Sustainable Business Models for the Fashion Industry. Strategies for value creation towards a Sustainable Fashion Retail Supply Chain: the journey of Rifò S.r.l.

Abstract

Sustainable companies are challenging the status quo in the fashion industry by having sustainability at their cores and actions, yet fast fashion giants are dictating the rules of the game in an increasingly fragmented industry. Thus, the thesis examines the subject of sustainable business models and how they are managed and operationalized, from raw materials procurement till end-product sale. With this qualitative research, case studies and archival research provided knowledge for the driven thematic analysis. Strategic value creation along the supply chain is analysed investigating on case studies, as it could be seen these companies consider their strategy as an advantage at different stages of the supply chain, depending on the prioritization they are giving at different operational levels. However, the lack of common understanding of sustainability and following use of certifications and an ad hoc legal framework create grounds of uncertainty for defining a general sustainable approach. Consequently, the study shows that long-term collaborative relationships in the supply chain are an effective way to ensure sustainable development and increase transparency. Companies should communicate their understanding of sustainability and actions they take as a result of it so that a consistent definition or concept of Sustainable Business Models can be developed. Therefore, future research should consider the role of businesses in increasing awareness and educating their consumers from a variety of perspectives.