A Comprehensive Analysis of Circular Fashion in Small Clothing FirmsABSTRACT
Objective: this study aims to highlight the potential of the circular economy in small clothing companies, following the aspect of sustainable development, and that have undertaken some prior pro-sustainability action, under the notion that everything circular is sustainable, but not everything sustainable is circular.
Theoretical approach: recent efforts from academia, consumers, and governments have focused on the application of the circular economy (CE), built on reduction, rethinking, repurposing, recirculation, reuse, and recycling of inputs and operations aimed at sustainable growth. The fashion industry is considered one of the most harmful sectors to the sustainability tripod. Due to its impact, the application of CE in this creative sector is seen as a potential path to align it with sustainable growth objectives through the development of circular firms. The theoretical foundation for CE, however, is filled with European, American, and Asian works, making it complex to transfer to the regional reality analyzed here.
Method: three case studies were conducted, considering the theoretical approach of green supply chain management, triangulating in-depth individual interviews, non-participant in loco observation, and documental analysis.
Result: reuse and recycling of textile and rethinking the design process were observed in the operations, while zero waste patternmaking, reverse logistics, impact measurement, the use of circular materials, and design for disassembly were not found, and remain as possible solutions to fill these gaps aiming at the adoption of the circular model.
Conclusions: it is argued that these items should be the focal points of technological innovation, absent both in this study and in other investigations within the same empirical environment.
Keywords:
circular economy; circular fashion; sustainability; sustainable growth; slow fashion
RESUMO
Objetivo: este trabalho objetiva evidenciar potencialidades de economia circular em pequenas empresas de vestuário com histórico de sustentabilidade sob a noção de que tudo que é circular é sustentável, mas nem tudo que é sustentável é circular.
Marco teórico: esforços recentes da academia, de consumidores e de governos têm sido concentrados na aplicação da economia circular, edificada sobre redução, repensamento, reaproveitamento, recirculação, reuso e reciclagem de insumos e operações, visando o crescimento sustentável. Considera-se a indústria da moda como um dos setores mais nocivos ao tripé sustentável. Por seu impacto, visualizam-se oportunidades de sua aplicação nesse setor para alinhá-lo a objetivos de crescimento sustentável. O arcabouço teórico, contudo, é repleto de obras europeias, estadunidenses e asiáticas, assim sendo de complexa transferibilidade para a realidade regional aqui analisada.
Método: três estudos de casos foram realizados, à luz da abordagem teórica de gerenciamento de cadeias verdes de suprimento, triangulando entrevistas individuais em profundidade, observação não participante in loco e análise documental.
Resultado: ações de reaproveitamento e reciclagem de produtos têxteis e repensar o processo de design foram observadas nas operações, enquanto modelagem zero waste, logística reversa, mensuração de impacto, utilização de materiais circulares e design para desmontagem não foram utilizados, e seguem como possíveis soluções a preencher tais lacunas visando a adoção do modelo circular.
Conclusões: acredita-se que estes itens devam ser os objetos focais da inovação tecnológica, ausente tanto neste estudo quanto em investigações na mesma região do ambiente empírico.
Palavras-chave:
moda circular; sustentabilidade; crescimento sustentável;
slow fashion
INTRODUCTION
The fashion industry is a sector with a negative socio-environmental impact (Aus et al., 2021), generating 92 million tons of waste annually (Igini, 2023). Operating in a fast fashion format, firms produce on a large scale at low prices, promoting constant product replacement and prioritizing quantity over quality (Aprianingsih et al., 2023). An alternative to the impact of this manufacturing unit is the circular economy (CE), the economic system of productive cycles that preserve natural resources and reuse inputs (Prieto-Sandoval et al., 2018).
Recently, fashion organizations have adhered to circularity (Sinha et al., 2022), to mitigate environmental damage and extend product life (Mishra et al., 2021). For this, textile reuse and recycling (Harmsen et al., 2021), zero-waste patternmaking and sewing (Avilés-Palacios & Rodríguez-Olalla, 2021; ElShishtawy et al., 2022), upcycling (Kim et al., 2021), and design for disassembly (DfD) (Ramzan et al., 2023) are appropriate in slow fashion, a business model that values ethical production and mitigates generated socio-environmental impacts (Fletcher, 2010).
Despite the relevance of CE, national sectoral studies are scarce. Many publications are American, European, or Asian (Haq & Alam, 2023; Harmsen et al., 2021; Jacometti, 2019; Kim et al., 2021), potentially unsuitable for South American countries due to infrastructural discrepancies. Notably, the Brazilian clothing sector has a complete chain, including the planting, collection, manufacturing, spinning, and weaving of fibers to be transformed into products, excelling in segments such as denimwear, beachwear, loungewear, fitness, etc. (Associação Brasileira da Indústria Têxtil e de Confeccão [Abit], 2024), where perceptions of sustainability have become increasingly interesting to customers (Iemi, 2024). To the best of the authors’ knowledge, no national study has analyzed ex ante sustainability-oriented cases from these segments for comparisons that exhibit CE potentialities.
