A Circular Economy Approach in the Luxury Fashion Industry: A Case Study of Eileen Fisher

Abstract

Past studies have considered opportunities and barriers to sustainability in the fashion industry, or consumer perspectives and disposal behaviour, but few studies have explored a circular economy approach as a chance for business extension. There is a lack of research that examines luxury fashion, circular economy and entrepreneurship, showing how a circular economy could look. This study used a case study approach to observe and analyse the circular economy business model of Eileen Fisher (EF), New York. This study explores how the company has developed its take-back programme and how this programme led to the development of recycling operations at EF. In 2017, twelve semi-structured interviews were conducted with employees from EF, representing different departments and operating at various functions in the company. Their responses were analysed according to a content analysis method to outline EF’s approaches to both luxury fashion and a circular economy additional data from the company was obtained. Results were summarized in an analysis of the strengths, weakness, opportunities and threats (SWOT) to show advantages and challenges the company faces when introducing the circular economy concept. To better understand the operational processes, while visiting the recycling factory, a variation of a multi-moment recording procedure was conducted assessing the procedures of a particular operation occurring at a specific place over a specified duration to capture how the work was completed and in what ways (REFA-Methodenlehre 1978). The goal of this procedure was to compile a detailed description of the actual processing steps of all the work in the recycling facility, to discover challenges and risks. This chapter describes the effect of developing and implementing a circular economy approach at EF. The results indicate that a circular economy approach in the luxury fashion industry is possible and is beneficial to extended business, can generate revenue and reduce environmental degradation. This chapter explains that a circular economy approach in luxury fashion requires a company to produce luxury products that are timeless, high quality, durable and retail at a high price.

Keywords

Appendices

Appendix 1: Cultivating a Circular Economy Mindset in a Retail Space

The Lab Store: This store is unique among most fashion retail stores in that it seeks to explain a circular economy fashion model to customers and still offers the effect of a luxury store. The sales associate explains: “She [the customer] really gets to understand the whole story, it represents all the different aspects of the life of her clothes”. At the store entrance, for instance, visitors are greeted by a display of reclaimed cashmere sweaters set next to a garment from the sample collection (pieces which have been developed but didn’t get into production) and finally pieces from the current product line. The Lab also offers a maker space with a working table and sewing machine where classes for knitting and sewing are held and customers have the opportunity to purchase manufacturing ends of yarn and fabrics as well as one-of-a-kind remade pieces. There is a sales section in one corner and a “Renew” section in another, where all used and seasonably appropriate garments in perfect condition are sold.

Appendix 2: Interview Participants and Questions

Director of Social Consciousness

• Could you please introduce yourself? What is your name, your position, and how many years have you worked at the company?

• How does EF innovate?

• Can you describe EF’s actions related to fibre recycling?

• What is the difference between the circular economy team and the sustainability team? How is the circular economy team embedded in the organization?

• Can you describe how the circular economy approach started and how it has evolved?

• What are the challenges to make the circular economy model financially viable? What other challenges need to be overcome?

• Is the reuse programme a viable business component of the EF company?

• What are the opportunities for Eileen Fisher resulting from its circular economy work? What other business expansions has EF considered?

• What has EF’s B-Corp certification meant for the enterprise of EF?

• Can you explain Eileen Fisher’s idea behind the Employee Staff Ownership Plan?

• What is the biggest challenges for EF in terms of sustainability? Which role does the supply chain play in terms of sustainability?

Manager of the Take-back programme

• Could you please introduce yourself? What is your name, your position, and how many years have you worked at the company?

• Can you take me through the development of EF’s take-back programme? What were some of the main drivers for the programme?

• What have been some of the notable developments in the take-back programme?

• How many jobs did the programme create?

• Could you describe EF’s current business model in relation to its remake programme?

• Does the remake programme represent a new business model for EF? What about the reuse programme?

• Do you think other brands will offer remake and reuse programmes in the future?

• Do you think these programmes will become essential components of future business models?

