh fashion companies and policymakers must explore new solutions, such as eco-friendly materials, circular fashion initiatives and regulations and incentives.
"While ultra-fresh fashion is highly profitable, companies that fail to address sustainability challenges may face backlash from environmentally conscious consumers and regulators in the future," said Chen. "By balancing agility with responsibility, the industry can continue to innovate while reducing its ecological footprint."
Sarah Magnus-Sharpe is director of public relations and communications for the Cornell SC Johnson College of Business.