This paper aims to analyze the operational processes in small fashion firms. Through this analysis, potentialities and gaps for adopting circular practices can be uncovered. The results can theoretically support the development of green firms and/or guide ‘conventional’ fashion firms toward circularity.
This paper draws on three case studies, following Yin (2015), through triangulation of interviews with brand owners, non-participant observation, and documentary analysis. The interviews data were submitted to content analysis, following Bardin (2011). The authors selected Case X for its sustainability orientation since its foundation, similar to Case Z. Y (beachwear and fitness fashion) and Z (denimwear) represent the main segments of the national textile secto (Abit, 2024). This coverage, along with the sustainable history, allows for a comprehensive comparative analysis whose insights may benefit similar firms.
The paper is ordered as follows: first, the CE literature and its application in fashion are presented, combined with results from similar studies. This is followed by the methodological procedures. The next section regards the presentation, interpretation, and discussion of the empirical findings. Final considerations, limitations, and contributions are listed in the last section.
Articulations between CE and green supply chains
The idea of repurposing and reusing inputs dates to the last century. Boulding (2013) debated the need to view natural resources as finite, as consuming resources influences and is influenced by externalities. He debates closed systems as those in which nothing ‘escapes,’ where outputs are linked to inputs from other parts.
Cradle-to-cradle (C2C) is another contribution. This concept represents a circular view of the useful life of goods, with the disposal of outputs initiating new cycles, opposing the ‘cradle-to-grave’ (McDonough & Braungart, 2002). The cyclical idea breaks the linearity of obtain-produce-discard, favoring, slowing, narrowing, and/or closing the cycle of input flows and promoting reuse (Nikolaou & Tsagarakis, 2021).
CE is an economic model operating under the recirculation of resources through reasonably closed production cycles (Prieto-Sandoval et al., 2018), based on innovations, varying according to empirical settings (Kirchherr et al., 2023). The model involves the ‘7 Rs,’ such as rethinking input decisions and production processes, refusing excessive, unnecessary, and non-cyclical production, reusing and assigning new utilities to inputs, reducing dimensions and quantities in products, repurposing parts, chemically or mechanically recycling inputs into new inputs, and allowing decomposition (rot) (Jestratijevic et al., 2022).
The strategic choice of logistics partners represents an essential aspect of CE, as risks and responsibilities are shared by the actors involved in the production chain (Handfield et al., 2005). In line with this, choosing circularity-oriented suppliers is a strategy used by firms (Galatti & Baruque-Ramos, 2019). Such partners provide means to achieve logistics objectives, optimizing the recirculation of inputs (Oliveira & Oliveira, 2023).
Recognizing organizations as major consumers of inputs (Green et al., 2000), the need for collaboration between partners, including customers, is underlined to create socio-environmental solutions in different dimensions of the business model (Faria et al., 2023). Reverse logistics (RL) in take-back is a collaborative example. This operation of returning used parts to earlier operational phases reduces the consumption of virgin resources (Almeida et al., 2023), articulating actions of reduction, reuse, and recycling.
In the CE approach, firms are responsible for developing criteria for virgin material consumption and for measuring emission rates and energy, water, and chemical use in the production process (van Hoek, 1999). Inputs, manufacturing, and packaging must be planned and executed to promote circularity, leading to organizational ‘greening’ (Hsu et al., 2016). Such practices, in the first instance, align with sustainability and, from green initiation, may evolve into circular practices (e.g., textiles with water reuse).
Circular economy in fashion
Socio-environmental problems generated by the fashion industry typically derive from fast fashion, associated with linear and mass-produced items (Hugo et al., 2021). As an example of this model, between 15% and 25% of textile waste is generated in clothing production (Ramzan et al., 2023). The slow fashion movement responds to fast fashion by employing and promoting values of local sourcing, non-scaled production, and the use of durable and environmentally friendly materials (Fletcher, 2010). This aligns with CE practices, presupposing an increase in product lifespan and its subsequent use in the reuse and recycling of garments or inputs, reducing production waste (Jacometti, 2019), communicated in circularity reports (Henninger, 2015).
Harmsen et al. (2021) advocate for C2C, replacing non-renewable virgin materials with a combination of recycled inputs and those from renewable sources. Disadvantages include high costs, technological limitations, and loss of textile quality. Fiber blending can also represent a challenge for disposal; the recognition of the effects and adequacy of recycling is critical, given that the manufacturing sector generates waste in multiple production stages(Haq & Alam, 2023).
Textile waste is commonly sent to landfills or incinerators (Aus et al., 2021), where it becomes susceptible to contamination, hindering its direct reuse. Haq e Alam (2023) indicate that textile waste from cutting and patternmaking can be reused, reducing environmental and economic costs of acquiring new materials.
Zero waste is an application to drastically reduce residual generation involving multiple professionals and departments (ElShishtawy et al., 2022). Zero waste companies commonly use naturally biodegradable materials, as even ‘sustainable’ textiles generate waste (Gupta et al., 2022). Moreover, zero waste is a maximum direction of circular economies, where no waste is generated (Geisendorf & Pietrulla, 2018). Thus, it is the ultimate stage of waste eradication (Aus et al., 2021). For the implementation of zero waste in fashion, the patternmaking and cutting team must analyze and measure the cuts on the fabric roll, weight, and yardage to cut it without generating waste (Haq & Alam, 2023).
