Unsustainable fashion industry: radical innovations for a sustainable transition – and obstacles along the way

We are inundated with news about the unsustainable fashion industry, with China’s Shein and Temu leading the way. But parts of the industry are working on product innovations to become more circular. At the same time, there are obstacles on the road to a sustainable fashion industry. Find out in our conversations with two researchers who have studied innovation in the fashion industry.

The fashion and textile industry is the industry with the fourth largest environmental impact after food, housing and transport. Research-based start-ups often come up with radical innovations that play an important role in the circular economy. The three principles of the circular economy are that companies reduce, slow down and close the loop. Researcher Phuc Hong Huynh Evertsen examined in her doctoral thesis (2023) how these types of companies are developing digital innovations to make the fashion industry more circular. She found three types of innovations:

– One model uses blockchain technology to provide customers with information about a product’s journey from cradle to cradle, making it easier for consumers to choose sustainable products. Another model uses big data and the internet of things to create new consumption behaviours. For example, people can rent clothes instead of buying new ones. This model extends the life cycle of fashion garments.

According to Phuc Hong Huynh Evertsen, the third model is a radical innovation and is based on 3D printing, 3D models, AI and digital platforms that create tailored and personalized clothing.

– Customers choose a design online, adjust it to their body size and then try it on using digital technology. So instead of producing clothes based on six to nine months of market forecasts, companies are producing clothes based on real-time demand.

Barriers to transition

Overproduction, harmful chemicals, microplastics, transparency and traceability issues, and difficulties in implementing circular business models are some of the challenges facing the fashion industry. At the same time, they are priority areas in the EU strategy for sustainable and circular textiles.

– The major barrier to change is money. Relocation of production and product adaptation often entails very high costs for companies, says Sara Harper, who in her doctoral thesis (2022) studied product innovation in the fashion and textile industry.

She says it is easier for larger companies to work on sustainability practices because it is an economic issue. Small companies in the industry need to be creative to find sustainable production.

– My research shows that some smaller companies offering made-to-order production show synergies between innovation and environmental sustainability. This is partly because they work with local supply chain partners to reduce overproduction and increase product quality.

– The downside, however, is that it can be difficult to resell customized products,” explained Sara Harper when we spoke to her on the occasion of her dissertation.

Consumer choice matters

Textile and fashion companies must take responsibility for their climate and environmental impact. At the same time, consumers also need to see their role in this context, as we are very much involved in influencing developments. Phuc Hong Huynh Evertsen believes that the role of consumers is crucial to the success of digital innovations in the circular economy.

– We need to reduce our unnecessary demand for new products and use them longer and more times. So both market and technology drivers are important for sustainable development and the circular economy, she says.

Read the interviews in full:

Radical innovations key to the circular economy (Interview with Phuc Hong Huynh Evertsen)

High costs hinder sustainable fashion industry (Interview with Sara Harper)