This thesis aims to develop degrowth-oriented business models for fashion brands that could not only bring competitive advantage to these organizations, but also drive the achievement of the Sustainable Development Goals defined by the United Nations in 2015. The outcome of this thesis provides a range of design options and strategies that can be implemented by fashion brands in the degrowth framework, combined within a custom-buildable business model matrix. An empirical research conducted with both qualitative and quantitative data assessed the developed business model matrix based on nine existing fashion organizations. The results showed the existence of three observable business model archetypes presenting strong similarities with the proposed model, however always limited to a very reductive approach of the degrowth economy.
The degrowth economy has long been undervalued by businesses, considering prosperity without growth as an impossible match. With the rising pressures imposed by climate change, the new transformative challenges the fashion industry is facing and current shifts in consumers purchasing behaviors, the degrowth economy debate appears as a relevant opportunity to initiate systemic change within the fashion industry. This research highlights the need and relevance for the development of fashion business models using a more holistic approach of the degrowth economy, now given possible thanks to the translation of degrowth concepts and ideas into implementable business strategies. It suggests that fashion brands could get strong competitive advantages by following these recommendations and by acting as pioneers in a field that goes beyond the current understanding of sustainability in the fashion industry.
Table of Contents
1. Introduction
2. State of the Art
3. Part 1: Literature Review
3.1 Introduction to the degrowth and circular economy and their contribution to the Sustainable Development Goals
3.2 The circular economy
3.2.1 Circular economy concepts and governance complexity
3.2.2 The contribution of the circular economy and corporate’ ESG to the SDGs
3.2.3 The relevance of growing investments in CE
3.3 Degrowth economy and building blocks
3.3.1 Definition
3.3.2 History of degrowth
3.3.3 Fundamental critics
3.3.4 Problems generated by growth
3.3.5 The transition to degrowth
3.4 Degrowth economy and building blocks
3.4.1 Economy
3.4.2 Society
3.4.3 Environnent
3.5 Transition to degrowth and its potential contribution to SDGs
3.6 A changing fashion industry facing growing challenges and the rise of consumers awareness and empowerment
3.6.1 Reducing clothing production, pain points of the mass produced fashion system
3.6.1.1 Planned obsolescence and fashion trends
3.6.1.2 The growing complexity of the demand forecast and accelerating speed of the fashion system
3.6.1.3 Increasing return rate of fashion products
3.6.1.4 Globalization and supply chain complexity
3.6.2 COVID-19: an opportunity for degrowth in the fashion industry?
3.6.2.1 Consequences of the pandemic on the fashion industry
3.6.2.2 COVID-19 and its relationship to degrowth
3.6.2.3 The need for a new fashion industry prepared for future social and environmental crisis
3.6.3 Reducing clothing consumption, the nature of happiness and destructive lifestyles
3.6.3.1 Fashion items under-utilization and over consumption
3.6.3.2 The issue of the Self: the fashion Ego
3.6.3.3 Does consumption really lead to happiness?
3.6.4 Shifts in consumers purchasing behaviors
3.6.4.1 Sustainable fashion consumption patterns
3.6.4.2 The need for individualized fashion
3.6.4.3 The empowerment of prosumers
3.6.5 STEEPV analysis of the fashion industry in a degrowth context
3.7 Business models definitions review and restructuration
3.7.1 Business model definition
3.7.2 Business model innovation
3.7.2.1 The myths of business growth and current trends in business model innovations
3.7.2.2 Forms of business model innovation
3.7.3 Sustainable business models
3.7.3.1 Definition of sustainable business models
3.7.3.2 Circular economy business models
3.7.3.3 Business models to reduce production and consumption in fashion
3.7.3.4 Limits of the current sustainable business models in fashion
3.7.4 Towards degrowth business models in fashion
3.7.4.1 The slow fashion movement as a premise for degrowth in fashion?