Upcycling is another format recorded in the literature that fosters circularity (Hugo et al., 2021). It involves inserting parts of products, scraps, and/or previously used textile materials into a new combination (Kim et al., 2021). This format features the reuse of elements, making it possible to save resources and reuse inputs (Gupta et al., 2022). Relatedly, design for disassembly is another strategy that enables partial or total disassembly of product components, facilitating proper separation for recycling and/or reuse (Ramzan et al., 2023).
CE studies in Brazil
Without full adherence to ad hoc policies (Faria et al., 2023), CE in national firms faces the challenge of poor waste and legislative management (Sanches et al., 2022). These authors found a disconnection with the local aspect, as waste is often imported, and technological shortcomings distance national companies from the level of international ones.
Galatti and Baruque-Ramos (2019) point out that, because Brazil has a complete textile production chain, space is a key factor for collaboration with logistics partners and circularity-oriented customers, initiated in RL. The authors see the lack of innovation and the use of technology in small firms as the biggest obstacles to CE, corroborating the findings of Ostermann et al. (2021), who also identified economic viability as an impediment to operating in CE. Economic barriers were also identified by Jesus et al. (2023). Elsewhere, Galatti and Baruque-Ramos (2022) reinforced social awareness and the use of social and activist innovation by firms and customers as ways to adapt to circularity, signaling partners as agents of change.
In small Brazilian circular fashion companies, product design often incorporates disassembly principles (Silva et al., 2019). The identified challenges align with the previous ones. Innovation is inconsistent, lacking managerial focus. Another practice explored by fashion companies is upcycling, considered a priority for CE implementation (Oliveira et al., 2023). By repurposing inputs, firms prevent the creation of a new production cycle based on virgin materials. Waste and inputs do not need to be directly repurposed by the generating organization. Recycling, done by third parties, is recommended for its effect of stimulating the local economy, especially related small businesses (Baruque-Ramos et al., 2017).
Some of these results align with global literature, where textile limits in the use of finite resources and economic limits predominate, with ‘environmental’ gains overshadowing financial gains, leading to inefficiency and low collaborative social adequacy (Korhonen et al., 2018). The studies indicate, as remediation, collaborative innovation and the use of technology for small Brazilian fashion firms to progress toward a circular economy.
Methodological procedures
This qualitative paper employed multiple case studies to understand dynamics, occurrences, and internal elements of organizations, corroborating or rejecting concepts in units of analysis (Eisenhardt, 1989), Sources were triangulated to ensure reliability (Yin, 2015). In-depth interviews with firm owners, non-participant observation of production procedures, and documentary analysis were articulated.
The first source was established based on Cooper and Schindler (2016). Following the narrative mode of oral history, interviewees communicated experiences, opinions, and feelings regarding the questions (Appendix A). The interview guide was validated by two specialists active in both academia and organizations.
Content analysis (Bardin, 2011), was employed, focused on the presence of key codes for interpreting nuances. The readings were triangulated among the three authors, comparing each response with Table 1, checking for possible meanings in the reports. The cross-analysis was done by pattern matching, confronting empirical results with the literature (Yin, 2015).
Considering that circularity must be integral to the organization, the authors performed non-participant observation of the production processes. In this technique, researchers refrain from interacting with the studied reality, focusing on systematically observing the object without manipulating it (Marconi & Lakatos, 2017). The methods were complemented by documentary analysis. The three best-selling garments from each case were analyzed.
Circularity indicators were adapted from Franco et al. (2021), as it is a national work connected to the scope of the article. Table 3 presents the documents used for documentary analysis based on the selected indicators. Some indicators are not applicable given the business size and economic activity of the cases and were omitted. The selected indicators and their adapted codes are shown in Table 4.
The instruments contained questions and items to identify quantities related to the analyzed process. However, during the fieldwork, the authors found that the firms did not have systematic records of quantities, providing researchers only with estimates. Eight months after the first collection, the authors interviewed the cases again to quantify the percentage use of the indicators in production over the last months.
Three fashion companies were selected, located within a 60 km radius: two micro-enterprises and one small-sized enterprise from the main segments of Brazilian fashion (Abit, 2024), aiming to investigate CE potentialities. All had engaged in some sustainable practice in the past, according to documentary evidence and reports. With this, the relationship between sustainability and circularity can be observed.
The authors aimed to contact collaborators previously employed in the cases to understand the sustainable background of the companies. This was only possible in Y, through the owner’s provision of contact information.
Table 5 concentrates the protocol for the incurred studies.
This protocol served to operationally direct the study’s data collection.
RESULTS
Case X is a women’s clothing brand founded in 2020, headquartered in Sapiranga, with a branch located in Novo Hamburgo. Most of the profit originates from sweatshirts, which are produced both in-house and by outsourced studios. Its headquarters concentrates the stock of products and textiles, machinery, cutting tables, part of the industrial patterns, packaging, and tea samples, dispatched along with the garments.
