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This chapter concerns itself with a garment factory in Trinidad, West Indies, producing brand-name clothing for the Eastern Caribbean market. Workers in this factory not only stitch garments for an hourly wage; but also stealthily operate a secondary assembly line, creating precise duplicates of the factory's products for themselves to take home and wear. Manufactured on the shop-floor alongside “legitimate” production, the copied garments are identical in every way to the genuine ones they mimic. In this chapter, I argue that workers have created a “loop” in the value chain: a simultaneous moment in which they are both producers and consumers of the factory's products. While “genuine” garments circulate through market-capitalist networks of exchange, copied garments only circulate through social networks – thereby accruing and representing forms of “value” that are distinct from market value. By looping the value chain, factory workers create non-market values alongside market-oriented ones, showing both sets of values to be interdependent. Workers’ own commentary on these processes offers a unique window onto contested meanings of “value” at work on the shop-floor.

In the last two decades, the fashion value chain traveled to developing parts of the world. To these nations, it paved a path for socio-economic development initially but lately, the aftermath has costed more. This article visualizes the gains and losses of fast fashion to these countries.

An in-depth systematic literature review was performed to analyze the secondary data from academic journals and reports from international organizations. The authors have compiled their empirical journeys in academia, research and industry from low- and middle-income countries (LMICs) based on Schon's (1983, 1990) theory of reflective practice. Further on, the article is structured using the value chain analysis (VCA) method which visualizes the aftermath of mass-producing fashion for the developed countries.

In this research it was found that LMICs have made substantial economic progress in the past two decades, however at a high social and environmental cost. It is the right time to find a balance between economic development and harm caused to the citizens of these nations.

At the moment the existing academic literature talks about unsustainable practices in the fashion sector around the world. This research precisely targets the LMICs where the aftermath is supposed to be much more severe. Further, it provides solutions and urges these nations to bring a substantial change throughout the value chain for a robust future.

Unsustainable fashion consumption and wasteful practices have recently garnered attention in practice and academia; however, research in this field is limited. This study is based upon an extensive review of the literature and aims to fill this gap by providing an in-depth understanding of various drivers and actors operating in the closed-loop fashion value chain. The purpose of this study is to develop a framework of transformation from the linear economy (LE) to the circular economy (CE) for the fashion industry based on “transition theory.”

This study is conducted in two phases. In Phase 1, a bibliographic compilation on the given subject is done. In Phase 2, data about the case company is collected through trade media and semi-structured interviews with the founder and the designers.

The study found that key drivers for the closed-loop fashion value chain are collaboration with partners, innovation, waste management system, customer connect and changing utilization patterns. Based on the extensive literature review and analysis of the case study, it can be concluded that to incorporate CE principles, namely, reduce, repair, reuse and recycle into current business models, redefining existing value propositions and transforming various business model elements is essential.

A three-level (discrete level, aggregator level and the peripheral level) framework is developed that can help the fashion industry in transition from LE to CE. This study will help fashion houses to understand how they can work in tandem with various stakeholders to develop sustainable business models.

This paper contributes to research by advancing the understanding of how to further develop and redesign an innovative business model framework for the circular fashion value chain. A three-level framework is developed that can be used for transition from LE to CE, especially in the fashion industry. This study is one of the first research that has tried to analyze the Indian case company for CE practices in fashion.

Developing countries engaged in apparel value chain are going global, seeking opportunities to upgrade the industry through providing higher value-added products and services. The purpose of this paper is to investigate how Sri Lankan apparel industry designers interact with the western fashion world in the apparel value chain process, and how they acquire, adapt and apply the knowledge needed to develop high-value fashion products in their fashion design practice.

The study adopts a qualitative approach through semi-structured interviews conducted with fashion design and product development professionals in the Sri Lankan apparel industry. An inductive thematic analysis is used in identifying participants’ experience of the western fashion world within their fashion design practice.

The study proposes a “fashion knowledge bridge” illustrating the ways in which Sri Lankan designers acquire and merge high-value fashion consumer culture and lifestyle knowledge with the manufacturing industry, through multisensory and virtual experience, termed “exposure”, in their interactions with the western fashion world as well as the manufacturing culture of the Sri Lankan apparel industry. Designers’ exposure improves the feasibility and reliability of their apparel products, aligning to the end-consumer needs. The study also proposes a “designers’ exposure framework” that illustrates gains made by the Sri Lankan apparel industry resulting from knowledge enhancement through the designers’ exposure.

