THE PARADOX OF SUSTAINABLE BRANDS – A SYSTEMATIC LITERATURE REVIEW

Thesis for One-Year Master, 15 ECTS

Textile Management

Busshaus Ulrike

Zillich Vanessa

2020.18.01

Title: The Paradox of Brands – A systematic literature review

Publication year: 2020

Author: Vanessa Zillich, Ulrike Busshaus

Supervisor: Vijay Kumar

Abstract ______

Background: The current fashion industry is characterised by its fast-moving . Its change over the past decades from two to numerous collections per year has contributed to a take-make-dispose society. This largely contributes to environmental and social issues as well as the use of non-renewable materials waste. Simultaneously, it is one of the largest employers worldwide. Due to the global dispersion of supply chains actors, sustainable fashion brands need to tackle country specific regulations and overall differences in conceptions of e.g. sustainability. Sustainable fashion brands find themselves in numerous conflicts such as profit and growth versus environmental and , trendiness versus consciousness, or linear business models versus circular business models.

Purpose: This thesis provides a systematic literature review of a selection among peer- reviewed articles on sustainable fashion brands. The main focus is on the paradox of sustainable fashion brands in academic research. This study aims at gaining a basis for research in the perspective of sustainable retail brands to explore manners in which they can deal with the paradox between being financially viable and acting sustainably.

Method: To support the objective of this study, the articles selected for data analysis were collected by using a systematic literature review as research and analytical method. Within the thesis, a narrative analysis was applied to examine the chosen articles.

Results: The results gathered through the systematic review show a significant influence on sustainable fashion brands from two major stakeholders: supplier and consumer. Especially the consumers are regarded as most influential since their demand determines whether sustainable fashion is being adopted more widely into the market. Currently consumers lack knowledge of environmental and social concerns related with fashion. Simultaneously, the suppliers lack understanding of such concerns due to cultural and economic differences. Therefore, retailers should educate both consumers and suppliers on relevant issues. This can further enhance transparency which in turn generates more trust between all parties. Moreover, innovative business models can help tackle related sustainability issues in that they offer the extended use of clothing.

Conclusion: Sustainable fashion brands have to handle several conflicts related to their market position and existence. In order to create sustainable fashion offerings, they require viable financial means. Economic growth as it is known today contradicts the sustainability of the environment and society. Sustainable fashion brands need to find a proper balance between the two as it is the only way to tackle this paradox. In addition, there is a significant gap in the research on economic sustainability in relation to sustainable fashion brands.

Keywords: Sustainable fashion brand, Paradox, Sustainability, Retail perspective

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Acknowledgement

This Master thesis has been written to fulfil the graduation requirements of the Master ‘ Management’ at the Swedish School of . From April 2020 until June 2020 we were engaged in researching and writing this thesis. We would first and foremost like to thank our thesis supervisor Vijay Kumar of the Swedish School of Textiles at University of Borås. Whenever we ran into a trouble spot or had a question about our research or writing he was there to support us with constructive feedback, excellent guidance and advice. We would also like to thank our seminar partner Tatjana Sophie Gehrold who throughout the process of writing continuously provided us with helpful comments. Furthermore, we would like to thank our families and friends for supporting us spiritually. Without the effort of these people, the outcome of this thesis would not have been the same.

Vanessa Zillich & Ulrike Busshaus, Borås, 5th June 2020

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Table of contents

1 Introduction ...... - 1 - 1.1 Background ...... - 1 - 1.2 Problem statement ...... - 3 - 1.3 Purpose and research question ...... - 4 - 1.4 Delimitation ...... - 4 - 1.5 Thesis outline ...... - 5 - 2 Frame of reference ...... - 6 - 2.1 The fashion industry and its characteristics ...... - 6 - 2.2 Sustainability in the fashion industry ...... - 6 - 2.2.1 General definition of Sustainability ...... - 6 - 2.2.2 Sustainability issues in terms of the fashion industry ...... - 7 - 2.3 Sustainable fashion brands ...... - 9 - 2.3.1 The consumer’s behaviour in relation to fashion ...... - 10 - 2.3.2 Corporate social responsibility in the fashion industry ...... - 11 - 2.3.3 Innovative business models to tackle sustainability issues in the fashion industry ..... - 11 - 3 Methodology ...... - 13 - 3.1 Research Design ...... - 13 - 3.2 Research Method ...... - 13 - 3.3 Selection and Justification of Research...... - 14 - 3.4 Data Collection ...... - 14 - 3.5 Data Evaluation ...... - 16 - 3.6 Research Quality ...... - 17 - 4 Results ...... - 18 - 4.1 General overview of publications ...... - 18 - 4.2 The relation between fashion brands and suppliers ...... - 20 - 4.2.1 Environmental issues connected to suppliers ...... - 21 - 4.2.2 The connection between CSR and supplier ...... - 21 - 4.2.3 Measures for sustainable fashion brands and their suppliers regarding CSR ...... - 22 - 4.3 The consumer influence on sustainable fashion brands ...... - 23 - 4.3.1 Internal barriers ...... - 24 - 4.3.2 External barriers ...... - 25 - 4.3.3 Sustainability-minded consumers ...... - 25 - 4.3.4 Approaches to more consumer engagement ...... - 26 -

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4.4 Innovative business models and their potential to lower consumption ...... - 27 - 4.4.1 Product-service systems ...... - 27 - 4.4.2 Challenges and drivers in the implementation of innovative business models ...... - 29 - 5 Analysis ...... - 30 - 5.1 Question 1 ...... - 30 - 5.2 Question 2 ...... - 32 - 5.3 Main research question ...... - 33 - 6 Conclusion ...... - 36 - 6.1 Theoretical implications ...... - 37 - 6.2 Practical implications ...... - 37 - 6.3 Limitations and potential future research ...... - 38 - References ...... - 39 - Appendix I ...... - 48 - Appendix II ...... - 49 -

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List of Figures

Figure 1: Venn diagram of Sustainability...... - 7 - Figure 2: Search Process ...... - 16 - Figure 3: Overview of the research articles by country...... - 18 - Figure 4: Distribution of the research articles between 1998 – 2020 ...... - 19 - Figure 5: Overview of the research articles published by journal...... - 19 -

List of Tables

Table 1: Keyword Search...... - 15 - Table 2: Search Limitations...... - 15 - Table 3: Content Analysis Results of Topics of Research Articles...... - 20 -

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1 Introduction

1.1 Background In modern times, the consumption of clothing has become the leisure activity of many people. Digital media, and magazines further fuel the shopping frenzy and suppress the dark sides of the fashion industry. Additionally, the oversupply of clothing is visible in the mass of fashion campaigns that reflect the desired life and appeal to consumers. In Germany alone, almost 78 billion Euros were spent on clothing and shoes in 2018 (Statista 2020). Especially is a successful which for many companies has proven to be a source for significant growth. Companies that utilise this model manage to shorten production cycles and enable consumers to expand and rapidly change out their wardrobe (Remy et al. 2016). The consequence of such brands, offering inexpensive apparel collections based on current trends from the luxury segment, is clothing that loses its value and ultimately becomes disposable (Fletcher 2010). The number of clothing items acquired per capita have increased worldwide by 60 percent between the years 2000 and 2014 while clothing production doubled within the same period of time (Remy et al. 2016). Jørgensen and Jensen (2012) have found that especially young women are influenced by the fast-changing fashion and low-price strategies of companies and at the same time are driven by the need to meet the expectations of friends and colleagues by always being up-to-date with fashion. The increase of cheap clothes, which are oftentimes produced in Asia, has a vast contribution to unsustainable consumption behaviours (Niinimäki 2010). Considering almost all apparel categories, consumers nowadays only keep their apparel items half as long as they used to 15 years back and view their most inexpensive items as disposable, discarding them after a few wears (Remy et al. 2016).

Closely related to the growing consumption, is globalisation, which is “the increase of trade around the world, especially by large companies producing and trading goods in many different countries” (Cambridge University Press 2020). In particular, the textile and clothing industry is one of the most globalised industries in the world. As a result of increasing competition, companies are outsourcing their entire manufacturing process and become dependent on companies and their economies around the world (Ha-Brookshire and Jung 2017). The main reasons for strong competition are cost savings through cheap labour, and the speed with which new goods can be delivered (Fletcher 2014; Ha-Brookshire and Jung 2017; Shelton and Wachter 2005; Cho and Kang 2001). The consequence of the outsourcing of manufacturing processes is higher environmental impacts through e.g. transportation (Borghesi and Vercelli 2003). The fashion industry causes a high environmental impact through its intense use of chemicals and raw material resources throughout its production processes including dyeing, finishing and drying (DeBrito et al. 2008). The impact of both, and fibre production, require significant amounts of and water (Fletcher 2014). In comparison, the generation of the single most utilised fibre group requires the extraction of non- renewable resources. The environmental impact of clothing however does not end after the manufacturing and transport. Most items have a much greater effect on the environment in their use-phase through washing, drying and ironing (Black 2011), e.g. 60% of the energy use of a cotton t- is linked to post-purchase washing and drying practices (Allwood et al. 2006). Another major contributor to environmental pollution with a total impact of 3.2 million tons per year is the release of microplastics into the with 34.8% derived from the laundry of synthetic fibres. Due to their microscopic size, these cannot be prevented from entering bodies of water by wastewater treatment plants and are already existent in the environment, in animals, the seabed as well as food (Consortium, 2017).

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Further, while brands rely on their economic growth, they concurrently rely on the use of the earth’s limited resources. Even though economic growth involves numerous benefits such as expanding and profiting businesses and nations, an increase in employed people, a better standard of living and resources, it can also have significant effects on future generations as earth’s limits are not considered. Thus, economic growth as it is known today contradicts the sustainability of the environment and the only way to tackle this paradox is to find a proper balance between the two. Nevertheless, as consumers are the main driving force for economic growth with their increasing demands and constant search for materialistic solutions, bigger societal movements are required to deal with consequential issues (Higgins 2013).

This shows that textiles are strongly linked to environmental, social and economic concerns. In order to promote , some efforts have been made in the past by companies towards social improvement in the textile industry (European Commission 2013). The beginning of sustainable development can be traced back more than 20 years; for instance, in the 1990s NGO campaigns were launched to draw attention to abuses in the supply chain of well-known and popular fashion brands such as Nike and Gap. These and other actions may have been the starting point for the introduction of codes of conduct including the requirements of minimum levels of workers' rights. But even with these strict codes and independent policing, a lot of the workers still do not receive the legal minimum wages (Fletcher 2014).

One of the biggest tragic misfortunes in the textile industry, the collapse of the Rana Plaza clothing factory in Bangladesh in 2013, in which thousands of workers lost their lives, contributed to the enormous increase in interest in sustainable and ethical fashion. Many retailers have subsequently taken steps to ensure that the consumer-demanded initiatives, such as the Bangladesh Fire and Building Protection Agreement1, were enforced (Reinecke and Donaghey 2015) even so, mainly the production conditions (social aspects) were taken into account but no environmental aspects (Lohmeyer et al. 2018). However, the catastrophe brought the attention of customers and NGOs to the environmental impact of the fashion industry. As a result, companies were also forced to deal with the issue of sustainability which interconnects the economic, social and environmental aspects through the entire supply chain. Especially since this time, many companies, stakeholders and regulatory authorities have considered the great value of sustainability and ethics (Khan 2016). Even long-existing retail brands are gradually becoming aware of their impact on the environment and society with cheap clothing production and materials (Westervelt 2015). In recent years it has become apparent that the industry confesses to these issues. The need to change from fast fashion business models to more sustainable practices has been acknowledged by companies and all levels of governance (national, regional, global) (United Nations Climate Change 2018). Even fashion brands that have made sustainability part of their corporate from the very beginning are now receiving more attention due to the increased awareness of consumers. Sustainable fashion brands stand for environmentally and socially fair products and thus make a valuable contribution to . The brands place value on timeless cuts and neat workmanship to make the clothes durable. Besides traditional craftsmanship, attention is also paid to the latest technologies for the production of sustainable clothing (Grose and Fletcher 2012). But yet again, the driving force that companies rely on are the consumers. These want

1 “The Accord is an independent, legally binding agreement between brands and trade unions to work towards a safe and healthy garment and textile industry in Bangladesh. The Accord covers factories producing Ready-Made Garments (RMG) and at the option of signatory companies, home textiles and fabric & knit accessories.” (Accord on Fire and Building Safety In Bangladesh 2018).

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to distinguish themselves from their peers and compensate this need with new looks, enabled through clothing (Simmel 1904).

On the one hand, buying sustainable fashion is better than non-sustainable fashion produced in poor working conditions and using low-quality materials. On the other hand, it supports further consumption and, as previously stated, the unconscious buying behaviour of society (Black 2011). Furthermore, the rise in demand for more transparency and sustainable practices contradicts the consumers growing demand for more clothing items (Lewittes 2019). The problem of selling sustainable fashion but at the same time acting in a completely sustainable way is not easy to solve, because economic, environmental and social goals should equally be fulfilled (Black 2011). All in all, sustainable fashion in moderation can be seen as a good practice to tackle environmental, economic, and social issues. To have an impact it needs to be adopted more widely which in turn contributes to the exploitation of social and environmental resources.

1.2 Problem statement In the past years a lot of research has been conducted in the field of answering the question whether fashion can ever be sustainable (e.g. McNeill and Moore 2015; Fletcher 2014; Bly et al. 2015; Black 2011; Niinimäki 2010). By definition sustainable fashion equates the slow consumption of clothing items produced and marketed taking social and environmental aspects into consideration (Fletcher 2014). This contradicts the fast-moving fashion cycle. De Brito et al. (2008) presented the view of stakeholders in the textile industry and emphasised that the match between sustainability and economic growth is still a main concern. The influence of stakeholders has an enormous contribution and is dependent on their attitude towards sustainability practices.

