Sustainable business models in the fashion industry

: balancing the tension between sustainability and profitability

Abstract

As born-sustainable companies are a relatively young phenomenon, academic research on this topic is limited. Drawing from the Triple Layered Business Model Canvas, this research aims to understand how born-sustainable companies in the fashion industry can implement a sustainable business model. Since the fashion industry is one of the most polluting business sectors globally, the results are of great interest to academia, entrepreneurs, and fashion industry incumbents. To answer the research question, I conducted a multiple case study on three born-sustainable companies: Refished, Maezen, RubyMoon. Three companies that build on different layers of sustainability and tackle different societal and environmental issues.The findings of the study demonstrate that sustainable business models create and deliver a sustainable value proposition to a conscious customer segment. Further, it is critical to align the values along the supply and value chain. In a sustainable business model, one cannot work with unsustainable partners or partners who do not share the same values. Circular business models are one way to implement sustainability, but a linear business model can also be designed as a sustainable business model. Inevitable trade-offs must be made along the value creation, value delivery, and value capture. One trade-off is the potential social exclusion resulting from charging premium prices to customers, as sustainably made fashion results in increased costs. Ultimately, to successfully implement a sustainable business model, the revenues have to outweigh the costs, and the derived environmental and social benefits have to outweigh potential adverse impacts.

Date of Award	5 Jul 2022
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Laure Leglise (Supervisor)