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The anatomy of circular economy transition in the fashion industry

Author

Listed:
  • Sita Mishra
  • Sheetal Jain
  • Gunjan Malhotra

Abstract

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.

Suggested Citation

  • Sita Mishra & Sheetal Jain & Gunjan Malhotra, 2020. "The anatomy of circular economy transition in the fashion industry," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 17(4), pages 524-542, May.
  • Handle: RePEc:eme:srjpps:srj-06-2019-0216
    DOI: 10.1108/SRJ-06-2019-0216
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    Citations

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    Cited by:

    1. Hadro Dominika & Patora-Wysocka Zofia & Fijałkowska Justyna & Mróz-Gorgoń Barbara, 2023. "Sustainability and Fast Fashion from the Executive Perspective – the Case of LPP S.A," Journal of Intercultural Management, Sciendo, vol. 15(3), pages 148-178, September.
    2. Rasa Bartkutė & Dalia Streimikiene & Tomas Kačerauskas, 2023. "Between Fast and Sustainable Fashion: The Attitude of Young Lithuanian Designers to the Circular Economy," Sustainability, MDPI, vol. 15(13), pages 1-21, June.
    3. Arash Najmaei & Zahra Sadeghinejad, 2023. "Green and sustainable business models: historical roots, growth trajectory, conceptual architecture and an agenda for future research—A bibliometric review of green and sustainable business models," Scientometrics, Springer;Akadémiai Kiadó, vol. 128(2), pages 957-999, February.
    4. Chowdhury, Naimur Rahman & Paul, Sanjoy Kumar & Sarker, Tapan & Shi, Yangyan, 2023. "Implementing smart waste management system for a sustainable circular economy in the textile industry," International Journal of Production Economics, Elsevier, vol. 262(C).

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