Case study: A local booming sustainable clothing market

Cencerrado Sánchez, Carlos [[email protected]]

De Goey, Heleen [[email protected]]

Kyrychenko, Iryna [[email protected]]

Rodríguez Huerta, Edgar [[email protected]]

Shafiee, Atosa [atosa.shafiee @ gmail.com]

Visconti, Camilla [[email protected]]

Case study: A local booming sustainable

clothing market

7th International Seminar on Sustainable Technology

Development Sustainable Clothing: Production and Consumption

May 29th 2014

Universitat Politècnica de Catalunya

Case study: A local booming sustainable clothing market

Cencerrado Sánchez, Carlos; de Goey, Heleen; Kyrychenko, Iryn;

Rodríguez Huerta, Edgar; Shafiee, Atosa; Visconti, Camilla

Index

1. Abstract ................................................................................................................................. 3

2. Introduction .......................................................................................................................... 3

3. Objectives .............................................................................................................................. 4

4. Methodology ......................................................................................................................... 4

5. Framework ............................................................................................................................ 4

5.1. Social aspects ................................................................................................................ 4

5.2. Economic aspects .......................................................................................................... 6

5.3. Legal aspects ................................................................................................................. 6

5.4. Environmental aspects .................................................................................................. 7

5.5. Technologic aspects ...................................................................................................... 9

5.6. Backcasting approach .................................................................................................... 9

6. Problem analysis and apply methodology .......................................................................... 10

6.1. SCM Challenges ........................................................................................................... 10

7. Results: SWOT Analysis ....................................................................................................... 11

8. Conclusions ......................................................................................................................... 12

9. References ........................................................................................................................... 13




1. Abstract

Worldwide demand for clothing and fashion is increasing to service the needs of a growing

population and higher standards of living. At the same time, communities and people should be

striving for more sustainable management of resources and the reuse.

The research considers the current trends of sustainability development of apparel industry

within Barcelona local market, identified problems hindering the improvement of sustainability

activity of all supply chain and stakeholders.

We consider the new trend within the fashion industry such as slowing down the fashion

industry on local markets. Examining sustainable development in main aspects (economic, social

and environmental and others) and using the SWOT methodology, to develop proposals for

effective sustainability development of clothing industry in Barcelona.

2. Introduction

Until recently, development in the textile and clothing industry has focused on technological and

cost aspects.

The research for sustainability in the apparel industry offers a dilemma since the fashion system

in which apparel designers operate is driven by practices that contradict long-term

sustainability. Fashion depends on forces that reproduce and feed each other: an individual’s

physical and emotional relationship with apparel, desire for frequent change in how s/he

appears, and the availability of a global supply chain mechanism that is eager to respond to this

desire. In this dilemma of the fashion system, what are the roles of designers and the local

fashion industries in responding responsibly? (Delong, Goncu-berk, Bye, & Wu, 2013)

The Brundtland framework adopted for sustainable practice in the apparel industry emphasizes

the interconnectedness of social, environmental and economic spheres (United Nations World

Commission, 1987).

Individuals buy new clothing to follow fashion, but also to establish, distinguish and update their

self-identity, an essentially differentiating act. It is challenging, therefore, for the user to change

habits that concern apparel with its dual motives, symbolic values and personal identification

roles and for the designer to shift perspective in order to address sustainability.

To slow down consumption patterns and find ways to really enjoy and savor our clothing. This

way of thinking might include new avenues specific to the fashion industry that are as yet not

fully developed, such as focusing more on collaborative and cooperative work among the

designer, producer, and consumer. This collaboration might best occur at the local level where

place and scale matter. (Delong, Goncu-berk, Bye, & Wu, 2013)

"Consumption is bad," "foreign production is bad", "working with artisans is good." These

slogans are not true in all cases, it is necessary to analyze the factors of the specific context of

the place: the economy, legal, culture, environmental aspects and the potential and the local

and regional capacities (Fletcher & Grose, 2012).




3. Objectives

- The goal of this research is to analyze the realities of sustainability within one local context:

Barcelona apparel industry.

