Application of Circular Economy Principles in the Luxury Fashion Industry: The Case of the RealReal

2020 ◽  
pp. 219-226
Author(s):  
Manuela Mihăiliasa ◽  
Silvia Avasilcăi
Keyword(s):  
Circular Economy ◽  
Fashion Industry

scholarly journals Making Resilient Decisions for Sustainable Circularity of Fashion

2021 ◽  
Author(s):  
Celinda Palm ◽  
Sarah E. Cornell ◽  
Tiina Häyhä
Keyword(s):  
Value Chain ◽  
Circular Economy ◽  
Ecological Impacts ◽  
Ecological System ◽  
Fashion Industry ◽  
State Response ◽  
Social Ecological ◽  
Industry Value Chain ◽  
The Many ◽  
Sustainability Challenges

AbstractThe fashion and textiles industry, and policymakers at all levels, are showing an increased interest in the concept of circular economy as a way to decrease business risks and negative environmental impacts. However, focus is placed mainly on the material ‘stuff’ of textile fashion and its biophysical harms. The current material focus has several shortcomings, because fashion is a social-ecological system and cannot be understood merely by addressing its environmental dimensions. In this paper, we rethink the fashion system from a critical social-ecological perspective. The driver-state-response framework shows social drivers and ecological impacts as an adaptive social-ecological system, exposing how these interacting aspects need to be addressed for sustainable and resilient implementation of circular economy. We show how current responses to global sustainability challenges have so far fallen short. Our overall aim is to expand possibilities for reframing responses that better reflect the complex links between the global fashion system, culture and creativity and the dynamics of the living planet. We argue that reducing planetary pressure from the global fashion and textiles industry requires greater recognition of the system’s social drivers with more emphasis on the many cross-scale links between social and ecological dimensions. Resilient decisions aiming for sustainable circularity of the fashion industry must therefore pay attention to social activities beyond the industry value chain, not just material flows within it.

Circular economy for fashion industry: Use of waste from the food industry for the production of biotextiles

2021 ◽  
Vol 169 ◽  
pp. 120858
Author(s):  
Ana Paula Provin ◽  
Ana Regina de Aguiar Dutra ◽  
Isabel Cristina Aguiar de Sousa e Silva Gouveia ◽  
e Anelise Leal Vieira Cubas
Keyword(s):  
Circular Economy ◽  
Food Industry ◽  
Fashion Industry

“Enabling circular business models in the fashion industry: the role of digital innovation”

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Phuc Hong Huynh
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Digital Technologies ◽  
Theory And Practice ◽  
Chain Model ◽  
Fashion Industry ◽  
Digital Innovation ◽  
Content Type ◽  
Radical Innovations

PurposeDigital innovation and circular business model innovation are two critical enablers of a circular economy. A wide variety of digital technologies such as blockchain, 3D printing, cyber-physical systems, or big data also diverges the applications of digital technologies in circular business models. Given heterogeneous attributes of circular business models and digital technologies, the selections of digital technologies and circular business models might be highly distinctive within and between sectorial contexts. This paper examines digital circular business models in the context of the fashion industry and its multiple actors. This industry as the world’s second polluting industry requires an urgent circular economy (CE) transition with less resource consumption, lower waste emissions and a more stable economy.Design/methodology/approachAn inductive, exploratory multiple-case study method is employed to investigate the ten cases of different sized fashion companies (i.e. large, small medium-sized firm (SME) and startup firms). The comparison across cases is conducted to understand fashion firms' distinct behaviours in adopting various digital circular economy strategies.FindingsThe paper presents three archetypes of digital-based circular business models in the fashion industry: the blockchain-based supply chain model, the service-based model and the pull demand-driven model. Besides incremental innovations, the radical business model and digital innovations as presented in the pull demand-driven model may be crucial to the fashion circular economy transition. The pull demand–driven model may shift the economy from scales to scopes, change the whole process of how the fashion items are forecasted, produced, and used, and reform consumer behaviours. The paths of adopting digital fashion circular business models are also different among large, SMEs and startup fashion firms.Practical implicationsThe study provides business managers with empirical insights on how circular business models (CBMs) should be chosen according to intrinsic business capacities, technological competences and CE strategies. The emerging trends of new fashion markets (e.g. rental, subscription) and consumers' sustainable awareness should be not be neglected. Moreover, besides adopting recycling and reuse strategies, large fashion incumbents consider collaborating with other technology suppliers and startup companies to incubate more radical innovations.Social implicationsAppropriate policies and regulations should be enacted to enable the digital CE transition. Market patterns and consumer acceptances are considered highly challenging to these digital fashion models. A balanced policy on both the demand and supply sides are suggested. The one-side policy may fail CBMs that entail an upside-down collaboration of both producers and consumers. Moreover, it is perhaps time to rethink how to reduce unnecessary new demand rather than repeatedly producing and recycling.Originality/valueThe pace of CE research is lagging far behind the accelerating environmental contamination by the fashion industry. The study aims to narrow the gap between theory and practice to harmonise fashion firms' orchestration and accelerate the transition of the fashion industry towards the CE. This study examines diverse types of digital technologies in different circular business models in a homogeneous context of the fashion industry with heterogeneous firm types.

scholarly journals PREFERENCES OF CENTRAL EUROPEAN CONSUMERS IN CIRCULAR ECONOMY

2021 ◽  
Vol 15 (2) ◽  
pp. 99-110
Author(s):  
Judit Olah ◽  
Adriana Tiron Tudor ◽  
Vadim Pashkus ◽  
Genady Alpatov
Keyword(s):  
Generation X ◽  
Circular Economy ◽  
Sustainable Consumption ◽  
Value Added ◽  
Fashion Industry ◽  
Chi Square ◽  
Central European ◽  
Generation Z ◽  
Contingency Coefficient ◽  
Chi Square Test

