How Are the Shifting Macro Trends Influencing Within Slow
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Amanda Mannell Final Major Project How are the shifting macro trends influencing FUTURE INNOVATIONS within slow and SUSTAINABLE FASHION? Amanda Mannell ARTD3046 Final Fashion Management Project 1 How are the shifting macro trends influencing future innovations within slow and sustainable fashion? Final Major Project CON TE NTS PART 2. INTRODUCTION PART 1. PART 3. PART 4. PART 5. CONCLUSION 18DOMINATING 30DETOXIFYING 38CONVERGING 46BRAND 8 10S LOW 64 FASHION MACRO THE SUPPLY MEGATRENDS PROPOSAL REVOLUTION TRENDS CHAIN 2 3 How are the shifting macro trends influencing future innovations within slow and sustainable fashion? Final Major Project New and existing brands are incessantly looking for ways to exposed themselves. This included the rise in attention innovate their business models and thrive in a competitive towards slow living, moreover, embracing wellness through environment. However, Todeschini, B. V et al explains that products and services. Trend forecasters at LS; N global “sustainable business models are still in the exploratory phase,” believe that in our post-growth society, “success is no longer (2017) are yet to fully acknowledge and experiment with hinged on GDP, but on happiness and fulfilment.” (Smith, J emerging trends. New markets, new technologies and shifting and Firth, P. 2020) Obsessing over profit and revenue in turn consumer needs are presenting significant opportunities along leads to wrong decisions. Therefore, rejecting the idea that with costly risks. Currently the fashion industry is going under the economic sustainability of slow fashion is a matter to be transformational change due to unprecedented disruption of fixated on when innovating a slow fashion brand, but instead a global pandemic. The damage and recovery process is yet they need to be focusing on future innovations which embrace to be established however McKinsey explain the in the midst their overall purpose and values and reflect the positive of a macroeconomic event “only those brands who accurately contribution to environmental, social and ethnical progress. reflect the zeitgeist or have the courage to self-disrupt will A solution to this would be focusing on the detoxification of emerge as winners.” (McKinsey & Co. 2019) the supply chain which will encompasses ethnical values of Analysis on the shift towards a more sustainable approach slow fashion whilst meeting the demands of the conscious to fashion revealed how western retailers have started to consumer. Innovation in new materials, rise in legislations transform their business models by abolishing fast fashion and demand for transparency is helping slow fashion brand methods and implementing environmentally and ethnically innovate their business models to adopt a more economical conscious strategies. This comes at a time where “consumers viable and social and environmental conscious business are becoming increasingly concerned with social and model. Moreover, focus on more holistic and real approach environmental cause backing their beliefs with shopping to business has driven the idea that to do business in fashion habits and favour brands who align with their values.” you must stand for a bigger purpose rather than generating (Business of Fashion, 2019) In response, large scale retailers profit. Once again emphasis that economic sustainability is such as H&M & Zara have invested in sustainable actions not a defining success factor in this industry anymore. with the legitimized belief that this trend will persist. They The rise in digital technologies has also revolutionised the way are challenged by start-up brands who have also adopted this slow fashion brands can connect with their consumers and macro shift towards sustainability but centred their whole create an opportunity to create a more immersive experience. existence to providing consumers with environmentally Consuming digitally is much more sustainable and can be conscious products. These brand aim to encompass balance accomplished by providing alternative content which doesn’t by “slowing downing consumption, extending the lifecycle involve the production or consumption of new products. of products and creating a circular economy.” (Fletcher, K. Part 5 of this report explore the future of slow fashion with 2008) However, Jung, S & Jung B question how economically a brand propose which encompasses the trends discussed sustainable of slow fashion business models are as they believe and demonstrates how they can be implementing to create a their ability to generate and sustain profit is challenged when successful business model. trying to diminish consumption and select quality over quantity which unhandily increase product price. (2016) This report provides an investigative analysis into shifts in the macro environment which are leading to bigger ideas and innovative strategies likely to influence the future of the slow fashion movement. The shifts in consumer attitudes and demands will demonstrate how sustainability is creating a new consumer value whilst the analysis of macro trends will provide alternative approaches to sustainable business models which still encompass the triple bottom line. Upon exploring macro environment using the framework provided by Nystrom, dominating trends, which are causing a move towards slower consumption and sustainable products EXECUTIVE SUMMARY 4 5 How are the shifting macro trends influencing future innovations within slow and sustainable fashion? Final Major Project The aim of this report is to address a theoretical problem and provide speculative solutions and conclusions to how the macro environment is currently influencing innovations within sustainable fashion. In order to achieve a validated investigation, a mixed method approach was conducted using numerous quantitative and qualitative secondary sources to allow for a combination of numerical measurements and in- depth exploration. Due to the disruption caused by covid-19, obtaining primary research was made more challenging. Although efforts were made to obtain qualitative data in the form of an interview with sustainable fashion brands, the discrepancies of responses meant that it was not sufficient enough to include in the body of research or draw out any conclusions. Quantitative data was attained through investigative analysis of secondary surveys, reports and journals, such as Business of Fashions and McKinsey & Company ‘The State of Fashion’ series, which provided statements and conclusive data on consumer shifts and industry issues. Trend forecasting sites such as Euromonitor and Mintel were also paramount to the exploration into dominating macro trends and helped legitimise findings with statistics. The quantitative data and statements used to formulate an idea or conclusion were validated by rigorousness study into multiple sources which claimed the same or similar evidence. This approach achieved the best results for categorising and identifying patterns which generalisations could be made from. Secondary qualitive data, although less controlled and more interpretive, was used to gain an in-depth insight into specific concepts and theories. Books such as ‘Consumer Behaviour and Sustainable Fashion Consumption’ edited by Senthilkannan Muthu, S provided understanding into consumer behaviour regarding sustainable fashion, whilst ‘managing Sustainable Business’ edited by Lenssen G., Smith N suggested business model innovations for sustainability and the importance of creating shared value to achieve growth. The range of qualitive data used was more expansive than quantitative data used due to the nature of the investigation. These sources provided areas of interest within the report and worked the best for describing, interpreting and contextualising ideas and future innovations. They also underpinned knowledge and comprehensive understanding into themes such as slow fashion. ‘Sustainable Fashion & Textiles’ written by Fletcher, K contributed sufficiently to the Fig 1. Lazaridou, M (2020) general understanding of slow fashion and although didn’t provide evidence to conclude answers to the investigate, did enhance the justification of ideas and gave standardised information. Validity of this type of research was achieved by analysing trusted resources and using known industry expert materials. Alongside, maintaining a critical stance when meticulously analysing sources to help ensure that the content of this report is rational and balanced. METHOD OLOGY 6 7 How are the shifting macro trends influencing future innovations within slow and sustainable fashion? Final Major Project INTRO DUCTION Sustainability-related business model innovations are thriving, approach. The uncertainty on how to innovate a sustainable with new ones arriving almost daily. The sudden proliferation fashion business model while pursuing not only economic of such innovation guided this exploration into the impactful but social and environmental value creation can be relieved Fig 2. Dukic, N (2020) macro trends and shifts in consumer behaviour which are by gaining perspective on the zeitgeist. Capturing the macro likely to influence the future direction of slow fashion. trends develops a “capacity for systemic thinking so that Slow fashion is an emerging form of retail “centred on they ‘connect the dots’ by separating the noise and everyday production principles that encourage increased lifecycle of activities from the fundamental shifts that are taking place in products, reduced volume of purchasing by individuals, and the industry.”