The Emergence of New Business Models to Foster Sustainability: Applying Technology to Revise the Fashion Industry
New service offerings, moving away from individual ownership towards access-based consumption, are rapidly evolving, addressing changing customer needs of sustainability concerns. Thereby, advancements of digital technologies enable new business models to evolve allowing for innovative forms of resource allocation. This chapter investigates the role of innovative businesses on sustainable development including two case studies.
A thorough literature review on current trends in digital technology and consumption modes is presented. Specifically, different concepts of access-based services and collaborative consumption are discussed. Furthermore, this research is complemented by two case studies from the fashion industry, namely the companies “MUD Jeans” and “Filippa K”, to illustrate theoretical considerations of short-term rental and long-term leasing in a practical context.
Overall, it becomes clear that pioneering businesses in the fashion industry allow for new forms of value creation, including a variety of stakeholders. The two exemplary cases show that future-oriented companies can not only enhance customer value but also profit economically while reducing their negative environmental impact. Thus, our research corresponds to the shift from classical goods-dominant logic towards service-dominant logic, considering the change in assumptions made about value creation.
KeywordsSustainability Service-dominant logic Access-based consumption Fashion industry Service innovation Case study
- Amed, I., Berg, A., Brandtberg, L., & Hedrich, S. (2016). The state of fashion. McKinsey (online). Retrieved November 27, 2017, from https://www.mckinsey.com/industries/retail/our-insights/the-state-of-fashion.
- Arthur, W. B. (2009). The nature of technology. New York, NY: Free Press.Google Scholar
- Berger, R. (2015). Digital drive: The future of automotive. Think: Act. Retrieved June 15, 2017, from https://www.rolandberger.com/publications/publication_pdf/roland_berger_tam_automotive_insights_20151119.pdf.
- Bielefeldt, J., Poelzl, J., & Herbst, U. (2016). What’s mine isn’t yours: Barriers to participation in the sharing economy. Die Unternehmung, 70(1), 4–25.Google Scholar
- Botsman, R., & Rogers, R. (2010). What’s mine is yours: The rise of collaborative consumption. New York: Harper Collins Publisher.Google Scholar
- Cone Communications. (2017). 2017 Cone Communications CSR study. Retrieved July 31, 2018, from www.conecomm.com/research-blog/2017-csr-study.
- Eder-Hansen, J., Chalmer, C., Tärneberg, S., Tochtermann, T., Seara, J., Boger, S., Theelen, G., Schwarz, S., Kristensen, L., & Jäger, K. (2017). Pulse of the fashion industry. Global Fashion Agenda & The Boston Consulting Group, Copenhagen.Google Scholar
- Ellen MacArthur Foundation. (2017). A new textiles economy. Retrieved July 31, 2018, from https://www.ellenmacarthurfoundation.org/publications/a-new-textiles-economy-redesigning-fashions-future.
- Ellen MacArthur Foundation. (2018). Pioneering a lease model for organic cotton jeans. Retrieved July 22, 2018, from https://www.ellenmacarthurfoundation.org/case-studies/pioneering-a-lease-model-for-organic-cotton-jeans.
- Filippa K. (2018). The story about us where we come from & where we are going. Retrieved July 22, 2018, from https://www.filippa-k.com/de/filippak-world/about-us/.
- Greenpeace. (2016). Timeout for fashion. Retrieved July 31, 2018, from https://www.greenpeace.org/archive-international/Global/international/briefings/toxics/2016/Fact-Sheet-Timeout-for-fast-fashion.pdf.
- Greenpeace. (2017). Fashion at the crossroads. Retrieved July 31, 2018, from https://www.greenpeace.org/international/publication/6969/fashion-at-the-crossroads/.
- Hammond, N. (2015). #LeaseTheLook: Filippa K taps the new frontier of sustainable fashion. The Telegraph (online). Retrieved July 22, 2018, from https://www.telegraph.co.uk/fashion/brands/filippa-k-sustainable-fashion/.
- McKinsey. (2018). The state of fashion 2018. Retrieved July 24, 2018, from https://cdn.businessoffashion.com/reports/The_State_of_Fashion_2018_v2.pdf.
- MUD Jeans. (2018). About. Retrieved July 22, 2018, from https://mudjeans.eu/about/
- Nielsen. (2015). The sustainability imperative – New insights on consumer expectations. Retrieved July 22, 2018, from http://www.nielsen.com/us/en/insights/reports/2015/the-sustainability-imperative.html.
- Niinimäki, K. (2013). Sustainable fashion: New approaches. Helsinki: Aalto University Press.Google Scholar
- Ordanini, A., & Parasuraman, A. (2012). A conceptual framework for analyzing value creating service ecosystems: An application to the recorded-music market. Special issue: Toward a better understanding of the role of value in markets and marketing. Review of Marketing Research, 9, 171–205.CrossRefGoogle Scholar
- Storbacka, K., Frow, P., Nenonen, S., & Payne, A. F. (2012). Designing business models for value co-creation. In S. L. Vargo & R. F. Lusch (Eds.), Special issue: Toward a better understanding of the role of value in markets and marketing (Review of marketing research) (Vol. 9, pp. 51–78). Emerald Group Publishing Limited.Google Scholar
- Vargo, S. L., Wieland, H., & Akaka, M. A. (2015) Innovation through institutionalization: A service ecosystems perspective. Industrial Marketing Management, 44, 63–72.Google Scholar
- Yin, R. K. (2013). Case study research: Design and methods. Thousand Oaks, CA: Sage Publications.Google Scholar