Research background: Consumers’ interest in environmental responsibility, sustainable consumption, and the circular economy is significantly increasing in all aspects of their lives. Clothing and fashion are clearly among these aspects. The fashion industry is one of the most resource-intensive and environmentally polluting industries. Circularity has been offered as a solution to this issue; however, the change must be in the attitudes of all concerned (Musova et al., 2021b). Businesses must react to this requirement for sustainable fashion, which is the reason that new circular concepts have been raised. Different generations prefer different models of circularity. Purpose of the article: The purpose of the current study is to detect the existence of dependency between generation and the fashion industry’s circular models, and to identify consumers’ specific preferences. Methods: The original consumer survey was undertaken by the authors in 2021, and involved 513 Slovak and 974 Czech consumers, who responded on their preferences in the circular economy. Pearson’s chi-square test of independence was used to confirm the dependence between consumers’ generation and the circular concept. The significant medium dependence of the nominal variables was confirmed by Pearson’s contingency coefficient, C, and Cramer's V. The relationships between the generation categories of Central European consumers and the categories of the new circular models in the fashion industry were established through correspondence analysis. Findings & Value added: The findings of the study suggest that Baby boomers single out capsule wardrobes, Generation X prefers patchwork and slow fashion, while Millennials prioritise GOTS and SWAP. Finally, Generation Z favours leasing jeans, upcycling, and renting clothes.

Circular Economy Principles and Their Influence on Attitudes to Consume Green Products in the Fashion Industry

2020 ◽  
pp. 248-275
Author(s):  
Luisa Cagica Carvalho ◽  
Sandrina B. Moreira ◽  
Rui Dias ◽  
Susana Rodrigues ◽  
Berta Costa
Keyword(s):  
Higher Education ◽  
Path Analysis ◽  
Direct Effect ◽  
Circular Economy ◽  
Empirical Studies ◽  
Education Institution ◽  
Fashion Industry ◽  
Green Products ◽  
Analysis Study ◽  
Key Factor

Designing circular economy (CE) implies the adoption of a set of circular principles that support a society for the future. Understanding how CE principles influence attitudes to consume green products is a key factor aligned with consumer trends. This chapter aims to study how CE principles influence attitudes to consume green products in a particular case of fashion industry. Very few empirical studies on the perceptions of the fashion “users” exist. This chapter aims to bring some inputs to this topic. The methodology uses a path analysis study based on a sample of 110 respondents collected in a higher education institution in Portugal. The estimated model allows to test the relation between a set of variables, and the study reveals that: CE principles have a direct effect on the attitudes on the green products consumption in fashion industry in the sample considered.

scholarly journals From singular to plural: exploring organisational complexities and circular business model design

2019 ◽  
Vol 23 (3) ◽  
pp. 308-326 ◽  
Author(s):  
Esben Rahbek Gjerdrum Pedersen ◽  
Rebecca Earley ◽  
Kirsti Reitan Andersen
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Illustrative Case ◽  
Fashion Industry ◽  
Value Capture ◽  
Content Type ◽  
Fashion Brand ◽  
New Business ◽  
Multiple Challenges

Purpose The purpose of this paper is to discuss how organisational complexities influence the design of circular business models, which have recently been introduced as a new panacea for aligning the interests of business with the needs of the environment. Design/methodology/approach The Service Shirt, a new garment concept, is used as an illustrative case example for demonstrating some of the organisational complexities of making circular business models operable. The shirt was developed through a series of design workshops for the fashion brand Fashion Alpha. Findings The analysis highlights multiple challenges emerging when a fashion product with a significantly extended lifecycle passes through different users, organisations and business models. It is concluded that it is difficult to talk about a circular business model (singular) as circular economy solutions depend on the contributions of multiple stakeholders with business models. Practical implications The findings illustrate how fashion companies interested in the circular economy fundamentally have to rethink conventional approaches to value, organisational boundaries and temporality. Originality/value Drawing on a case example from the fashion industry, the paper demonstrates the organisational complexities linked to the design of new business models based on circular economy thinking, as these require the coordination of actions between autonomous actors driven by different logics regarding value creation, value delivery and value capture.

The Impact of Circular Economy on the Fashion Industry

2020 ◽  
pp. 142-160
Author(s):  
Tugce Aslan ◽  
Adem Akbiyik
Keyword(s):  
Environmental Sustainability ◽  
Circular Economy ◽  
Business Models ◽  
Consumer Preferences ◽  
Academic Research ◽  
Sharing Economy ◽  
Fashion Industry ◽  
Commercial Markets ◽  
New Business ◽  
Consumer Perspective

The fundamental changes in technology and globalization have changed consumer preferences along with the way people buy and consume. This change has profoundly affected new business models and consumption systems in all commercial markets, including the fashion industry in particular. Moreover, fashion businesses have begun to shift from traditional proprietary access business models to the sharing economy. The effect of the sharing economy or circular economy on the fashion industry is increasing day by day. Clothing sharing services, recycling, and re-use of used garments contribute to environmental sustainability and contribute to economic and social sustainability through sales revenue and employment. However, there is limited academic research on clothing sharing models. This research focuses on Dolap application, a clothing sharing service. It examines the role of trust in clothing sharing services from a consumer perspective. As a result of the analysis, it was found that trust in the platform positively and significantly affected the trust given to the service provider.

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