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Close the loop: Evidence on the implementation of the circular economy from the Italian fashion industry

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  • Mariachiara Colucci
  • Alessandra Vecchi

Abstract

Fashion is widely considered as one of the most polluting and destructive industries to the environment and is a resource‐intensive industry in which opportunities to reduce environmental impacts abound. By relying on an exploratory approach, this paper features an investigation into the circular economy (CE) practices of four purposefully selected Italian fashion companies. The study endorses the overlooked perspective of the product lifecycle (vis‐à‐vis the business model perspective), consistent with the key principles of the CE, to provide a comprehensive picture of CE practices implemented. This study engages with the current debate on the relationship between the concepts of sustainability and CE, supporting the idea that there is a beneficial relation between the two. The analysis shows the emergence of categories of CE‐related practices as well as CE implementation challenges. The study also provides granular insights into the nature of these challenges that hinder the implementation of CE and demonstrates how they can be turned into sources of competitive advantage. Drawing on this emblematic evidence, we develop a set of theoretical and managerial implications.

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  • Mariachiara Colucci & Alessandra Vecchi, 2021. "Close the loop: Evidence on the implementation of the circular economy from the Italian fashion industry," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 856-873, February.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:2:p:856-873
    DOI: 10.1002/bse.2658
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    1. Andreza de Aguiar Hugo & Jeniffer de Nadae & Renato da Silva Lima, 2021. "Can Fashion Be Circular? A Literature Review on Circular Economy Barriers, Drivers, and Practices in the Fashion Industry’s Productive Chain," Sustainability, MDPI, vol. 13(21), pages 1-17, November.
    2. Saskia Manshoven & Wim Van Opstal, 2022. "The Carrot or the Stick? Stakeholder Support for Mandatory Regulations towards a Circular Fashion System," Sustainability, MDPI, vol. 14(22), pages 1-31, November.
    3. Abbate, Stefano & Centobelli, Piera & Cerchione, Roberto, 2023. "From Fast to Slow: An Exploratory Analysis of Circular Business Models in the Italian Apparel Industry," International Journal of Production Economics, Elsevier, vol. 260(C).
    4. Corinna Vera Hedwig Schmidt & Bastian Kindermann & Cassian Felix Behlau & Tessa Christina Flatten, 2021. "Understanding the effect of market orientation on circular economy practices: The mediating role of closed‐loop orientation in German SMEs," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 4171-4187, December.
    5. Benedikt M. Brand & Theresa Maria Rausch & Jannika Brandel, 2022. "The Importance of Sustainability Aspects When Purchasing Online: Comparing Generation X and Generation Z," Sustainability, MDPI, vol. 14(9), pages 1-28, May.
    6. Ramanathan, Usha & He, Qile & Subramanian, Nachiappan & Gunasekaran, Angappa & Sarpong, David, 2023. "Collaborative closed-loop supply chain framework for sustainable manufacturing: Evidence from the Indian packaging industry," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    7. Alexandra Barón Dorado & Gerusa Giménez Leal & Rodolfo de Castro Vila, 2022. "Environmental policy and corporate sustainability: The mediating role of environmental management systems in circular economy adoption," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 830-842, July.
    8. Ut-Tha Veenarat, 2023. "Pioneering Eco-Cart: Carbon Reduction Solutions for Thai Online Shoppers," Management & Marketing, Sciendo, vol. 18(4), pages 515-536, December.
    9. Joséphine Riemens & Andrée-Anne Lemieux & Samir Lamouri & Léonore Garnier, 2021. "A Delphi-Régnier Study Addressing the Challenges of Textile Recycling in Europe for the Fashion and Apparel Industry," Sustainability, MDPI, vol. 13(21), pages 1-30, October.
    10. Maria Elena Aramendia-Muneta & Andrea Ollo-López & Katrin Simón-Elorz, 2022. "Circular Fashion: Cluster Analysis to Define Advertising Strategies," Sustainability, MDPI, vol. 14(20), pages 1-19, October.
    11. Chowdhury, Naimur Rahman & Paul, Sanjoy Kumar & Sarker, Tapan & Shi, Yangyan, 2023. "Implementing smart waste management system for a sustainable circular economy in the textile industry," International Journal of Production Economics, Elsevier, vol. 262(C).
    12. Wen-Kuo Chen & Ching-Torng Lin, 2021. "Interrelationship among CE Adoption Obstacles of Supply Chain in the Textile Sector: Based on the DEMATEL-ISM Approach," Mathematics, MDPI, vol. 9(12), pages 1-24, June.

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