Implementation strategies for circular business models in emerging fashion start-ups

Abstract

Due to industrialisation and the explosion of the “fast fashion” phenomenon, the production of textiles and clothes has more than doubled in the last two decades and is expected to increase by a further +30% in the next 10 years (Textile Exchange Report, 2020).

Worldwide, only 20% of the clothing produced is recycled, while the remaining 80% is incinerated or landfilled (Koszewska et al., 2018). As a result, the fashion industry is considered the second most polluting sector in the world and must evolve urgently.

Therefore, a “paradigm shift” is necessary in order to implement sustainability and circular economy principles in this market system which has such a tremendous economic and environmental impact. Different techniques for the production, recycling and reuse of textiles have recently been developed, but they need to be improved and opened up not only to multinational brands but also to small emerging businesses.

Hence, this literature review attempts to provide an overview of the most innovative and recent techniques for the production, recycling and reuse of textiles and clothes available on the market today with relevant case studies. In addition, it offers a number of practical tools useful for the transition from linear to circular business models, particularly for fashion enterprises. Finally, it suggests an involvement of all major stakeholders throughout the value chain to implement sustainability and thus achieve a shared and synergic economy; generating holistic multiple-added value and business models that are resilient to change and future-proof.