The fashion industry is a major industry globally, yet one of the most polluting industries around the world. It typically adapts a linear system approach of ‘take-make-dispose’ approach, whilst a shift to a circular economy is necessary, however, it is very challenging.
Previous research (by the authors) has shown that effective management and leadership are crucial in addressing the challenges of implementing circular economy in the fashion industry. Moreover, it was found that the challenges related to the consumer are not significant nor are they the most pressing regarding the circular economy implementation, therefore should not be prioritized. These challenges would typically be addressed indirectly by targeting other challenges with higher levels of significance and influence. Although these were the findings of the research, further investigation is required to develop an understanding of how consumer-related challenges interrelate and can be influenced by effective leadership and management for better implementation results. Therefore, this research identifies the different management practices and business strategies that positively influence consumers’ behaviour.
The research uses a mixed method approach: quantitative and qualitative. The quantitative data is collected through surveys to assess the consumers’ behaviour towards new circular fashion business models and to test the push-pull approach. The qualitative data is collected through in-depth semi-structured interviews with top-level management in the fashion industry to validate the management practices and business strategies found in the literature and the results of the surveys. The results obtained from the surveys and interviews are used in the identification of variables to develop a Causal Loop Diagram to link management practices and business strategies with customers’ behaviour for improved circular economy implementation results.
The Shift Towards Circular Fashion Business Models: the Link Between Management Practices, Business Strategies and Consumers’ Behaviour