The manager confused reverse logistics (RL) with simple postal returns, likely due to both being referred to by the same term in Brazil. Its logistics partners for primary materials (e.g., textiles) are selected because they are Brazilian, as the brand ‘has the basics of sustainability,’ considering ‘textile waste, chemical waste,’ due to ‘ecological’ and ‘quality’ rules. ‘Being a small company’ prevents the careful selection of the secondary materials (trimmings) partner due to price: “I’m not sure if these trimmings are coming from a legal source.”.
The commitment to reduction is reinforced by the company’s adaptability to specific requirements in personalized service through the making of ‘durable’ clothing, adjustable for people with disabilities and body measurements incompatible with ‘traditional’ patternmaking.
During the visit, textile waste was pending collection by partner professionals who “unravel the fabric, make new yarns, and weave other materials” by shredding, as informed by an employee. Waste separation for disposal was checked. Under each sewing machine, a pipe connects to a container for each disposal category.
The manufacturing process is preceded by research on consumer preference trends. The collection is then designed, considering: “we can’t risk things that are too different from what we’re used to,” reflecting the cost barrier behind circular economies (Jesus et al., 2023). Patternmaking and prototypes are created and transported to local seamstresses; the finished products return to Sapiranga. An outsourced seamstress visits other professionals, accompanying them so that ‘no products are returned due to poor workmanship.’ One occasion occurred upon receiving a flawed batch. The products were exchanged, and, there being no ‘defects that made them unusable,’ they were then donated to a cancer-fighting organization. Except for the reuse of textile waste for making quilts and donations to local artisans, upcycling actions have not been ‘yet’ implemented.
During data collection, the owner chose not to share sales documents and technical sheets. The authors addressed this by analyzing a pair of pants, a sweatshirt, and shorts listed as ‘best sellers’ on the website. These products were shown to be composed of cotton, polyester, and linen.
Case Y corresponds to a women’s clothing brand from Dois Irmãos, also operating in Novo Hamburgo and Porto Alegre. The business was opened in 2024. Since the beginning, the manager implemented local production, disposal of solid waste to a higher education institution (HEI), and experimentation with sustainable textile material. This firm operates in beachwear, fitness, and casual wear - with garments designed to be worn on multiple everyday occasions. Sweatshirt sets, leggings, and tops account for the largest share of revenue. At the headquarters, fabric cutting is carried out and sent to outsourced studios in Novo Hamburgo (fitness and casual) or Porto Alegre (beachwear). Finished garments return to the building in the city of Dois Irmãos, being stored in the office, where the owner packages and sends them by mail. Alternatively, they can be picked up on-site - a service offered exceptionally to ‘nearby’ customers. The packaging observed consisted of recyclable material and is adorned with phrases alluding to the brand and well-being.
A lack of understanding of RL was demonstrated, and it was reported that the choice of suppliers is based on time and market reputation, indicated by outsourced collaborators, as they ‘work with large companies.’ Specific materials, such as ‘linens,’ were mentioned. The suppliers are Brazilian, based in the southern and southeastern regions, similarly for trimmings suppliers. Unlike the main inputs, ‘price’ was mentioned as the decisive factor for trimmings, maintaining a national partner. Each collection depends on the material available from suppliers.
‘Composition labels’ and ‘fabric composition’ were the mentions of legality. Besides these, ‘I don’t know any.’ In similar codes, ‘timeless’ clothing was pointed out, which ‘the client will be able to use for a long time.’ The best-selling garments are knits with elastane and linen. The use of sustainable textile material in the brand’s first collection was reported, which did not meet functional and economic criteria, resulting in disuse.
Small textile scraps are transformed into headbands. Larger scraps are repurposed in the manufacturing of dog beds, sent to an HEI by a collaborator. The material is repurposed into non-commercial goods, such as quilts, rugs, bags, and car seat covers. However, the manager states: ‘I never think … about repurposing.’ The professional from the brand’s first contributing studio stated that no zero-waste action was taken in patternmaking, corroborating the superior’s decision.
Paper waste is destined for a nearby school. Fabric scraps are donated for workshops, doll clothes, or patchwork promoted by an HEI. Upcycling was designed during the creation of the business model but was not applied; reuse, repair, recycling, and reduction were not considered: ‘in practice it is difficult … to think about the environment. ’
Z is a workwear and casual brand, specialized in denim. The brand has been operating in Porto Alegre for the past seven years. The firm started operating with denim (cotton, without pre-wash) for product development. Z produces uniforms - including a zero-waste apron in production, reducing cutting and sewing and repurposing scraps - customizable, timeless pants (e.g., jeans) and t-shirts. The firm was founded with the purpose of creating durable products and minimizing environmental impacts.
The owner emphasized prioritizing recycled textiles ‘from PET bottles,’ in addition to reusing part of the fabric scraps. Jeans, made of denim, are acquired from a supplier who does not wash the raw material, avoiding ‘natural fading’ during ‘use time.’ The case works with multiple suppliers, meeting proximity criteria ‘in the region,’ prioritizing raw and/or recycled textiles.