- This research shows an overview of the apparel industry; besides presenting their current

problems to achieve sustainable development in all 3 aspects (economic, social and

environmental).

- Use the SWOT methodology to give an overall picture of the situation of the sustainable

clothing industry and local market. Describe the main Strengths, Weaknesses, Opportunities

and Threats for each part of supply chain and principal stakeholders.

- Explain relevant aspects of local markets and how the local market could be applied

successfully, helping sustainability in apparel industry.

- Give a first approach for backcasting methodology applied in the study of the garment

industry.

4. Methodology

A SWOT analysis involves identifying the strengths, weaknesses, opportunities, and threats

around the stakeholders at a local and global scale in regards to the sustainable clothing sector.

A SWOT analysis will be very useful for us to achieve our objective of finding new ways to

improve the system with a series of recommendations for various processes.

We identify the SWOT factors and list them according to importance, considering where more

changes are needed in order to be more sustainable. We will use the following questions as a

guideline to understand what the strengths, weaknesses, opportunities and threats are:

- What is sustainable clothing/fashion? What specific requirements make a clothing company

‘sustainable’?

- Why should we have sustainable clothes?

- How is it possible to attain a cultural shift in consumption? What is the impact of perceived

obsolescence in the clothing culture?

- What factors prevent the ethical clothing market from booming and expanding? Why does

it remain a niche in the clothing market?

- Who are the key stakeholders involved? What is/should be their role in creating a more

sustainable garment industry?

5. Framework

5.1. Social aspects

The social aspects of slow-fashion, or eco fashion as it is also called, is a complex subject as it

covers consumption patterns/believes, public perception of producers/brands, as well as

identification. The definition of apparel, have expanded. DeLong et al (2013) describes apparel

“as the most intimate environment of a person”.

Apparel is no longer only an external shield for the body, protecting it or expanding its capacities,

it is today a tool for non-verbal communication. A way for individuals to show their personality,




believes and even their political stand. The more intimate view of fashion and clothing, have

increased the desire of sustainable clothing. DeLong et al (2013) found that individuals who

sought and wore recycled and vintage clothing perceived their appearance as unique. More so

than those who only acquired their clothing from new sources.

The emergence of sustainable clothing in local markets, in the form of secondhand shops and

markets, are evident in local markets such as Barcelona. A city where secondhand and vintage

shops are becoming a more common characteristic, as new ones are blooming up all the time.

The interest of locals, and tourists, for secondhand and vintage has evolved into Saturday

markets, taking over specific streets.

Even if trends towards a more eco-friendly fashion industry is evident, with local designer shops

and secondhand shops. DeLong et al (2013), could see that most consumers today have learned

to expect mass produced items, which are not perfectly fitting. As a result from the “fast

changing trends, availability of inexpensive disposable clothing and ease of access to the newest

apparel”, i.e. fast fashion industry. A fast fashion industry that is aggravating the role of

designers.

But as mentioned, a shift is evident but there is a long way left before the industry is seen as

sustainable (Johansson, 2010). The view of the public is changing, and it is becoming more about

“things that really matters”, that have quality and a lot of integrity. That one can see conscious

consumption flow as a reaction of over-consumption and excessive brand fixation. She also

states how people long for simple things.

Simple things, in the view of sustainable cloths i.e. durable, long lasting and timeless cloths. In

DeLong’s research designers stated that they believe it’s “the job of the brands to create …

awareness about the importance of sustainability”. It is perceived that consumers by acquiring

information about the different products and their environmental impact will select the product

with the lowest environmental impact, (Niinimäki & Hassi, 2011) Research, Niinimäki (2010),

have shown that 94.6% are willing to buy better quality, durable, repairable and more expensive

cloths.

The longing for more sustainable and simple clothes, have quickened and strengthen the local

designers in the area. Creating areas that focuses on boutiques that promotes and show case

local designers as well as Spanish designers. These have evolved into Barcelona being seen as

the synonym to women’s fashion.

