Can Fashion Be Circular? A Literature Review on Circular Economy Barriers, Drivers, and Practices in the Fashion Industry’s Productive Chain

Abstract

Circular economy (CE) principles have gained prominence in the fashion industry since it is a highly polluting industry and requires sustainable changes. Even though there are several CE initiatives already in place within the fashion production chain, changes towards CE are still slow. This study seeks to identify the drivers, barriers, and practices that influence implementing circular economy concepts in the fashion industry production chain using a systematic literature review. The results show that some more barriers and criteria keep consumers away from circular fashion concepts than drivers. These barriers include fast fashion consumer culture, even though more consumers are environmentally conscious. This is because awareness has not reached large-scale populations, despite the world being more aware of social and environmental issues. Consumers still do not see ethical and ecological problems associated with the fashion industry and continue to be targeted for large fast fashion retailers that sell a misguided version of consumerism. This study contributes to both academia and new fashion business models that seek to become more sustainable since it presents opportunities for investments and the obstacles that must be overcome for reaching CE within this sector.

Consumer perceptions and actions related to circular fashion items: Perspectives of young Brazilians on circular economy

“…The fashion industry, for the most part, still operates using a linear model mainly driven by fast fashion ( de Aguiar Hugo et al, 2021 ). However, some circular initiatives are slowly being implemented in this industry.…”

Exploring the potential of blockchain technology within the fashion and textile supply chain with a focus on traceability, transparency, and product authenticity: A systematic review

“…The fashion and textile industry is infamously known to focus solely on maximising profit margins and low production costs. However, that cost is commonly compensated by child labour, modern-day slavery, fake audits, corruption, and fraudulent certifications (De Aguiar Hugo et al, 2021).…”

“…The inherent complexity of supply chains is often used to obscure the origin, tracing, and authenticity of fashion and textile products (Li, 2013). In addition, unethical and corrupt practices within supply chains, such as forced child labour, modern slavery, and disregard for the environmental consequences can be hidden from both the retailer and the customer (De Aguiar Hugo et al, 2021). While these cost-cutting practices can increase the retailer's profit margin, they also have the potential to jeopardise the customer's trust in their favourite brands and in extreme cases, also the customer's health (Bikoff et al, 2015).…”

New business models in the Circular Economy

“…Detailed labeling and website disclosures ensure greater transparency for the customer and recycling agents in later stages of the product's life cycle (Mishra et al, 2021). Sustainability report disclosures (the main source of data for the present research) are also part of the value chain's transparency output (de Aguiar Hugo et al, 2021).…”