The study is based on a qualitative methodology that has potential subjective biases on the part of the researchers; in this case only the Sri Lankan designers’ perspectives were used in synthesising the findings.

The findings propose frameworks with theoretical and managerial implications for developing designers’ capabilities in apparel manufacturing countries that seek industrial upgrading through value-added fashion design practice.

Uzbekistan is one of the most prominent cotton producers since the soviet era, but it has struggled to establish a complete value chain. The country’s strategic location and industrial potential have not been harnessed accordingly. This paper aims to critically investigate the barriers in the value chain and propose solutions to the stakeholders in the sector.

The research involves both primary and secondary research methods. Value chain analysis method has been implemented to ground the theories and results. A systematic literature review was conducted to understand the current position in the world market. Official statistical data was collected from the government bodies to support the reflections of academic literature. Primary data was collected by conducting in-depth semi-structured interviews and questionnaires in 50 local textile companies. Finally, the authors have used their empirical evidences from emerging economies to provide solutions to the sector.

The value chain suffers a disconnect, as the emphasis has been on exporting cotton. Moreover, companies have a very limited technical know-how of supply chain management and hence no value addition to the raw material. The consumer relies on imports, as there is no significant participation from the Uzbek companies across the fashion segments. This is a major loss of earnings to the country.

Existing academic literature revolves around the cotton and silk industry, but, to the best of the authors’ knowledge, there is no study that unites the value chain and provides solutions to its stakeholders. This paper provides a socio-economic vision to the stakeholders, academia and industry so that the country can harness its potential and become one of the leading apparel producing nations in the future.

Digital innovation and circular business model innovation are two critical enablers of a circular economy. A wide variety of digital technologies such as blockchain, 3D printing, cyber-physical systems, or big data also diverges the applications of digital technologies in circular business models. Given heterogeneous attributes of circular business models and digital technologies, the selections of digital technologies and circular business models might be highly distinctive within and between sectorial contexts. This paper examines digital circular business models in the context of the fashion industry and its multiple actors. This industry as the world’s second polluting industry requires an urgent circular economy (CE) transition with less resource consumption, lower waste emissions and a more stable economy.

An inductive, exploratory multiple-case study method is employed to investigate the ten cases of different sized fashion companies (i.e. large, small medium-sized firm (SME) and startup firms). The comparison across cases is conducted to understand fashion firms' distinct behaviours in adopting various digital circular economy strategies.

The paper presents three archetypes of digital-based circular business models in the fashion industry: the blockchain-based supply chain model, the service-based model and the pull demand-driven model. Besides incremental innovations, the radical business model and digital innovations as presented in the pull demand-driven model may be crucial to the fashion circular economy transition. The pull demand–driven model may shift the economy from scales to scopes, change the whole process of how the fashion items are forecasted, produced, and used, and reform consumer behaviours. The paths of adopting digital fashion circular business models are also different among large, SMEs and startup fashion firms.

The study provides business managers with empirical insights on how circular business models (CBMs) should be chosen according to intrinsic business capacities, technological competences and CE strategies. The emerging trends of new fashion markets (e.g. rental, subscription) and consumers' sustainable awareness should be not be neglected. Moreover, besides adopting recycling and reuse strategies, large fashion incumbents consider collaborating with other technology suppliers and startup companies to incubate more radical innovations.

Appropriate policies and regulations should be enacted to enable the digital CE transition. Market patterns and consumer acceptances are considered highly challenging to these digital fashion models. A balanced policy on both the demand and supply sides are suggested. The one-side policy may fail CBMs that entail an upside-down collaboration of both producers and consumers. Moreover, it is perhaps time to rethink how to reduce unnecessary new demand rather than repeatedly producing and recycling.

The pace of CE research is lagging far behind the accelerating environmental contamination by the fashion industry. The study aims to narrow the gap between theory and practice to harmonise fashion firms' orchestration and accelerate the transition of the fashion industry towards the CE. This study examines diverse types of digital technologies in different circular business models in a homogeneous context of the fashion industry with heterogeneous firm types.

The aim of this research is to identify sources of differentiation in the fashion market as well as finding out sources of brand equity to distinguish the offer, enabling a better competitive position to be achieved.

To reach this objective, qualitative research was first carried out with 36 sector executives. Based on the results from the initial stage, 250 surveys were then carried out with potential consumers in order to analyze sources of brand equity.

