Consumer actions contributing to a circular economy in the German fashion industry : exploring opportunities and challenges for raw material reduction
Creators: name: Dobenecker, Greta
Publisher: name: ZHAW Zürcher Hochschule für Angewandte Wissenschaften
Year: 2023
Subjects: 338.927: Umweltökonomie und nachhaltige Entwicklung

description: The fast fashion trend of recent years has caused significant environmental harm, driven by the cheap sourcing of raw materials and mass consumption. The global annual consumption of textiles has experienced a twofold increase, with consumers in Germany, on average, purchasing sixty clothing items per year, of which over two-thirds are ultimately disposed of in landfills. While industry players have started addressing this issue with sustainable practices, the role of consumers has often been overlooked. However, scientific research emphasizes that consumers are vital stakeholders in the fashion supply chain. This master's thesis endeavors to address this gap by examining the demand perspective, specifically focusing on consumer actions that effectively reduce raw material utilization within the German fashion industry.
The Circular Economy has gained significant traction in the German economy, influencing policy, and driving innovation. Within the context of the German fashion industry, the principles of the Circular Economy have been employed to identify and explore circular consumer actions aimed at minimizing waste and establishing closed-loop systems. The application of the Structural Agent Analysis provides valuable insights into the interdependencies among key stakeholders in the industry, enabling a comprehensive understanding of how demand-driven changes would impact the sector as a whole. Additionally, the technical cycle of the Butterfly Diagram, developed by the Ellen MacArthur Foundation, provides a framework for identifying consumer actions that are effective in reducing the consumption of raw materials. The subsequent Event-driven Process Chain analysis incorporates the identified consumer actions into specific consumer decision situations, effectively distinguishing between behaviors that perpetuate fast fashion practices and those that actively promote circular processes. By doing so, it aims to minimize the reliance on raw material sourcing within the fashion industry.
The key findings reveal that consumer engagement in activities that prolong the use phase of products with minimal involvement of additional stakeholder groups is most efficient. Expert interviews highlight second-hand endeavors as the most effective approach in the current state of the German fashion industry. Additionally, embracing high quality and slow fashion practices enables consumers to make an immediate impact in reducing raw material consumption. Repair services are efficient on a small-scale for small brands, while leasing and renting options are suitable for niche segments like accessories and high fashion products. Recycling, being the most complex activity requiring multiple stakeholders and high investments, is considered the least effective practice for consumers to engage in at present.
The results of this study offer tangible recommendations for consumers, as the identified consumer actions offer practical implications that empower individuals to make a significant difference in reducing raw material consumption according to prevailing industry standards. Moreover, these recommendations provide incentives for the fashion industry to adjust its practices and effectively respond to demand-driven changes, resulting in positive environmental and economic outcomes through innovative transformations. Given that the transition of the fashion industry from fast fashion to circular endeavors is still in its nascent phase, this thesis proposes strategies to accelerate the process and facilitate meaningful change.