Rethinking luxury brands and sustainable fashion business models in a risk society

2021 ◽  
Vol 7 (1) ◽  
pp. 49-81 ◽  
Author(s):  
Posi Olatubosun ◽  
Erica Charles ◽  
Tolulope Omoyele
Keyword(s):  
Value Chain ◽  
Circular Economy ◽  
Business Models ◽  
Methodological Approach ◽  
Structured Interview ◽  
Risk Society ◽  
Fashion Industry ◽  
Luxury Brands ◽  
Strategic Choices ◽  
Sustainable Fashion

This exploratory work investigates the burgeoning integration of ‘cradle to cradle’ practices into primary strategic activities of procurement, production and sales by ten London based fashion businesses, analysing how profits are derived from offsetting the high costs of sustainable inputs against savings from innovative strategic choices in the production value chain. This research was influenced by the background knowledge that in the global fashion industry, less than 1 per cent of the recycled textiles are converted into new wearable materials, and even more of these textiles end up in landfills. However, this unsustainable tradition in the fashion industry may gradually give way to a mainstream circular economic best practice in the fashion industry, even as the Mckinsey Report found that sustainability will be a significant factor for consumer purchasing mass market apparels by 2025. Based on the semi-structured interview of the ten fashion business owners and the analyses of internal strategic policy documents including budgets, we adopted Garret Hardin’s ‘Tragedy of the Commons’ and Ulrich Beck’s risk society as the lens view through which the qualitative data derived from these fashion businesses were discussed in order to bring out the illustrative extracts and sub-themes. Through the application of interpretive methodological approach, we were able to generate the themes suggesting the ‘Becksian’ reflexive modernization and dis-embedding mechanisms in analysing the issue of trust in luxury fashion environment. We were able to demonstrate the multidisciplinary and multifaceted nature of the use of modern technology in achieving a closed-loop circular economy in luxury fashion business(es) and its interconnectedness within the concentric layers of the value-chain, which is part of the economy, which is in turn a subset of the society and the environment. As businesses are expected to adapt their strategies to the changing environment, we argue that dematerialization in fashion is still at its infancy, and some deliberate actions on the part of economic policy-makers may be required in due course as this is connected to social sustainability amongst others. This article contributes new empirical data to the understanding of luxury fashion business in a circular economy, which is a departure from the linear economy with its attendant externalities. The adoption of a sustainable fashion business model may be pivotal to combating the inefficiency costs built into the fashion industry, and if successful, may be replicated in other jurisdictions in due course.

CIRCULAR ECONOMY: INNOVATIVE AND SUSTAINABLE BUSINESS MODELS IN THE FASHION INDUSTRY

2021 ◽  
Vol 296 (4) ◽  
pp. 25-28
Author(s):  
Olga Garafonova ◽  
◽  
Daria Vietrova ◽  
Olha Marhasova ◽  
◽  
...  
Keyword(s):  
Circular Economy ◽  
Business Models ◽  
Fashion Industry ◽  
Sustainable Business ◽  
Radical Innovations ◽  
Sustainability Strategies ◽  
New Business ◽  
Sustainable Fashion ◽  
The Many ◽  
Key Aspects

Promoting sustainable fashion within the circular economy is an important contemporary topic. Experts in design, consumption, business and industry explain how to approach circularity in fashion production and consumption in different ways. Increasingly, new and existing companies are looking for ways to thrive in a competitive environment through innovative business models, taking into account public opinion and avoiding actions that harm the planet. Trends such as the circular economy, fair trade, and sharing policies are among the many new approaches to business that address these issues, but there is still a gap between the theory that argues for levels of environmental and social sustainability and the implementation of these strategies in practice. That is why the study of the current state of the circular economy is relevant. This article presents the principles of the circular economy in terms of fashion. The key aspects of the integration of sustainable development in the fashion industry are considered. Different approaches of new business models for the circularity of the economy are highlighted. The main directions of implementation of sustainability strategies due to business transformation are identified, which requires the construction of a new level of the system and radical innovations.

scholarly journals Trends in the Fashion Industry. The Perception of Sustainability and Circular Economy: A Gender/Generation Quantitative Approach

2020 ◽  
Vol 12 (7) ◽  
pp. 2809 ◽  
Author(s):  
Patrizia Gazzola ◽  
Enrica Pavione ◽  
Roberta Pezzetti ◽  
Daniele Grechi
Keyword(s):  
Circular Economy ◽  
Business Models ◽  
Point Of View ◽  
Fashion Industry ◽  
Demand And Supply ◽  
Generation Z ◽  
Emerging Trends ◽  
Sustainable Fashion ◽  
Survey Results

The significant changes which have occurred in the competitive scenario in which fashion companies operate, combined with deep transformation in the lifestyles of final consumers, translate into the need to redefine the business models. Starting from a general overview of the emerging trends today affecting the fashion industry, the paper will devote particular attention to the analysis of the most important phenomena that are influencing this market and the drivers for long-lasting competitiveness: sustainability and attention to the so-called circular economy. According to the literature, from the consumer behavior’s point of view, the younger generations are paying growing attention to these issues. In light of these considerations, this paper aimed to analyze how sustainability and circular economy principles are influencing the perception of the fashion world among the new generations of consumers. After mapping the emerging trends in the fashion industry and analyzing the role of sustainability from both the demand and supply side, this paper presents the results of a survey conducted through an anonymous questionnaire made in collaboration with Insubria University. The results of the survey describe the students’ behaviour as regards fashion’s emerging trends, with particular attention to sustainability issues and the application of circular economy principles. The survey results were analyzed from both a descriptive and quantitative point of view with the aim to check the different perceptions as regards sustainable fashion and circular economy in fashion, focusing mainly on the so-called Generation Z. The results of the analysis proved to be consistent with the theoretical framework and confirm the relevance of sustainability issues in the fashion industry today in driving the demand of Generation Z, by considering a gender perspective. Moreover, the circular economy is descriptively analyzed with the aim to understand the relevance of the different facets for the entire sample of respondents.