Scraps are directed to artisanal producers or applied to products to increase their life cycle, but most are passed on to recycling partners. Another end is in upcycling for the exclusive creation of ‘caps’ and ‘berets,’ where ‘nothing goes to waste.’ The firm has four more employees, divided between cutting and sewing, in addition to an outsourced patternmaker. At the headquarters, up to twelve units per model are produced. Exceeding this threshold, production is sent to a local manufacturing contractor, not supervised by the owner. The model follows the production order. However, the owner aims to increase production capacity to have products in stock and on display full-time.
Z offers ‘repairs on garments’ supported by the use of reinforced sewing machinery, which also ‘favors the garment’s resistance,’ distancing itself from the ‘chemicals’ commonly involved in non-sustainable products. The lack of understanding of RL in the context of green supply chains (GSC) and the choice of suppliers by convenience and proximity were repeated.
The three analyzed garments do not have irreplaceable seams or trimmings that would make disassembly unfeasible. Two garments are composed exclusively of cotton, while one alternates cotton and polyester. Despite this, DfD was not mentioned during the interview.
All garments are granted to customers during ‘test’ periods, verifying the wearability and durability of the garments after the first washes. This decision was initiated in the workwear line, given that part of the brand’s audience works in the food industry, requiring constant washing that leads to fading. Eventually, this was incorporated into the casual line.
In the authors’ second contact, the cases were questioned about the quantifications of Franco et al. (2021), indicators in percentage terms relative to production. Table 6 summarizes the results.
The results are analyzed bellow.
ANALYSIS AND DISCUSSION OF RESULTS
This section initiates with the internal analysis of the cases, comparing them with each other. Subsequently, international cases and technologies show potential contributions for the studied cases. A synthesis is then made, indicating CE potentialities for small fashion firms.
Internal comparisons
The non-provision of documents beyond technical and sales sheets made it impossible to check chemical consumption, energy and water expenditure, and waste generation per product, thus estimating reduction. Documentary unavailability is interpreted as evidence, as resource consumption documents are important indicators for CE (Franco et al., 2021).
Categories emerging from Case X’s statements include: ‘ecological production,’ ‘material,’ and ‘product quality,’ referring to durable and local production, including ‘Brazilians’ as the primary selective criterion for supplier selection. ‘Cost’ and ‘return’ refer to the destination of the products. ‘Exchanges’ point to a lack of understanding of RL. ‘Risk’ due to ‘business size’ was the justification for not engaging in some circular actions.
For Y, the code ‘exchanges’ holds the same meaning. ‘Network’ highlighted the influence of third parties and reputation in decision-making, with an emphasis on ‘price.’ However, ‘product quality,’ being ‘timeless’ and ‘sophisticated,’ gives it a certain durable and possibly circular aspect, reducing new purchases. ‘Recycling’ and ‘repurposing’ are mentions of actions that have not been carried out due to ‘size’ and ‘demand’ (in the absence of ‘growing more and having other people’).
In Z, the use of cotton denim without ‘washing,’ ‘durability,’ and the practice of incurred “test(s)” lead to a reduction in creating new virgin garments, saving resources, amplified by “repairs” ‘regardless of how long you have had the product.’ Taking nothing ‘to the trash’ denotes residual utilization for making accessories or for donations to others.
C2C manufacturing (McDonough & Braungart, 2002) can be implemented by using recycled inputs and renewable sources from other firms, initiating new cycles (Harmsen et al., 2021). No case demonstrated forms of this approach, as it is not part of the product design process; instead, ‘compensated’ by ‘durability’ and ‘long-term use’ align with a sustainable, but not circular, perspective. This supports the notion that something can be sustainable but not circular, while it cannot be circular without being sustainable.
Without biodegradable composition or in cases of difficult reuse in other productions (due to loss of quality), the end may be the same as a fast fashion product (Gupta et al., 2022), improperly discarded (Jestratijevic et al., 2022). Therefore, biodegradable material is recommended. If financial obstacles exist, producing with mixed materials (virgin and reused) is a possibility supported by collaborations with logistics partners. Firms could develop strategic and collaborative networks to leverage resources from other actors, specifically through consortium agreements for win-win scenarios.
The materials in Case X (linen and cotton) allow for recycling, while polyester is an unfavorable option; the biggest challenge lies in the mixture of materials, which must be considered for proper separation and disposal (Harmsen et al., 2021). Y uses linen, circularly suitable for its recyclability, and elastane in knits, which is circularly unsuitable as its fibers are non-recyclable (Harmsen et al., 2021). Z reported using raw, unwashed denim and recycled textiles and surplus from its own production cutting, resulting in the main case of input circularity. Therefore, a solution for X and Y is to use fabric banks, in line with strategic partnerships, to become circular. Measuring, understanding, and communicating this use of inputs can allow for impact analysis, verifying ways of mitigation and adaptation for reuse (Henninger, 2015).
No case presented DfD. X approaches this through personalized service to body particularities, altering product patternmaking to facilitate use. Its use of adhesives (e.g., in interfacing) and/or highly complex embroideries makes disassembly impossible. Z’s garments can be beneficial or detrimental due to personalization. In Y, the products have non-removable external labels so as not to compromise the structure. The same occurs in another garment that contains an inseparable embroidery on the sleeve.