Furthermore, the selected business model of the company is of concern. For instance, if a shift of value from product to service is realised, then a leasing business model, in which products can be rented for a limited amount of time, can lead to positive economic and environmental impacts through an extended use phase. At the same time, one must highlight the difficulty to equally involve all three aspects of sustainability in one business model due to the textile industry’s complexity. But even though the companies are potentially ready to implement sustainability in their organisations, the implementation is linked to challenges such as the adoption of the performance paradigm by multiple supply chain actors (DeBrito 2007).

While there has been a number of researches in the shift of fast fashion to more sustainable practices and the related sustainable supply chain challenges, the researchers’ focus is based on the perspective of the lead-firm of the supply chain. So far, this field is rather unexplored (Todeschini et al. 2017). Furthermore, there are several researches conducted in the area of consumer influence and decision-making in relation to sustainable fashion (e.g. Joy et al. 2012; Mora et al. 2014). It is obvious that the consumer plays an essential role to these companies (McNeill and Moore 2015; Bly et al. 2015), in that they fuel the market potential through their demands for differentiation by acquiring materialistic items driving economic growth. The resource scarcity, pollution and the imbalance of social standards of every actor in the supply chain need to be considered, while profitability and growth are still elementary business objectives but should be weighted less (Higgins 2013). Companies have to face the complex issues of corporate sustainability (Hahn et al. 2014) which is the ability of a company to balance social, environmental and economic goals (Kok et al. 2017). But the compatibility between sustainability and economic growth of sustainable businesses is still insufficiently explored and

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seen as one of the central concerns in the sustainability literature (Hahn et al. 2014; DeBrito et al. 2008). Therefore, it is meaningful to understand the current scientific knowledge on sustainable fashion brands and their handling of being sustainable while simultaneously relying on growth and profitability.

1.3 Purpose and research question As described above only limited research has explored the paradox of companies striving to be sustainable while growing and making profit. This thesis aims to evaluate the current state of literature in the actions of sustainable fashion companies and identify relevant research direction for future improvements in this area. While analysing the selected literature the focus is on the retailer perspective. To reach the stated purpose the following question will be answered:

How can sustainable fashion brands deal with the paradox of acting sustainably while at the same time taking profits and growth?

To be able to reply to the main thesis question, two sub-questions were created:

Q1: What are the root causes for the paradox present to sustainable fashion brands?

Q2: What are challenges and motivations for sustainable fashion brands?

1.4 Delimitation This section entails the delimitation of the thesis. The study is delimited to research the conflict of sustainable fashion brands and their pursuit to acting in a sustainable manner but yet making profit and surviving with economic pressure. The term sustainable fashion emerged from the movement, which advanced over the past decades. It can be interchanged with green-, eco- and ethical-fashion (Carey and Cervellon 2014). Further, it is connected to the use of organic materials and those that are harmless for the environment (Johnston 2012), traceability and certifications (Henninger 2015) as well as fair working conditions and a model (Joergens 2006). In contrast to sustainable fashion, trying to slow down production to manageable timeframes, the fast fashion model that is omnipresent in today’s fashion system, tries to shorten lead times on production and distribution and aims at offering new products to the market at high speed (Choi 2014). In other words, the current fashion system has become synonymous with fast fashion, with designs quickly being replaced, designed for short lifespans, high turnover and mass production (Fletcher 2014). Considering this contrast between sustainable and fast fashion, the researchers decided to solely focus on articles which concentrate on sustainable fashion companies, leaving out fast fashion related content. Furthermore, topics that cover the luxury sector and the implementation of sustainability into already existing businesses were not considered. As previously mentioned, many research articles address the shift from fast fashion models to more sustainable business approaches. However, the researchers were not trying to investigate this development, but rather the state of businesses that were currently established sustainable fashion brands. Moreover, as the focus is on the retailer’s perspective and its challenges in dealing with the conflicts involved in sustainable fashion practices, issues related to the implementation of sustainability with case studies from the supplier’s side were eliminated to narrow down the range of relevance.

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1.5 Thesis outline This research is divided in six chapters. For an easier navigation through the thesis the outline is presented as follows: In chapter 1: ‘Introduction’, the purpose and background of this study, as well as the problem statement, are presented. Furthermore, the research questions and the delimitations of this thesis are given. In the second chapter: ‘Frame of Reference’ the key concepts of the study are explained to gain uniform interpretation for both reader and writer. By dividing it into three sub-themes, the characteristics of the fashion industry, sustainability in the fashion industry and sustainable fashion brands were explained in more detail. Chapter 3: ‘Methodology’ includes the methodology of the conducted research to show how this research was carried out. It addresses the research design, research method, the justification of the research, data collection, and data evaluation. In this way, the necessary data were collected. Thereafter, in chapter 4: ‘Results’, an overview of the publication initiates the chapter. Furthermore, the presentation of the gathered data which were collected through a systematic review of current studies of sustainable fashion brands are presented and segmented into three emerging categories: supplier relation, consumer influence and business models. In chapter 5: ‘Analysis’, the findings of the previous chapter are put into relation with the ‘Frame of Reference’ to answer the stated research questions. The overall outcome and main conclusions of this research are stated in chapter 6: ‘Conclusion’. Further, practical implication and potential research areas are presented.

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2 Frame of reference

In order to get a general, equal understanding, the following section displays relevant concepts which were explained to depict the researchers’ assumptions throughout the thesis.

2.1 The fashion industry and its characteristics Fashion is often taken for granted. From a necessity it became a status symbol. In the past, people used to look at the functionality of fashion, either as protection from environmental influences such as weather circumstances or as protection from injury (Steele 2005). Nowadays it is defined as "the cultural construction of the embodied identity" (Steele 1997, p. 1). Put it simply, fashion is the style of clothing worn by a group of people, most of whom are culturally, religiously, traditionally or otherwise connected such with values or views. It is used as a communication tool in society and reflects the individual (Barnard 2013). The industry behind fashion has developed mainly in Europe and America. It has grown enormously and is constantly increasing in complexity. For instance, it is not unusual that clothes are designed in one country, produced in another and sold in a third country (Burns et al. 2011). Due to worldwide economic differences, many fashion companies have largely shifted their production from industrialised to low-wage countries abroad. This creates an even more complex supply chain with a strong geographical spread that does not exist in any other industry. Globality is a concise character of the fashion industry (Fletcher 2014). The industry is driven by trends set by consumers and with the rapidly changing demands, speed is another important feature of the industry. Customers usually want the product immediately and are not willing to wait a long amount of time for it. In most cases, the time it takes to manufacture and transport a product is longer than the time a customer is willing to wait. By responsiveness and effective cooperation within the supply chain, lead times can be shortened and thus satisfy the consumer demands (Čiarniene and Vienazindiene 2014). Furthermore, the industry thrives on the ever-changing trend or in other words the ‘fashion cycle’, which is explained in Georg Simmel's words that “[…] fashion represents nothing more than one of the many forms of life by the aid of which we seek to combine in uniform spheres of activity the tendency towards social equalization with the desire for individual differentiation and change." (Simmel 1904, p.133). The fashion cycle thus can be defined as a collective process of constant change, in which specific styles experience a brief popularity only to be interchanged by others. This cycle is fuelled by two contradicting desires of people to conform and differentiate (Matsuyama 1992). Due to the permanent attempt of differentiation, favoured by digitalisation (e. g. influencers), trends often have a short life cycle of only a few weeks. In summary, the most striking attributes of the fashion industry are velocity, variety, volatility, complexity, dynamic and consumer dependency (Čiarniene and Vienazindiene 2014).

2.2 Sustainability in the fashion industry

2.2.1 General definition of Sustainability Sustainability means satisfying the needs of the present without compromising future needs. Besides natural resources, the concept also refers to social and economic resources. Thus, sustainability does not only concern environmental protection but also emphasises responsibility for and economic development. The origin of the definition comes from the Brundtland Report of 1987, which states:

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“Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It contains within it two key concepts:  the concept of 'needs', in particular the essential needs of the world's poor, to which overriding priority should be given; and  the idea of limitations imposed by the state of technology and social organization on the environment's ability to meet present and future needs.” (United Nations 1987, p.41)

The report was produced after decades of efforts to raise the standard of living in many countries. Industrialisation was intended to combat extreme . It seemed that economic development at the expense of environmental health and social justice would not lead to lasting prosperity. In the report "", headed by Minister Gro Harlem Brundtland, then Prime Minister of Norway and Head of the World Commission on Environment and Development, the above definition of sustainable development is given. A particular emphasis in this definition is on the long term and the introduction of ethical principles to achieve justice between present and future generations (Diesendorf 2000) and simultaneously harmonising the environmental protection with social and economic concerns. Therefore, sustainable development is the pathway towards achieving sustainability. In other words, sustainability is a holistic approach that takes into account environmental, social and economic dimensions and recognises that all must be considered together to achieve lasting prosperity. The following Venn diagram (Figure 1) depicts the dimensions and their set intersections (environmental, social, economic) of sustainability.

Figure 1: Venn diagram of Sustainability.

2.2.2 Sustainability issues in terms of the fashion industry The unvarnished truth about fashion is that it is a polluting and resource-intensive industry but it is simultaneously an important sector in the global economy as it provides employment for hundreds of million people worldwide (Ellen MacArthur Foundation 2017). However, there is an unrestrained demand for new products, which is induced by fashion trends created by retailers and in turn is carried out at the expense of the environment and workers, to drive economic growth. Nevertheless, a lot of fashion companies have to struggle to make profit

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while producing in Europe due to the high costs. Therefore, production is often moved to cheaper production countries in order to remain competitive (DeBrito et al. 2007). This emphasises the significance of economic impacts on sustainability.

Economic sustainability aims at achieving long-term economic growth and tries to utilise resources responsibly that support stable advantages and establish profitability. In addition, it incorporates the avoidance of harming social, environmental as well as cultural aspects (Doane and MacGillivray 2001; Reddy and Thompson 2015; Gopalakrishnan and Karthik n.d.). At the same time economic sustainability can be viewed as conflicting since businesses oftentimes focus on internal economic concerns compared to external factors due to the complexity of the economy. Doane and MacGillivray (2001) argue “if organisations or countries understood perfectly well what it meant to be economically sustainable, there would be full employment, less poverty and no bankruptcies.” (p. 18). Conventionally economic growth is striven for in such a manner that it weakens sustainability. Simultaneously, sustainability is conventionally striven for in ways that undermine economic growth (Greyson 2006). As previously stated in Chapter 1, economic growth contributes to an increase in wealth, income, the overall standard of living and upgraded healthcare resources. In addition to having numerous upsides, it largely contributes to the issues arising in the environment such as an overexploitation of natural resources and the increased accumulation of carbon emissions in the atmosphere (United Nations 1987). The more rapid the growth and thus consumption of materials, the more waste is compiled and the more likely environmental degradation and exhaustion become. Considering that the resource base is finite, economic activity and thus growth is at risk. Nevertheless, economic growth and taking profit are necessary to a certain extent for people to deal with issues other than the pure need to survive. Therefore, developed nations can more easily handle and target concerns surrounding environmental and social sustainability (Bascom 2016). According to McKinsey (2017), the industry has grown as fast as the turnover of products, i.e. the fast fashion cycles have increased and therefore there are more collections and even cheaper prices (Ellen MacArthur Foundation 2017). This puts more pressure on suppliers, as they are supposed to achieve within a shorter timeframe for less financial returns (McKinsey 2017). The fashion system is almost completely linear. Usually the production of clothing only happens in a short amount of time but simultaneously uses large amounts of non-renewable resources (Ellen MacArthur Foundation 2017). Linked to that the clothing ends up in or is incinerated, where high CO2 emissions are emitted. For a long time, problems relating to social standards or environmental guidelines were ignored in the fashion industry to achieve economic viability (Reuter and Zetterlund 2018). Only after the economy and society noticed that resources are becoming increasingly scarce the linear business model was scrutinised. This ‘take-make-dispose' model, or as in this thesis the researcher calls it ‘fast fashion’ model, has many negative environmental and social impacts. The effects on the environment which can be attributed to the textile industry are also becoming increasingly clear in one extreme case. The Aral Sea in Central Asia, once the world’s fourth largest lake, has now almost disappeared. One huge contributor to this environmental devastation is the vast quantity of water needed for the cotton production (Whish-Wilson 2002). Another example is the greenhouse gas emissions from textile production which amount to 1.2 billion tons per year. That is more than all emissions of international flights and sea ships combined (Ellen MacArthur Foundation 2017).

The social impact is emphasised through poor working conditions and exploitation especially in many producing countries (Fletcher 2014). In addition, harmful chemicals are used in

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manufacturing clothes which are dangerous for the workers in the factories on the one hand, and for the wearer on the other hand. Some substances are washed out during the manufacturing process and released into the environment, while others are only washed out during the use phase at the customer's premises. When clothes are washed, microplastic can be released and end up in the environment. Every year, approximately half a million tons of microplastics contribute to marine pollution (Ellen MacArthur Foundation 2017). With the emergence of many different environmental and social concerns, the textile industry is now increasingly trying to cover sustainability. Fletcher (2014) describes sustainability in fashion and textiles as an approach that “[…] fosters ecological integrity, social quality and human flourishing through products, action, relationships and practices of use” (Fletcher 2014, p. XVIII). Concern about sustainability issues in the fashion industry has also led to the increased formation of initiatives such as the Sustainable Apparel Coalition or the Ethical Fashion Forum. The United Nations (UN) Alliance for Sustainable Fashion was also officially founded in 2019. This puts pressure on the fashion industry from the UN to meet the Sustainable Development Goals (Unece 2018).

