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Environmental assessment of the rental business model: a case study for formal wear

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  • Anna Monticelli

    (University of Turin)

  • Mattia Costamagna

    (University of Turin)

Abstract

The apparel industry and above all the business model on which it relies (fast fashion) are recognized as the source of marked environmental impacts. An alternative business model such as one of those promoted by the circular economy could be the solution to improve resource productivity and value creation, without damaging the environment. The rental model, or more in general the product-as-a-service, is often linked to multiple benefits such as reduction in environmental impact, increase in competitiveness and user value. However, to be sure of the environmental sustainability of this model, it is necessary to conduct an objective assessment of its application to the context of the apparel industry. The goal of this work was to carry out an analysis of the environmental impacts related to the life cycle of formal dresses. In detail, the analysis focused on the comparison between a business model based on rental of garments and an online purchase model. The results show that by extending the life of a product, in terms of the number of uses, it is possible to limit the environmental impacts associated with the fashion sector. In fact for the case under consideration, the rental business model makes it possible to extend the number of uses of a single dress, with a consequent reduction in the environmental impacts associated with its entire life cycle.

Suggested Citation

  • Anna Monticelli & Mattia Costamagna, 2023. "Environmental assessment of the rental business model: a case study for formal wear," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 7625-7643, August.
    • Handle: RePEc:spr:endesu:v:25:y:2023:i:8:d:10.1007_s10668-022-02363-x
    DOI: 10.1007/s10668-022-02363-x
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    References listed on IDEAS

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    1. Jin, Byoungho Ellie & Shin, Daeun Chloe, 2020. "Changing the game to compete: Innovations in the fashion retail industry from the disruptive business model," Business Horizons, Elsevier, vol. 63(3), pages 301-311.
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    4. Clayton M. Christensen & Rory McDonald & Elizabeth J. Altman & Jonathan E. Palmer, 2018. "Disruptive Innovation: An Intellectual History and Directions for Future Research," Journal of Management Studies, Wiley Blackwell, vol. 55(7), pages 1043-1078, November.
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    Cited by:

    1. Micol Barletta & Idiano D'Adamo & Jose Arturo Garza‐Reyes & Massimo Gastaldi, 2024. "Business strategy and innovative models in the fashion industry: Clothing leasing as a driver of sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4730-4743, July.

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