In the fashion industry, the variables that show great potential for differentiation are excellence in the delivered finished product, brand image and design. In addition, loyalty and brand associations, in which image and design stand out, have been shown to be the most outstanding sources of brand equity.

The allocation of financial resources to the intangible assets of brand image and design should be profitable for the company. The creation of networks of designers and stylists would allow first‐hand information on market evolution. This input would be the basis for identifying new opportunities (e.g. fashionable colours, etc.) and also for anticipating new trends in clothing.

Discovering the sources of equity and their contribution to differentiating and developing high added‐value products for the consumer represents an original contribution in research into fashion markets and brand equity.

This study aims to develop and test a methodical approach to assessing the effectiveness of business models in fast fashion.

The approach allows one to identify the key features of companies' adaptation strategies during the COVID-19 pandemic. The paper analyzes the economic profitability of the fast-fashion industry and establishes business opportunity trends. The author identifies a set of general characteristics of business related to supply and demand before and during the pandemic crisis. The study relies on descriptive statistics and statistical processing methods, including regression analysis, arithmetic mean and the indicator of market economy dynamics.

The study found that the fast-fashion business model allows companies to adapt to the new market norms because of its dual strategy: demand-driven transparency and supply-driven sustainability, within the logic of consumption. The results indicate that focus on sustainability and transparent stakeholder engagement helps companies to remain relevant in the fashion industry.

The results of the study can be used by general managers of companies, marketers and administrative managers to select strategies and make decisions under the current and future fashion industry demands in markets at different developmental stages.

Globalization and its impacts on economies, societies and cultures has been a hot topic of research and discussion in the past few years. Recent times are witnessing the upsurge of another doctrine in the international arena – the practice of isolationism, a policy majorly related to political affairs but extendable to business, sustainability, green behaviour and various other spheres.

Globalization has resulted in various kinds of disordering and reordering of business objectives and practices. Modern day consumers have new needs and lifestyle orientations. The flip side is that increased global operations have precipitated newer challenges for Corporate Social Responsibility (CSR). But for managing globalization, isolationism is not the answer (Altman, 2007). Isolationism cannot be expected to have reciprocative effects of globalization. In fact, it may be in dispute with interests of many social stakeholders.

Responsible businesses have reoriented their CSR initiatives towards environmental and social stewardship. Sustainable Development Goals (SDGs) are the more recent strategic tools that provide a more focussed mandate to address sustainability issues emerging from increased production, consumption and disposal. In the times of vulnerabilities and disruption, there is an increasing emphasis on developing CSR as a horizontal enabler of SDGs.

Fashion & textile industry is the second most polluting industry globally. Fast fashion is having catastrophic impacts on the environment. Due to the massive size and magnitude of the global fashion & textile industry (USD 920 billion in 2018 and projected to grow to USD 1,230 billion by 2024), it becomes important to examine dimensions of CSR, in reference to SDGs in this sector. The fashion & textile industry is one of the most globally integrated. Sourcing, production, supply chain management, market development and retailing are all dependent on integration and collaboration amongst various business entities and regulatory bodies across national boundaries. Isolationism may result in disorientations in the enabling environments of this industry.

As sustainability is going to be the most important directive in coming future, the study aims to examine the cohesiveness between the current CSR initiatives of the fashion & textile sector and the prescribed SDGs. The study will further investigate if the instantaneous momentum of isolationism could cultivate multifaceted challenges for the horizontal integration of CSR in SDGs; and if yes, what will be the nature of these challenges?

Supply Chain Management, Technology, Procurement, Supply Chain Finance

The key learning objectives are as follows: to gain critical insights into e-commerce supply chains of fashion garments; understand the importance of digitization to manage the risks due to supply chain disruptions; evaluate the role of digitization to improve supply chain performance; understand the importance of supply chain finance in maintaining a healthy buyer–supplier relationship; and appreciate the role of supply chain digitization to transform a regional supply chain into a global supply chain.

This case highlights the challenges faced by fashion garments industry due to fragmented nature of their supply chains, where the manufacturing base was in the east and most of the consumers in the west. Digitization can create a bridge to integrate these supply chains to drive out their inefficiency, fragility and vulnerability to disruptions.

The case could be discussed in 90 min of an Operations Management, Supply Chain Management and Technology Management class at MBA or Executive MBA level.

Teaching notes are available for educators only.

CSS 9: Operations and Logistics.