Case study: A local booming sustainable clothing market

Transcription

1 Case study: A local booming sustainable clothing market 7th International Seminar on Sustainable Technology Development Sustainable Clothing: Production and Consumption May 29 th 2014 Universitat Politècnica de Catalunya Cencerrado Sánchez, Carlos [carlos.cencerrado@estudiant.upc.edu] De Goey, Heleen [heleen@kth.se] Kyrychenko, Iryna [kokk09@mail.ru] Rodríguez Huerta, Edgar [edgar.rodriguez@estudiant.upc.edu] Shafiee, Atosa gmail.com] Visconti, Camilla [caviscon@syr.edu]

2 Index 1. Abstract Introduction Objectives Methodology Framework Social aspects Economic aspects Legal aspects Environmental aspects Technologic aspects Backcasting approach Problem analysis and apply methodology SCM Challenges Results: SWOT Analysis Conclusions References... 13

3 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).

4 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,

5 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.

6 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 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 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.

7 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 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.

8 - 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.

9 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) 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.

10 - 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 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.

11 Camilla 7. Results: SWOT Analysis S Flexible production Keep money in community Reduce SCM costs Strengths Individualism Unique & Exclusive Ethics aspects Reuse, Reduce, Repair, Recycle Reduce raw materials W Economy of scale Only local market Uncompetitive price Profitability Weaknesses Rodríguez Huerta, Edgar; Shafiee, Atosa; Visconti, Marketing potencial ---- Governmental support Getting new ecolabels Apply new materials Constant innovation Create new trends Normcore Vintage Small pressure group Only local raw materials Slow-production O Opportunities T Threats Small niche market Subvention Access to information Socially accepted Reduce pollution for SCM (emissions, Waste water) Low-cost production Benefits of fastfashion Education for sustainability Consume paradigm Crisis ---- Improving normative Support global agencies New research Materials more resistant Barcelona: The worlds fifth fashion capital Piracy Lack of legal framework Difficult application Interests of multinational Technology too expensive Old Fashion Economics Social Environmental Legal Technology Others

12 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.

13 9. References Chen, H-L. & Burns, L.D. (2006). Environmental Analysis of Textile Products. Clothing and Textiles Research Journal, Vol. 24(3), pp Armstrong, C. M., Niinimäki, K., Kujala, S., Karell, E., & Lang, C. (2014). Sustainable productservice systems for clothing: exploring consumer perceptions of consumption alternatives in Finland. Journal of Cleaner Production, doi: /j.jclepro 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), doi: /j.ijpe Fletcher, K., & Grose, L. (2012). Gestionar la sostenibilidad en la moda. Capitulo 10: Local. In Fashion & Sustainability (pp ). FT.com. (2012). Modern Barcelona. Retrieved from 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), doi: /j.jclepro 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), doi: /j.techfore Wangel, J. (2011). Exploring social structures and agency in backcasting studies for sustainable development. Technological Forecasting and Social Change, 78(5), doi: /j.techfore