3.7.4.2 Definition of a new degrowth-inspired business model
4. Part 2: Developpement of a degrowth economy business model
4.1 A new fashion degrowth economy business model for collaborative value creation and environmental and social democratic governance
4.1.1 Rethinking our conventional business models
4.1.1.1 The rise of Smart and Collaborative Networked Organizations
4.1.1.2 Empowered consumers at the center of value creation
4.1.1.3 Restructuration of business model in the degrowth context
4.1.2 New concepts and design elements of the degrowth business model
4.1.2.1 Collaborative value creation
4.1.2.1.1 Crowdsourcing
4.1.2.1.2 Common-based peer production
4.1.2.1.3 Mass customization and innovation toolkits
4.1.2.2 Minimize the risk of product obsolescence and reduce footprint
4.1.2.2.1 Timeless designs
4.1.2.2.2 Commons-oriented design communities
4.1.2.2.3 Recover wastes and materials durability
4.1.2.2.4 Repairability, modularity and recyclability
4.1.2.3 Local and resilient economies
4.1.2.3.1 Micro-factoring, on-demand production and makerspaces
4.1.2.3.2 Industry networks and industrial symbiosis
4.1.2.3.3 Intra-industry and inter-industries co-branding
4.1.2.3.4 Drop shipping and optimized logistics
4.1.2.3.5 Participative logistics and crowd-logistics
4.1.2.3.6 Local communities collaboration and distribution
4.1.2.4 Interactive and responsible communities
4.1.2.4.1 Interactive and experiential marketing
4.1.2.4.2 Experiential branding and community branding
4.1.2.4.3 Responsible consumption marketing
4.1.2.5 Collaborative governance
4.1.2.5.1 Crowdfunding
4.1.2.5.2 Pre-ordering and drop sales
4.1.2.5.3 Profit redistribution and internalization of environmental externalities
4.1.2.5.4 Steady state economy
4.1.2.5.5 Corporate Citizenship
4.1.2.5.6 Reorganization of work and management of the commons
4.1.3 Supportive strategies for DEBMs
4.1.3.1 The relevance of digitalization for sustainability in fashion
4.1.3.1.1 The fashion industry 4.0 and its contribution to the SDGs
4.1.3.1.2 The rise of commons-oriented technologies and innosumers
4.1.3.2 Supportive technologies for a DEBM
4.1.3.2.1 Blockchain for collaborative governance in fashion
4.1.3.2.2 Local manufacturing supportive technologies
4.1.3.2.3 Virtual prototyping and body scanning
4.1.3.2.4 Artificial intelligence and innovation toolkits
4.1.3.3 The impact of the corporate legal form on the brand governance
4.1.3.3.1 Degrowth-supportive legal forms
4.1.3.3.1.1 Cooperatives and Mutual Enterprises
4.1.3.3.1.2 Alternative legal forms and B-Corporations
4.1.4 Benefits and opportunities of the degrowth business model for fashion brands, consumers and the SDGs
4.1.4.1 Degrowth economy business model’ design options matrix
4.1.4.2 The degrowth business model as a strategic path for fashion brands
4.1.4.3 An empowerment model for fashion consumers
4.1.4.4 DEBM assessment and contribution to degrowth and the SDGs
4.1.4.4.1 Value creation system and its contribution to degrowth
4.1.4.4.2 The 7 Rs model
4.1.4.4.3 The contribution of DEBM to Sustainable Development Goals
5. Part 3: Empirical testing of the model
5.1 Data collection
5.1.1 Methodology
5.1.2 Case studies presentation
5.2 Data analysis
5.2.1 Business models analysis
5.2.2 7 Rs analysis
6. Part 4: Model validation and discussions
6.1 Testing conclusions and lessons learned
6.1.1 Generalization of business model archetypes
6.1.2 The need for a more inclusive and holistic approach of degrowth economy business models
6.2 Discussions around the integrative degrowth-oriented business model
6.2.1 Social and cultural issues
6.2.2 Structural and technological limits
6.2.3 Economic considerations
6.2.4 An issue of higher scale
Research Objectives and Core Themes
This thesis aims to develop degrowth-oriented business models for fashion brands to achieve a competitive advantage while contributing to the United Nations Sustainable Development Goals. The study investigates how fashion brands can move beyond standard growth-focused business models towards a system of collaborative value creation, focusing on reduced consumption and production, and empowerment of consumers.
- The role of the degrowth economy in the fashion industry and its potential to drive sustainable systemic change.
- Development of a custom-buildable business model matrix for degrowth-oriented fashion organizations.
