How can Fashion Brands Enhance Value and Life-Span Extension of Products? An Exploratory Study of Circular Economy in Regard to the Economic Viability of Product Life-Span Extension

Table of Contents

1. INTRODUCTION

1.1 Context

1.1.1 The Fashion Industry

1.1.2 The Sustainability Challenge

1.1.3 Circular Economy

1.2 Rationale and Research Questions

1.3 Aim and Objectives

1.4 Research Methodology

2. LITERATURE REVIEW

2.1 Introduction

2.2 Fast Fashion

2.3 The Impact of Fast Fashion

2.3.1 Social Concerns

2.3.2 Environmental Impacts

2.3.3 Opportunities

2.4 The Need for Alternative Business Models

2.4.1 Business Models

2.4.2 (Sustainable) Business Model Innovation

2.5 Circular Business Models

2.5.1 Drivers, Principles and Strategies

2.5.2 Post-retail Initiatives

2.5.3 Service-based Business Models

2.5.4 The Four Resource Loops

2.5.5 The Sources of Circular Value Creation

2.5.6 Circular Business Models

2.6 Circular Economy in the Fashion Industry

2.6.1 Post Retail Initiatives in the Fashion Industry

2.6.2 Circular Business Models in the Fashion Industry

2.6.3 Five Circular Business Models

2.6.3.1 Reuse and Resale

2.6.3.2 Closed Loop & Recycling

2.6.3.3 Repair and Warranty

2.6.3.4 Renting and Leasing

2.6.3.5 Redesign

2.6.4 Conclusion

3. RESEARCH METHODOLOGY

3.1 Introduction

3.2 Philosophical Assumptions

3.3 Research Approach

3.4 Research Design

3.4.1 Case Study Research

3.4.2 Sampling Strategy

3.4.3 Data Collection Techniques

3.4.3.1 Secondary Data

3.4.3.2 Primary Data

3.4.4 Time Horizons

3.4.5 Analysis of Data

3.4.6 Evaluation and Validity of Data

3.4.6.1 Secondary Data

3.4.6.2 Primary Data

3.5 Critical Discussion of the Methodology

3.6 Research Ethics

4. ANALYSIS

4.1 Introduction

4.2 Analytical Approach

5. FINDINGS

5.1 Introduction

5.2 Internal Motivations

5.2.1 Brand Values Shape the Business Strategy

5.2.2 Long-term Strategy

5.3 Enabling Factors

5.3.1 Independence Enables Long-term Goals

5.3.2 Store Presence Enables Story-telling

5.3.3 Human Centered Design/ Design for Longevity

5.3.4 External Enablers

5.4 Challenges and Risk Factors

5.4.1 Lack of Consumer Awareness

5.4.2 Logistic Barriers and Poor Take-back System

5.4.3 Financial Barriers

5.5 Economic Feasibility

5.5.1 Brand-customer Relationship

5.5.2 Service as USP

5.5.3 ROI

5.5.4 Circular Advantage

6. DISCUSSION AND CONCLUSION

6.1 Introduction

6.2 Discussion

6.2.1 Motivations

6.2.2 Enablers

6.2.3 Challenges

6.2.4 Economic Feasibility

6.3 Conclusion

6.3.1 Implications and Recommendations

6.3.2 Limitations and Future Research

7. REFERENCES

Research Objectives and Topics

This dissertation explores how fashion brands can move from a linear "take-make-dispose" model to a circular economy (CE) framework, specifically by evaluating the economic feasibility of product life-span extension (PLE) initiatives. The study investigates the internal and external drivers, barriers, and enablers for implementing circular business models (CBMs) to determine how brands can maintain economic viability while reducing environmental impact.

• Implementation of circular strategies and PLE initiatives in fashion business models.
• Identification of company motivations, organizational enablers, and logistical/financial challenges.
• Economic feasibility and return on investment (ROI) of product maintenance and repair services.
• The impact of long-term business strategies versus short-term profit models on sustainability.
• Customer engagement through physical retail presence as a tool for circularity education.

Excerpt from the Book

Summary of Chapters

1. INTRODUCTION: Defines the environmental and economic challenges of the current linear fashion industry and establishes the research focus on circular economy (CE) and product life-span extension (PLE).

2. LITERATURE REVIEW: Explores existing theories on fast fashion, circular business models, and service-based strategies, providing a framework for understanding how product life can be extended.

3. RESEARCH METHODOLOGY: Details the inductive-exploratory approach using multiple-case studies of five pioneering fashion brands, including data collection techniques like semi-structured interviews.

4. ANALYSIS: Explains the analytical framework used to process qualitative data, utilizing Gioia et al. (2012) methodology to bridge raw interview data with theoretical concepts.

5. FINDINGS: Presents the primary empirical results regarding internal motivations, enablers, challenges (such as reverse logistics), and the economic feasibility of circular strategies.

6. DISCUSSION AND CONCLUSION: Synthesizes the empirical findings with current theory, offering recommendations for businesses and identifying limitations and areas for future academic research.

Keywords

Circular economy, Fashion industry, Business model innovation, Product life-span extension, Sustainability, Post-consumer waste, Circular business models, Service-based models, Economic feasibility, Customer loyalty, Reverse logistics, Repair services, Brand values, Long-term strategy, Textile recycling.

Frequently Asked Questions

What is the core focus of this dissertation?

The research examines how fashion brands can transition from linear models to circular economy models, with a specific focus on the practical implementation of product life-span extension (PLE) and its economic viability.

What are the primary themes investigated in the study?

The central themes include internal corporate motivations, key enabling factors for circularity, operational challenges such as reverse logistics, and the economic feasibility of service-based circular strategies.

What is the primary research goal?

The primary goal is to analyze how circular principles are implemented in fashion companies and to determine how brands can capture value through circular strategies and whether prolonging product lives is economically sustainable.

Which scientific methodology was employed?

The researcher used a qualitative, inductive-exploratory approach, conducting multiple-case study research on five pioneering fashion brands through semi-structured interviews and document analysis.

What does the main body of the research address?

The main body covers the theoretical foundation of circular business models, the current impact of fast fashion, the methodology of the multiple-case study, and a cross-case analysis of findings from companies like Nudie Jeans, Fjällräven, and Eileen Fisher.

Which keywords best describe this research?

The most characterizing keywords are Circular Economy, Business Model Innovation, Product Life-span Extension, Economic Feasibility, and Sustainable Fashion.

How does this study address the "paradox" of circularity in the fashion industry?

The study addresses the conflict between the traditional retail model that relies on constant sales and the circular requirement to prolong product use. It finds that companies overcome this by building long-term customer relationships and using repair/maintenance as a unique selling proposition (USP).

Why did the researcher choose private companies for the case studies?

The study indicates that financial independence is a crucial enabling factor. Private ownership allows these brands to focus on long-term sustainability goals without the pressure of quarterly reporting to external investors.

What is the role of the physical store in this research?

Contrary to the trend of closing retail locations, this study finds that physical stores act as vital hubs for customer engagement, storytelling, and education regarding circular products and repair services.