Neo-Fast Fashion: An Introduction to the Hidden Giants of Waste

From 2017 to 2022, the number of retail businesses in the UK increased by approximately 14%, adding over 27,000 new companies. This expansion suggests that a substantial number of new fashion brands have entered the market in the past five years. But how many of these newcomers are truly compliant with sustainability practices?

I. Introduction: The Current Climate

As 2024 draws to a close, it marks a decade of seismic change in the fashion industry. Once dominated by prestigious luxury houses and fast-fashion pioneers, the landscape has been transformed by the rise of online retailers harnessing the power of digital trends. This new wave of disruptors has challenged traditional players, forcing them to adapt to an ever-evolving market.

This disruption has revealed a three-way split in consumer behaviour. One group has embraced ultra-low-cost, disposable fashion, exposing the deep flaws in the industry’s practices. Another, growing cohort of consumers has shifted towards sustainability and ethics, prioritising choices that align with environmental and social values. Meanwhile, a third segment has pursued quality at a higher price point, seeking garments that are "made to last."

The pressure has not been limited to newcomers; even the largest brands have had to confront decades of unsustainable practices. Sustainability has transitioned from a niche concern to a central conversation, leaving established brands with no option but to evolve or face mounting backlash in an increasingly conscious world. However, this focus on established brands has inadvertently allowed a rise in less transparent newcomers, who often avoid the same level of ethical scrutiny.

In the UK alone, online fashion sales accounted for nearly one-third of total e-commerce revenue in 2024, generating approximately £31 billion (Statista). Globally, the online fashion retail market has expanded significantly, growing from £30.88 billion in 2023 to £35.33 billion in 2024, with a compound annual growth rate (CAGR) of 17.3% (TBRC).

From an outsider’s perspective, it may seem that the fashion industry is progressing towards greener pastures. The tides are indeed shifting: once-dominant online retailers are grappling with debt, consumer awareness is redirecting buyers away from non-compliant companies, and second-hand marketplaces like Vinted, Depop, and Vestiaire Collective are making higher-quality, sustainably priced fashion more accessible than ever. Yet, despite these promising developments, optimism remains elusive.

Sustainability Compliance

Businesses are entering a new era of sustainability compliance, driven by stricter regulations such as mandatory labels on reusable packaging, digital product passports, and enforcement against misleading green claims. These evolving standards are reshaping operations and consumer engagement across markets, pushing companies to align with legally required sustainability benchmarks.

Sustainability compliance is often misunderstood as a simple “tick-box exercise,” but it is far more nuanced, requiring adherence to mandatory legal standards. Processes like supply chain mapping, carbon accounting, and sustainability reporting contribute to compliance but remain distinct from the core regulatory focus. As the field evolves, its definition and scope will continue to adapt to meet emerging challenges and policies.

A key example is the EU’s Ecodesign for Sustainable Products Regulation (ESPR), which sets minimum requirements for product durability, energy efficiency, and recyclability while promoting transparency through Digital Product Passports. The regulation also bans wasteful practices, such as destroying unsold goods. For UK businesses exporting to the EU, compliance with the ESPR has become crucial for market access, highlighting the increasing accountability demanded of the industry.

This shift represents a critical moment for fashion and other sectors: adapt to these sustainability demands or risk irrelevance in a marketplace that is rapidly rejecting outdated practices.

II. What is Neo-Fast Fashion? The Second-Hand Smoke of Fast Fashion

While the spotlight has tempered the influence of traditional fast-fashion giants, the industry is evolving in unexpected and concerning ways. As some major players stumble, a new wave of brands has stepped in to fill the void. These newcomers, though outwardly distinct, are thriving in what can be called “The Second-Hand Smoke of Fast Fashion” – a space deeply rooted in the same cycles of overproduction, waste, and unchecked consumerism.

This new wave of brands is experiencing hyper-growth in ways less visible to the general public. With cult-like followings and strategic exclusivity, their collections are snapped up almost instantly, driving rapid product turnover. Marketed as the antidote to fast fashion, their core practices remain deeply unsustainable.

This phenomenon has been coined ‘Neo-Fast Fashion.’

Neo-Fast Fashion represents the next iteration of fast fashion, cleverly masked under the guise of exclusivity and modern branding. These brands operate at mid-range price points, leveraging social media clout and hype-driven drops to create an air of scarcity and desirability. However, behind the polished marketing lies a production model strikingly similar to traditional fast-fashion giants like Shein and Boohoo—mass production, limited transparency, and minimal sustainability efforts. Unlike their predecessors, Neo-Fast Fashion brands cultivate the illusion of quality and ethics, using premium branding and vague sustainability claims to appeal to a socially conscious consumer base. Yet, their practices often replicate the same environmentally and ethically harmful approaches.

