What Goes Around Comes Around – Or Does It? A Case Study of Circular Business Models in Finnish Fashion Industry

Fashion is an integral part of people's lives today. It is a way to keep us warm but also a way to express and distinguish ourselves from others. However, the fashion industry is not without challenges and the increasing awareness of the industry's environmental and social concerns have made the industry explore new ways to do business. The circular economy is seen as one solution for the industry to overcome these challenges and become more sustainable. Among academics, the circular economy has started to raise interest and in particular, circular business models are increasingly being researched from various perspectives. However, holistic research addressing circular business models in the fashion industry is lacking. Further, there is no previous research focusing on the factors influencing the adoption of circular business models in the fashion context. This study fills this gap by researching six Finnish clothing and accessories companies. This research is a qualitative, multiple case study of different types of fashion companies. The sample consists of different-sized companies with varying approaches to the circular economy in order to find what type of circular business models can be found in the Finnish fashion industry. Each of the case companies was interviewed once with a semi-structured approach. Additionally, secondary data from online sources were utilised for further information. To identify the drivers and barriers for adopting circular business models a thematic analysis was used. The study found that circular business models at the beginning of the loop are easier to adopt. These business models include design for longevity, choosing high-quality materials and efficiency in production. Business models that require increased engagement from the consumers’ side, such as second-hand stores, repair and rental services, are currently less present. Interestingly, there were no major differences between the adopted circular business models among the companies. Further, this research found nine factors influencing the adoption of the business models: 1) environment, 2) economic, 3) customer, 4) society, 5) regulations, 6) supply chain and technology, 7) product, 8) organisation and, 9) fashion industry itself. Based on the findings, not all of these factors influence at equal weight. With economic, product quality, regulatory, and supply chain and technological factors, the companies need to further consider if adopting the model is applicable for the company

Competitiveness of Finland’s textile and fashion industry in international markets

This study set out to better understand the position and opportunities of Finland in the international competitive environment in the textile and fashion industry. The study attempts to provide more understanding on Finland’s strengths and to compile a better picture of the current developments in the industry and the potential of the Finnish knowhow in international markets. Based on the findings, the Finnish textile and fashion industry holds keys to leverage the systems-level transition for improved competitiveness in international markets. This study identifies three main areas of competitiveness potential for Finland: 1) New material solutions, including both bio-based and recycled fibres, 2) Automated data-driven circular economy, including both automated recycling processes and better supply chain optimisation, and 3) design for sustainable textile and fashion industry, including design of recyclable and durable textiles. The study also highlights two enabling factors, cross-boundary collaboration and sustainable brand building, that need to be strengthened to realize the competitiveness potential offered by the three areas. Potential development actions are recommended to target competence development in these fields, as they hold the key for Finland’s improved competitiveness and role as a leader in the systems-level transformation of the textile and fashion industry