Close the loop: Evidence on the implementation of the circular economy from the Italian fashion industry

Abstract

Fashion is widely considered as one of the most polluting and destructive industries to the environment and is a resource‐intensive industry in which opportunities to reduce environmental impacts abound. By relying on an exploratory approach, this paper features an investigation into the circular economy (CE) practices of four purposefully selected Italian fashion companies. The study endorses the overlooked perspective of the product lifecycle (vis‐à‐vis the business model perspective), consistent with the key principles of the CE, to provide a comprehensive picture of CE practices implemented. This study engages with the current debate on the relationship between the concepts of sustainability and CE, supporting the idea that there is a beneficial relation between the two. The analysis shows the emergence of categories of CE‐related practices as well as CE implementation challenges. The study also provides granular insights into the nature of these challenges that hinder the implementation of CE and demonstrates how they can be turned into sources of competitive advantage. Drawing on this emblematic evidence, we develop a set of theoretical and managerial implications.

Towards Circular Economy in Fashion: Review of Strategies, Barriers and Enablers

“…It has been suggested that the ability of recycling should be a key aspect when introducing new materials and fibres to the textile industry [2]. Candiani Denim, an Italian-based manufacturer, is an example that manufactures denims with the longevity in mind, and facilitates recycling at the end, thus minimizing waste and rapid consumption [21].…”

“…DressYouCan is an Italian fashion rental service that women can rent dresses, shoes and accessories for special occasions at an affordable price. The company created a unique business model for reuse and recycling by allowing clients, emerging designers and brands to share their clothing in this platform with a lower fixed cost [21].…”

“…Circular economy in fashion business is emerging as a priority while many fashion brands are committing to reduce resource use, carbon emissions and waste. However, application of circular economy in fashion business is relatively unexplored and thus little is understood by the industry and academia [21]. Sustainability principles are often targeted by the fashion industry than circular economy principles, yet the goals of sustainability are open-ended, while circular economy focuses on closed-loop systems [14].…”

A Delphi-Régnier Study Addressing the Challenges of Textile Recycling in Europe for the Fashion and Apparel Industry

“…The lack of technologies to support the development of textile-to-textile recycling is identified as a crucial persisting barrier, as attested by the recurrence rate documented in Table 1. Indeed, textile recycling is predominantly based on established mechanical recycling [9,26]. As regards to the existing processing routes, a typical classification is made between mechanical and chemical recycling [38,58].…”

“…The most renowned definition has been framed by the Ellen MacArthur Foundation, where the economy is "restorative and regenerative by design, and aims to keep products, components, and materials at their highest utility and value at all times" [25]. Binding economic performance, social inclusiveness, and environmental resilience [26], this new industrial paradigm promotes material flows systems in which resources are optimized, thus enabling "sustainability" covering a broader framing [23]. Indeed, by promoting the reduction of resources extraction, the extension of the product lifecycle, and the minimization of waste production [27,28], the transition to circular business models has the potential to decrease the environmental impact of the industry [2,6,9,29,30].…”