2.3 Sustainable fashion brands

Global and local fashion brands often express themselves differently when it comes to sustainability. Sustainable fashion is mostly associated with terms such as "green" or "eco" but also more exclusive terms such as "organic", "slow", "ethical" or "recycle" and refers to fashion production and consumption practices (Evans and Peirson-Smith 2018). In this thesis the authors use these terms synonymously. However, there is no universal definition for sustainable fashion and no industry standards are given (Joergens 2006). Chan and Wong (2012) defined eco-fashion “[…] as the type of clothing that is designed and manufactured to maximize benefits to people and society while minimizing adverse environmental impacts.” (Chan and Wong 2012, p. 194). They emphasised that the materials of eco-fashion are biodegradable or recyclable and there should be a focus on environmentally responsible production processes. According to Carey and Cervellon (2014), sustainable fashion is part of the slow fashion movement (referring to the movement). Joergens (2006) interpreted ethical fashion as a new approach of clothing companies which offer clothing that is fashionable and “[…] incorporate principles with sweatshop-free labour conditions while not harming the environment or workers by using biodegradable and ” (Joergens 2006, p. 361) or other materials. Pookulangara and Shephard (2013) highlighted social aspects as well and indicated to the consideration of the entire supply chain from e.g. the farmer to the consumer. According to Fletcher (2010) sustainable fashion practices involve small scale production, the application of local materials to support local markets, the use of traditional handcrafting techniques, season-less collection designs, long lead times for sufficient time to focus on quality and durability of items and prices that reflect environmental and social cost. Consequently, sustainable fashion can be described as fashion that is produced in the most sustainable manner, i.e. without exploiting or harming the environment and workers, and using materials that are biodegradable or recyclable. Moreover, the consumer use phase and behaviour need to be taken into account due to their enormous impact on the environment (Black 2011). Notwithstanding companies have to use their resources in an efficient and responsible manner to ensure consistent production and operational profit. The textile industry is energy and labour

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intensive and thus connected to high costs, inefficient processes and risk of industrial actions. The often reduced ability to invest in new technology is an additional obstacle for fashion businesses (Karthik and Gopalakrishnan n.d.). The consideration of all aspects of the life cycle of their products including production and consumption phases is inevitable for sustainable fashion companies. Furthermore, they need to encourage their customers to adopt more sustainable behaviour by consuming more thoughtfully, through the careful use of clothes, but also by rethinking their washing behaviour and practices (Fletcher 2014). In addition, it should be noted that sustainable fashion brands also have to deal with the rumour of green-washing2, as unjustified or exaggerated claims are made that these fashion brands only pretend to market sustainability and environmental friendliness in order to have a better image. However, sustainable brands are trying to put their statements and core values into action to make a difference in the environment and society, not to improve their reputation (Dahl 2010).

Altogether, sustainable fashion can be seen as a holistic concept of brands that are striving to balance the economic, environmental and societal dimension of their business. In the researchers’ eyes, these companies reflect their concern for environmental and social issues in the fashion industry within their core values and business mission and are mainly denoted as sustainable fashion brands in this thesis. Through the review of scholarly literature about sustainable fashion brands, the researchers identified three different areas that were emphasised by research on sustainable fashion brands. The determined areas are the consumer behaviour in relation to fashion, corporate social responsibility in the fashion industry and innovative business models to tackle sustainability issues in the fashion industry. Often, these areas overlap each other and vary in dependency.

2.3.1 The consumer’s behaviour in relation to fashion In recent years, a new type of consumer has emerged that questions values and seeks new ways of fashion consumption as environmental influences of the current fashion system are becoming a larger topic of concern (Niinimäki 2010). While these consumers demand transparency from companies within the fashion industry, their consumption choices do not reflect their concern for social and environmental issues. According to research, there is a gap between the knowledge of environmental and social sustainability concerns and the actual consumption behaviour of such items (Joergens 2006). Consumption is driven by the consumers wish to express meanings and create an identity about oneself (Matsuyama 1992). In the case of fashion and clothing, which is on constant display, this is particularly valid (Berger and Heath 2007). Unfortunately, the desire to construct an identity and portray oneself as fashionable oftentimes exceeds the desire to purchase ethically. Even consumers that look for ethical or sustainable fashion options deal with the desire to change their wardrobe to dispose of items that are no longer in style after only limited use which in return leads to increased waste (Morgan and Birtwistle 2009). The awareness of the waste generation in relation to the disposition of textile still seems rather low (Birtwistle and Moore 2007). Birtwistle and Moore (2007) believe that this phenomenon exists due to the lack of knowledge of negative influences of the fashion industry on the environment. Further factors have a larger influence on the consumer’s purchasing decisions such as value, trends, brand image, and price (Solomon and Rabolt 2004). Previous studies have shown that fashion consumers consider buying sustainable fashion but are not willing to make personal sacrifices such as paying a larger amount (Joergens 2006).

2 “Behaviour or activities that make people believe that a company is doing more to protect the environment than it really is” (Cambridge University Press 2020).

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The fast fashion industry recognises and utilises the consumers continuous demand for newness, which is especially successful among young female consumers that are unaware of ethical circumstances within the production chain (Morgan and Birtwistle 2009). It is essential that consumers learn to understand the contrast between the inexpensive fast fashion items that are widely available to them and their profound interest in environmental and social sustainability concerns in order to generate change (McNeill and Moore 2015).

2.3.2 Corporate social responsibility in the fashion industry The European Commission define corporate social responsibility (CSR) as “the responsibility of enterprises for their impact on society” (European Commission 2011). According to Campbell (2007), firms should not knowingly practice business that potentially harms their stakeholders, stressing their centrality to CSR. Being identified as a cluster concept, it is also connected to business ethics, corporate citizenship, sustainability and environmental responsibility (Matten and Moon 2005). What is essential to all definitions of CSR is that a company’s actions must go beyond their own immediate interest in profit-maximisation and past solely following laws and regulations (McWilliams and Siegel 2001). Therefore, before making business decisions, socially responsible firms take the impact of all stakeholders, that could be affected by their actions, into account. Further, they should balance the needs of all stakeholders with their own need to generate profit (Perrini 2006). It is an integral part to several companies’ customer relationship management programs and can deal as a source of competitive advantage especially when incorporated at a firm’s core (DiBenedetto 2017). Companies are facing social and environmental pressures from several stakeholder groups which explains the overall increase in concern for CSR (Matten and Moon 2005). Social and environmental stress can, for instance, originate from customers to suppliers (Baden et al. 2009). The fashion and apparel industry is especially relevant in relation to CSR as it has significant social and environmental influences and is progressively engaged in such practices. Worldwide, the industry makes up for 7% of all exports and employs more than 20 million people (Allwood et al. 2006). Fashion brands oftentimes deal with complex supply chains as suppliers are distributed worldwide. To tackle ethical and environmental issues, fashion brands adopt CSR measures including , auditing initiatives, development of codes of conduct, adoption of supplier disclosure and transparency practices along the supply chain (Todeschini et al. 2017).

2.3.3 Innovative business models to tackle sustainability issues in the fashion industry Recently, the interest in integrating corporate sustainability into fast fashion business models has risen with companies such as Swedish fashion retailer H&M integrating take-back schemes into their stores to assume responsibility for the of apparel waste (Remy et al. 2016). Business models define the basis that comprises the way a company does business (Osterwalder et al. 2005). Approaches such as sustainable business models have been introduced to describe innovative concepts that can be beneficial to both the firm and the society (Stubbs and Cocklin 2008). These concepts due to their holistic approach have the potential to create significant change in the way companies currently conduct business (Osterwalder et al. 2005). Nowadays, a number of fashion brands launch new sustainability projects to challenge fast fashion business models. These brands e.g. introduce new textile fibres as new resources or innovative revenue channels through clothes leasing (Pedersen et al. 2018). To avoid harming the environment and to consider society, companies are looking towards the implementation of innovative business models that can help thrive in a competitive market setting. Especially in the resource-intensive fashion industry such models can offer numerous

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opportunities for instance the reduction of environmental impacts (Todeschini et al. 2017). They can provide for the implementation of a within the textile and fashion industry and help tackle challenges faced due to climate change as well as resource scarcity (Tunn et al. 2019). Circular economy (CE) is a progressively popular method to build sustainable companies. By avoiding excessive through the use of several product and material loops (Ellen MacArthur Foundation 2015), businesses try to achieve a sustainable society and economy. To achieve circularity, consumption and production practices need to be altered. Innovative business models have the potential to change both practices as they define a business at its core, outlining the way the company conducts business and further influencing the relationship with the consumer (Tunn et al. 2019). Again, putting this into the fashion perspective, these business models can function at several steps of a garments lifecycle, e.g. utilising scrap materials from industry waste and turning these into high fashion shoe designs or on a service level providing consumers with a lease service for clothing items (Todeschini et al. 2017). The focus throughout the research hereby lies on product-service systems that can be used to fulfil consumers needs in innovative ways through services that can lead to a shift in ownership structure. This can include the sale of a one-time-use rather than the ownership to a product, the shift to a leasing society, a change from throw-away to a repair society and consumers’ attitudinal changes from product to service focus (Mont, 2002). The term collaborative consumption refers to collaboration as a supporting ecosystem in which resources and knowledge are being shared and the diffusion of sustainable practices is promoted. It allows for business model experimentation and therefore is a critical driver for start-ups and small businesses. Second hand as part of collaborative consumption refers to the selling or donating of already used clothes. It promotes the reuse of items that are otherwise not worn and reduces demands for new items and thus also raw material. The concept of fashion libraries offers a service in which garments can be rented and used for a limited amount of time. In this, consumption shifts from product-centred to service-centred. (Todeschini et al. 2017)

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3 Methodology

In the previous chapter the stepping stone to the research is laid out. The general issues within the fashion and textile industry are presented and narrowed down to the major concerns for this research paper. The methodology utilised for the study is presented in the following section, including the data collection methods and a description of the analysis.

3.1 Research Design The research was conducted using a qualitative approach. According to Bryman (2012), this approach generally surrounds words rather than numerical data. This data is used to understand the social world through the analysis of the interpretation of the world by its participants. This can include both, the researchers and the interviewees of a study. The purpose of a qualitative study is to understand the ‘how or why’ to gain a contextualised understanding of a certain topic, which is used to explain certain behaviours or actions. This is achieved through an interpretive analysis (Hennink et al. 2010). While the general approach to qualitative research is oftentimes inductive, generating theory after analysing a set of data, according to Silverman (1993) deductive reasoning can be a valid approach to testing theory too. The approach to the study was based on deductive theory as the starting point is the hypothesis that a conflict between being economically stable and acting sustainably exists for sustainable brands. According to Bryman (2012) it is the most common perspective of the type of relationship between theory and research. It requires the researcher to form a hypothesis that can be formed into practical terms that are researched using data collection methods. First comes the theory followed by the process of gathering data, the presentation of findings and confirmation or rejection of the hypotheses and an alteration of the theory (Bryman 2012). The study was solely based on the collection of secondary data, which was previously gathered by other researchers. The utilisation of such data can help researchers start off their study process more easily while also offering the possibility to avoid the time-consuming process of having to gather primary data in order to find answers to their research questions (Bryman 2012). The review on literature was used to introduce the reader to different subchapters concerning sustainable fashion retailers and the challenges they face, which lastly lead to a support of the initial theory. The gathered secondary data was narratively discussed throughout the finding and analysis chapters.

3.2 Research Method This study is based upon a systematic literature review in which data is collected and literature is analysed. It can be described as a replicable, scientific method which minimises bias by utilising peer-reviewed published studies. It requires a transparent process of searching and evaluating the data disclosing the researcher's decisions, steps and interpretations (Tranfield et al. 2003). The systematic literature review, analysing secondary data, is especially relevant for students as it offers the possibility to collect valuable data while also enabling more freedom in terms of time management and the formulation of research questions, the analysis and interpretation of their data. High quality data is being collected that could otherwise not be gathered in the given timeframe such as results of surveys with numerous respondents and the possibility of geographical spread. That way, researchers are able to compare data from different cultural backgrounds, and thus can draw larger and possibly more relevant conclusions

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based on the collected data sets (Bryman 2012). This is especially relevant to the fashion industry that is known to be dispersed globally with its complex supply chains. The study is based on four steps of a systematic literature review as given by Bryman (2012): formulation of purpose, review planning, review conducting and the presentation of findings. A purpose of the study was initially formulated with the support of a research question. This built the base to define keywords and narrow the search for relevant studies, which was the following step. The search was conducted and described in a way that enables replicability. In this step the researcher further defined the sources of data. Next, data was collected and further narrowed down by language. Generally, it can be limited to a certain time period or location if one wants to focus on a significant area. Further a particular research method can be selected or left out. The final step was the analysis of the data and the linking of the different studies as the result. In the case of a qualitative research approach, the data is oftentimes presented in a narrative form that combines key outcomes (Bryman 2012). Since the given timeframe to conduct the research was limited to ten weeks, the researchers narrowed down their topic’s focus to assure validity and consistency of the results.

3.3 Selection and Justification of Research The study approach was chosen to gain an overview of the current state of literature based around the topic of sustainable brands and the challenges they face in the competitive environment of the fashion and textile industry. Extant literature can be found surrounding the consumer perspective on sustainable clothing and its consumption (e.g. Joy et al. 2012; Mora et al. 2014; Connell 2010; Ha-Brookshire and Norum 2011; Perry and Chung 2015). While searching for data on sustainable brands and their retail perspective, only little information can be encountered (Yang et al. 2017). The research aims at providing a basis on the topic as there is currently a lack of studies going into the retailer’s direction and the challenges that need to be dealt within the implementation and workings of sustainability as a core value of a fashion and textile brand. Additionally, it can form a starting point for further research handling challenges that sustainable fashion brands face.

3.4 Data Collection Based on the purpose of wanting to define how sustainable fashion brands can deal with the paradox of requiring sales and wanting to contribute to reduced consumption and lowered impacts on the environment, keywords were defined. To create a significance of the collected data, no time frame was set to the search for articles. The first relevant papers were found after 1998. The researchers believed the Rana Plaza incident, mentioned in the introduction chapter, to be a turning point for many companies in the fashion industry which led to an increase in literature on the topic past year 2013. After a preliminary data analysis based on the topic, the defined keywords were combined as shown in Table 1 below. The asterisk feature (*) was used in order to include all words starting with a particular search term to include all words with the same root. The Boolean operators (AND and AND NOT) were utilised as a measure to combine certain words and topics with one another or to eliminate irrelevant areas.

