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The Circular Economy and the Role of Technology in the Fashion Industry: A Comparison of Empirical Evidence

Author

Listed:
  • Patrizia Gazzola

    (Department of Economics, University of Insubria, 21100 Varese, Italy)

  • Enrica Pavione

    (Department of Economics, University of Insubria, 21100 Varese, Italy)

  • Rainer Hillebrand

    (Department of Business, Fulda University of Applied Sciences, 36037 Fulda, Germany)

  • Vincenza Vota

    (Department of Economics, University Carlo Cattaneo—LIUC, 21053 Castellanza, Italy)

  • Rebecca Rosa

    (Department of Economics, University of Insubria, 21100 Varese, Italy)

Abstract

The present article analyses the theme of circularity in the fashion industry, with particular attention to the role of technology in favoring the adoption of circular economic models. The article explores the role of technology in supporting the circular economy in the fashion industry, focusing on the implementation of circular business models by three companies: SHEIN, Ralph Lauren, and Cotopaxi. The aim is to investigate the challenges and opportunities associated with the adoption of circular economy practices in an industry known for its environmental impact. The research highlights how technology, particularly software such as Materia MX, can facilitate streamlined supply chains, reduced waste, and optimized resource efficiency, thus, overcoming obstacles such as high investment costs and supply chain complexities. The case studies demonstrate how each company has integrated circular practices, such as recycling, reusing materials, and improving transparency through technologies such as AI, blockchain, and IoT, to promote sustainability. Thus, the study emphasizes the importance of technological innovation in enabling a more sustainable and circular future for the fashion industry while addressing challenges related to consumer awareness, regulatory pressures, and infrastructure. The results suggest that technology is a key factor in the fashion industry’s transition to a circular economy, offering a competitive advantage and facilitating the achievement of environmental objectives.

Suggested Citation

  • Patrizia Gazzola & Enrica Pavione & Rainer Hillebrand & Vincenza Vota & Rebecca Rosa, 2025. "The Circular Economy and the Role of Technology in the Fashion Industry: A Comparison of Empirical Evidence," Sustainability, MDPI, vol. 17(7), pages 1-29, April.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:7:p:3104-:d:1625479
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    References listed on IDEAS

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    1. Patrizia Gazzola & Enrica Pavione & Arianna Barge & Franco Fassio, 2023. "Using the Transparency of Supply Chain Powered by Blockchain to Improve Sustainability Relationships with Stakeholders in the Food Sector: The Case Study of Lavazza," Sustainability, MDPI, vol. 15(10), pages 1-16, May.
    2. Nthabeleng Caroline Monyaki & Ryna Cilliers, 2023. "Defining Drivers and Barriers of Sustainable Fashion Manufacturing: Perceptions in the Global South," Sustainability, MDPI, vol. 15(13), pages 1-15, July.
    3. Yafeng Han & Tetiana Shevchenko & Bernard Yannou & Meisam Ranjbari & Zahra Shams Esfandabadi & Michael Saidani & Ghada Bouillass & Kseniia Bliumska-Danko & Guohou Li, 2023. "Exploring How Digital Technologies Enable a Circular Economy of Products," Sustainability, MDPI, vol. 15(3), pages 1-20, January.
    4. Patrizia Gazzola & Enrica Pavione & Roberta Pezzetti & Daniele Grechi, 2020. "Trends in the Fashion Industry. The Perception of Sustainability and Circular Economy: A Gender/Generation Quantitative Approach," Sustainability, MDPI, vol. 12(7), pages 1-19, April.
    5. Anna Wójcik-Karpacz & Jarosław Karpacz & Piotr Brzeziński & Anna Pietruszka-Ortyl & Bernard Ziębicki, 2023. "Barriers and Drivers for Changes in Circular Business Models in a Textile Recycling Sector: Results of Qualitative Empirical Research," Energies, MDPI, vol. 16(1), pages 1-24, January.
    6. Vesna Alivojvodic & Filip Kokalj, 2024. "Drivers and Barriers for the Adoption of Circular Economy Principles towards Efficient Resource Utilisation," Sustainability, MDPI, vol. 16(3), pages 1-16, February.
    7. 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.
    8. Kirchherr, Julian & Reike, Denise & Hekkert, Marko, 2017. "Conceptualizing the circular economy: An analysis of 114 definitions," Resources, Conservation & Recycling, Elsevier, vol. 127(C), pages 221-232.
    9. Sara Scipioni & Meir Russ & Federico Niccolini, 2021. "From Barriers to Enablers: The Role of Organizational Learning in Transitioning SMEs into the Circular Economy," Sustainability, MDPI, vol. 13(3), pages 1-31, January.
    10. Amna Farrukh & Aymen Sajjad, 2024. "Drivers for and barriers to circular economy transition in the textile industry: A developing economy perspective," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(6), pages 7309-7329, December.
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    2. Garima Singh, 2026. "Ranking Barriers and Interventions for Circular Economy in Fashion: A Theory-Anchored Multi-Stakeholder Study," Circular Economy and Sustainability, Springer, vol. 6(2), pages 1-39, April.

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