scholarly journals Characteristics of textile and clothing sector social entrepreneurs in the transition to the circular economy

2021 ◽  
Vol 72 (01) ◽  
pp. 81-88
Author(s):  
DANIELA STAICU
Keyword(s):  
Value Chain ◽  
Circular Economy ◽  
Paradigm Shift ◽  
Business Models ◽  
Clothing Industry ◽  
Social Entrepreneurs ◽  
The Real ◽  
Production And Consumption ◽  
Agents Of Change ◽  
Structured Questionnaire

The limits of the present take-make-waste business model are extremely visible when examining the textile and clothing industry. The concept of circular economy gained traction, which has led to the creation of policy actions throughout the life cycle of a product and at disposal. Transitioning from linear to circular economy business models requires significant value-chain changes in both production and consumption patterns. Existing circular business models are paving the way towards a paradigm shift. However, the literature has not retained much empirical evidence about these sustainabilityoriented innovators which are invisible and work in anonymity. This study provides a simple, yet rich and unique overview of the characteristics of circular economy business models in the textile and clothing sector in Romania, identified through qualitative analysis performed on the entire population of sustainability-oriented innovators identified in Romania in the textile and clothing sector in a previous study done by the same author. The data was collected using a structured questionnaire with 37 questions connected to four areas: human resources, legal and fiscal framework, customers and communication, and materials, tools or technology employed. With a 100% response rate, the real significance of this paper is that it may have discovered the real contribution of these agents of change in the circular economy, functional circular business models which have never been studied before as a population.

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 The circular economy: a new paradigm for the textile and clothing industries

2020 ◽  
Vol 207 ◽  
pp. 03008
Author(s):  
Radostina A. Angelova
Keyword(s):  
Linear Model ◽  
Value Chain ◽  
Circular Economy ◽  
Paradigm Shift ◽  
Environmental Issues ◽  
Ecological Systems ◽  
New Paradigm ◽  
Production And Consumption ◽  
The Difference ◽  
Circular System

The Circular Economy (CE) is an approach that requires a paradigm shift from waste management and recycling to a completely new circular system in the textiles value chain. It is supposed to be linked with both the economic growth and harmonization with ecological systems. The paper investigates the limits of the existing linear model of textiles production and consumption. The supply chain in the CE model as an alternative to the linear model is presented. The formation of “loops” in the CE and their role for recovering the products’ value is analyzed. The environmental issues that arise with the new paradigm shift are also discussed. The difference between recycling and CE model is examined.

Collaboration in achieving sustainable solutions in the textile industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mônica Cavalcanti Sá de Abreu ◽  
Fabiana Nogueira Holanda Ferreira ◽  
João F. Proença ◽  
Domenico Ceglia
Keyword(s):  
Value Chain ◽  
Textile Industry ◽  
Business Models ◽  
Clothing Industry ◽  
Manufacturing Companies ◽  
Ecological Value ◽  
Society Business ◽  
Content Type ◽  
Sustainable Solutions ◽  
Textiles And Clothing

Purpose This paper aims to investigate how sustainable solutions in the textiles and clothing industry are decided through business-to-business collaboration. Design/methodology/approach A qualitative and inductive study of the Brazilian textiles and clothing industry is carried out, an industry in which sustainable denim products are increasingly being recognized as subject to competition. The paper adopts a focal net perspective to understand the collaborative arrangements through which firms combine the products they offer as a sustainable solution. Documentary data were collected and in-depth interviews conducted with the top managers of one of the world’s largest denim-manufacturing companies present in the Brazilian market, which is involved in providing sustainable solutions in cooperation with its partners. Findings The authors describe the factors that reflect the conditions for generating a sustainable business performance, including a corporate policy that assumes and articulates the responsibility for social interest, core-business stakeholders and regulatory requirements; a sustainable product-service system (S.PSS) based on innovative interactions between the stakeholders in the value production system; relations between stakeholders that promote business sustainability through a dependable value chain characterized by a sense of collaboration and collective actions; and a business model for sustainability that combines economic with social and ecological value creation. These factors help a business establish a more strategic position in the value network, enabling it to capture more value. Practical implications Sustainable solutions are developed dynamically and collaboratively within an S.PPS. Managers need to focus not only on tangible products but also on intangible services designed and combined so that they are jointly capable of fulfilling customer’s needs and creating social and ecological value. Managers within the solution provider must develop business models for sustainability that are continually evolving to satisfy the interest in resource-efficiency by actors in civil society, business and government. Originality/value The research contributes to the existing literature by applying approaches involving corporate social responsibility (CSR) and strategic nets to the study of the implementation of an S.PSS. Sustainable initiatives and offers developed by an S.PSS are not isolated phenomena but result from collaboration in finding solutions among different actors linked in a strategic net. In this sense, companies need to adjust their business models for sustainability to generate positive economic, social and ecological value and gain credibility for their missions.

