Department stores transformed shopping by making products more visible, desirable, and accessible, fueling a culture of mass consumption. Today, the internet not only serves a similar role but has escalated consumerism, exposing buyers to products and trends at a large scale. With a growing middle class, which wants and can choose from a vast array of manufactured goods, manufacturers increasingly rely on unethical practices to meet rising demand.
This has normalized overconsumption and popularized business models like drop-shipping, which allows sellers to buy products from wholesalers and ship it directly to customers without holding inventory, and fast fashion, a model that prioritizes rapid production of inexpensive and low-quality clothing, leading to exploitative labor practices and environmental degradation.
This shift in consumer practice is reshaping the fashion industry. The traditional fashion industry, which once followed a seasonal calendar with four annual lines, has now been replaced by fast fashion, where brands introduce “fifty-two micro seasons”, nearly equating to a new line every week. As a result, the average number of outfits a person owns has drastically increased. The average middle-class American woman owned a total of nine outfits in 1950; now, people own 148 clothing items. To keep up with high demand and fast-changing trends, drop-shipping has gained popularity as a profitable business model. The rapid production system not only encourages overconsumption but also relies on exploitative labor practices, like unsafe working conditions and subpar wages, in developing countries.
As a result of fast fashion and drop-shipping, rapid industrialization has affected Vietnam both economically and environmentally. The textile industry in Vietnam is estimated to generate 15 million kgs of waste each year. In Hai Phong alone, businesses in the area throw away nearly 5 million kilograms of fabric scraps per year. Additionally, the country’s greenhouse gas emissions have been increasing rapidly, reaching 3.8 tCO₂e in 2021. This increase in greenhouse gas emissions can be attributed to the increase in coal consumption as a result of a growing manufacturing sector, caused by FDI (refer to figures 1 & 2). In 2024, the country’s coal imports surged by 31%, leading to a record 44 million metric tons of coal, primarily to fuel its manufacturing sector. Additionally, the textile sector alone produces approximately 2.5 billion cubic meters of wastewater annually, much of which is released into rivers without proper treatment.
In 2022, Vietnam’s textile and garment industry achieved an export turnover of $44 billion, a 10% increase compared to 2021. This surge has attracted foreign direct investment, leading to economic growth. Proponents argue that these industries provide accessible, affordable clothing for consumers while offering workers opportunities to earn wages they might not otherwise have access to in a developing economy, however, this is not the case.
The economic benefits are overshadowed by the exploitation perpetuated by fast fashion and drop-shipping. Despite the economic growth, the majority of workers in Vietnam’s textile industry earn wages below the living wage, with approximately 90% of garment workers unable to cover basic living expenses. Furthermore, the nature of manufacturers to maximize efficiency and output leads to unsafe working conditions and excessive overtime work without proper compensation. While FDI may be beneficial to some extent, it leads to profits being prioritized over improving labor rights.
The economic gains of many companies will continue to come at the cost of workers’ well-being. Fortunately, initiatives like the Environmental, Social, and Governance metrics are beginning to shape corporate sustainability practices. Consumers and investors increasingly demand greater accountability, with 76% of consumers preferring companies committed to ESG principles. ESG practices also reduce operational costs, as companies managing climate risks achieve an 18% higher ROI. In the European Union, strict regulations promote ESG transparency, while emerging economies like Brazil and India are adopting similar practices. ESG metrics are proving to determinant of success, companies must align with sustainability principles to maintain profitability and build trust across different economies.
Consumerism drives economic progress, but is deepening environmental and social inequalities. ESG metrics provide a moral heading, urging corporations to reconcile profit with ethical responsibility. By prioritizing sustainability and ethical practices, companies can foster sustainable growth, mitigate environmental damage, and promote social equity. This shift is essential in building a sustainable global economy, ensuring that economic development does not come at the expense of workers’ rights or environmental health.
