Circular economy business model in textiles - a case study of a retail firm - Projects
Updated : October 2020
The case study, selected under R2Pi (Route to circular economy) project, discusses the circular economy business model being followed by Inditex, a fashion retail company in Spain.
The business model is analyzed both from a big picture level as well as at a more detailed level. Detailed assessment of their circular model is also carried out to analyse their impact on sustainability and process operations.
Some of the circular economy model patterns followed by the company include use of renewable, sustainable and recycled fibres such as Tencel Lyocell, recycling of fabric leftovers and garments, sustainable, reusable, recyclable packaging materials and more. It also partners with key suppliers across the value chain and NGOs for collecting used garments from its stores for recycling to promote circular economy. The study concludes that partnerships with suppliers, social organizations and local waste recycling companies and exploring the use of sustainable, circular raw materials would enable fashion industry move towards cicular model.