It is the authors’ belief that adaptation to circularity in this case must start from product design decisions, meeting ‘greening’ criteria (Hsu et al., 2016). The products could be improved by the DfD process to have the capacity for item separation (Ramzan et al., 2023), maximizing their usability through the partial reuse of other garments. Producing modular clothing (Franco et al., 2021) is another possibility. It is recommended that, for circular imposition on customizable products, inputs and optional parts be easily removable and reusable for new products.
All cases position themselves as producers of durable clothing, usable on multiple occasions, timeless, and not based on constant renewals. Thus, firms may persuade customers to prioritize circular garments, leading to a reduction in virgin material acquisitions (Faria et al., 2023). Green packaging (Hsu et al., 2016), recycled and reusable, as used by Y, can be inserted into the communication funnel to convey such messages. Packaging deserves focus, as it can receive each of the 7 Rs (Jestratijevic et al., 2022). It is also suggested that firms operationalize product repairs, shifting the focus from buying new clothes to repairing and maintaining current ones.
X and Y do not practice upcycling in their main products. Upcycling could belong to alternative lines and/or feature in the brand’s accessories, as occurs in Z. This would communicate the organizational green reputation (Hsu et al., 2016) and result in the implementation of circularity, gradually applicable to the main lines, transitioning the organization from non-sustainable to sustainable and, ultimately, circular, if complemented with more Rs of circularity.
Logistics partners are essential for implementing CE. Despite Case X’s confidence in its suppliers, there are no guarantees about the origin of trimmings, as acknowledged by the manager. This is repeated in Z, selecting partners by proximity criterion. However, Z relies on the selection of raw and environmentally friendly raw material suppliers. Thus, it is possible that the offer of circular suppliers could assume the entirety of the case’s choice. For Y, the uncertainty is greater, as partnerships are built on third-party recommendations based on experience and price criteria.
An ex-employee of Case Y pointed out that zero-waste practices were not carried out because there was no request from the manager. Zero waste was also not present in X. In Z, not ‘generating waste’ allows for waste minimization, repurposing scraps, and reducing virgin material. The zero-waste apron may promote zero-waste cutting, sewing, and patternmaking for other products. Zero-waste practices allow for greater efficiency in patternmaking, cutting, and sewing, without requiring high implementation costs. The absence of data on the number of cuts, fabric rolls, scraps, and reusable quantity becomes an impediment to circularity (Aus et al., 2021; Haq & Alam, 2023). In cases of outsourcing, working exclusively with zero-waste studios is a possible path that the cases could have taken. If such a possibility does not exist, educating the contracted party about circular practices and requiring their implementation is a co-evolutionary alternative.
Without mentions of post-disposal in Y, overconfidence in partners can lead to operational errors, potentially resulting in improper disposal (Aus et al., 2021). X and Z, through specialized collaboration, reduce this risk. However, as informed, the collected waste is only from the production space of the firms’ headquarters, with no control over outsourced studios. This highlights the need for management to demand measurable proof of the destination of partners’ waste and reveals a lack of governance in imposing circular practices.
The cases present a reductive direction in the form of constructing durable and timeless clothing, reducing consumption, and rethinking (Jestratijevic et al., 2022) the mainstream format (Fletcher, 2010), making them usable on different occasions, reinforcing the non-necessity of acquiring new products each season or trend. This could be expanded by offering repairs, increasing product lifespan, and promoting circularity. X and Y repair recent garments, while Z repairs products regardless of their age and free of charge. This, however, can represent an economic obstacle. In this case, cost-sharing with beneficiaries of the repair service can be an alternative.
Some gaps are observed in the cases. The explanation for the absence of reduction may stem from the time of activity and available resources, as, for profitability, decreasing units and increasing sales price can be risky for small businesses. This aligns with high CE costs being known barriers in Brazil (Jesus et al., 2023). The implementation of RL actions could address the absence of recovery. Zero waste, C2C manufacturing, DfD, and reports on virgin material, water, and energy resource consumption, all absent, can also be explained by the same reasons.
Recognizing disposal adequacy (Aus et al., 2021) and drafting documents on scraps and fabric roll quantities (Haq & Alam, 2023) can leverage repurposing possibilities. Rethinking operations can also benefit from ad hoc reports on emissions and the use of water, material, and energy resources (Almeida et al., 2023) to explore circular alternatives. Thus, it is suggested that firms build structures for measuring the resources used in unit production and for each collection, in addition to systematizing the restricted use of reusable materials for themselves or by partners.
The indicators show X as circularly positive by recycling 100% of usable textile waste (50-60 kg/month) with a partner who resells the recycled output and returns part of the profit. Less than 1% of garments are repaired - the manager sees this as a result of the seamstresses’ effectiveness. However, the case uses virgin materials and trimmings entirely. In fact, the adhesive ‘interfacing’ prevents DfD. Null take-back derives from the non-existence of RL. The authors suggest that RL be the central implementation for circularity, as it will enable the firm to obtain inputs for repurposing, reuse, and repairs at a lower cost than virgin ones (win-win).
