Scandals in the fast fashion industry Strategic responses to value-based scandals and the role of audience perceptions in the fast fashion industry

Abstract

Corporate scandals surrounding greenwashing threaten the fast fashion industry's legitimacy, yet it remains insufficiently understood how brands' strategic responses influence public perceptions. Therefore, this study aims to investigate how fast fashion brands strategically respond to value-based scandals and how these responses trigger public outrage through Secondary Crisis Communication (SCC). To address this, a qualitative multiple case study was conducted on the greenwashing scandals of H&M and Zara. The empirical data consisted of corporate communication, traditional media coverage, and public social media (X/Twitter) reactions, which were systematically analysed using deductive content analysis. The findings demonstrate that brands initially employ defensive strategies, such as avoidance and manipulation, to protect their mass-production models. They only switch to accommodating strategies, like acquiescence and compromise, when confronted with hard legal and institutional pressure. Furthermore, the results show that verifiable data manipulation causes total public rejection, whereas aesthetic marketing allows brands to retain a small defending audience. Ultimately, this study concludes that informal social control alone is insufficient to drive genuine organizational change. Strict legal regulation is therefore essential to hold fast fashion companies accountable and combat corporate greenwashing.