Navigating Sustainable Transformation in the Fashion Industry: The Role of Circular Economy and Ethical Consumer Behavior

Objective This paper explores the sustainable transformation of the fashion industry, focusing on integrating circular economy principles and promoting ethical consumer behavior. It seeks to analyze the environmental, social, and economic impacts of the industry’s operations and identify opportunities for adopting more sustainable practices. Methodology A qualitative research approach is used, with expert interviews providing insights into current trends, challenges, and opportunities for sustainable transformation in the fashion sector. The data were analyzed with MAXQDA. Findings The research reveals an increasing awareness among both consumers and industry stakeholders regarding the importance of sustainability. This shift is motivated by the recognition of the industry’s significant ecological footprint and the ethical concerns associated with its supply chains. Responsible consumption patterns, such as the rise in second-hand shopping and ethically produced fashion, are becoming more popular. Additionally, circular economy practices–such as recycling materials, designing for longevity, and reducing waste–are identified as key strategies for reducing environmental impacts and improving resource efficiency. Despite these positive developments, there are ongoing challenges, including the need for increased transparency, overcoming greenwashing, and the development of stricter regulatory frameworks. Value Added This paper contributes to the growing body of knowledge on sustainable fashion by highlighting the intersection of consumer behavior, industry practices, and circular economy principles. It emphasizes the critical role of collective action and systemic change in fostering a sustainable transformation within the fashion industry. Recommendations The paper provides actionable recommendations for industry stakeholders, policymakers, and consumers, encouraging the promotion of transparency, innovation, and regulatory measures to ensure accountability and drive the widespread adoption of sustainable practices.