Sustainability is at the forefront of nearly everyone’s minds, from industry decision makers to consumers choosing between different products. Companies in most every sector are searching for new ways to optimize their supply chains to not only be more profitable, but also more environmentally conscious. Economic and environmental sustainability are rather prominently linked. According to Gallagher, extreme weather events are business owners’ utmost concern, and the supply chain disruptions often linked with them are the third most common worry. With this in mind, businesses with an understanding of the role their own supply chains can play in their own economic and broader environmental interests have been turning towards strategies linked to the circular economy, attempting to “close the loop” of their value chains. The fashion industry offers up a particularly compelling example of this trend, showing how a sector often criticized for wasteful fast fashion practices can adjust to meet the new and pressing needs of both consumers and companies, and respond to mounting environmental threats.
What is Circular Fashion?
Circular fashion is essentially the application of circular economic principles to the fashion industry, with the specific goals of increasing the longevity of garments and reducing the waste accumulated across the production, logistics, and end-of-use cycles of said garments. It’s a total revamp of the industry, with a strategic shift in everything from design and manufacturing to repair.
The focus on sustainability is apparent from the very beginning, and continues across every step along the value chain. Initial design efforts prioritize waste reduction, with a frequent emphasis on hardy designs meant to last the long haul and even an eye towards easy repairability in the future. The materials selected reflect this focus on longevity, doubling down on the durability of the designs. More immediately, the chosen materials stand for a reduced environmental impact, with fabrics often being recycled or even upcycled. These fabrics are also often more environmentally friendly given their composition, with manufacturers using fewer synthetic fabrics and instead selecting materials such as organic cotton. Even when using synthetic materials, recycled options are gaining prominence and offering avenues for plastic bottles, for example, to be effectively repurposed, reducing waste in landfills and oceans and avoiding the production of new plastics, while fulfilling a materials sourcing need for clothing manufacturers. Additionally, the manufacturing process as a whole reduces waste and incorporates sustainability practices by utilizing more efficient production methods in factories handling recycled and upcycled materials.
Economic Benefits
These environmental improvements pay economic dividends as well. In a general sense, incorporating circular economics into the fashion industry creates new revenue streams that were previously unavailable. In such a competitive marketplace, resource-reliance can lead to issues, which every industry experienced during the sourcing and manufacturing volatility felt during the pandemic. By being able to operate without demanding the extraction and processing of new raw materials, and instead sourcing from recycled and upcycled fabrics, businesses can become more resilient and adaptable. Opening up new revenue streams is important in any industry, but especially so for clothing manufacturers, as consumer buying habits can often be routinized or seasonal and limit opportunities for fashion companies to move their products.
The financial benefits of sourcing from garments already in circulation are multifold. These fabrics can often be obtained for lower prices, given the commonality of consumers simply throwing them away or undervaluing their continued use potential. The transportation costs of obtaining locally sourced recycled fabrics are significantly lower than shipping raw materials or newly manufactured fabrics overseas, and lets businesses be less pressured by concerns over tariffs and other complications of international trade. Some retailers are even asking customers to drop off their old clothes at their brick-and-mortar storefronts, offering a direct means by which acquire potentially recyclable or upcyclable materials. The state of California recently passed legislation mandating that clothing manufacturers establish drop-off locations for customers to recycle old clothing, which while prompted by waste management concerns felt by the state could come to reap benefits for the companies setting them up.
Additionally, while companies may be concerned about the perception of “green” fashion as unaffordable for average customers compared to cut rate fast fashion, research shows they could drum up more business even at higher price tags. A study from PwC found that consumers were willing to spend nearly 10% more for products that were sustainably produced or sourced. The study cited the lived experience of consumers experiencing the effects of climate change as a driving factor in this willingness to spend more for sustainable products, showing not only the market opportunities available to circular fashion brands, but the urgency of their mission. Climate change is becoming less of a theoretical issue and more of a pressing reality for more and more customers, and their buying habits may well reflect this concerning development. The call to action for more of the fashion industry to engage in and promote circular fashion is twofold, motivated by substantial environmental and economic drivers, and is only expected to increase with urgency in the coming years.