scholarly journals Customer Experience in Circular Economy: Experiential Dimensions among Consumers of Reused and Recycled Clothes

2022 ◽  
Vol 14 (1) ◽  
pp. 509
Author(s):  
An Hai Ta ◽  
Leena Aarikka-Stenroos ◽  
Lauri Litovuo
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Customer Experience ◽  
Clothing Industry ◽  
Structured Interviews ◽  
Five Dimensions ◽  
Qualitative Interview Study ◽  
Customer Perspective ◽  
Customer Values

The textile and clothing industry is undergoing a sustainability transition, pushing related businesses to adapt to circular economy (CE) models, such as recycling and reuse. This shift has been extensively studied from industry and business model perspectives, but we lack an understanding of the customer perspective, i.e., how circulated products, such as reused and recycled clothes are experienced among consumers. This understanding is crucial, as customer experience plays a significant role in the adoption of CE products. Therefore, we conducted a qualitative interview study to explore how consumer-customers experience recycled textiles and reused clothes. We used an established experience dimension model and mapped how the five dimensions of customer experience—sensory, affective, behavioral, cognitive, and social—present themselves in the sustainable clothing industry. The data comprised 16 qualitative semi-structured interviews analyzed with a coding framework built on the basis of customer experiences, customer values, and the CE business model literature. The results revealed that diverse sensory (e.g., scent), affective (e.g., pride and shame), behavioral (e.g., developing new decision-making rules), cognitive (e.g., learning and unlearning), and social (e.g., getting feedback from others and manifesting own values) aspects shape how consumers experience reused and recycled clothes. We also compared and analyzed the results of the reuse and redistribute model and the recycle model. Our study contributes to the literature of CE business models and customer experience by providing a structured map of diverse experiential triggers and outcomes from the five experiential dimensions, which together reveal how consumers experience circulated products of the clothing industry. These findings enhance our understanding of customers’ motivation to use recycled and reused products and adoption of CE products.

scholarly journals Mapping the interactions between the stakeholders of the circular economy ecosystem applied to the textile and apparel sector in Romania

2018 ◽  
Vol 13 (4) ◽  
pp. 1190-1209 ◽  
Author(s):  
Daniela Staicu ◽  
Oana Pop
Keyword(s):  
Circular Economy ◽  
Online Survey ◽  
Social Impact ◽  
Business Models ◽  
Theoretical Background ◽  
Future Research ◽  
Social Entrepreneurs ◽  
Sustainable Solutions ◽  
Textile And Apparel ◽  
The Way

Abstract The goal of this research is to acknowledge the elements which hinder or facilitate the transition from linear to the circular economy in the textile and apparel sector in Romania by identifying current and desired interactions among the ecosystem’s stakeholders. Two strands of literature, one on circular economy and one on the textile and apparel sector, provide the theoretical background for this research. Currently, the way we design, produce, and use clothing has drawbacks that are becoming increasingly clear. The circular economy principles have the potential to transform the way textiles are produced, consumed and disposed of. More and more social entrepreneurs are pioneering the future of the apparel industry by offering sustainable solutions to tackling systemic problems. However, their efforts have to be elevated and amplified, as such to pave the way for creating business models that allow for both economic performance and social impact. A comprehensive mapping of ongoing activities and stakeholders in the textile and apparel sector in Romania is required to understand the roadblocks to industry transformation in the context of moving toward circular economy and to implement envisioned sustainable solutions. In the paper we used a database of 27 stakeholders, developed by applying the snowball method, to investigate current and future interactions between the main actors who operate in the textile and apparel sector. To meet its research objectives, the paper employed a phenomenological research design and built upon a workshop activity. First, we designed an online survey to understand the profile and knowledge of the circular economy of the stakeholders included in our database. Second, we employed the world café method to understand in depth the level of knowledge of the actors who attended the workshop on the circular economy in the textile and apparel sector. Third, we used the structural systemic constellations method in assessing the stakeholders’ current and future desired interactions. Last, we formulated conclusions and recommendations about future research needed to deepen the understanding of the circular economy in the textile and apparel sector. Findings showed that there is a vicious circle of different actions feeding isolation and preventing collaboration among stakeholders. Also, we found that there is a lack of collaborative spaces where stakeholders can meet, connect and explore the various opportunities to collaborate, and a lack of general awareness on “circular economy and textile and apparel” and its mechanisms. The intended audiences of the research are decision-makers and practitioners in the textile and apparel sector, as well as researchers focused on the circular economy.

