Business strategy and innovative models in the fashion industry: Clothing leasing as a driver of sustainability

Abstract

AbstractThe fashion industry is ranked as the second largest cause of environmental pollution. In this context, circular business models emerge as key tools to address the negative impacts of the textile industry. The aim of this work is to identify alternatives to the currently dominant model followed by fast fashion, through the proposal of a circular business model based on leasing. The methodology of the work, based on the take‐make‐waste model, is based on a multicriteria analysis with the local–global approach using academic experts and fashion and retail experts. The results show that the criteria of the access‐based model and best care are the most relevant. The highest sustainability value is assigned to leasing, which guarantees ethical conditions for workers, followed by the use of raw materials (recycled or bio‐based materials) and the reduction of overproduction. The implications of this work determine that leasing can support circular fashion and that the social component of sustainability should be given more attention in production models. Strategic partnerships and sharing platforms are tools that can support a real transition of the fashion industry towards sustainability.