Local and domestic production seemed to be more important for older respondents and women than for young consumers and men. (Niinimäki & Hassi, 2011) However, sustainable and ethical purchasing will not take place if there is an additional cost to consumers. Cost in terms of higher price, loss of quality or discomfort in shopping (Armstrong, Niinimäki, Kujala, Karell, & Lang, 2014). A full 84.1% admits that price affects their decisions. Displaying how the “selfish” aspect still decides the actions of consumers. Even though they want more sustainable clothes, that aspect isn’t able to change the current price or even the appearance, e.g. 70% believes that eco-clothing should be the same in appearance.




5.2. Economic aspects

Sustainable, slow, fashion is not equivalent with stop consuming and producing. To stop produce

and consume would make the whole economical system to collapse, (Niinimäki & Hassi, 2011),

which local fashion companies could feel during the crisis in 2008. It’s a question about doing it

in a different way, a more sustainable way.

Barcelona is currently ranked as the fifth world fashion capital. With around 1,700 fashion

businesses employing 100,000 people and generating revenues round €13bn a year (FT.com,

2012).An evolvement founded in local fashion designers as well as Spanish brands moving in for

inspiration.

States that European fashion cannot compete on the basis of cost, to sustain its competitive

advantage over East Asia and low-cost production countries (de Brito, Carbone, & Blanquart,

2008). The solution is to be innovative and flexible. An advantage of small-local companies,

according to DeLong et al (2013), as they have the opportunity of being flexible in new materials,

production technologies, production levels and so on. DeLong et al, showed how local

Minnesota apparel businesses that offered designs related to local lifestyles have remained

successful, regardless of the fact that they financially cannot compete with mass manufacturing.

The advantages of producing local are many, the main ones are less traveling and keeping the

money in the community. DeLong et al, explains this as the power of designing local. By

shortening the traveling distances, one saves money in form of transport cost as well as saving

the environment from unnecessary emissions. In supporting local businesses, the money is kept

in the community. Helping the local society to evolve. A way to do this is as the Catalan

government, to support promotional events for the fashion industry, and their local brand.

(FT.com, 2012)

At the moment details of apparel changes often enough to encourage clothing consumption, as

well as encouraging consumers to frequently consume. However, investments in sustainability

need to be believed to generate a return, for profit-driven companies to embrace sustainable

practices, DeLong et al (2013).

The possibilities in the fashion industry are endless, especially in cities as Barcelona where the

fashion industry is an important part of the city’s economy.

5.3. Legal aspects

One element of the system of sustainability in the apparel industry are governmental and

industrial organizations, which taking responsibility for legal aspect.

In the research DeLong et al (2013) found that governments and industrial organizations have

responsibility for setting policies and providing a regulatory structure for sustainability in apparel

production, distribution, consumption and disposal.

DeLong et al (2013) describes the importance of a collaborative effort through an organization

called MNFashion. This organization offers entrepreneurial networking with activities that help

promote a sense of community among designers. The structure of the organization is such that

committees are formed to plan and develop local events Mission of this organization is to

provide a platform for the work of local designers through events that they sponsor.




Governments should promote communities activity in providing sustainability development,

which is based on balanced and harmonized correlation between social, economic and

environmental aspects.

Besides, Governments can design a project of state-private partnership, which consists of

development of the strategies to sustainable clothing market and investment by state capital in

the local sustainable apparel market.

Therefore, local communities on the stage of formation should create general principles and

strategies directed for sustainability development on local market.

Each country needs its own strategy of sustainable development. As for local sustainable apparel

industry in Barcelona we can mention primary documents that names Strategy for the

sustainable development of Catalonia.

Thus, Barcelona sustainability action of the apparel industry should be grounded upon the main

legal aspects such as:

- Sustainability City Council’s programmes & policies;

- Organisations’ and companies’ action plans;

- Schools Agenda 21 Programme;

- Designers' action and action of their communities;

- Citizens’ action.

Voluntary commitments and partnerships for sustainable development are multi-stakeholder

initiatives voluntarily undertaken by Governments, intergovernmental organizations, major

groups and others that aim to contribute to the implementation of intergovernmental agreed

sustainable development goals and commitments in the Rio+20 outcome document “The Future

We Want”, Agenda 21, the programmed for the Further Implementation of Agenda 21 or the

Johannesburg Plan of Implementation of the World Summit on Sustainable Development.

