The fashion industry is a thriving multibillion dollar global enterprise focused on the creation and trade of clothes. While some differentiate between high fashion and mass fashion, the lines between the two have become blurred over time. Fashion can be defined as the prevailing styles of clothing and accessories worn by different groups of people. Although there may be apparent differences between high-end designer fashion and mass-produced sportswear, the fashion industry encompasses all aspects of apparel design, manufacturing, distribution, marketing, retailing, advertising, and promotion for all genders and age groups.

The United States and China are the largest economies globally and also hold the top positions in the apparel retail market. According to data from The World Bank, out of the ten largest economies, the United States accounts for 24.67 per cent of the global economy, while China holds a share of 17.39 per cent. The largest retail markets worldwide, based on data from Euromonitor International, are China, the United States, the United Kingdom, Germany, and Japan.

The fashion industry is one of the largest and most influential industries in the world. According to the McKinsey State of Fashion 2017 report, it holds a crucial position in the global economy, comparable to the GDP of the seventh-largest country. Prior to the COVID-19 pandemic, the fashion industry’s global revenue was estimated to be between $1.7 trillion and $2.5 trillion. Globally, only 20 per cent of textiles are collected for recycling or reuse. Today plastic makes up about 60 per cent of all clothing materials. Textiles made from synthetic fibres like nylon, acrylic, and polyester are just a few instances of how pervasive they have become in our wardrobes. It is estimated that nine per cent of the microplastic contamination introduced to our oceans each year comes from textile and apparel trash. In addition, the combined emissions of the clothing and shoe industries account for eight per cent of worldwide greenhouse gas emissions. The second-largest industrial sector after packaging, the textile industry produces 42 million tons of plastic trash annually. When synthetic clothing is cleaned, small plastic microfibers are released into the water. Every year, up to 500,000 tons of microfibers find their way into the ocean. The fashion business produces up to 100 billion clothes annually and every year, landfills get up to 92 million tons of clothing.

Up to 7,800 kilo tonnes of textile waste are generated in India each year. Of this amount, an estimated 51 per cent comes from Indian consumers and is classified as post-consumer waste, with factory waste and offcuts accounting for 42 per cent of the total. Imported waste makes up the remaining 7 per cent. Only 59 per cent of the textile waste in India finds its way back into the textile sector through reuse and recycling, and only a small portion makes it back into the global supply chain. India generates 8.5 per cent of the world’s textile waste. Consumers who discard clothing not only waste resources, but it can take the materials more than 200 years to break down in a landfill. Textiles produce greenhouse gas methane during the breakdown process and release hazardous chemicals and dyes into our land and groundwater. Textile products can be used for their original intended uses. The terminology around end-of-life textiles is still constantly under development and even entirely new interpretations will be required.

A factor that most people do not ever consider is the impact our clothes have on the environment. Textile production requires significant amounts of chemicals, water, energy, and other natural resources. According to the World Resources Institute, it takes 2,700 litres of water to make one cotton shirt. And when consumers throw away clothing in the garbage, not only does it waste money and resources, but it can take 200+ years for the materials to decompose in a landfill. The fashion industry is estimated to be responsible for 10 per cent of global carbon emissions – more than international flights and maritime shipping combined. According to the European Environment Agency, textile purchases in the EU in 2020 generated about 270 kg of CO2 emissions per person. That means textile products consumed in the EU generated greenhouse gas emissions of 121 million tonnes. The way people get rid of unwanted clothes has also changed, with items being thrown away rather than donated. Less than half of used clothes are collected for reuse or recycling, and only one per cent of used clothes are recycled into new clothes, since technologies that would enable clothes to be recycled into virgin fibres are only now starting to emerge.

The potential of circular value chains has so far been constrained by a lack of strong regulation, informal or, in some cases, non-existent traceability systems, excessive cost competition, and a lack of technological infrastructure to handle certain waste kinds. More research is needed to overcome existing limitations, (Life Cycle Assessment) LCA and sustainability assessment are required for the thermal recycling processes in order to estimate their future-proofing and sustainability. For the transition to a circular economy, consumers’ awareness of resource limits and sustainable use is pivotal to change purchasing behaviour and achieve a recycling mindset. An Extended Producer Responsibility (EPR) policy has contributed to a three-fold increase in the collection and recycling rates of post-consumer textiles since 2006. In addition, the material recovery rate of the post-consumer textiles can reach 90 per cent, 50 per cent of which can be directly reused. ‘Reuse’ stream is facing some challenges because its main market is in Africa and many African countries are considering banning the import of used textiles to encourage a competitive textiles industry locally and internationally. The EPR policy shows a great potential to identify new markets for ‘reuse’ and to improve the textiles waste sector. Such an EPR policy also could drive societies to financially support innovation and research to provide feasible solutions for fashion producers to adopt eco-design and design for recycling practices.