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Table 1: Keyword Search.

Themes Keywords Sustainability sustainab* OR eco OR ecologic* OR green* OR slow OR fair AND

Textile textil* OR cloth* OR fashion OR garment* OR apparel* AND

Brand brand* OR retail* OR compan* OR organization* AND NOT “fast fashion” AND NOT luxury AND

Paradox / Motivation motivat* OR reason* OR paradox* OR conflict* OR contrast* OR contradict* OR discrepanc* OR challeng* OR barrier*

The data are collected from Scopus, the largest abstract and citation database of peer-reviewed articles including books, scientific journals and conference proceedings (Scopus 2019). The chosen sources were peer-reviewed journal articles, while conference papers, reviews, working papers, book chapters and commentaries were filtered out. The search was further narrowed down to articles written in English according to the researchers’ language skills. Since the focus of the research is on the management of sustainable brands, the search was limited to articles in the subject area of Business, Management and Accounting. All limitations are stated in Table 2 below. The first step resulted in a number of 191 articles.

Table 2: Search Limitations.

Limitations Reason Field Sustainable fashion challenges Search area Title, abstract, keywords Source type Peer-reviewed articles Filter out Reviews, conference papers, working papers, commentaries, book chapters Subject area Business, Management and Accounting Language English

Following, the study decreased the initial list of 191 articles through the examination of the relevance of title and abstract by using explicit keywords and filtering out articles that were concentrated on different subjects and industries. After evaluating all abstracts of the study, they reached a number of 70 relevant results. Next, the full texts of the articles were evaluated on their relevance to the retailer’s perspective within the fashion industry with a focus on sustainability. Articles that were not contributing to the purpose of the research were excluded and hence the total number of the selection was further reduced. The outcome were 40 studies that were analysed. The search scheme is presented in Figure 2 below.

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Figure 2: Search Process

3.5 Data Evaluation Following, the data was analysed and further narrowed down to reduce the large corpus of information into themes emerging from the literature. In order to categorise the articles, these were read and described in short key terms. After, the articles most relevant sections were highlighted and the texts were grouped together according to their themes. Three themes that emerged from the literature were identified to structure the findings: business model, supplier relation and consumer influence. These were highlighted and organised through colour-coding within the research articles as shown in Appendix I. In a next step, the data gathered from relevant articles is analysed using a narrative approach. It is used to generate understanding instead of accumulating knowledge, therefore the course of reviewing the literature is more ambiguous and less focused (Geertz 1973). While the systematic review is generally replicable, and in the case of this research can be simulated until the point of analysis, the narrative form of the analysis makes the study less imitable. The systematic way of searching for articles offers opportunities such as transparency and the comprehensiveness of the search for literature (Bryman 2012). This element of transparency is included in the study in the form of key terms used for the article search that are specified above. Moreover, the narrative analysis of the found articles has advantages of flexibility that are especially more appropriate to perform qualitative research. The narrative analysis offers the possibility to evaluate different types of data and themes to bring them together (Bryman 2012).

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In the case of this study, all papers relating to the topic of sustainable fashion brands and their challenges and motivations were reviewed in the field of business, management and accounting to create a full picture of what influences them and which themes are depicted in the literature. While a number of articles stating the most significant findings are collected, the analysis of these is reliant on the researchers’ subjective interpretation. The analysis of secondary data in qualitative research allows the researcher to reveal new interpretations of the examined data or to evaluate data that were not mined by previous investigators (Bryman 2012). The researchers’ goal is to review the most important data to be found on the topic of sustainable fashion brands challenges and to generate a full picture of these linking to stakeholder influences.

3.6 Research Quality Qualitative data analysis is rather difficult as a large body of information is collected that needs to be structured. The richness the data can provide can mean a challenging analysis. Thus, themes that emerge from the dataset can help the researcher in the coding and interpretation of the collected information. However, as the data is interpreted and influenced by the researchers’ preconceptions, qualitative data analysis can be seen as subjective and thus weaken internal validity. In the case of a structured literature review, the reliability of the study is strongly linked to its replicability. This means, that the study could be repeated and conducted the same way in a different setting and generate the same results (Bryman 2012). Throughout the research, all steps taken to collect the data were presented, with the use of keywords shown in Table 1. The description of the data collection is fully described allowing for full replicability. Throughout the research, decision making factors, research techniques and methods were kept record of and can be tracked throughout the thesis. This aimed at reaching a high level of transparency and thus external reliability (Bryman 2012). Since the study was limited to a given timeframe of only ten weeks, limited data could be collected and analysed. To ensure a thorough analysis of all relevant data, more time is required. Systematic literature reviews entail the collection of all relevant data related to a certain topic as in this case the paradox of sustainable fashion brands. The data is not restricted to a certain time period, geographical location and different types of data are collected such as quantitative and qualitative data, case studies as well as survey results (Bryman 2012). This ensures increased external validity as the data gathering is not limited. Thus, the thesis outcome can be generalised.

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4 Results

4.1 General overview of publications The analysis results of the review show that the 40 research articles come from 17 countries, which are summarised by Figure 3. According to the Scopus database, the measures were taken by the number of publications for each country based on the country of publication. It turned out that most articles (17) came from the United States of America, followed by the United Kingdom with seven research papers. Denmark, Netherland, Portugal and Sweden contribute three articles each to the results. Five additional countries are represented with two research papers each (Brazil, Germany, Italy, South Korea and Switzerland). Finally, the countries China, Finland, France, Peru and United Arab Emirates have each contributed one article to the final results. The publication overview by country shows that research of sustainability in relation to fashion brands has been carried out mainly in Western countries, which confirms the statement in the UNESCO Science Report that research into sustainable development comes mainly from the European Union and North America (UNESCO 2019).

Figure 3: Overview of the research articles by country.

Figure 4 shows the distribution of research articles over the study period between 1998 and April 2020. It shows that research focusing on sustainable fashion and its characters has accelerated from 2013 onwards, indicating that interest has increased after the Rana Plaza disaster and yet this area is relatively new but growing. The red trendline illustrates the continuous increase in the sustainability research domain. For example, in the years before 2013, no articles were found that focused on the orientation of sustainable fashion companies and their business models; however, in the last four years, two, four, four and three research articles have been published in this area. Thus, the trend of articles on this topic is growing. Before 2013, the focus of research was on consumer views on sustainable fashion, with six out of ten articles in this period being consumer-related (see also Appendix II).

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Figure 4: Distribution of the research articles between 1998 – 2020 ( = = until April 2020). The analysis results show that the research articles come from 19 journals. Figure 5 summarises the selected papers by journals. The largest sources are the Journal of Fashion Marketing and Management (8 articles) and the Journal of Cleaner Production (7 articles), followed by the International Journal of Consumer Studies (4 articles), the Social Responsibility Journal (3 articles), the Journal of Retailing and Consumer Service (2 articles), the Journal of Global Fashion Marketing (2 articles) and the Business horizons (2 articles).

Figure 5: Overview of the research articles published by journal. In order to obtain a coherent overview of the topics covered by the literature on sustainable fashion, the content of all 40 research articles was carefully reviewed and analysed. The authors carried out this classification in three steps. First, the articles were read in full and sorted into provisory subject areas based on the researcher's assumption of similarity factors. Secondly, the areas identified were compared and divided into main themes. After the articles had been further

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classified according to the main categories, a repeated data analysis was carried out, this time focusing on the relevance of the research. The results of the data analysis indicated that the research articles can be categorised into three main areas, which are (i) business model, (ii) supplier relation and (iii) consumer influence. In addition, some articles overlap in the themes due to the mutual influence of different factors as already mentioned in the frame of reference chapter (2). For this reason, some articles were assigned to several categories. The following Table 3 shows all authors of the selected literature divided into the three main areas. To get a more accurate idea of the article allocation, a total of 19 papers were selected for the business model category. For supplier relation eleven articles were chosen and 15 results were taken in the category of consumer influence. For a detailed overview, Appendix II is referenced.

Table 3: Content Analysis Results of Topics of Research Articles.

Content Areas Articles Freudenreich and Schaltegger 2020; Jin and Shin 2020; Lee and Chow 2020; Machado et al. 2019; Park and Joyner Armstrong 2019; Pedersen et Business model al. 2019; Tunn et al. 2019; Ashby 2018; Gopalakrishnan and Matthews 2018; Jacobs et al. 2018; Lang and Armstrong 2018; Franco 2017; Todeschini et al. 2017; Hvass 2014; Armstrong and Lang 2013 Alexander 2020; Li et al. 2020; Ashby 2018; Di Benedetto 2017; DiVito Supplier relation and Bohnsack 2017; Todeschini et al.2017; Huq et al. 2014; Curwen and Sarkar 2013; Goworek 2011; De Brito et al. 2008; McSpirit 1998

Dickenbrok and Martinez 2018; Jacobs et al. 2018; Di Benedetto 2017; Grappi et al. 2017; Egel-Zandén and Hansson 2016; Harris et al. 2016; Perry and Chung 2015; Bly et al. 2015; Clancy et al. 2015; Ritch 2015; Consumer influence Rodrigues and Borges 2015; Kozar and Connell 2013; Stall-Meadows and Davey 2013; Hill and Lee 2012; Goworek 2011; Ha-Brookshire and Norum 2011; Connell 2010; Littrell et al. 2005; Meyer 2001

4.2 The relation between fashion brands and suppliers Fashion brands often have to deal with transactional and poorly coordinated supply chains, resulting in a lack of environmental and social responsibility. One of the most important players in this supply chain is the supplier (Ashby 2018). As previously mentioned, the supplier network is especially complex in the fashion industry. Due to strong competition in this industry, the costs of suppliers are pushed down increasingly and the production is moved to low-wage countries (Todeschini et al. 2017). This extensive outsourcing of manufacturing contributes to major environmental challenges, particularly around waste and resources usage (Ashby 2018) and the difficulty for fashion brands to control working environments and conditions rises (DeBrito et al. 2008). With the emergence of increased consumer interest in social aspects of the fashion supply chain, several non-governmental organisations (NGOs) were established in the 1990s to encourage fashion brands to source their products from manufacturers that have made sustainability part of their values (Goworek 2011; DeBrito et al. 2008). According to Todeschini et al (2017), for many suppliers, sustainability is not always part of their corporate culture. Therefore, the implementation of sustainable practices is on the one hand a sign of commitment, but on the other hand also a major challenge. DeBrito et al. (2008) argues that there is an apparent regional difference in how the term sustainability is

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understood by the supplier side. This is clearly evident in environmental, health and safety legislation between Europe and Asia. These differences in perspective, make it difficult to have a common goal, common mission, to ensure long-term success for all parties.

4.2.1 Environmental issues connected to suppliers As previously initiated by Ashby (2018), the complex and cost-driven industry is strongly linked to environmental challenges that are becoming increasingly important. In particular, the use of natural resources, chemicals, waste and the resulting environmental pollution are of great importance and must be considered throughout the supply chain (Goworek 2011). Environmental issues cannot be treated as a single problem and isolated from other activities in the supply chain. Elementary decisions are made at the design and development stage on how and where something can be produced, distributed and disposed of, and therefore have a huge impact on whether or not environmental issues can be minimised (Ashby 2018). With materials (e.g. recycled materials, sustainable fibres) and environmentally responsible manufacturing processes (e.g. natural dyeing processes, technologies), fashion brands can on the one hand act more sustainably and responsibly and on the other hand, this can also bring relevant business benefits. However, this is associated with challenges and not always easy to realise as a fashion brand (Todeschini et al. 2017). A close cooperation with suppliers could enable fashion brands to develop and test new and innovative technologies and techniques in order to reduce the environmental impact together (DiVito and Bohnsack 2017). Furthermore, local production, geographically closer to the lead- firm, could be another aspect to reduce negative environmental impacts such as global transport and at the same time increase supply chain transparency. Fashion brands also need to work with suppliers who can meet the requirements of environmental concerns and ensure that materials are used in the best possible way with minimal to no waste (Ashby 2018). Furthermore, financial policies could be an incentive for fashion brands and suppliers to use more environmentally friendly materials and processes. By supporting policy makers through grants or approvals, collaboration between fashion brands and suppliers to develop new environmentally friendly materials or processes could be improved (DiVito and Bohnsack 2017).

4.2.2 The connection between CSR and supplier The increased demand of the customer for sustainable clothing leads to the growth in pressure on globally networked fashion brands which thereby tend to focus more on their social responsibility. An important function is the selection of suppliers, as e.g. responsible sourcing of merchandise can help to fundamentally improve corporate social responsibility (CSR) (Goworek 2011). Further important CSR measures can be taken through sustainability reports, third party audits (certifications), development of codes of conduct and labour safety programs, supplier disclosure and transparency practices throughout the supply chain (Todeschini et al. 2017). Accordingly, these measures further shift the pressure onto suppliers, because fashion brands want to maintain their prices, or even lower them to remain competitive (DiVito and Bohnsack 2017), but at the same time purchase environmentally friendly materials (Goworek 2011; McSpirit 1998). In addition, fashion brands demand their suppliers to act more sustainably, but are not prepared to share the immense costs of implementation. Furthermore, the adherence to the agreements of code of conducts is difficult for suppliers. Firstly, the conditions differ between the multiple fashion brands and there is an absence of constant guideline and secondly the cultural and socio-economic conditions of the countries are very different (DeBrito et al. 2008), especially in developing countries (Huq et al. 2014; Li et al. 2020). As a result, suppliers have to struggle to meet all requirements. Huq et al. (2014) argues

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that for example third party auditors have higher demands than the fashion brands themselves. Depending on who comes to audit, other aspects are controlled and documented. Moreover, codes of conduct often refer to the exclusion of child labour. This is an issue that is taken for granted and easily implemented from the perspective of developed countries. However, the reduction or ‘prohibition’ of child labour, especially in countries such as Bangladesh, does not solve the problem, but only postpones it and perhaps even aggravates it. If children are banned from working in the fashion industry, they will not stop working, they will look for work elsewhere that is possibly much more dangerous and less regulated such as construction. This example once again highlights the complexity of sustainability, especially its social aspect (Huq et al. 2014). Another critical point in the area of certification requirement’s audits is that the purpose of compliance to these is primarily for fashion brands wanting to have control over their suppliers. But this can lead to an unequal balance of power between these two parties (Alexander 2020). A further hurdle between fashion brands and suppliers often is the difference in knowledge of sustainability (DeBrito et al. 2008). Communication usually exclusively happens between the fashion brand and the first-tier supplier and the sub-suppliers are not included in the "representative" supply chain. They assume that the first-tier supplier will pass the information on to their suppliers (subcontractors). Thus, the material flow is maintained, but the exchange of knowledge, especially about sustainability, is limited. Therefore, it is challenging to achieve knowledge and an overall understanding of the principles of sustainability and its differences between across the entire supply chain (Alexander 2020; Huq et al. 2014; Li et al. 2020).