5.4. Environmental aspects

The main environmental impacts from the clothing industry can be divided in three phases:

production, use and disposal. Depending on the textile, the production phase causes

environmental impacts, e.g. through use of chemical and pesticides. For example cotton

production makes an estimated use of 25% of all pesticides globally. During the use phase

chemicals in detergents end up in waste water streams (Chen & Burns, 2006). Disposal of

clothing can have various impacts, depending on the textile and disposal method, e.g. landfilling

or incineration.

Manufacturing practices in less-developed countries are generally less efficient than in the

developed world. That means they waste money by using more energy, water, and materials

than necessary. But by improving the efficiency in the manufacturing processes, there are plenty

of opportunities to both save money and improve the environment.

Even marginal improvements in manufacturing to these countries' factories have the potential

to deliver excellent cost savings. “Clean by Design” promotes just these kinds of opportunities

to increase efficiency (in energy, water, and chemical usage) and thereby reduce the

environmental footprint while saving the factory money.




- Raw Materials: The choice of raw materials for clothing has large impacts on the

environment. Natural fibers like cotton are often assumed to be a more environmentally

responsible choice, but this is not necessarily true. Cotton is notorious for its intensive use of

water and pesticides. The same goes for "natural" dyes, which can rely on the harvest of

millions of insects or plant bark to achieve color the "natural" way. These dyes often also

require the use of supplementary chemicals that contain toxic metals. Fiber choice also drives

consumer-care requirements, which can indirectly impact the consumption of water, energy

and toxic chemicals.

- Manufacturing: Textile dyeing and finishing mills are particularly high-volume, high-impact

producers of water pollution and carbon dioxide emissions. Through extensive hands-on

research in China, NRDC has developed 10 practical, easy-to-implement best practices for

textile mills that significantly reduce water, energy and chemical use, thereby improving

manufacturing efficiency. In fact, all of NRDC's best practices for responsible sourcing pay

themselves back in less than a year. Designers, retailers and brands can reduce the footprint

of their global supply chain by encouraging or requiring mills to adopt these improvements

and reward those that do so with more business.

- Transportation: The apparel industry is a global enterprise, where raw materials,

manufacturers and retailers are routinely on opposite sides of the globe. Each designer and

retailer must choose among container ships, railroads, trucks and airplanes to move their

garments from factory to market. Each mode of transportation sends different levels of

pollution into the environment and affects different populations and ecosystems around the

world. But there are many choices a retailer can make to decrease the impact of global

transport and to help protect public health.

- Consumer Care: Once purchased, the way a consumer cleans and cares for garments can

have a surprisingly large impact on water and energy use. In fact, clothes that are frequently

laundered or dry-cleaned make their biggest environmental impact once they leave the

store. Washing in cold water and minimizing dry cleaning (even so-called "organic dry

cleaning") can reduce impacts substantially.

- Disposal: The method of disposal influences the overall environmental impact of clothing in

various ways. First of all, there are significant differences between impacts of disposal

methods such as incineration and landfilling. More importantly, recycling of textiles will

decrease environmental impacts even further due to avoided emissions from the processing

of raw materials. However, in most cases textiles are not recycled, but disposed with regular

municipal waste. This is e.g. because consumers do not know what to do with their garments

or because there are no options to recycle the textiles.




5.5. Technologic aspects

There is great scope for technology development to support a move to reduced impact:

- New means to freshen clothes without washing would be advantageous.

- Technology for sorting used clothing would overcome the high labour cost of this operation.

- Fiber recycling technology has had relatively little attention in 200 years and has significant

scope – both for extracting fibers with less shortening and for fiber separation from blended

products.

- Ongoing development of detergents will allow further reductions in wash temperatures.

- Novel coatings and smart functions may support increased product life and reduced need

for care in use, although they may also impede material recycling.

- New longer lasting fibers would support durability.

Recycling is significant for materials with high impacts in the production phase. Technology

innovations may provide a means to extract longer fibers from used textiles, although a recent

innovative business for carpet recycling failed to achieve profitability (Lane, 2006).

