Textile and clothing is a $1.3 trillion industry. The textile and clothing sector employs 300 million people throughout the supply chain. A report from the Ellen Macarthur Foundation states that 60 percent of textile production is apparel. According to the report, clothing production is about two times as high today as it was 15 years ago.
Clothing is a basic necessity of life, just like food and housing. Textiles and apparel also hold a significant share of the global economy. The industry, however, is a linear one and not sustainable for the worldwide economy. This sector needs to adopt the principles of circular economies. Three main areas need to be addressed in order to achieve this. Three main areas need to be addressed.
1. Increase clothing usage by implementing a new business model.
2. Materials and energy inputs that are renewable and clean
3. Design for recycling
Textile and clothing is worth $1.3 trillion. The textile and clothing industry employs 300 million people throughout the supply chain. A report from the Ellen Macarthur Foundation states that 60 percent of textile production is apparel. According to the report, clothing production is about two times as high today as it was 15 years ago. The report also shows that the use of these garments is down by 40%. The reason for this is the increase in fast fashion clothing productions, which have a shorter lifespan and more collections per year.
According to the report, the textile and apparel industries can benefit from a transition to a circular economic model that could be worth $560 billion. It will require new business models and the collaboration of all parties in the supply chain.
There are a few challenges with the current textile and clothing model. The massive under-utilization of clothing is the first challenge. In countries with lower incomes, the rates are higher. In countries with higher incomes, rates tend to decline. In the US, for instance, the rate is a fourth of the average global rate. According to an estimate, consumers throw away clothes that can still be worn worth $460 billion. Clothing is often thrown out after seven or eight uses.
This sector has a very high carbon footprint. This industry is largely dependent on non-renewable sources. Around 98 million tons of resources are required each year. These include oils for the production of synthetic fibers, pesticides and fertilizers for cotton production, and dyes and finishes for fabrics. In addition to low recycling rates and low rates of usage, this dependency puts a huge strain on the environment. This pollution is causing a two orc rise in temperature by 2050.
It is, therefore, important that the textiles and clothing industries shift to a circular business model. Ellen Macarthur Foundation’s report A New Textiles Economy presents a vision in line with circular economy principles. These business models are restorative and regenerative and should benefit businesses, society, and the environment. This system aims to maintain garments, fibers, and textiles at their maximum value during the usage phase. After their potential life has ended, these clothes should be re-entered into the economy and never become a waste. This model is based on the three areas of focus, as shown in the image below.
This circular system will have certain specific characteristics. The garments produced by such a system should first be of high quality and durability. These garments must be both affordable and unique. The clothing they need should be available to consumers. The business model should provide consumers with access to clothing that is not available through traditional sales. These apparel must be designed and produced to a high standard and provide multiple functionalities and flexibility.
Second, the system must capture the potential value of the clothing both during and after use. In the current economy, dress is used more. Clothing should be recycled once it is no longer usable. The system will be able to assign a new value to the materials. For this feature to be successful, new designs must be made that are aligned with the possibility of recycling.
Thirdly, such a system must run on renewable materials and energy. Renewable energy can reduce dependence on fossil fuels and increase the sustainability of the system. Renewables and recycled inputs together will reduce the energy consumption of the system.
This model will also project the real cost of materials and processes into the price of products. The product price should not only reflect the production costs but also any negative impacts on the environment and society.
Fifth, the new economy of textiles is meant to regenerate and restore the environment. The natural resources that were discussed earlier must be harvested using methods of regeneration and restoration. The natural capital will increase. Regenerative agricultural procedures like wood-based fibers will be encouraged, and leakages of toxic chemicals and microfibers from plastics and microfibers will be cut out by design.
The system should also be designed to be distributive. The new textile economy will offer opportunities for inclusive and distributive growth. The unique textile economy will provide opportunities for distributive and inclusive growth.
In order to achieve a circular fashion economy, it is necessary to create business models that can maintain clothing in the usage phase. To achieve this, it is important to ensure that clothing is durable and not disposable. It will also change the perception of consumers. A number of innovative business is filling this gap model. This includes subscription models, rental models, and peer-to-peer sharing.
Renting models are beneficial when the consumer has a variety of options. It will also reduce the demand for new clothing. The value proposition of short-term rental models is huge, especially when consumer preferences and needs are constantly changing. This includes maternity wear and infant wear. It also consists of fast-fashion apparel that is always changing.
It is essential that the clothing be durable and of high quality to make the rental models successful. Customers often prefer higher-quality products. They make bad choices due to a lack of knowledge. Customization is possible with new technologies, which can lead to a better customer experience and reduce disposal rates. Durable clothing can be resold. The inclusion of care labels can also extend the life of garments. Brands can offer to repair their garments so they are not thrown away and can capture the full value.
All these questions lead to the same question: What is the individual’s role in making this system work? We need to stop, think, and contemplate as consumers. This transition requires a complete shift in mindset and lifestyle. Adopting new, innovative business models and designing with waste will open up endless possibilities and opportunities in the textile and clothing sector.