scholarly journals Problems of development of the circular economy as a factor in Russia’s sustainable development

2020 ◽  
Vol 15 (3) ◽  
pp. 155-164
Author(s):  
N. G. Gadzhiev ◽  
N. A. Murzak ◽  
A. E. Mitenkova ◽  
O. V. Skripkina ◽  
S. A. Konovalenko
Keyword(s):  
Sustainable Development ◽  
Renewable Energy ◽  
Circular Economy ◽  
Business Models ◽  
Negative Impact ◽  
Anthropogenic Pressure ◽  
Production And Consumption ◽  
Social Components ◽  
Recycled Waste ◽  
Consumption Waste

Aim. To investigate the process of formation of the circular economy in Russia within the framework of ensuring sustainable development and to identify the problems of forming a circular economy and the barriers that hinder the process of implementing business models of a circular economy in enterprises.Materials and Methods. Our study is based on systems analysis, comparative and statistical methods.Discussion. The research results have confirmed the necessity of transition to the formation a circular economy in Russia. This is despite the fact that the volume of recycled waste arising from production and consumption in Russia is growing faster than that of its generation, the actual proportion of recycling and waste disposal is growing rather slowly (somewhat more than 50%), while the proportion of the volume of production and consumption waste placed at company facilities, on average, amounted to 50% for the period analysed. Greenhouse gas emissions also have a negative impact on the environment with those of the "Economy" sector accounting for almost 79% thus determining the relevance of transition to renewable energy.Conclusion. The transition to a circular economy, in particular as a result of the use of renewable energy, will reduce the negative impact of anthropogenic pressure on the environment and ensure a balance between the environmental, economic and social components of sustainable development.

scholarly journals METHODOLOGICAL FEATURES OF ASSESSMENT OF THE LEVEL OF DEVELOPMENT OF THE CIRCULAR ECONOMY OF AN ENTERPRISE

2022 ◽  
pp. 72-80
Author(s):  
A. Stanovskaya
Keyword(s):  
Resource Use ◽  
Circular Economy ◽  
Business Models ◽  
Local Level ◽  
Advantages And Disadvantages ◽  
Production And Consumption ◽  
Efficient Resource ◽  
Analytical Review ◽  
Methodological Approaches ◽  
Global Agenda

Currently, an important item on the global agenda is the achievement of sustainable development, which is impossible without a transition to sustainable production and consumption patterns. Effective business models for ensuring more efficient resource use are offered by the concept of a circular economy (circular economy). Indicators other than those used in linear economics are needed to monitor progress in the transition to a circular economy. The article presents the results of an analytical review and comparison of the most common methodological approaches in English and Russian-speaking scientific research to assessing the circular economy at the local level. The advantages and disadvantages of these approaches, their areas of possible application are indicated. The conclusion is made about the narrowness of the interpretation of the concept of circular economy in the analyzed works and the need to develop a special tool for assessing the circular economy of an enterprise.

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.

Model of Production with a Closed Life Cycle as a Basis for the Development of the Circular Economy in the Context of Digital Transformation

2020 ◽  
Vol 11 (1) ◽  
pp. 86-86
Author(s):  
Maria Vetrova ◽  
Dinara Ivanova
Keyword(s):  
Supply Chains ◽  
Circular Economy ◽  
Business Models ◽  
Consumption Patterns ◽  
Global Trend ◽  
Production And Consumption ◽  
Scientific Papers ◽  
Development Goals ◽  
Number Of Publications ◽  
Decision Making Model

On November 25-27, 2015, the UN General Assembly put forward 17 key sustainable development goals, one of which is Ensuring sustainable production and consumption patterns. Achieving this goal requires a review of the current dominant in many countries linear model of the economy based on the principle of "take, make, waste", with the aim of converting production and consumption patterns into closed form, where all products and materials are developed with the possibility of recycling or reuse . The global trend of digitalization has led to the possibility of efficient formation of closed supply chains and today more and more attention is being drawn to the concept of a circular economy, which has a restorative nature based on the principle of "take, make, reuse" (Pakhomova N., Richter K., Vetrova M., 2017). The number of scientific papers and best practices in the application of circular business models has been steadily increasing in recent years. If in 2016 the number of publications related to the circular economy amounted to about 400, in 2018 the number of studies grew to 1000 (Ngan S., How B., Teng S. et all., 2019). Companies around the world are actively implementing the principles of the circular economy at all stages of value creation, striving to develop closed supply chains. Keywords: circular economy, digital technology, decision-making model, closed supply chains

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.

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