Furthermore, innovations in nanotechnology might introduce environmental benefits to the

textile industry. Manipulating fabrics at a nano-scale can possibly change their properties in a

remarkable way. Relevant to sustainable fashion are certain coatings and other finishes, which

potentially extend the product life or reduce the need for laundering. They might also aid to

improve dye uptake and color fastness that would further decrease the harmful impacts of the

dyeing processes. Although nano-scale technologies seem to bring about environmental

improvements, the long-term behaviour of nano-particles in fabrics is still under further

research (Black, 2008).

5.6. Backcasting approach

Backcasting originated in the 1970s in the energy sector. The method is focused on envisioning

the future and planning towards that future accordingly. The first step of backcasting is to set

the goal or target for the future. Second, an analysis is conducted to assess whether or not

change is required to meet the goal. After that, the goal is elaborated further in more detail.

Last, the set goal is analyzed in relation to other societal factors and it can be compared to status

quo (Wangel, 2011). Later on, the method of backcasting developed further to apply the method

to sustainability issues (Vergragt & Quist, 2011).

In a local case study it could be proposed to buy and sell only “green clothes” as a goal - a vision

where the negative environmental and social impacts of the clothing industry are eliminated,

while the sector continues to be economically viable. To fulfill this, buying clothes and apparel

in sustainable conditions need to be considered. This will include the following aspects:

- Select the raw material assuming to be a more environmentally responsible choice.

- Choose only clothes which are manufactured with correct labor conditions.

- Analyzing the correct technology used respecting the environmental nearby.

- Taking into account a market research of the prices, not leave the margins.

- Asses the “green certificates” in the clothing market.

- Promote the sustainable use and recycling of the clothes once they are sold.




- Promote appropriate disposal options and develop infrastructure for clothes take-back

programs.

- Develop legislation to stimulate the main stakeholders to take action towards a sustainable

clothes market.

6. Problem analysis and apply methodology

We use SWOT methodology to analyze the situation in clothing industry and focus in each part

of supply chain management and different stakeholders who involves all different aspects.

- Customers.

- Retail marketers.

- Designers / Manufactures.

- Input suppliers.

- Institutions, environmental agencies.

- Workers.

6.1. SCM Challenges

To process the fiber that later become clothing, it should be adequate industry capable of

working with small amounts and localization companies and storage. Also it must be able to

adapt to the materials produced locally.

The local fashion can be a transformative process that improves the economy, aesthetics and

cultural diversity of a region; however, globalization weakens the cultural variety of fashion,

makes a mere surface ornament, traditions brakes and accelerates the homogenization of

markets.

Sustainable clothing with an approach to local markets should force to designers to be supply

chain part to mobilize and reduce intermediaries in the production process, requiring a greater

knowledge of local traditions and getting a community participation.

To know the impact that the trade in the region and their communities is essential to the made

decisions process during product development. The local design is rich and diverse from nature

and it emerges from the skills and resources of a specific area.


Cencerrado Sánchez, Carlos; de Goey, Heleen; Kyrychenko, Iryn; Rodríguez Huerta, Edgar; Shafiee, Atosa; Visconti,

Camilla

7. Results: SWOT Analysis

Strengths

Opportunities Threats

Weaknesses S W

T O

Economics Social Environmental Legal

Economy of scale

Only local market Uncompetitive

price Profitability

Marketing potencial ----

Only local raw materials

Slow-production

Small pressure group

Others

Flexible production

Keep money in community

Reduce SCM costs

-----

Individualism

Unique & Exclusive

Ethics aspects

Reuse, Reduce, Repair, Recycle

Reduce raw materials

Apply new materials Constant

innovation

Governmental support

Getting new eco-labels

Create new trends

Normcore Vintage

Small niche market

Subvention

Access to information

Socially accepted

Reduce pollution for SCM

(emissions, Waste water)

New research

Materials more resistant

Improving normative

Support global agencies

Barcelona: The worlds fifth

fashion capital

Low-cost production

Benefits of fast-fashion

Education for sustainability

Consume paradigm

Crisis

----

Technology too expensive

Piracy

Lack of legal framework

Difficult application Interests of

multinational

Old Fashion

Technology




8. Conclusions

We can say that the optimum for a fashion brand is to make a comprehensive sustainability

management, operating in all aspects of management, from the type of fabric used to managing

once discarded clothes. And you need to develop codes of ethical conduct and social production

(Soler & Ruano, 2012).