The results place Y as the least circular. In the last six months, the firm has produced with non-circular materials and trimmings. There are no take-back actions. Repairs, not monetized, are below 10% of production. The positive side is that the average of 50 kilograms per month of reusable waste is entirely sent for recycling. The manager pointed out that the outsourced studios lack knowledge of circularity, hindering its implementation, and that ‘they want to earn their money, the rest they don’t care.’ As the case starts its product design based on materials available from suppliers, an indication would be to partner with circular suppliers and studios - highlighting the importance of partner choice for circularity. The sustainable packaging of products demonstrates how sustainability is not circularity, but can lead in its direction.
Case Z displays the most circular results, requiring minor improvements to enhance its performance. It is the only case that uses circular materials and trimmings, albeit in small quantities. It is the case with the most repairs - justifiable by partially working with professional uniforms, being the oldest company, and having the largest client portfolio. Recycling 90% of waste and donating the other 10%, and due to its market performance, the implementation of RL is suggested - leveraging its awareness and reputation. The case could obtain, gather, and recondition materials, exchanging with other partners, establishing itself as an assiduous promoter of circularity. However, for this, the case will need to systematically measure reusable waste and compile it in reports, which are absent from its data.
Insights: International cases and technological innovations
Digital technologies offer means to transition linear economies to circularity (Neligan et al., 2023), such as 3D printing with recycled waste polymers (Islam et al., 2022), mapping of circular logistics supply (Sandvik & Stubbs, 2019), assisted by blockchain for traceability of inputs and production (Hassan et al., 2024). Adidas (2017) implemented 3D knitting manufacturing, personalized and agile, adjusting to user measurements, reducing waste.
Adapting technologies to immature organizational structures with low available budgets is a challenge (Jesus et al., 2023). 3D printing manufacturing has been receiving recycled inputs and bioplastics, avoiding non-circular polymers (Greenfill3d, s.d.). Personalized 3D knitting allows for the creation of durable, high-touch products that discourage the purchase of new non-circular garments - prioritizing quality over quantity (Aprianingsih et al., 2023). Computerized garments allow for high levels of detail, enabling the design of modular and/or parts that can be disassembled.
Small circular fashion firms can build partnerships or negotiate jointly with providers of this service to reduce access costs. On the other hand, open-source blockchain technologies are increasingly popular and suitable for input traceability, which can result in a green reputation and transparency, strengthening the circular brand. Skilled personnel will be necessary for this. If resources are available, transparent logistics supported by blockchain justify personalized and expensive codes for the brand.
International cases also illuminate possibilities. Tommy Hilfiger (2024) combines (re)commerce and remanufacturing strategies in commercial lines. In partnership with The Renewal Workshop, the company classifies, cleans, and repairs collected items, recycling unrepairable ones into yarn or donating them through the brand’s philanthropic branch (Ellen MacArthur Foundation, 2021). In guerrilla marketing Patagonia (2011) inspired consumption reduction strategies, requesting that customers not buy their products if there is no need; the commercial results were very positive for the brand. H&M strategized a roadmap for CE implementation based on circular and durable products, a product recirculation system and circular production processes, and offering customers accessible ways to experience and participate in circular fashion with products derived from repair or recycling (Ellen MacArthur Foundation, 2024). Outrora, a H&M Group (2023) also provided the Circulator: a free-to-use calculator that measures present and future circularity in fashion collections.
Tommy Hilfiger and H&M demonstrate how large companies are willing to co-create, generating responsible reputations for themselves. Fashion firms, equipped with a good green image, can approach these players to collaborate, accessing monetary and financial resources while contributing to the partner. Partners of this nature, offering a take-back guarantee, would be essential channels for the implementation of RL, which is non-existent in the cases. The Circulator can structurally contribute to the product creation process of organizations, defining the cradle from the beginning of product development; it is a candidate to be the beginning of product design and the establisher of criteria, considering C2C. The Patagonia case illustrates how creative guerrilla marketing campaigns precede customer behaviors and educate them toward circularity (reduction), acquiring awareness for themselves and boosting their equity. In common, the cases demonstrate the collaborative capacity of co-creation to integrate partners’ resources (hitherto unpublished or scarce) to achieve circularity. These recommended decisions concern the employment and good strategic use of administration - omitted by the cases that could compose strategic plans for full conversion to CE.
It is true that these academic and empirical contributions refer to international empirical environments and relatively recent technologies. However, with the constant advancement of market and governmental pressures on sectoral CE (Mishra et al., 2021) and technological cost reduction, it is presumed that small and medium-sized fashion companies will be able to appropriate these apparatuses.
CONCLUSION OF THE ANALYSIS AND THE DISCUSSION
The low number of mentions related to legislation aligns with local results (Sanches et al., 2022), indicating that impediments of this nature are distributed across empirical environments. Connections with multi-helix partners are a necessary focus for collaborative innovation (Galatti & Baruque-Ramos, 2019, 2022) to be addressed, especially due to the social and cultural aspect (Korhonen et al., 2018). Collaborating with customers leads to CE and generates, among other benefits, socio-environmental development (Kirchherr et al., 2023). Recycling (Baruque-Ramos et al., 2017) was a positive example in the cases and should be celebrated, even though upcycling and zero waste, widespread in similar cases (Oliveira et al., 2023), were insufficient.
