From Fast to Slow: An Exploratory Analysis of Circular Business Models in the Italian Apparel Industry

Abstract

The apparel industry is a substantial contributor to global environmental pollution at any stage of the supply chain. Clothing production and transportation generate a large volume of waste and high greenhouse gas emissions, often exploiting cheap labour in developing countries. Consequently, stakeholders are becoming more aware of the environmental and human rights implications of the apparel industry. This paper aims to investigate how fashion companies are redesigning their value chain to meet growing stakeholder demands for sustainability and circular economy. Using purposeful sampling, a qualitative multiple case study design involving 21 Italian apparel companies adopting circular business models was conducted. Data were collected through remote semi-structured interviews, supplemented by secondary data to provide a richer context for our investigation. The research findings are interpreted through the theoretical lens of Institutional theory, showing the primary factors leading to the transition from fast to slow fashion business models. Notably, customer demand for supply chain transparency and the selection of certified suppliers strongly influence the development of apparel firms' business models, pushing companies to a radical change in their value proposition, creation, and delivery. This study guides practitioners, highlighting circular business model innovations and emerging digital technologies enabling apparel businesses to manage stakeholder engagement and promote sustainable development strategically.