Slowing down the fashion industry, by focusing on local markets seems to be the new trend

within the fashion industry. The benefits of operating in a local market are many, e.g. flexible

production (product, size, technology), reduce SMC costs, produce individual products,

governmental support, and so on. Research has also shown that local brands consumers are

loyal, even at financial crises. Much to do with the fact that consumer feels a connection to the

brand in itself and what it stands for, an emotional connection that is hard to break. However

one of the main benefits with local markets in regards to global is the “reuse, reduce, repair and

recycle” opportunity. A local market, company, interact with the consumer, having a higher level

of influence as well as higher possibilities to offer services such as repair, in store recycling and

reuse in the sense of secondhand or reusing the fabric.

As the SWOT-analysis shows, there are several strengths and opportunities to create a viable,

sustainable, local fashion industry. Especially social and environmental factors would benefit in

a local fashion industry. However, the legal framework provides several challenges and threats,

prevented an expansion of this business. This illustrates the interactions between local markets

and larger systems, meaning that national governments will need to develop the right legal

frameworks to stimulate the development of a sustainable clothing industry. This will not only

depend on the Spanish government, but most likely will be influenced by European regulations

as well.

In order to create a local, sustainable clothing market, a vision needs to be created considering

all five aspects: economic, social, environmental, legal and technological. It needs to be clearly

defined what this sustainable market would and would not entail before proper steps could be

taken towards the implementation. In collaboration with all stakeholders, the local sustainable

clothing market could be developed in Catalonia, Spain as well as on other locations.




9. References

Chen, H-L. & Burns, L.D. (2006). Environmental Analysis of Textile Products. Clothing and Textiles Research Journal, Vol. 24(3), pp. 248–261.

Armstrong, C. M., Niinimäki, K., Kujala, S., Karell, E., & Lang, C. (2014). Sustainable product-service systems for clothing: exploring consumer perceptions of consumption alternatives in Finland. Journal of Cleaner Production, 1–10. doi:10.1016/j.jclepro.2014.01.046

Black, S. (2008). Eco-Chic: The Fashion Paradox.

De Brito, M. P., Carbone, V., & Blanquart, C. M. (2008). Towards a sustainable fashion retail supply chain in Europe: Organisation and performance. International Journal of Production Economics, 114(2), 534–553. doi:10.1016/j.ijpe.2007.06.012

Fletcher, K., & Grose, L. (2012). Gestionar la sostenibilidad en la moda. Capitulo 10: Local. In Fashion & Sustainability (pp. 106 – 112).

FT.com. (2012). Modern Barcelona. Retrieved from http://www.ft.com/cms/s/0/30fb04fa-b021-11e3-b0d0-00144feab7de.html#axzz324HZ2B5v

Johansson, E. (2010). Slow fashion. the answer for a sustainable fashion industry?

Lane, M. (2006). Well dressed ? The present and future sustainnability of cloting and textiles in the UK.

Niinimäki, K., & Hassi, L. (2011). Emerging design strategies in sustainable production and consumption of textiles and clothing. Journal of Cleaner Production, 19(16), 1876–1883. doi:10.1016/j.jclepro.2011.04.020

Soler, J. (Universidad P. de M., & Ruano, M. (2012). Hacia el concepto de moda sostenible. IED Madrid: Abre El Ojo, 19.

Vergragt, P. J., & Quist, J. (2011). Backcasting for sustainability: Introduction to the special issue. Technological Forecasting and Social Change, 78(5), 747–755. doi:10.1016/j.techfore.2011.03.010

Wangel, J. (2011). Exploring social structures and agency in backcasting studies for sustainable development. Technological Forecasting and Social Change, 78(5), 872–882. doi:10.1016/j.techfore.2011.03.007

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Case study: A local booming sustainable clothing market