Economic problems, from poor sales performance of products with sustainable textiles to the commercial viability of lines, align with local studies. Similarly, the focus is on products (Silva et al., 2019), not management. Innovations and technologies implemented for circularity were nonexistent.
Given the contingency approach and GSC, the authors defend Hall (2006), innovation perspective, encompassing manufacturing, management, and logistics. New combinations incurred by the cases may include circular lines and apply new technologies toward circular practices, not only of products but also of GSC, as in RL, unexplored in the cases. With a take-back guarantee, buyers can return circular and reusable products into new production processes or, by leveraging personalized and unique garments with emotional involvement (Ostermann et al., 2021), disposal tends to decrease, leading to reduction. These alternatives address cultural, social, technological, material, and economic contingencies of CE (Korhonen et al., 2018). Conclusively, the implementation of just-in-time (JIT) policies can corroborate the economy of logistical resources and introduce RL.
Figure 1 graphically summarizes these suggestions.
This prepared material derives from the potentialities perceived from the cases.
With sustainability preceding CE, it was seen that the cases exhibited slightly to moderately circular approaches. The distinct approaches, the incorporation of sustainable and circular elements in management and production adapting to the environment (e.g., market reception for the use of sustainable textiles, systematization of waste use channels), assume a perspective of the contingency theory of organizations. This derives from the fact that entities shape themselves and respond to external factors in different ways, delineated by their internal contingencies (Donaldson, 2001).
FINAL CONSIDERATIONS
This work analyzed circularity perspectives via case studies with small, nearby clothing manufacturing firms. Field interviews, non-participant observation, and documentary analysis were triangulated. The comparative analysis across different years of operation provided coverage for pattern matching.
The findings of this study can assist fashion companies in implementing circularity elements, listing opportunities and recommendations for elaborating environmentally and economically viable strategies. Small circular fashion companies can inspire other firms to follow the CE model due to organizational isomorphism. This may contribute to sustainability and the circular economy, as the transition from non-circularity to circularity will consume valuable resources and be exposed to multiple risks (e.g., organizational capabilities, market acceptance). Starting with sustainable practices is indicated as the formal beginning of the CE journey, as not everything sustainable is circular
This study identifies the main gaps as technological and innovation-related, focused on return policies and subsequent reimplementation in the production chain, such as the unexplored take-back reverse logistics. Upcycling, zero waste, and repair actions are opportunities to be maximized. Specifically regarding zero waste, the authors agree with Geisendorf and Pietrulla (2018), who see this practice as the ultimate goal of productive sustainability, achievable, firstly, by attaining circularity and gradually reducing virtually all waste generated in production processes. Thus, it is the main objective to guide green organizational planning. Design for disassembly, use of biodegradable materials, RL implementation, measurement and documentation of resource use, and actions to extend the life cycle of garments are untapped opportunities in the cases. Support technologies and collaborations were ignored.
Based on this, the generated insights suggest that firms can create policies for repairing garments to generate revenue and not contribute to the production and commercialization of virgin products. Designing collections whose products have components that can be disassembled for reuse in new cycles is another means leading to CE in fashion firms. Their composition must be analyzed and measured according to reuse, recycling, recovery, and repurposing indicators.
Upcycling actions can be internal in proprietary lines for monetization or connected to partners - configuring collaborative innovations - to manufacture new goods without using virgin materials (e.g., pet beds). RL and zero-waste patternmaking and cutting can also benefit from direct partnerships, obtaining waste and scraps at low or no cost for repurposing, and maximizing resource usability while reducing the use of new virgin inputs, respectively. Firms holding waste may exchange it for other resources, tangible (e.g., textile material unused by an entity) or intangible (e.g., social capital for acquiring certificates).
Based on resources, the need to collaborate and co-create with strategic partners is raised as a driver to access circular economies, overcoming organizations’ lack of their own resources. The appropriation of technological innovations is emphasized. With the joint commitment among helices to achieve more sustainable societies via ad hoc objectives, other stakeholders can benefit from this research. Governments, recognizing the need to boost circular fashion firms, may offer credit and tax benefits for their development through policies. Civil society must sufficiently obtain knowledge about the consequences and impact of non-conscious fashion consumption to organically opt for circular options. Academics, by verifying the results of this work, can go beyond the scope of dividing cases by dominant segments by comparing them with other industries or unexplored emerging segments - the study of modular clothing is an example of this. It is recommended that circularity knowledge be applied from the beginning of courses. Collaborative strategies also deserve scientific attention to jointly promote circularity.
The results should be interpreted with caution, as they represent a spatial sample. It is possible that the findings do not correspond to those of other groups. Another limitation is the methodological adaptation: with Case X not providing documents during collection, the analysis was conducted based on ‘best sellers’ on the website, possibly omitting a more suitable product for analysis. Due to the lack of structure in this approach, along with other environmental and financial performance metrics, these limitations are acknowledged.
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Source: Elaborated by the Authors.