4.2.3 Measures for sustainable fashion brands and their suppliers regarding CSR A sincere interaction between the fashion brands and their suppliers, hence can lead to strong, long-lasting and trusting supplier relationships. This can be reinforced with shared environmental and social principles (Ashby 2018). Through closer cooperation between fashion brands and manufacturers, social responsibility, as well as ecological responsibility, can be seen as strategic resources for the manufacturing company that at the same time act as competitive advantage (DiBenedetto 2017). Through collaborative, often personal supplier relationships, fashion brands can track their environmental and social performance and share the information with other stakeholders. Through good partnership, sustainability challenges can be tackled together. In addition, partnership can bring together several partners and create a buyer-seller network that shares the same values and, as a united force, can handle more complex challenges (Alexander 2020; DeBrito et al. 2008). By extending their vision and commitment to their suppliers, fashion brands can ensure their sustainability strategy and share knowledge effectively (Ashby 2018). Another way for fashion brands to build a good, trusting relationship with their suppliers while demanding sustainable practices is through a support service mechanism. This refers to encouraging manufacturers to use more sustainable processes and materials by providing assistance. However, there are difficulties in partnerships, as well as in support service, when it comes to explicit behavioural changes. This means that if, for example, a partner/supplier does not agree, they will not necessarily change everything immediately and this can lead to an imbalance of power (DiVito and Bohnsack 2017; Alexander 2020). Nevertheless, according to Alexander (2020), a combination of support service and partnership is especially useful for smaller suppliers who cannot afford expensive certifications. Together with fashion brands, mostly sustainable fashion brands, they can address the benefits of co- developing ecological innovations and social projects (Todeschini et al., 2017). The trust

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between fashion brands and suppliers can also ensure the implementation of CSR policies (Goworek 2011) and the suppliers' needs can be taken into account (Curwen et al. 2012). Fashion brands that have a broad knowledge of sustainability must be able to share this knowledge with their suppliers or rather with the entire supply chain and educate them if necessary. Educating suppliers to meet social and ecological standards (McSpirit 1998) also includes the understanding that corporate social responsibility can lead to a better working environment (Li et al. 2020) and thus to increased productivity (Huq et al. 2014). Put it simply, social sustainability can lead to economic benefits. This can be implemented, as mentioned above, through supplier education, but also through training of employees of suppliers. By providing manuals on workers' rights and codes of conduct, both in a local language to provide greater transparency and with reference to regional circumstances, suppliers and workers can benefit and build strong, long-term relationships (Huq et al. 2014; Todschini et al. 2017). In addition, DiVito and Bohnsack (2017) point out that speed is not one of the essential factors for sustainable fashion brands to remain competitive. It is sometimes of higher relevance to search more intensively for appropriate suppliers and materials in order to create long-lasting products and relationships.

4.3 The consumer influence on sustainable fashion brands As the present consumption behaviour of fashion contributes to detrimental environmental influences, there is a growing concern for sustainability challenges (Birtwistle and Moore 2007). Through their ever-increasing demand, consumers are driving the success of the fast fashion movement. Trendy items are sold at favourable prices with their predetermined purpose of only lasting a few numbers of washes (Di Benedetto 2017). Further, consumers are a big contributor to the overall footprint a garment leaves behind post-purchase. The maintenance of their items accounts for more than half of its total energy consumption (Enquête-Komission, cited in Meyer 2001). Fashion brands are increasingly working on the development of more sustainable options for their customers and on marketing these items to promote sustainable consumption (Joergens 2006). The term ‘sustainable consumption’ first came up in international policy and studies on , the action plan that was adopted 1992 at the Rio in order to tackle sustainable development. The core of the concept meant a change in the way goods were produced and how these were consumed, the background being the strong driving force consumers have on the transformation of a market in terms of social and environmental regards (Seyfang 2011). Later on, this framework was extended in order to include features of reusability, compostability, recyclability and sufficiency (Princen 2005). The concept of ‘fashion’ other than the purpose of clothing that serves the needs of coverage and decency, deals as a manner to reflect meanings and shares mutual social understanding (Bly et al. 2015). Fashion offers the possibility to express one’s uniqueness while also representing social conformity, it is dictated by external factors and pointless consumption. On the other hand, style is exclusive to an individual and a timeless statement (Mikkonen et al. 2014). In a study by Hill and Lee (2012) consumers highlight that fashion and sustainability are incompatible since fashion is about newness and change driven by trends, which simultaneously makes it so captivating. Generally speaking, people carry a positive attitude toward the environment and show eco- friendly behaviours throughout their daily routines (Perry and Chung 2015). In contrast, their sustainable-apparel purchase behaviour does not reflect their beliefs. While a majority of people respond positively to the idea of sustainability as a step in the right direction (Hill and Lee

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2012), they are barely influenced by the environment while doing clothing acquisitions despite them recognising different benefits that it could yield such as energy and resource savings, environmental protection, health and benefits for future generations. There is a gap between attitudes towards sustainable fashion and the related purchasing behaviour (Perry and Chung 2015). Moreover, consumers are unaware of their influence on the environment throughout the use-phase of their items through both washing and product disposal. Societal norms of frequencies, temperatures and sizes of washing loads prevent consumers from adopting more sustainable washing behaviours that could have a big impact on energy use. Consumers, unaware of their disposal influences, are no longer utilising their apparel until it is worn out since it can more easily be replaced than fixed, repurposed or redesigned. The disappearing skills for mending clothes are further contributing to this phenomenon. However, as the purchasing of high-quality items is more challenging, even when consumers want to use their items for a longer time, the low quality, that is nowadays oftentimes the standard, prevents them from doing so (Harris et al. 2016).

Different factors have an influence on the consumer’s willingness to purchase more sustainable fashion items, these can be broken down into internal and external barriers. The following subsection will deal with internal barriers including knowledge and attitude challenges and external barriers incorporating availability, economic and societal issues that hinder consumers from purchasing in a more sustainable manner:

4.3.1 Internal barriers The majority of consumers lack knowledge in the relationship between apparel production and consumption and its influence on the environment (Connell 2010; Hill and Lee 2012; Harris et al. 2016). In a study by Connell (2010), participants stated to not know more than broad generalisations, such as being aware that waste is generated during production processes. Participants further lacked knowledge of environmental effects in relation to different fibres. They wrongly assumed man-made fibres to have larger impacts on the environment compared to natural fibres. Moreover, they admitted a lack of education in sustainable fibre choices which prevents them from making more conscious choices. Perry and Chung (2015) further state that sustainable clothing lacks emotional benefits. A participant in their study states “the reason why I purchase [Eco-Apparel] is because I have the needs. If there is a product that can meet my needs, change my life, but it is not Eco-Apparel, I think I still will purchase it.” (Perry and Chung 2015, p. 113). Consumers are not willing to make a bigger effort to purchase more sustainably (Perry and Chung 2015). Further, consumers are sceptical about the trustworthiness of sustainably marketed apparel and the positive effect a sustainable purchase can have. They believe that they are oftentimes confronted with false claims and are therefore subject to green washing (Hill and Lee 2012). They doubt both the accuracy of the claims as well as the motives retailers have making them, thus believing it is another way for them to sell (Harris et al. 2016). Sustainable clothing is moreover still perceived as less desirable in terms of its look. The items are seen as less stylish and shapeless when compared to mainstream clothing. Further, they believed sustainable fabrics such as gave the look of a subculture style they did not want to be associated with: “It’s almost like the people who produce that clothing assume that everyone that wants hemp clothing is a hippy or something.” (Connell 2010, p. 282). Along with the style, consumers criticised fit. Sustainable apparel was associated with wide,

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unconstructed, flowy items made of organic hemp. They consider themselves more open to purchasing sustainable apparel items once the fit is tighter and more flattering (Connell 2010).

4.3.2 External barriers Consumers emphasise the lack of availability of sustainable clothing options and the limited knowledge of sources for acquiring these as external barriers. They believe, only limited choices that are desirable are available and that sustainable fashion lacks certain categories altogether, such as footwear, formal, intimate, outdoor and business wear. Further, they compare organic clothing to organic food options. Conventional food options are oftentimes located right next to the organic ones, which provides a possible choice. In comparison, apparel selections are much more restricted and the limited accessibility does not allow consumers to make ethical choices all around (Connell 2010). Another concern is price. Typically, the sustainable option is more expensive. Studies have shown that consumers are not willing to pay a higher price for organic cotton clothing compared to conventional cotton. They require other tangible benefits such as a strong brand image, colour choice, fit, reasonable price and promotional campaigns. Moreover, age and gender influence the likelihood of purchasing sustainable clothing items. Organic apparel is more attractive to younger consumer groups while sustainable apparel especially appeals to women (Ha- Brookshire and Norum 2011). A study by Hill and Lee (2012) on consumption behaviours of Generation-Y shows that younger consumers would purchase ethically if the price was reasonable. Sustainable clothing is oftentimes perceived as more expensive and therefore neglected (Hill and Lee 2012). Participants in a study by Connell (2010) likewise state that they would buy more sustainably but are constrained due to limited economic resources. Harris et al. (2016) believe to be pushed by social pressures induced by the fashion industry and media that purport the need to update one’s wardrobe regularly and not be seen wearing the same outfit twice. Social pressures further restrict conscious consumers in the way they dress in professional settings in which a certain appearance is expected. Hemp e.g. is not seen as an appropriate fabric in academic environments, which limits the consumer to conventional apparel choices (Connell 2010).

4.3.3 Sustainability-minded consumers Large market potential seems to be arising from sustainability-minded consumers that prioritise self-enhancement aims. These consumers concentrate on personal advantages of sustainable apparel, like health benefits through the use of organic materials and emotional benefits achieved by contributing to a better society (Ha-Brookshire and Norum 2011). By them, sustainability is seen as a holistic endeavour which demands environmental and social attention. They believe that it requires full engagement from a business, quite opposite to profit motives. Consequently, these consumers distrust large corporations viewing them as self-interested with scepticism compared to smaller local producers that they perceive as true to their core. These consumers further make a difference between style and fashion, explaining that they no longer partake in the fashion system but rather form their own sense of style that is unique and non- dictated. A freedom of fashion for them means freedom of seasonal consumption (Bly et al. 2015). Participants in a study by Bly et al. (2015), questioning sustainable apparel consumers, found that they proved more knowledge on sustainability issues. This in turn raised bigger questions for them of wanting to trace back where a clothing item came from. Since that question offers no clear answer it generally causes them to be less trusting of traditional sustainable offerings.

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They view the fashion system itself as its biggest barrier to sustainable consumption. Consumption is a part of life for all consumers that is further fuelled by promotion of governments and companies. Sustainable consumers believe the systemic problem to be rooted in the never-ending need for profit that leads to sourcing of low-cost labour and cheap materials and in turn satisfies increasing sales. The participants see the fashion system as the climax of the paradox that exists between consumption and sustainability.

4.3.4 Approaches to more consumer engagement To create more engagement with consumers, sustainable brands need to provide more information on their apparel items. Participants from Connell’s study (2010) felt that their acquisition decisions could be improved with better information on supply chain processes such as manufacturing and transport and the correlated emissions. Further knowledge on fibre differences is needed as well as information on where to purchase sustainable apparel options. The information can help against feelings of distrust, minimising scepticism with the help of full transparency and factual support (Schroder and McEachern 2004; Harris et al. 2016). Some of this information could be provided through improved product labelling systems (Connell 2010). Moreover, as participants complained about limited options and availability of attractive sustainable apparel styles, the availability in retail stores should be increased to attract consumers that prefer shopping offline and shopping guides could support consumers on the lookout for sustainable apparel (Jacobs et al. 2018). A strong market could potentially also exist in product categories that are currently difficult to find such as sustainable business wear as well as intimate wear, outdoor clothing and (Connell 2010). The design of sustainable clothing should further be improved as there are conceptions that such clothing is shapeless and unattractive. Normalising design and improving fit could contribute to a better adoption of sustainable styles to the mainstream market (Harris et al. 2016). Meyer (2001) conceded in a study on the promotion of sustainable apparel through marketing efforts that sustainability as the only core value can be rather unsuccessful. Since oftentimes have a higher cost than conventional fashion items including product and search cost and only receive minor benefits he suggests, products should deliver additional attributes that speak to the consumer such as functionality and visual . Harris et al. (2016) believe that the consumers’ mind-sets need to be changed in order to achieve a more sustainable consumption behaviour, away from following fashion and acquiring numerous garments to investing in items that will last. According to them, social norms present a major barrier to altering this behaviour. Different steps can be taken to convince consumers of alternative behaviours. Retailers e.g. decided to give more in-depth care instructions on how to wash their denim garments to lower energy and water consumption. Further, to change disposal behaviours of consumers, was advised to prolong the use-phase of an item. To overcome social norms, the researchers recommend the use of social marketing campaigns developed to challenge these and adding textile and recycling in school’s syllabi. Connell (2010) on the other hand, having the background of interviewing sustainable consumption pioneers, believes that if fashion continues the way it is now, representing change, transience and seasonality, especially those sustainable consumers will not adopt it on a larger scale as they believe that sustainability can only be achieved when consumption is lowered. Simultaneously, to be successful in the market, aspects associated with fashion are essential to the mainstream adoption of sustainable apparel. Sustainable consumers however do not trust large corporations implementing and marketing sustainable change in their companies and

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strive for uniqueness and freedom. Therefore, Connell (2010) wonders - how could sustainable fashion ever become accessible and successful on a large scale?