• Do you think retail stores will sell second-hand clothing alongside their new clothes in-store?

• How does EF plan to scale its remake programme?

Sales Associates in Irvington and in New York

• Could you please introduce yourself? What is your name, your position, and how many years have you worked at the company?

• Can you talk me through a customer’s typical first experience navigating EF’s Irvington store?

• How has EF sought to showcase its circular economy approach to customers in-store?

• What is the rationale behind EF’s in-store signage?

Recycle Operation Manager

• Could you please introduce yourself? What is your name, your position, and how many years have you worked at the company?

• When did EF start the factory?

• Can you explain EF’s system processes related to sorting, mending, cleaning and remaking of the returned EF garments?

Designer Reuse Programme

• Could you please introduce yourself? What is your name, your position, and how many years have you worked at the company?

• Can you explain EF’s system processes related to sorting, mending, cleaning and remaking of the returned EF garments?

Wholesale Marketing Manager

• Could you please introduce yourself? What is your name, your position, and how many years have you worked at the company?

• What distinguishes EF garments as luxury products?

• How has EF sought to cultivate an international presence as a luxury brand?

• Could you give me an overview of EF’s collections? What are the volumes?

• Can you describe the rationale behind EF’s in-store sales events?

• In what ways does EF seek to promote the circular economy approach with its retail partners?

• How has EF sought to showcase its circular economy approach to customers in wholesale retail environment?

• What challenges must EF overcome to bring its circular economy approach to retail partners?

• What does EF see as the advantages of bringing this circular economy approach to the wholesale environment?

• Do the reuse and resown programmes reach new customer bases? Do the same customers who purchase EF garments also purchase the reuse line?

• What are some of the obstacles blocking wholesale partners from participating in the programme?

• How does EF distinguish between its own brand and luxury fashion brands?

• What role does sustainability play in its brand messaging?

Buyer for EF Retail Stores

• Could you please introduce yourself? What is your name, your position, and how many years have you worked at the company?

• Can you talk me through how the take-back programme works?

• Does the reuse, resown programme reach new customer bases? Do the same customers who purchase EF garments also purchase the reuse line?

• What are the price differences between the multiple EF lines?

• To what extent does EF consider the circular economy approach a part of its brand identity?

• To what extent do you think the EF customer is aware of the company’s circular economy approach?

• What have been notable factors in the success of the EF brand?

• Can you describe the logistics of the EF renew line?

• Does the remake programme represent a new business model for EF? What about the reuse programme?

• How similar are the aesthetics between the original and the renewed EF garments?

• How has EF approached these differences in regards to its brand identity?

• Who are the ambassadors for EF?

• How does EF work to attract younger customers?

• How has EF worked to extend its product line?

• What distinguishes EF garments as luxury products?

Knitwear Designer

• Could you please introduce yourself? What is your name, your position, and how many years have you worked at the company?

• What is your background in designing sustainable fashion?

• What distinguishes EF garments as luxury products?

• How responsive is EF to fashion trends?

• What terms would you use to describe the EF clothing style?

• To what extent does a circular economy approach influence your design choices? Do you design with circularity in mind?

• Can you describe a typical working day for you? What are the departments you liaise with to develop the collection?

Sustainability Leader

• Could you please introduce yourself? What is your name, your position, and how many years have you worked at the company?

• What sort of environmental assessments have been conducted regarding EF’s take-back programme?

• Can you elaborate on any of these assessments?

• What do you think is the biggest environmental impact of the EF take-back programme?

Facilitating Manager for Fabric R&D

• Could you please introduce yourself? What is your name, your position, and how many years have you worked at the company?

• What reclaimed fibres have been developed at EF and where are the problems with reclaimed fibres?

• What is the difference between developing a new fabric quality compared to a renewed fabric quality?

• How many fabric qualities based on reclaimed fibres is EF currently using?

• When did EF begin using reclaimed fabrics?

• Is there enough reclaimed fabric on the market for the luxury sector to scale sustainable textiles?