Practical solutions for circular business models in the fashion industry

Abstract

The purpose of this paper is to provide rich empirical evidence on circularity solutions adopted by the largest companies in the fast fashion industry. The sustainability reports of six global players were analyzed using a comprehensive circular model of the value chain. This model comprises eleven stages: product design, virgin raw material extraction and processing, textile and material production, manufacturing, auditing and certification, packaging and retail, customer use, post-consumer garment collection, recycling fibers and materials, partnerships, and transparency. The results are reported on five implementation phases: strategies, research and development, implementation at scale, quantitative indicators, and targets. The analysis shows that major players in this sector created a complex system for reducing their environmental impact while imposing strict rules in their upstream supply chain. Downstream, these companies educate their customers on the topic of circularity and promote recycle-or-reuse consumer habits. In addition to offering practical examples of strategy, product, and process design, the present contribution describes several configurations of circular models as implemented by large fashion retailers. The results have significant implications for theory, management, and standard-setting, considering that fast fashion is widely viewed as having a negative impact on the environment.

Keywords

• Circular business model
• Apparel industry
• Fast fashion
• Circular economy
• Value chain