4.4 Innovative business models and their potential to lower consumption Present challenges including resource scarcity and climate change are sped up through consumption and production patterns. According to the United Nations (2017), as cited by Tunn et al. (2018), humankind would be needing three planets by 2050 if consumption practices were to remain constant with a growing . To tackle threats such as resource scarcity and climate change, sustainable consumption could be combined with the concept of circular economy. This would help reduce resource quantities and increase use-phases of materials and products that can cycle more frequently through the economic system, in that reducing carbon emissions and raw material use. In order to implement circular consumption and production, overall practices need to be adjusted. Innovative business models have the potential to change both practices as they define the relationship between business and consumer and the way they conduct business (Tunn et al. 2018). Product-service oriented systems can increase consumer satisfaction while simultaneously dematerialising production-consumption systems (Armstrong and Lang 2013). They were defined by the United Nations Environmental Programme (2002), as referred to by Armstrong and Lang (2013), as a mix of products and services that delivers usefulness as a substitute for the personal ownership of items. The approach highlights the interaction with consumers to cover needs and reach a life cycle concept that reduces environmental impacts. Design implications for such often incorporate characteristics such as durability, flexibility, ease of use and modularity (Van Halen et al. 2005). Especially durability is of big concern because it ensures that the product can later be reused in its original or in a different form (Mont 2002). Further Armstrong and Lang (2013) emphasise that product- service systems are able to better meet fundamental human needs such as the need for personal expression and social interaction. Particularly the increased consumer involvement can positively influence their knowledge of environmental features of certain items and their impacts and lead to more interest in recycling and reusing. This could in turn be advantageous for retailing systems that are wanting to close the loop (Mont 2002).

4.4.1 Product-service systems In the following abstract different innovative product-service systems are presented. These represent a certain type of value proposition that firms can offer to their customers which entail a blend of tangible products and intangible services developed and combined to fulfil the needs of a final customer. The advantage of product-service systems lies in their shift away from existent product approaches to systems that put the required need, demand or function in the spotlight. Accordingly, the ability to discover innovative improvement options is significantly enhanced. Such systems can be categorised into three general types: results-oriented, product- oriented, and use-oriented systems (Tukker and Tischner 2006):

Results-oriented systems According to Tukker and Tischner (2006), these services are the only ones that can be seen as truly need-oriented, however simultaneously need more than a company updating their business model, which is a change of context. Results-oriented systems rather provide a result than a product. This can include the management of activities or outsourcing, a functional result, or

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pay per unit. The concept of result-oriented systems is less applicable to apparel products which are in great demand for the daily life. This presents a major challenge to their implementation into the fashion business (Armstrong and Lang 2013).

Product-oriented systems Product-oriented systems retail items with value-added services such as repair, take-back schemes or consultancy (Armstrong and Lang 2013). Upcycling as a way to reuse items that would otherwise be discarded can help create new products of higher or equally perceived quality and worth. This helps extend their lifespan and lowers the need for raw material utilisation (Todeschini et al. 2017) According to Freudenreich and Schaltegger (2019) the reuse of items through the offering of maintenance and repair services requires labour-intensive processes and innovative business models to achieve financial viability. In order to achieve adequate qualities of items even after repair, items should initially hold a high value. They further emphasise that remanufacturing and repair services can add value to items by using artistic darning or embroidery to repair and hide holes. The providing of style consultancy can give consumers ideas to wear and use their current wardrobe in innovative ways which offers the possibility to extend their use-phase. Intentions to trying these services could include cost savings as the repair or alteration is less cost intensive than the acquisition of a new item. Consumers are encouraged to rediscover old items or adjust these through alteration or redesign (Lang and Armstrong 2013).

Use-oriented systems Use-oriented systems stand for product-leasing, renting and sharing or pooling structures. In this case, the company remains the owner of all items and is furthermore responsible for the maintenance of those (Armstrong and Lang 2013). The reuse of items can be achieved through physical or digital platforms in which consumers are able to directly exchange clothes for reuse. The providers of such events or platforms are able to generate revenue through the adding of listing fees, transaction fees or charges for tables at flea markets (Freudenreich and Schaltegger 2019). This form of reuse can also be described as second hand, which refers to the selling or donating of apparel that is no longer utilised by its wearer. It promotes the reuse of apparel and reduces demands for newly manufactured products and their linked raw material use (Todeschini et al. 2017). A further case of a use-oriented system are fashion libraries that offer subscription services for clothing. In this instance the retailer remains the owner of the fashion items while the consumer on the other hand can access and use the items for a limited amount of time. Through the use of sharing structures, items that would otherwise be rarely utilised by their owners reach a wider audience hence possibly decreasing needs for new apparel (Todeschini et al. 2017). The renting of clothing also makes it possible for consumers to engage in current fashion without having to make a commitment to a new piece in their wardrobe (Lang and Armstrong 2018). Further revenue mechanisms change from traditional single transactions to subscription fees based on use (Todeschini et al. 2017). According to Tukker and Tischner (2006) these systems possibly lack control in that the service providers are not always the producer of the items they are renting out and are therefore not able to regulate their durability.

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4.4.2 Challenges and drivers in the implementation of innovative business models In a study by Tunn et al. (2018) experts in the field of circular economy were interviewed to distinguish how business models can support sustainable consumption in the shift towards a circular economy, about 30% of the interviewees believed use-oriented systems in combination with cycling products and materials to be successful. They were convinced that these would help the implementation of a circular economy. Half of the participants however suggested forthcoming business models to be based on product-oriented systems in which ownership is still of relevance. Further, to reduce consumption and intensify garment use, three experts advised to reduce consumption with a combination of a subscription model with sourcing of cycling materials and a minimum effort for the consumer. The collaborative consumption of fashion in the case of the renting of garments requires returns of products in comparison to the owning and disposing of own items. The shift towards more circularity is dependent on the consumer’s actions and their commitment to pass products on from one phase to another (Pedersen et al. 2019). Studies however have shown that social and environmental issues are generally not the priority when consumers acquire apparel (Joergens 2006) and that consumers are unable to recognise the value of the defining dimensions of sustainable fashion. Consumer education is necessary to initiate changes in consumer behaviour towards consumption patterns and enlighten them about the value of existing garments and the effect that an extended use can have (Todeschini et al. 2017). To guarantee circular design and shift towards sustainability, different technical requirements need to be fulfilled as these have significant influence on the total environmental impact of a new product (Pedersen et al. 2019; Kozlowski et al. 2016). The organisation of sharing business models relies on products. These solely rely on their quality and durability and need to be able to retain their value over time to generate profit. While moving away from product-oriented to service-oriented business models, knowledge is required for sustainable value creation throughout the entire lifecycle of a product as the footprint does not utterly rely on design decisions. The sustainability of a product entails the challenging cooperation with internal and external stakeholders (Pedersen et al. 2019). The major challenge to product-service systems is the different cultures (industrial, organisational, political and consumer culture) needed to initiate a shift toward a dematerialisation of the production-consumption cycle (Armstrong and Lang 2013). “A political system that does not favour policy changes, an industry or organization unwilling to separate its business performance from material consumption, or normative values of a consumer culture malcontent with eclipsing consumption is a certain recipe for PSS [product- service systems] failure” (Armstrong and Lang 2013, p. 7). Even for experts in the field of circular economy it is difficult to imagine radical changes in businesses to achieve sustainable consumption. The authors believe that this could be connected to the assumption that the aim for strong sustainable consumption contradicts the objective of growth (Tunn et al. 2018).

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5 Analysis

This thesis provides a comprehensive review of peer-reviewed research articles dealing with challenges and paradoxes sustainable fashion brands need to handle. Initially, the purpose of the thesis was to explore the relationship between a company’s economic needs and their wish to conduct business in the most sustainable way possible. While literature shows that there is a prominent conflict between the two and a need for balance to achieve sustainability (Higgins 2013), the findings of the systematic literature review do not reflect on this conflict sustainable fashion brands find themselves in. To remain valid in the marketplace, sustainable fashion brands need to market to the consumer who is nowadays more interested in environmental and social concerns related to the textile and fashion industry but is concurrently accustomed to spending small amounts of money on trendy clothing items that are delivered by fast fashion practicing businesses. To tackle the overconsumption, sustainable businesses are trying to shift their focus from selling a product to offering a service by implementing product-service systems such as leasing and repair services. That way, consumers are able to attain new items but at the same time do not contribute to an increase in waste material as garments are passed onto the next person or recycled after its use- phase. Further, brands find themselves responsible to educate both their suppliers and consumers. Suppliers oftentimes have a different understanding of the term sustainability. To create a mutual understanding, closer collaboration is of great importance (Ashby 2018). Further, the consumer needs to be educated on e.g. better maintenance of their clothing. The gathered literature has shown that consumers are unaware of the significant impact (Black 2011) they can have in changing their washing behaviours but did not particularly state the issue of microfibers that enter the environment through laundering of synthetic materials. The following section analyses the results collected in the findings to respond to the originally formulated research sub-questions firstly addressing the root causes for the paradox sustainable fashion brands find themselves in and secondly pointing out their key challenges and drivers. This will support the response to our main question on how sustainable fashion brands can potentially deal with the contradictions they find themselves in between their need to sustain and act responsibly.

5.1 Question 1

What are the root causes for the paradox present in sustainable fashion brands?

Sustainable fashion can be defined as items that are produced and marketed in the most sustainable way possible, considering their impact on society and the environment while at the same time contributing to economic growth. Since businesses oftentimes narrow their view to their internal economic concerns rather than looking at the full picture external environments are neglected. Due to the economic complexity a full understanding of all factors within the supply chain is difficult to achieve (Doane and MacGillivray 2001). However, sustainable brands try to involve small scale production, season-less designs and sell items reflecting their social and environmental costs (Fletcher 2014). This contradicts the fashion system that continuously promotes change and newness. It gives people the chance to simultaneously identify themselves with a social group and also create their own unique identity. Consumption is driven by the wish to express meaning about oneself and create this identity (Matsuyama 1992). Since fashion is continuously moving forward and items go out of style, consumers acquire more clothing to reflect their fashion sense and show that they ‘fit in’ within society.

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The fashion industry that now equates the fast fashion movement (Fletcher 2014), providing consumers with several new collections a year, attracts the consumer to purchase more and drive economic growth by offering garments at low prices. Given this, sustainability and fashion are in direct conflict with each other, on the one hand wanting to tackle overconsumption and on the other hand promoting economic growth at all costs. If sustainable fashion was to enter the fashion cycle it would concurrently defeat its purpose to provide longer lasting styles.

Fashion consumers are increasingly aware about social and environmental issues related to the industry and progressively require brands to be transparent about their manufacturing practices (Niinimäkii 2010). However, sustainable brands that try to tackle the negative environmental and social influences apparel acquisitions produce, struggle to reach these customers. The literature shows that sustainable fashion offerings lack attractiveness and availability (Connell 2010). Properties such as looks, fit and price outweigh the environmentally and socially sustainable properties of a garment (Perry and Chung 2015). Moreover, consumers believe sustainable fashion requires a more visual appeal and a larger style selection. They more or less demand the properties mainstream fashion items can offer such as affordable prices and a wider range of styles. Studies have shown that to become relevant and target the average consumer these implementations might be necessary (Jacobs et al. 2018). This however is contrary to the meaning of sustainable fashion, which means a slower and more thoughtful consumption of lesser items that should be worn for a longer time (Fletcher 2014). To overcome such issues innovative product-service systems can potentially be integrated to shift the ownership from consumers to companies and lower waste generation through the use of collaborative consumption offerings such as the leasing of clothes. Further, pressures from consumers have led fashion companies to integrate CSR practices into their businesses. Hence, brands require their suppliers to fulfil codes of conducts and set up contracts to ensure that policies are fulfilled. These can however differ from retailer to retailer leaving suppliers occupied adjusting their manufacturing facilities to comply with all, while oftentimes not receiving financial support to help fulfil these standards (DeBrito et al. 2008). Moreover, as opinions on sustainability differ depending on region, unwanted local conflicts can arise such as the prohibition of child labour in Bangladesh that ultimately led children to leave a relatively safe employment in textile factories to more dangerous work environments in e.g. construction (Huq et al. 2014). Unfortunately, retailers, that in their view only want to do good, lack communication with their suppliers and judge their situations by their own economic and social standards leading to unforeseen consequences in local manufacturing environments. Moreover, the complexity of fashion supply chains, with numerous tier suppliers, leaves retailers with little to no control over the issues arising down the chain past their first-tier. Fashion businesses are limited in their aim for transparency in such settings and are consequently restricted in their implementation of corporate social responsibility to consider all stakeholders while taking business decisions (Alexander 2020; Huq et al. 2014; Li et al. 2020). To ensure sustainability throughout, a high level of transparency and control is required that is, rather difficult to achieve. In principle, this means that economic sustainability can hardly be achieved. Retailers lack communication down their supply chains past the first-tier supplier. To ensure that all parties involved in the development process of garments are treated fairly and benefit from working with a brand that establishes sustainability in their core, full transparency needs to be guaranteed.

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What ultimately leads sustainable fashion brands to be seen as a paradox, is the many conflicts they find themselves in. To be fully sustainable, brands need to be fully aware of actors in their supply chain to be able to deal with all sustainability related issues including social, environmental and economic concerns. Further, it struggles to be adopted into the mainstream market, currently lacking availability and demand. According to research, to be adopted, it requires properties that are typical for the items in the fast fashion market, such as a variety in styles and greater accessibility (Connell 2010; Jacobs et al. 2018). This however, does not match the purpose of sustainable fashion, wanting to lower consumption levels and impacts on society and the environment. A larger number of styles and more attractive clothing can further mean that items, equal to mainstream fashion, can go out of style, defying its purpose to extend use. However, to exist and initiate change in the fashion industry, sustainable brands need to reach the consumer and generate profit to a sufficient extent leaving them in a dilemma.

