A Roadmap to Implementing Circular Economy in the Fast Fashion Industry: A Case Study of Inditex & H&M Group

Abstract

This thesis investigates how companies within the Fast Fashion Industry can redesign their Business Models to contribute to the Circular Economy. To examine this, a Conceptual Framework is deducted based on a review of theory within Eco-Effective Circular Economy. The academic contribution of the Conceptual Framework lies within its managerial purpose, as it attempts to provide an applicable and practical tool for implementing Circular Economy into existing Business Models. This leads to a visual roadmap that illustrates in what supply chain links Circular Economy can be implemented and through what initiatives. The framework adopts a system thinking perspective that is accentuated through colors, based on an assessment of 23 presented initiatives that are used as determinators for circularity. The framework is tested by applying the framework to two case companies within the Fast Fashion industry: Inditex and H&M Group. In an assessment of whether the case companies’ Business Models are equipped for implementation of Circular Economy initiatives, the findings are inconclusive regarding all areas of their supply chains, except for Materials Production & Finished Production Assembly. This leads to a discussion on how the Fast Fashion industry can equip their Business Models to implement the remaining Circular Economy initiatives, thus, obtain more circular Business Models. Several Business Model Reconfigurations are suggested that could aid the implementation of Circular Economy. Meanwhile, it is uncovered that all courses of action are associated with multiple risks, as redesign of existing Business Models has many dependencies. The risks appear to be proportionally associated with the extent of the BMR. Meanwhile, the results suggest that their Business Models require radical Reconfigurations in order to qualify as equipped for Circular Economy implementation. Ultimately, this leads to a discussion of whether the Fast Fashion Business Models in their current form can be viable in the long term.