Designing for a circular economy

The requirement to cover a constantly growing globalised demand in a sustainable way implies an adequate and efficient management of supply chain operations. Certain sectors, such as the automotive industry, have a complex supply chain network responsible for much of the environmental degradation in their value chain. Concerned with improving sustainability in their supply chains to enhance their operational, economic, and social responsibility performance, many companies have begun to incorporate new or recycled materials, cleaner technologies, and new organisational and logistical practices. Designing is an iterative process. The circular design process comprises of four stages and is informed by approaches such as design thinking and human-centred design.

1.   Understand - Get to know the user and the system.

2.  Define - Put into words the design challenge and the intention as a designer.

3.  Make - Ideate, design, and prototype as many iterations and versions as you can.

4.  Release - Launch the design into the wild and build narrative - create loyalty in customers and deepen investment from stakeholders by telling a compelling story.

Circular design

Integration and cooperation between production operations and transport enables improved performance and sustainability in the supply chain. Sustainability needs to be reached through the network of corporations. This implies the involvement and coordination of different actors of the supply chain, including manufacturers, logistics companies, distribution facility operators, and retailers. Consequently, it is important to consider behaviour at both the individual and organisational level. It is recommended that a strong mechanism be designed to motivate all members of the supply chain to participate in a joint sustainability effort that incorporates several types of perspectives. Then a sustainable risk-sharing contract can be proposed, which could distribute profits between channel members and coordinate the system under a fixed risk-sharing degree.

Circular design underpins all three circular economy principles – eliminate waste and pollution, circulate products and materials, and regenerate nature. In order to get the most value from the circular supply chain, companies must begin with circularity in mind. Incorporating circularity in design unlocks the potential for the product or material to be used in many different ways down the road. When products and materials are designed to work within a circular supply chain from the outset, the entire process runs much more smoothly. People have the information they need at every step of the process to make an informed decision about how to optimise material and product use.

To get started with circular design, it is important to have a clear vision and purpose that aligns with the circular economy principles and goals. Conducting a life cycle assessment of your product can help you identify environmental hotspots and circular opportunities. One can explore different circular design strategies, such as designing for longevity, modularity, disassembly, reuse, repair, remanufacturing, and recycling. Experimenting with different materials, technologies, and business models can help test your assumptions and hypotheses. Additionally, communicating the benefits and value of your circular product to customers can provide them with guidance and incentives to use it in a circular way. As supply chain management continues to trend towards circular business models, companies must shift their processes or risk becoming unable to fully participate in the circular economy.

Changing the supply chain to manage circularity

Understanding the material and waste streams associated with value chain will help pinpoint opportunities to streamline materials, repurpose product components or wasted materials, or eliminate waste entirely. Circular value chains work best when products are designed to be durable enough to last a long time and flexible or modular enough to be repurposed in multiple ways. That means asking product designers to go back to the drawing board, collaborate with product teams to co-create design guidelines that help address key pathways such as how you might use fewer resources, minimise waste, or make it easier to disassemble or reuse various product components once products are no longer usable. Circular strategies work best if key suppliers and manufacturing partners commit to the process, too. So, one can consider adding additional partners or vendors who can help realise new circular value chain opportunities for previously-wasted materials. Re-examining materials is key to developing a successful circular value chain. The raw materials whether they are durable, recyclable, and/or reusable, will make a big difference in whether products and packaging last and whether they can be transformed into new goods at the end of their useful life. Sourcing of materials, replacing virgin raw materials with recycled, repurposed, and regenerative options is essential.

One of the main challenges for a circular economy is a lack of awareness and understanding of the concept. Many people are still unaware of the benefits of a circular economy and how it works. This lack of knowledge can make it difficult to get buy-in from the public, policymakers, and businesses. Another challenge to the adoption of a circular economy is the high costs associated with transitioning from a linear to a circular economy. This transition requires significant investment in new infrastructure, technology, and retraining of the workforce. Cultural barriers can be a significant obstacle to the adoption of a circular economy. Many people are still focused on materialism and consumerism, and this mindset can be difficult to shift. This consumer culture can make it difficult to prioritise sustainability and the circular economy. Circular design also poses some challenges that require a shift in mindset, culture, and practice. It requires rethinking product development process, from ideation to evaluation, and collaborating with different stakeholders, such as suppliers, customers, and recyclers. Need to balance the trade-offs between circularity and functionality, quality, and aesthetics has to be established. We may need to overcome technical, financial, and regulatory barriers, such as lack of standards, incentives, and infrastructure.

Circularity requires cooperation between and within organisations. Companies need to adopt a holistic approach of optimising the entire system instead of just personal financial gains. It is important to note that the (Return on Investment) ROI of transitioning to a circular economy may vary depending on the specific circumstances and implementation strategies of each business. However, by leveraging cost savings, revenue opportunities, brand enhancement, and risk mitigation, textile businesses can realise tangible financial benefits that contribute to their long-term success and profitability.