Key characteristics of these brands include their lack of traceability and transparency. They often cannot verify the origins, processes, or supply chains of their products or materials. Transparency, on the other hand, suggests openness and clarity, where a business openly shares information about its processes, supply chains, and practices with stakeholders, making verification straightforward.

III. The Anatomy of a Neo-Fast Fashion Brand

A Different Face of the Same Problem

When comparing traditional fast-fashion leaders to Neo-Fast Fashion brands, the similarities are stark. Although the latter may appear less harmful at first glance, their predicted growth without meaningful change in processes makes them arguably more dangerous.

Synthetic Fibres

Both Neo-Fast Fashion and traditional fast-fashion brands heavily utilise synthetic fibres. A study analysing over 10,000 clothing items from leading UK fast-fashion brands found that approximately 49% were made entirely from virgin plastics, such as polyester, acrylic, nylon, and polyamide. While some brands have begun using recycled polyester, these efforts are minimal. For example, only 5% of Missguided’s clothing contained recycled materials, with even lower percentages observed in other brands.

Examining a key player in the Neo-Fast Fashion landscape, ARNE—one of the UK’s leading smart casual brands—reveals troubling insights. Of the 136 ARNE products listed on the Selfridges website, 83 were found to contain virgin polyester, polyamide, or nylon, highlighting a reliance on synthetic materials that raises questions about the brand’s environmental commitments.

Scale and Visibility

The scale and visibility of a brand significantly influence its environmental footprint and public scrutiny. Traditional fast-fashion giants like Zara and H&M operate on a massive, global scale, producing millions of garments annually and maintaining highly visible supply chains. This visibility has subjected them to intense scrutiny, with their environmental impact well-documented.

In contrast, Neo-Fast Fashion brands project an image of exclusivity and a curated scale, despite producing hundreds of thousands of garments annually. This perception often shields them from the same level of public and regulatory scrutiny. Their opaque supply chains increase the risk of human rights violations and poor working conditions while perpetuating unsustainable practices.

Production Practices

Traditional and Neo-Fast Fashion brands alike have built their business models around speed and scale. Synthetic fibres such as polyester, nylon, and polyamide are central to their rapid production cycles. However, these fibres’ environmental impacts are profound, contributing to CO₂ emissions, microplastic pollution, and non-biodegradable waste. The focus on virgin polyester and nylon in Neo-Fast Fashion perpetuates the same systemic reliance on non-renewable resources.

IV. Brands That Define Neo-Fast Fashion

To truly understand the rise of Neo-Fast Fashion, it’s essential to examine the brands that define this movement.

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V. Economy & Culture

Economic Impact

Neo-Fast Fashion’s short-term profits are overshadowed by long-term risks. As investors increasingly prioritise environmental, social, and governance (ESG) compliance, brands that fail to embrace sustainability face declining access to capital, reduced brand equity, and eroding consumer trust. EU regulations, such as ESPR, further threaten non-compliant brands with fines and restricted market access.

However, businesses that prioritise ESG factors report significant benefits. Research from Moore Global (2022) revealed that companies focusing on ESG experienced a 9.1% profit increase between 2019 and 2022, compared to just 3.7% for those that did not.

Cultural Impact

Culturally, Neo-Fast Fashion brands wield immense influence, particularly over younger audiences. These brands dictate trends and shape consumer behaviour but often fail to educate their audiences about sustainability. Instead, they prioritise hype and exclusivity, normalising overconsumption and undermining efforts to shift the cultural narrative towards responsibility.

VI. Conclusion: The Hidden Problem

Without meaningful change, Neo-Fast Fashion risks becoming the next Shein or Boohoo—symbols of unsustainability and consumer backlash.

This report is only the beginning. Moving forward, we aim to delve deeper into the practices of Neo-Fast Fashion brands, providing a comprehensive overview of their evolution and broader implications for the fashion industry. However, this effort requires collective action. Consumers must demand better, investors must prioritise transparency, and industry leaders must enforce accountability. The opportunity to redefine fashion is here—the question is, will these brands rise to the challenge or evade scrutiny once again?

Call to Action

If your brand aligns with the Neo-Fast Fashion model, it’s never too late to make a change. At Clear Thread, we specialise in helping brands transition seamlessly towards compliance with minimal disruption to existing operations. Our mission is to simplify and streamline this journey, providing a 360-degree service tailored to your unique needs. From strategy to execution, we’re here to guide you every step of the way.

Contact us: nathan@clearthreadagency.com