What impact will sustainable and circular fashion have on brands and the consequent purchasing behaviors of consumers over the next 10 years.
To address the main research question, the study investigates four sub-questions (SQ)
As part of this analysis, this thesis will look to understand the impact on specific factors such as price elasticity brand value/equity & customer loyalty.
This thesis will also seek to understand if profits and sustainability are truly compatible in the long term
and to what extent are consumers prepared to adjust their behaviors and consumption habits to curb global warming.
From a young age, I have always been allured by the textile industry. Clothes provide us with fundamental needs such as comfort and protection, whilst also allowing us to express our feelings and individuality. The textile industry currently employs more than 60 million people and exports about $300 billion annually, according to the World Trade Organization.
Although my prevalent interest in the textile industry, it is evident that it is an industry which is extremely waste intensive.
The way in which we design, produce and consume clothes has presented numerous disadvantages.
The textiles industry works in a virtually linear production function, where large amounts of non-reusable resources are obtained to manufacture clothes which usually have a very short life cycle.
“The clothing industry offers more styles at lower prices in shorter time cycles and the consumers desire to change their style” (Cao et al., 2014). “Fast fashion is a successful and increasingly prevalent business model in which fashion retailers create cheap, throwaway goods at much lower costs and have multiple seasons instead of the traditional two collections per year”
(Birtwistle and Moore, 2007). Once these clothes are discarded, they are rarely recycled and are mostly sent to a garbage sites or to be incinerated. This business model has several negative environmental and societal effects. “The total greenhouse gas emissions from textile production currently stands at 1.2 billion tons annually and this is more than those of all international flights and maritime shipping combined, says the journal Nature Climate Change.” Furthermore, plastic plays an ever more significant role in the textile industry. “Polyester, nylon, acrylic, and other synthetic fibers — all of which are forms of plastic — are now about 60 percent of the material that makes up our clothes worldwide.” These microplastic fibers are slowly being released in the ocean, simply by washing clothes regularly and they’re adding to the microplastic pollution that’s accumulating in the food chain and being ingested by all sorts of marine wildlife and even us.
In result of the unsustainable textile market, organic product and sustainable brands are gaining popularity, and consumers are progressively attentive in adopting an environmentally friendly lifestyle. The fashion industry has been able to differentiate itself by playing on an eco-friendly and sustainable spiel.
Although there is consumer awareness, currently eco-friendly products are not selling that well. The most effective way of being sustainable in the fashion business is functioning on a circular economy basis. This means that consumers would keep and use adaptable garments, recycle these garments and also consumer garments which have been made from recycled garments or have already been worn. This is an extremely effective way of reducing a waste in resources but it’s interesting to see if profits and sustainability are truly compatible in the long term and to what extent are consumers prepared to adjust their behaviors and consumption habits to curb global warming.
In my thesis I will be using a hypothesis which is relevant, so I might not be the first person to enquire about it. However, my methodology has not been used in correlation to the hypothesis.
-Price elasticity analysis (Micro Economics)
– forcefield analysis
-Consumer Buying Behavior Analysis (Marketing)
-David Yoffie profit frontier
-Porter 5 forces
-Customer loyalty Analysis (marketing)
-Brand value and Equity Analysis (Internship Salesforce)
– Interview with ….
– Interview with …
-Since my thesis involves forecasting what might happen in the next 10 years, it might be hard to get an exactly right estimation or production due to uncontrollable factors which may occur in the world economy, political situation or textile industry.
-Another limitation may be that due to large scale of the textile industry and brands using textiles, it will be hard to obtain worldwide data. This might mean that a sample will have to be taken instead of using the population.
-I still need to purchase access to some large databases, which will be completed this week.
-I only have a preliminary list of bibliography sources, this must be expanded upon during my thesis.
Expected Results/Main Hypotheses/Main Contribution:
What impact will sustainable or circular fashion have on brands and the consequent purchasing behaviors of consumers over the next 10 years. Consumers will require more visibility and transparency of the production of their textiles. I expect that the introduction of a circular economy will be extremely disruptive to the textile industry which will affect brands and the consequent purchasing behaviors of consumers leading brands to align their production methods accordingly.
1.2 Research Question and objectives
1.3 Course of action
2.1 How relevant is sustainability in today’s business environment
2.1.2 The relevance of circular economy in fashion
2.1.3 Examples of current actors in the circular fashion scene
2.2 What impact will sustainable and circular fashion have on brands and which factors contribute to this
2.2.1 Price Elasticity analysis
2.2.2 Consumer buying behavior analysis
2.2.3 Brand Equity analysis
2.2.5 Porters Generic Strategies Cost leadership vs differentiation
2.2.6 Porters Five forces
3.1 Implementation and Analysis from expert
3.1.2 Evaluation and Analysis