5.2 Question 2

What are challenges and motivations for sustainable fashion brands?

The literature shows that two actors, consumer and supplier, emerge in relation to sustainable fashion brands. The former has a very strong impact and is as a promoter of sustainable fashion partly responsible (Hill and Lee 2012; Joergens 2006). The supplier, on the other hand, is the one who carries out what is required and is usually reactive in terms of sustainability (DiVito and Bohnsack 2017). However, it can be argued that the biggest challenge for sustainable fashion brands is the consumer. Due to the lack of knowledge about sustainability and about the entire fashion industry, including materials science, it is difficult for the consumer to see the problems of fashion in terms of environmental and social impact (Connell 2010; Hill and Lee 2012; Morgan and Birtwistle 2009). The higher price of sustainable products is therefore usually seen as unjustified by consumers or even as rip-off (Harris et al. 2016). However, there are also more enlightened customers who are more interested in protecting the environment and people involved in the manufacturing process. These customers require just as much from sustainable fashion brands. On the one hand, they demand total transparency in the supply chain, which has a corresponding effect on suppliers. On the other hand, customers often find it difficult to cover all categories of clothing with sustainable fashion because the availability of certain sustainable garments is limited or not widely enough published (Connell 2010). The transparency demanded by customers often puts pressure on suppliers to implement the social and environmental standards of developed countries in their companies. However, since sustainable fashion brands generally have smaller suppliers, there is an opportunity to build partnership relations in order to exchange mutual knowledge and build trust. The challenge for sustainable fashion brands is to acquire the knowledge about cultural, economic and political differences. Sustainable fashion brands need to know about the circumstances in the countries of production, whether they produce in Asia or Europe, in order to demand realisable requirements that produce positive effects on both sides (DeBrito et al. 2018) and further be able to treat all parties involved in the process fairly considering economic and social factors. To counteract the fast fashion cycle, attempts are being made to build more on a circular economy. However, there is also a dependence on the consumer (Pedersen et al 2019). Sustainable fashion brands that focus their business on circular economy, such as value-added services, renting or sharing still have to struggle with the fact that the value of an item of clothing is not recognised or that overall consumption is too high, which in turn contributes to

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the throwaway society. In the latter case, it makes virtually no difference whether an item of clothing has been produced in a sustainable manner if it ends up being part of the fast fashion cycle (Black 2011). According to this, the main drivers for sustainable fashion brands are the reduction of the amount of resources, the extension of the use phase of materials or clothing, the reduction of raw materials and the reduction of CO2 emissions (Fletcher 2014). Through effective interaction between sustainable fashion brands and consumers, but also suppliers, the understanding of sustainability can be communicated (Harris et al. 2016, Connell 2010, Ashby 2018; Alexander 2020). Therefore, another important driver is the education of stakeholders, especially consumers and suppliers. By involving these two actors in individual processes and decisions or through innovative business models, sustainable fashion brands can better respond to the interests and needs, thereby create tangible benefits (e.g. strong brand image, reasonable prices, material durability and quality) and intangible benefits (e.g. sustainability and consumption awareness, employee motivation) (Ha-Brookshire and Norum 2011; Bly et al 2015; Huq et al. 2014; Todeschini et al. 2017). In addition, consumers can be encouraged to adopt sustainable purchasing behaviour. Ultimately, for sustainable fashion brands every challenge regarding environmental, economic and social issues, is also an incentive to act better to ensure that future generations are not restricted in satisfying their own needs.

5.3 Main research question

How can sustainable fashion brands deal with the paradox of acting sustainably while at the same time taking profits and growth?

As described above, sustainable fashion brands do not have to struggle with the problems of sustainability alone. An important co-actor is the supplier. The supplier seeks to represent and fulfil its own interests, but is also largely dependent on the fashion brands to be economically successful. In the same way, sustainable fashion brands rely on a steady economic situation which can be carried out through the clothing consumption of the consumer, but simultaneously strive for the reduction of environmental impact and compliance of social standards or rather achievement of global social equivalence. An important approach for sustainable fashion brands to deal with the paradox described previously is a good, trustworthy and long-lasting relationship with their suppliers. A strong relationship, as written by Ashby (2018), can lead to mutual success and ensure competitiveness. Through regular communication about improvements, innovations or even joint discussion of problems, environmental and social challenges can be tackled conjointly. Furthermore, collaborations of buyer and seller can improve the bundled power to achieve greater influence towards governmental policies (DiVito and Bohnsack 2017). Moreover, for sustainable fashion brands, local production that is more environmentally friendly in terms of transport is not always possible from a financial point of view, as the European industry, for example, cannot compete with low-wage countries on price (DeBrito et al. 2008). In this case, sustainable fashion brands can attempt to work on closer collaboration with their suppliers to develop and investigate the use of new technologies to produce more sustainable products. Another important action is the education of employees and suppliers. Especially among suppliers, there may be a lack of knowledge about sustainability, as geographical and economic differences mean that there is not always a uniform understanding. Therefore, sustainable

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fashion brands should inform themselves extensively about the supplier but also about country- specific policies and legislations in order to demand corresponding social, economic and environmental standards. A partnership-based relationship also makes it easier to create a transparent supply chain and gives customers the confidence to act in a truly sustainable manner. In addition, past the involvement of practices such as season-less collections, longer lead times to sufficient selection of quality, and environmentally friendly material, sustainable fashion brands need to be aware that sustainability is a process of continuous improvement and propagate this attitude to consumer and supplier. It is also important to understand that a lower prioritisation on profitability is not necessarily detrimental to business, but rather the other way around. A stronger focus on social aspects, especially on the working conditions of workers in production, could lead to increased performance, as low social standards often contribute to higher sickness rates and absenteeism and therefore reduced output (Huq et al 2014; Goworek 2011). Through CSR practices, such as codes of conduct that take into account the needs of suppliers and workers, greater environmental and social concerns can be addressed collectively and lead to mutual benefits. The consumer who is the key driver for all businesses, pushing the fashion industry’s growth and cycle simultaneously seeks to find more information on the background of items they acquire as awareness of social and environmental issues related to the industry reaches them. The transparency achieved through stronger collaboration within supply chains can support sustainable fashion brands to better share their knowledge and practices with their customers to educate them on the importance of better, more sustainable processes. Hereby, the focus should be on all steps essential to a products sustainability such as production circumstances, location, emissions and fibres as consumers lack information on what materials are more or less impactful for the environment, which could e.g. be added to an items label. Moreover, as consumers relate sustainable clothing to items of a subculture they do not want to associate with (Connell 2010), they should work on their attractiveness, fit and style choices (Jacobs et al. 2018; Harris et al. 2016) while keeping their core value in mind to create long-lasting designs and continuously work on the improvement of their business practices. Moreover, as Meyer (2001) discovered, brands should not solely promote themselves with apparel items that have sustainability as their core value as consumers do not acknowledge this as an added benefit compared to conventional clothing items. Further advantages should be highlighted such as visual attributes and functionality. The strong dependence of sustainable fashion brands on consumer behaviours and attitudes is evident in numerous aspects. Business models in which clothing items are sold to customers always inherit the risk that the items are disposed of after a short period of time as consumers are triggered by changing trends and the feel to on the one hand belong and concurrently differentiate themselves from others. An approach to tackle such behaviour is the shift from product to service-based business models in which the companies for instance offer the leasing, redesign, recycling and repair of apparel items. At this juncture, businesses can form stronger relationships with their customers. In the case of a leasing model such connections are maintained as the brand remains the owner of its products. What is critical about this particular model is this conjunction and dependence on the customers. They need to bring back the items they rented for the circle to close and the system to work, which requires an initial understanding of its importance (Pedersen at al. 2019) and therefore should be kept as effortless as possible (Tunn et al. 2018). It can also be seen as an opportunity in relation to economic sustainability. Consumption of items is usually co-related to the use of natural resources (United Nations

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1987). When product-service systems are integrated, consumers can enjoy wearing new clothing items while concurrently not contributing to increased utilisation of raw materials and an overall extended use of these (Todeschini et al. 2017). Consumers’ education is seen as central to introduce a shift in consumer behaviour towards better consumption practices and an understanding of the value of existing garments. A products sustainability is linked to both, internal and external stakeholders and entails the challenging relationship between these (Perdersen 2019). Brands that want to fight the paradox of sustainable fashion have to recognise their responsibility to continuously improve their own business practices since sustainability is a continuous process, and meanwhile communicate the importance of sustainable consumption and practices to their customers to try and educate them on the value of their apparel. As previously mentioned, a significant part to answer the researchers’ main question is not directly covered in the literature, namely the economic perspective for sustainable fashion brands. Only occasionally, the reference to economic sustainability is highlighted and connections can be made through the use of Chapter 2 (frame of reference). Nevertheless, sustainable fashion brands must also consider these aspects and deal with economic sustainability, since it goes beyond their own business and affects not only internal but also external stakeholders (Doane and MacGillivray 2001). Further, sustainable fashion brands need to raise awareness that economic growth and profit generation is only necessary to a certain extent in order to be financially viable. Through this, a sustainable economy can help support the society and environment (Bascom 2016). All in all, sustainable fashion brands should try to find a balance between their dependence on economic growth and profit and their aim to do business in the least detrimental way possible.

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6 Conclusion

The purpose of this thesis is to present the current state of literature based on sustainable fashion brands with an emphasis on their inherent paradox between wanting to sustain economically and conduct business considering both the environment and society. The insufficient research about the compatibility between sustainability and economics in sustainable fashion companies led the researchers to analyse the existing literature in order to understand the current scientific knowledge of the topic and provide a foundation for future research in the area of sustainable fashion. Therefore, the investigation and synthesis of academic papers based on a literature review is a meaningful endeavour and a valuable contribution in particular the emerging results can be used as a starting point for other researches in the area of handling challenges of sustainable fashion brands. The methodology of the thesis was a systematic process to provide transparency throughout the collection and evaluation of the data and minimising the bias by using peer-reviewed journal articles in relation to sustainable fashion challenges in the English language. The 40 selected papers were published in a timespan between 1998 and April 2020. The selected articles were subsequently handled with the aim to systematically identify, categorise, analyse and synthesise themes that appear across the literature. Three categories emerged from the review, consumer influence, supplier relation and business model. The results and analysis show that sustainable fashion is a large field covering many aspects. Amongst other things it deals with the two most influential stakeholders, consumers and suppliers as well as the relevance of business models for the handling of the current overconsumption and quick disposal of apparel items. Additionally, the researchers ascertained that the initial assumption about the presence of the paradox at sustainable fashion brands is generally supported by the literature in terms of social and environmental sustainability. It is reflected in current challenges that are outlined by a number of researches, such as the most prominent paradox, which is based on the consumers’ lack of knowledge. Customers need further education on fibres (Harris et al. 2016), the availability of more sustainable options (Jacobs et al. 2018), maintenance behaviours, and consequences of quick disposal of apparel items (Harris et al. 2016). They desire products that fulfil their wishes for differentiation (Simmel 1904), hence wish sustainable options to be broader and more diversified (Jacobs et al. 2018). Sustainable brands following these wishes of trendiness and accessibility consequently insert themselves in the fashion cycle, thus risk to create garments that go out of style and further increase the chance for disposable fashion items (Connell 2010). The research shows the importance of close relationships between the lead firm and its stakeholders. A particular emphasis hereby lies on consumer and supplier relationships. Innovative product- service systems which focus on persistent connections between the brand and its customer, has the potential for a shift in ownership. This allows products to have more than one wearer and therefore extend their use which contributes to the reduction of consumption and raw material use. It further prevents the disposability of apparel items that thereby no longer partake in the fashion cycle. Through closer relationships with suppliers, sustainable fashion brands can benefit in terms of social and environmental issues. Especially social problems such as working conditions and gaps in knowledge can be tackled together. Therefore, codes of conduct and other CSR measures can help in the prevention of worker exploitation and can improve the social performance and ensure economic sustainability (Huq et al. 2014). Furthermore, the exchange of knowledge and mutual support to improve sustainability concerns is an essential part of building and maintaining long-term relationships. Through a partnership relationship,

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more transparency can be created and thus confidence within the supply chain can be increased (Alexander 2020). Cultural and economic differences between the country of production and the country of the retailer must also be taken into account (DeBrito et al. 2008) in order not to disregard the possibilities of the suppliers and thereby create an imbalance. This would be counterproductive for trust and the development of long-term relationships. However, it is important to emphasise that all actors in the supply chain are aware that sustainability is a continuous process of improvement and that everyone can and should contribute to it. The initial idea of exploring the paradox between acting sustainably while at the same time taking profits and growth is not directly covered in current literature based on sustainable fashion. The researchers identified a gap in relation to economic sustainability of sustainable fashion brands, as there is little knowledge of how environmental and social issues can be addressed in a rational economic way while remaining profitable in the long term. In most cases, only the economic consequence of certain actions is shown, but this needs to be studied in more detail.

6.1 Theoretical implications There is a growing interest in the field of sustainable fashion and its potential for the tackling of environmental and social issues. Further research in the field is required to focus on brands that were born sustainable as a lot of literature currently focuses on the shift from fast fashion to better practices (Todeschini et al. 2017). The research contributes to the field of sustainable fashion by addressing the importance of the challenges sustainable brands encounter and their motivations for acting responsibly and simultaneously describes the conflicts they find themselves in relating to the overall paradox of sustainable fashion brands. It provides information on constraints that currently make it difficult for sustainable apparel firms to reach mainstream markets and further hinder smooth collaboration with suppliers abroad. It further offers starting points for possible transitions into a circular economy through the utilisation of product-service systems integrated into business models.