The anatomy of circular economy transition in the fashion industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sita Mishra ◽  
Sheetal Jain ◽  
Gunjan Malhotra
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Circular Economy ◽  
Business Models ◽  
Closed Loop ◽  
Phase 1 ◽  
Extensive Literature ◽  
Fashion Industry ◽  
Model Framework ◽  
Content Type

Purpose Unsustainable fashion consumption and wasteful practices have recently garnered attention in practice and academia; however, research in this field is limited. This study is based upon an extensive review of the literature and aims to fill this gap by providing an in-depth understanding of various drivers and actors operating in the closed-loop fashion value chain. The purpose of this study is to develop a framework of transformation from the linear economy (LE) to the circular economy (CE) for the fashion industry based on “transition theory.” Design/methodology/approach This study is conducted in two phases. In Phase 1, a bibliographic compilation on the given subject is done. In Phase 2, data about the case company is collected through trade media and semi-structured interviews with the founder and the designers. Findings The study found that key drivers for the closed-loop fashion value chain are collaboration with partners, innovation, waste management system, customer connect and changing utilization patterns. Based on the extensive literature review and analysis of the case study, it can be concluded that to incorporate CE principles, namely, reduce, repair, reuse and recycle into current business models, redefining existing value propositions and transforming various business model elements is essential. Practical implications A three-level (discrete level, aggregator level and the peripheral level) framework is developed that can help the fashion industry in transition from LE to CE. This study will help fashion houses to understand how they can work in tandem with various stakeholders to develop sustainable business models. Originality/value This paper contributes to research by advancing the understanding of how to further develop and redesign an innovative business model framework for the circular fashion value chain. A three-level framework is developed that can be used for transition from LE to CE, especially in the fashion industry. This study is one of the first research that has tried to analyze the Indian case company for CE practices in fashion.

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.

“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.

The Ontology of the OSS Business Model

2013 ◽  
pp. 40-58
Author(s):  
Spyridoula Lakka ◽  
Teta Stamati ◽  
Christos Michalakelis ◽  
Dracoulis Martakos
Keyword(s):  
Conceptual Framework ◽  
Business Model ◽  
Value Chain ◽  
Exploratory Study ◽  
Business Models ◽  
Methodological Approach ◽  
Theory Building ◽  
Revenue Model ◽  
Software Business

This study focuses on theory building providing a holistic conceptual framework that consists of an ontology based OSS business model and an OSS business model taxonomy. The study extends existing theory in OSS business models and corresponding taxonomies, based on the structured-case methodological approach. An exploratory study is conducted in two research cycles, for the identification, validation, and evaluation of the critical constructs of an OSS business model. Results reveal that OSS business models differ from traditional software business models, having specific features that affect the software value chain, the infrastructure, and the revenue model of an OSS oriented firm.

scholarly journals The Circular Economy at Enel X

2020 ◽  
pp. 101
Author(s):  
Nicola Tagliafierro
Keyword(s):  
Renewable Energy ◽  
Value Chain ◽  
Circular Economy ◽  
Paradigm Shift ◽  
Business Models ◽  
Renewable Energy Sources ◽  
Life Cycles ◽  
Energy Sources ◽  
Product Portfolio ◽  
Sustainable Business

Enel X is leading the transition toward a sustainable business model, with the circular economy as an important pillar. Using renewable energy sources and materials, extending product life cycles, creating sharing platforms, reuse and regeneration, rethinking products as services. The principles of the circular economy have become essential, considering the paradigm shift overturning the traditional linear economic model. Enel X was one of the first businesses to offer products on the market that concretely apply the five business models of the circular economy and reconsider the entire value chain from a sustainability perspective. This approach is characterized by two core principles: 1.  the first, addressed internally, focuses on the business’s product portfolio, which ranges from “measuring” circularity to identifying solutions for improvement; 2.  the second is directed toward the outside, and especially toward industrial customers and public administrations or end customers, with the goal of evaluating their level of “circularity” and helping them outline a roadmap to circularity.

scholarly journals An Assessment Approach to Circular Business Models within an Industrial Ecosystem for Sustainable Territorial Development

2022 ◽  
Vol 14 (2) ◽  
pp. 704
Author(s):  
Leyla Gamidullaeva ◽  
Nadezhda Shmeleva ◽  
Tatyana Tolstykh ◽  
Alexey Shmatko
Keyword(s):  
Quality Of Life ◽  
Circular Economy ◽  
Business Models ◽  
Local Community ◽  
Methodological Approach ◽  
Well Being ◽  
Territorial Development ◽  
Industrial Ecosystem ◽  
The Creation

In this work, the authors have made an attempt to develop a methodological approach to substantiate the socio-economic efficiency of enterprise performance within an industrial ecosystem in the context of a circular economy. The proposed approach has been verified via a case study of the industrial ecosystem in Novokuznetsk city. Based on the calculations, it has been evidenced that the creation of an industrial ecosystem in the region where the city is located would eliminate area sources of pollution and improve the quality of life of the population, which would advance regional sustainable development and strengthen territorial attractiveness for citizens. Thus, having used the proposed methodology, the prospects for the implementation of circular business models by enterprises in order to increase the efficiency of resource use and balanced and sustainable economic development of a territory have been substantiated. The transition to a circular economy can support the creation of favorable environmental conditions and increase the local community resilience, well-being, and quality of life.

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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