Sustainable is trendy!
The Apparel sector is one of the biggest contributors1 of air and water pollution both at the pre and post-consumer stages; the massive size (Bauer & Jagasia, 2019) of the sector exaggerating the problem further. Current apparel supply chain is not sustainable owing to its linear (Centre for Responsible Bussiness & Novozymes) nature and has proven to be extremely resource intensive and inefficient (Kenniskaarten).They do not have transparent traceability mechanisms which can be uniformly applied across the sector — thereby compromising on the sustainability as well as ethical standards of garment production. Traceability in the apparel sector becomes more important since the lifecycle of the product right from raw material to post-consumer waste, travels across “multiple geographies, manufacturing sites and agents, and very often traverses opaque and distrustful networks. (Patel, Thomas, & Pore, 2018).”
Across the globe, the shift to circular models have emerged as the solution to the challenges in the current supply chain for improved resource utilization, and reduction in pollution.
The transition, though inevitable, lacks empirical evidence around the strategic shifts for incorporating circular supply chains models. Uncertainty around the implication for stakeholders, consumer behaviors, reduction in production add to barriers towards regenerative change. The entire idea of circularity in the apparel sector is nascent for South Asian production countries like India. Policies in these nations are focused on addressing manufacturing challenges like those of infrastructure, automation etc., not realizing the need for a strategic shift in perspective towards their businesses.
International non-profits, foundations and civil society organizations have triggered the conversation in the global west with some replicable and scalable pilots. However, efforts towards transition in South Asian production nations are still new, without a support from the government so far.
In age of rising consumerism, the idea of casual purchasing has picked up and referred to as ‘retail therapy’. While, added social desires and identity connotations to clothing have driven the fast fashion trend, it has only resulted in damaging consequences for the environment (Armstrong,, Niinimaki, Lang, & Kujala, 2016). Present supply chain of ‘take-make-dispose’ relies on cheap and easily available inputs which are wasteful and unsustainable in nature and has led to the need for closing the loop for resource efficiency and minimize pollution (Jørgensen, Jacob, & Pedersen, 2018).
Circular fashion as an upcoming trend:
The Ellen MacArthur Foundation (EMF) highlighted that circular economy emphasizes on product, component and material reuse, refurbishment, remanufacturing, repair and upgrading to alternative energy sources throughout the value chain (Ellen Macarthur Foundation, 2013; Centre for Responsible Bussiness & Novozymes). Industry leaders and policy makers have pioneered the circular economy approach within the apparel and textile sector for making it more resource efficient and sustainable. Engagement in sustainability has deepened during the COVID-19 crisis, with European consumers wanting fashion players to act responsibly and consider the social and environmental impacts of their businesses. As a result, 65 percent of respondents are planning to purchase more durable fashion items, and 71 percent are planning to keep the items they already have for longer (Granskog, Lee, Magnus, & Sawers, 2020).
Studies across the world have time and again surfaced consumers attitudes towards their willingness to adopt circular models. A 2019 global survey (Amed, et al., 2019), industry respondents said that pre-owned goods and rental goods were 44 percent and 41 percent more relevant in fashion, respectively. Numbers for the resale industry also indicate 25 times faster growth than the overall retail industry in 2019-with 5 times more growth in the next 5 years. Similarly, the markets for secondhand garment are projected to produce twice the current market, in the next 5 years. A ThredUp study (Thred Up, 2020) found that 64% percent of women bought or are willing to buy resold fashion pieces. This trend is being intensified by COVID-19.
Challenges in adoption of circular models:
While the west is gradually adopting to more circular models in their operations, India and other manufacturing countries of South Asia lack the business outlook and policy push. A CRB study (Centre for Responsible Bussiness & Novozymes) highlights the lack of understanding of circular economy by Indian manufacturers and suppliers-‘circularity being used interchangeably with general sustainability and environmental measures.’ The study further highlights that government policies have not yet focused on providing infrastructural support for incentivizing waste management to begin with.
On the one hand, the shift is bolstered by a declining preference for “newness”; while on the other, consumer behavior in India and other South Asian countries is not reflected. Consumer preference in these countries is driven by “aspiration-based buying” rather than “need- based” due to the increase in incomes of the domestic consumer and growing market (Invest India, 2020)
Additionally, transition to new modes of production and incorporation of new materials further opens a window for apprehension among all players in the supply chain, making information dissemination key to retaining the trust of stakeholders one is transacting (Fung Global Institute, 2013). In a recent survey (Mckinsey, 2019) conducted by McKinsey 52 percent of millennials and 45 percent of Gen Z reported that they always research for background information before buying a product, implying how transparency in supply chain will become core to business operations.
However, “radical transparency” may also lead to challenges related to disclosure of trade secrets like those of pricing. Although, end-to-end product traceability is a key enabler in mainstreaming circularity in the industry, the growth of misinformation may make it difficult for brands to control over their online presence and for consumers to ascertain the true from the fake, contrarily eroding the trust placed in brands.
Collaborative governance as the way ahead
Divergent interests of stakeholders in the value chain, and complex interdependence of actors will continue to be a bottleneck in adoption of sustainable fashion. It has laid the foundation for a new mindset and create a shared vision for a circular fashion industry in the South Asian production countries, specifically India. The time calls for systemic collaborations to make sure that “economic and social development can happen in a way that the planet can afford. (Ellen Macarthur Foundation, 2013)”
The government will need to provide and impetus to drive this shift from fast fashion to more sustainable means. Manufacturers and brands work towards a business case keeping in mind, the consumer behavior, aspirations, and associated norms.
The policy framework at the national level requires turn-key solutions which will provide a pathway for moving forward. Radical cooperation from stakeholders across the spectrum is the only solution for building a strong and sustainable foundation for circular apparel businesses. The government must play an especially important role by partnering with the corporate agencies and working together with civil society bodies, regulatory authorities, and academic institutions to provide strong evidence-based research to inform decision making.