- Empirical evaluation of existing fashion brands through qualitative and quantitative case studies to identify business model archetypes.
- Analysis of the relationship between degrowth business practices and the achievement of Sustainable Development Goals (SDGs).
- Integration of collaborative governance and digital innovation (e.g., blockchain, 3D printing) to support a downscaling economy.
Excerpt from the Book
The oxymore of sustainable development
In order to deal with the new environmental challenges our societies are facing, the concept of sustainable development was introduced during the Brundtland Commission in 1985, claiming that economic growth and environmental sustainability could be combined. The commission underlined that the content of growth must be changed so that it can take place within the limits of what is ecologically sustainable. However, according to degrowth thinkers, it is impossible to perpetuate development without harming the environment. Latouche considers sustainable development as a pleonasm at the definitional level and an oxymoron at the level of its content. It is a pleonasm because development means 'self-sustaining growth'. And it is an oxymoron because development is neither sustainable nor self-sustaining. In that thinking, sustainable development is a political program that maintains levels of profit and avoids changing our individual habits by making an imperceptible change of direction.
Summary of Chapters
Introduction: Outlines the environmental impact of current capitalist fashion systems and introduces the degrowth economy as an alternative framework for fashion brands.
State of the Art: Surveys the existing academic landscape regarding degrowth, identifying the academic gap in translating degrowth concepts into operational business strategies.
Part 1: Literature Review: Analyzes concepts of circular and degrowth economies, challenges in the fashion industry (such as planned obsolescence), and foundational theories for business model innovation.
Part 2: Developpement of a degrowth economy business model: Introduces a practical matrix with 5 building blocks designed to support fashion brands in implementing degrowth strategies.
Part 3: Empirical testing of the model: Applies the proposed degrowth model to 9 real-world fashion organizations to assess their compatibility and identify common patterns.
Part 4: Model validation and discussions: Synthesizes findings into archetypes and discusses the socio-economic, technological, and structural challenges of scaling degrowth in a capitalist environment.
Keywords
Degrowth Economy, Fashion Industry, Business Model Innovation, Sustainable Development Goals, Circular Economy, Collaborative Value Creation, Consumer Empowerment, Planned Obsolescence, Slow Fashion, Corporate Social Responsibility, Digitalization, Supply Chain, Micro-factoring, Social Entrepreneurship
Frequently Asked Questions
What is the core focus of this thesis?
The thesis explores the integration of degrowth economy principles into fashion business models, aiming to replace growth-centric systems with more sustainable, collaborative approaches that prioritize human well-being and environmental limits.
Which thematic areas are central to this work?
Central themes include the relationship between economic growth and environmental degradation, business model innovation for sustainability, consumer empowerment through co-creation, and the strategic role of technology in supporting local and resilient economies.
What is the primary research goal?
The main objective is to design and validate a degrowth-oriented business model matrix that enables fashion brands to gain competitive advantages while actively contributing to the UN Sustainable Development Goals.
What research methodology is employed?
The research uses a multi-stage approach, including an extensive literature review, the construction of a theoretical business model matrix, and an empirical assessment of 9 fashion organizations using secondary data and content analysis.
What topics are covered in the main body of the work?
The main body covers the theoretical foundations of the degrowth movement, the specific challenges of the current fast-fashion system, detailed design elements for degrowth business models (such as crowdsourcing and community governance), and empirical tests of the proposed model.
Which keywords define this research?
Key terms include Degrowth Economy, Fashion Sustainability, Business Model Innovation, Collaborative Value Creation, and Consumer Empowerment.
What role do consumer communities play in this degrowth model?
Consumer communities act as active participants in the design and innovation process, shifting from passive buyers to empowered "prosumers" who contribute to sustainable product life cycles through co-creation.
How does this model address the conflict between growth and sustainability?
The thesis argues that degrowth-oriented models, such as "Successful Non-Growing Companies" (SNGCs), focus on producing fewer but higher-quality products, internalizing environmental costs, and prioritizing social value to maintain profitability without relying on constant expansion.
- Citar trabajo
- Anonym (Autor), 2021, The Degrowth Economy. Strategic Path for Clothing Brands´ Future and Empowerment Model for Fashion Consumers?, Múnich, GRIN Verlag, https://www.grin.com/document/1040482
