The Circular Economy and the Role of Technology in the Fashion Industry: A Comparison of Empirical Evidence

Patrizia Gazzola (), Enrica Pavione, Rainer Hillebrand, Vincenza Vota and Rebecca Rosa
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Patrizia Gazzola: Department of Economics, University of Insubria, 21100 Varese, Italy
Enrica Pavione: Department of Economics, University of Insubria, 21100 Varese, Italy
Rainer Hillebrand: Department of Business, Fulda University of Applied Sciences, 36037 Fulda, Germany
Vincenza Vota: Department of Economics, University Carlo Cattaneo—LIUC, 21053 Castellanza, Italy
Rebecca Rosa: Department of Economics, University of Insubria, 21100 Varese, Italy

Sustainability, 2025, vol. 17, issue 7, 1-29

Abstract: The present article analyses the theme of circularity in the fashion industry, with particular attention to the role of technology in favoring the adoption of circular economic models. The article explores the role of technology in supporting the circular economy in the fashion industry, focusing on the implementation of circular business models by three companies: SHEIN, Ralph Lauren, and Cotopaxi. The aim is to investigate the challenges and opportunities associated with the adoption of circular economy practices in an industry known for its environmental impact. The research highlights how technology, particularly software such as Materia MX, can facilitate streamlined supply chains, reduced waste, and optimized resource efficiency, thus, overcoming obstacles such as high investment costs and supply chain complexities. The case studies demonstrate how each company has integrated circular practices, such as recycling, reusing materials, and improving transparency through technologies such as AI, blockchain, and IoT, to promote sustainability. Thus, the study emphasizes the importance of technological innovation in enabling a more sustainable and circular future for the fashion industry while addressing challenges related to consumer awareness, regulatory pressures, and infrastructure. The results suggest that technology is a key factor in the fashion industry’s transition to a circular economy, offering a competitive advantage and facilitating the achievement of environmental objectives.

Keywords: sustainability; fashion industry; circular economy; technology; business model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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