6.2 Practical implications The findings can serve as a support for existing sustainable brands as well as new establishments in the field. It can provide valuable insights into relevant sustainability obstacles that concern social, environmental and economic issues. As discussed earlier, the collected results identified a major influence of two stakeholders namely the consumer’s and supplier’s that challenge the firm’s overall sustainability. The study depicts ways for the handling of these and hereby provides information on current consumer expectations, supplier’s demands and offers a number of possibilities to lower apparel and material consumption through the integration of innovative business models with a focus on product-service systems. Especially consumers demand more detailed information on manufacturing, fibres and expect more and more background information when purchasing apparel. Hence the overall idea of sustainable fashion is supported by them but is nevertheless lacking in certain areas such as style options, fit and in-store availability. Moreover, consumers believe there are gaps in sustainable product offerings of e.g. formal, intimate and business wear. These gaps could offer new potential markets.

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Further, the need for strong collaboration with suppliers is outlined. Since sustainable fashion brands, due to pressure from strong competition within the industry, produce in low-wage countries too, they need to consider a number of things. A close relationship to their suppliers can be beneficial to increase transparency past the first-tier suppliers. It can lead to mutual success and increase competitiveness. Steady communication about challenges, innovations and potential improvements can help deal with environmental and social issues conjointly. Further, this can contribute to less misapprehensions between the parties as the understanding of sustainability can largely differ between cultures. Education can therefore be a valuable tool to create a more mutual understanding between retailer and supplier. Lastly, innovative business models integrating product-service systems are outlined which offer the possibility to lower both consumption and raw-material use through the reuse of apparel items in various manners.

In conclusion, through acknowledging the importance of challenges concerned with sustainable fashion brands and the enabling of more sustainable practices, it can facilitate brands to make better managerial decisions towards less contradictory business in the future. Moreover, it can create an understanding of the overall challenges faced in the field of sustainable fashion. The research can further help as a guidance, offering valuable information that can be beneficial to setting up a new business in the field of fashion and apparel considering influences from society and the environment.

6.3 Limitations and potential future research In spite of relevant contributions, this thesis has to be considered with limitations in mind. Although the initial literature search resulted in a number of 191 articles, this study drew data from only 40 articles based on limitations set by the researchers. In addition, the findings were only selected from academic journals however books, conference papers and commercial journals might have some interesting insights, too. The timeframe of only ten weeks, prescribed by the University of Borås for achieving the Master’s degree, further limited the thesis. Another restraint is the chosen database. For this thesis the article search was restricted to one, namely Scopus. Even though Scopus is one of the largest abstract and citation databases of peer- reviewed articles, other platforms may have offered additional relevant academic papers covering the subject area. These limitations pose a potential argument for further research with a broader range of material and time. In order to improve the validity, a quantitative data analysis based on the research articles could be undertaken and a greater number of articles could lead to richer results. Moreover, expert interviews with brands working in the field of sustainable fashion could add interesting insights that could further be explored. In addition, case studies of sustainable fashion brands could help understand the economic perspective to discover to what extent economic growth can really be sustainable and how this growth can contribute to better social and environmental circumstances throughout the internal and external environment of the lead firm. Furthermore, different stakeholder perspectives such as shareholder, government or NGO could be taken into account to expand the knowledge of the influential factors towards sustainable fashion brands. Based on the thesis results, further research could also be conducted in the field of supplier relations to build strong partnerships and ensure transparency throughout the supply chain.

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Appendix I Colour-coding example

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Appendix II Selected articles with theme allocation sorted by date in descending order.

Theme Reference Year (Supplier relation, Consumer, Business Journal model)

Alexander, R. 2020, "Emerging Roles of Lead Buyer Governance for Sustainability Across Global Production Networks", Journal of Business Ethics, vol. 162, no. 2, pp. 269-290. 2020 Supplier relation Journal of Business Ethics Freudenreich, B. & Schaltegger, S. 2020, "Developing sufficiency-oriented offerings for clothing users: Business approaches to support consumption reduction", Journal of Cleaner Production, vol. 247. 2020 Business model Journal of Cleaner Production Jin, B.E. & Shin, D.C. 2020, "Changing the game to compete: Innovations in the fashion retail industry from the disruptive business model", Business horizons, . 2020 Business model Business horizons Lee, S.H.N. & Chow, P.-. 2020, "Investigating consumer attitudes and intentions toward online fashion renting retailing", Journal of Retailing and Consumer Services, vol. 52. 2020 Business model Journal of Retailing and Consumer Service Li, Y., Barrueta Pinto, M.C. & Diabat, A. 2020, "Analyzing the critical success factor of CSR for the Chinese textile industry", Journal of Cleaner Production, vol. 260. 2020 Supplier relation Journal of Cleaner Production Machado, M.A.D., Almeida, S.O., Bollick, L.C. & Bragagnolo, G. 2019, "Second-hand fashion market: consumer role in circular economy", Journal of Fashion Marketing and Management, vol. 23, no. 3, pp. 382-395. 2019 Business model Journal of Fashion Marketing and Management Park, H. & Joyner Armstrong, C.M. 2019, "Will “no-ownership” work for apparel?: Implications for apparel retailers", Journal of Retailing and Consumer Services, vol. 47, pp. 66-73. 2019 Business model Journal of Retailing and Consumer Service Pedersen, E.R.G., Earley, R. & Andersen, K.R. 2019, "From singular to plural: exploring organisational complexities and circular business model design", Journal of Fashion Marketing and Management, vol. 23, no. 3, pp. 308-326. 2019 Business model Journal of Fashion Marketing and Management Tunn, V.S.C., Bocken, N.M.P., van den Hende, E.A. & Schoormans, J.P.L. 2019, "Business models for sustainable consumption in the circular economy: An expert study", Journal of Cleaner Production, vol. 212, pp. 324-333. 2019 Business model Journal of Cleaner Production Ashby, A. 2018, "Developing closed loop supply chains for environmental sustainability: Insights from a UK clothing case study", Business model Journal of Manufacturing Technology Management, vol. 29, no. 4, pp. 699-722. 2018 Supplier relation Journal of Manufacturing Technology Managment Dickenbrok, C. & Martinez, L.F. 2018, "Communicating green fashion across different cultures and geographical regions", International Review on Public and Nonprofit Marketing, vol. 15, no. 2, pp. 127-141. 2018 Consumer International Review on Public and Nonprofitt Marketing Gopalakrishnan, S. & Matthews, D. 2018, "Collaborative consumption: a business model analysis of second-hand fashion", Journal of Fashion Marketing and Management, vol. 22, no. 3, pp. 354-368. 2018 Business model Journal of Fashion Marketing and Management Jacobs, K., Petersen, L., Hörisch, J. & Battenfeld, D. 2018, "Green thinking but thoughtless buying? An empirical extension of the value-attitude-behaviour hierarchy in sustainable clothing", Business model Journal of Cleaner Production, vol. 203, pp. 1155-1169. 2018 Consumer Journal of Cleaner Production Lang, C. & Armstrong, C.M.J. 2018, "Fashion leadership and intention toward clothing product-service retail models", Journal of Fashion Marketing and Management, vol. 22, no. 4, pp. 571-587. 2018 Business model Journal of Fashion Marketing and Management Di Benedetto, C.A. 2017, "Corporate social responsibility as an emerging business model in fashion marketing", Consumer Journal of Global Fashion Marketing, vol. 8, no. 4, pp. 251-265. 2017 Supplier relation Journal of Global Fashion Marketing DiVito, L. & Bohnsack, R. 2017, "Entrepreneurial orientation and its effect on sustainability decision tradeoffs: The case of sustainable fashion firms", Journal of Business Venturing, vol. 32, no. 5, pp. 569-587. 2017 Supplier relation Journal of Business Venturing Franco, M.A. 2017, "Circular economy at the micro level: A dynamic view of incumbents' struggles and challenges in the textile industry", Journal of Cleaner Production, vol. 168, pp. 833-845. 2017 Business model Journal of Cleaner Production Grappi, S., Romani, S. & Barbarossa, C. 2017, "Fashion without pollution: How consumers evaluate brands after an NGO campaign aimed at reducing toxic chemicals in the fashion industry", Journal of Cleaner Production, vol. 149, pp. 1164-1173. 2017 Consumer Journal of Cleaner Production Todeschini, B.V., Cortimiglia, M.N., Callegaro-de-Menezes, D. & Ghezzi, A. 2017, "Innovative and sustainable business models in the fashion industry: Entrepreneurial drivers, opportunities, and challenges", Business model Business horizons, vol. 60, no. 6, pp. 759-770. 2017 Supplier relation Business horizons Egels-Zandén, N. & Hansson, N. 2016, "Supply Chain Transparency as a Consumer or Corporate Tool: The Case of Nudie Jeans Co", Journal of Consumer Policy, vol. 39, no. 4, pp. 377-395. 2016 Consumer Journal of Consumer Policy Harris, F., Roby, H. & Dibb, S. 2016, "Sustainable clothing: Challenges, barriers and interventions for encouraging more sustainable consumer behaviour", Consumer International Journal of Consumer Studies, vol. 40, no. 3, pp. 309-318. 2016 Lead-firm issues International Journal of Consumer Studies Perry, A. & Chung, T. 2016, "Understand attitude-behavior gaps and benefit-behavior connections in Eco-Apparel", Journal of Fashion Marketing and Management, vol. 20, no. 1, pp. 105-119. 2016 Consumer Journal of Fashion Marketing and Management Bly, S., Gwozdz, W. & Reisch, L.A. 2015, "Exit from the high street: An exploratory study of sustainable fashion consumption pioneers", International Journal of Consumer Studies, vol. 39, no. 2, pp. 125-135. 2015 Consumer International Journal of Consumer Studies Clancy, G., Fröling, M. & Peters, G. 2015, "Ecolabels as drivers of clothing design", Lead-firm issues Journal of Cleaner Production, vol. 99, pp. 345-353. 2015 Consumer Journal of Cleaner Production Ritch, E.L. 2015, "Consumers interpreting sustainability: moving beyond food to fashion", International Journal of Retail and Distribution Management, vol. 43, no. 12, pp. 1162-1181. 2015 Consumer International Journal of Retail and Distribution Management Rodrigues, P. & Borges, A.P. 2015, "Corporate social responsibility and its impact in consumer decision-making", Consumer Social Responsibility Journal, vol. 11, no. 4, pp. 690-701. 2015 Social Responsibility Journal Huq, F.A., Stevenson, M. & Zorzini, M. 2014, "Social sustainability in developing country suppliers: An exploratory study in the ready made garments industry of Bangladesh", International Journal of Operations and Production Management, vol. 34, no. 5, pp. 610-638. 2014 Supplier relation International Journal of Operations and Production Management Hvass, K.K. 2014, "Post-retail responsibility of garments – A fashion industry perspective", Journal of Fashion Marketing and Management, vol. 18, no. 4, pp. 413-430. 2014 Business model Journal of Fashion Marketing and Management Armstrong, C.M. & Lang, C. 2013, "Sustainable Product Service Systems: The New Frontier in Apparel Retailing?", Research Journal of Textile and Apparel, vol. 17, no. 1, pp. 1-12. 2013 Business model Research Journal of Textile and Apparel Curwen, L.G., Park, J. & Sarkar, A.K. 2013, "Challenges and Solutions of Sustainable Apparel Product Development: A Case Study of Eileen Fisher", Clothing and Textiles Research Journal, vol. 31, no. 1, pp. 32-47. 2013 Supplier relation Clothing and Textiles Research Journal Kozar, J.M. & Connell, K.Y.H. 2013, "Socially and environmentally responsible apparel consumption: Knowledge, attitudes, and behaviors", Social Responsibility Journal, vol. 9, no. 2, pp. 316-325. 2013 Consumer Social Responsibility Journal Stall-Meadows, C. & Davey, A. 2013, "Green marketing of apparel: Consumers’ price sensitivity to environmental marketing claims", Journal of Global Fashion Marketing, vol. 4, no. 1, pp. 33-43. 2013 Consumer Journal of Global Fashion Marketing Hill, J. & Lee, H.-. 2012, "Young Generation Y consumers' perceptions of sustainability in the apparel industry", Journal of Fashion Marketing and Management, vol. 16, no. 4, pp. 477-491. 2012 Consumer Journal of Fashion Marketing and Management Goworek, H. 2011, "Social and environmental sustainability in the clothing industry: A case study of a fair trade retailer", Consumer Social Responsibility Journal, vol. 7, no. 1, pp. 74-86. 2011 Supplier relation Social Responsibility Journal Ha-Brookshire, J.E. & Norum, P.S. 2011, "Willingness to pay for socially responsible products: Case of cotton apparel", Journal of Consumer Marketing, vol. 28, no. 5, pp. 344-353. 2011 Consumer Journal of Consumer Marketing Connell, K.Y.H. 2010, "Internal and external barriers to eco-conscious apparel acquisition", International Journal of Consumer Studies, vol. 34, no. 3, pp. 279-286. 2010 Consumer International Journal of Consumer Studies De Brito, M.P., Carbone, V. & Blanquart, C.M. 2008, "Towards a sustainable fashion retail supply chain in Europe: Organisation and performance", International Journal of Production Economics, vol. 114, no. 2, pp. 534-553. 2008 Supplier relation International Journal of Consumer Studies Littrell, M.A., Ma, Y.J. & Halepete, J. 2005, "Generation X, baby boomers, and swing: Marketing fair trade apparel", Journal of Fashion Marketing and Management, vol. 9, no. 4, pp. 407-419. 2005 Consumer Journal of Fashion Marketing and Management Meyer, A. 2001, "What's in it for the customers? Succesfully marketing green clothes", Business Strategy and the Environment, vol. 10, no. 5, pp. 317-330. 2001 Consumer Business Strategy and the Environment McSpirit, K. 1998, "Sustainable Consumption: Patagonia's Buy Less, but Buy Better", Corporate Environmental Strategy, vol. 5, no. 2, pp. 32-40. 1998 Supplier relation Corporate Environmental Strategy

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