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

Masterarbeit , 2018 , 88 Seiten , Note: A

BWL - Sonstiges

Awareness of the fashion industry’s harmful impacts that significantly affect the environment and the society has increased enormously, specifically the problem of an ever-growing throwaway culture. This has led researchers and practitioners to find feasible solutions, dealing with post-consumer garment waste. In that respect, the CE has undoubtedly become the focus of current research. Substantial economic benefits are expected to accompany the transition from a linear to a circular economic model. However, there is still a lack of frameworks that explain how companies have to adapt their BMs in order to succeed in a circular environment. Furthermore, the question remains, if this could be economically feasible from a company perspective because the economic model of the fashion industry is still highly linear and its success depends on product obsolescence.
Therefore, the purpose of this study is to identify motivations, enablers and challenges of implementing circular strategies and PLE initiatives in BMs, and explicitly exploring the economic feasibility of prolonging the lives of products.
To explore these phenomena, pioneers in the field of CE and PLE were studied. The researcher employed an inductive-exploratory case study design that allowed her to investigate the practical implementations of circular approaches and contribute to existing CE and PLE theory.
The findings of the cross-case analysis revealed that the transition towards a CE has been voluntary, underlying the companies’ internal motivations and sustainability agendas. External pressures do not play a role at this moment. Circular approaches support the companies’ visions to realise long-term strategies. Despite the higher costs of circular strategies and PLE initiatives, this study found that these have a positive effect on the businesses regarding enhanced customer loyalty and long-term relationships with the customer.
The study is one of the first academic studies that investigates the economic feasibility of PLE initiatives from a company perspective. However, the findings of this research cannot be generalised, as the scope of the study and the sample size are constricted. Therefore, further research in this field is required.

Inhaltsverzeichnis (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

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This dissertation aims to investigate how fashion brands can enhance value and extend the life-span of their products by implementing circular economy (CE) strategies. The study explores the economic viability of product life-span extension (PLE) initiatives within the context of circular business models (CBMs).

• Motivations for implementing CE and PLE initiatives in fashion brands
• Enabling factors that support the transition to a circular model
• Challenges and risk factors associated with CE and PLE strategies
• Economic feasibility of PLE initiatives from a company perspective
• The role of CBMs in fostering sustainable fashion practices

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter 1: Introduction This chapter sets the context for the dissertation by discussing the fashion industry's sustainability challenges and the growing importance of CE. It outlines the research questions, objectives, and methodology of the study.
• Chapter 2: Literature Review This chapter provides a comprehensive overview of the relevant literature on fast fashion, its impacts, and the need for alternative business models. It explores various aspects of CBMs, including their drivers, principles, and strategies, and examines the application of CE principles in the fashion industry.
• Chapter 3: Research Methodology This chapter details the research design and methodology employed in the study, including the case study approach, data collection techniques, and ethical considerations.
• Chapter 4: Analysis This chapter outlines the analytical approach used to examine the data collected from the case studies.
• Chapter 5: Findings This chapter presents the key findings of the research, analyzing the internal motivations, enabling factors, challenges, and economic feasibility of implementing CE and PLE initiatives in fashion brands.

Schlüsselwörter (Keywords)

This dissertation focuses on circular business models, product life-span extension, circular business model innovation, service-based business models, implementation, and economic feasibility in the context of the fashion industry. The study explores the motivations, enablers, and challenges of transitioning to a circular model and examines the economic viability of extending the life-span of fashion products.

• Veranstaltung: Fashion Entrepreneurship and Innovation
• Note: A
• Autor: Lynn Pearl Mayer (Autor:in)
• Erscheinungsjahr: 2018
• Seiten: 88
• Katalognummer: V495840
• ISBN (eBook): 9783346021342
• ISBN (Buch): 9783346021359
• Sprache: Englisch
• Schlagworte: Circular business models, Product life-span extension, Circular business model innovation, Service-based business models, Implementation, Economic feasibility.