This study aims to systematically investigate the landscape of circular economy (CE) models within the fashion industry, with a focus on evaluating their effectiveness, applicability, and implications for sustainable business practices. The research seeks to identify which CE models are most viable for enhancing environmental performance, profitability, and long-term competitiveness in the fashion sector.
A comprehensive and systematic literature review was conducted, drawing on peer-reviewed academic sources and industry reports. The study critically examines a range of CE business models, including rental and subscription services, product customization, recycling, remanufacturing and repair, recommerce or peer-to-peer second-hand services, and transparency-focused models. Comparative analysis was used to assess their practical implementation, scalability, and sustainability outcomes.
The findings reveal that all examined models possess substantial potential for driving both environmental and economic value in the fashion industry. Among them, transparency-based business models emerge as particularly effective and feasible, providing multidimensional benefits for both established enterprises and start-ups. Transparency enhances consumer trust, strengthens accountability, and facilitates stakeholder engagement, thereby positioning it as a critical enabler of sustainable transformation within the sector.
This study provides a nuanced and integrative perspective on circular economy practices in the fashion industry, offering theoretical and practical insights into how businesses can strategically select and combine models to achieve sustainability goals. It contributes to the ongoing discourse by identifying transparency as a central mechanism for operationalizing circularity and fostering consumer-driven sustainability.
