4 considerations for fashion and apparel brands on their sustainability journey

November 21, 2024

Key takeaways

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Artificial intelligence could address waste challenges by providing manufacturing efficiencies, demand forecasting and more.

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Successful sustainable fashion hinges on adopting a holistic approach that considers the entire ecosystem.

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When sustainability is integrated as an added value to a garment, rather than a compromise, it can become an appealing aspect of the overall customer experience.

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ESG advisory Management consulting Consumer goods Fashion & apparel

At a recent sustainability conference, fashion industry leaders discussed sustainability challenges and opportunities for the industry and its ecosystem of partners. The following covers insights gained from that event and key considerations for fashion and apparel brands to consider as they enhance their sustainability journeys.

1. Prioritizing practicality over trendiness

Sustainable innovation in the fashion sector is vital, but it doesn't always require creating entirely new concepts. Rather, some fashion companies have experienced success in replicating or building on existing strategies or harnessing very straightforward models.

For instance, garments can certainly be produced using eco-friendly fabrics. However, if these products don’t fit the consumer properly, the product may be returned, increasing emissions from the returned shipping process. Poor-fitting items are often discarded more quickly, filling landfills and exacerbating waste issues in the fashion industry. Emphasizing basics like product quality and durability may yield just as good, if not better, results than chasing trendy sustainable innovations that have yet to be tried and tested.

Similarly, the industry faces significant inefficiencies, often producing more than it sells, with a substantial quantity of raw textiles wasted during production. Artificial intelligence processes could help address these challenges by providing solutions for more efficient manufacturing, consumer behavior analysis, demand forecasting, improved inventory management and more. Focusing on fundamentals such as quality and efficiency could provide the sustainability leg up fashion brands need.

2. Financial goals and implications

To attempt to understand how to advance sustainability effectively, fashion brands must acknowledge the related financial challenges with this effort, particularly in relation to the capital required to foster and scale environmental-minded options. A recent Forbes report highlighted that sustainability is a significant growth driver, ranking third after quality and affordability. However, there is a lack of much-needed incentives to achieve this kind of growth. Commercializing sustainable initiatives, such as new materials, is taking longer than their innovation due to insufficient funding, leaving major brands reluctant to support their development. Current financial models prioritize short-term profits, creating barriers to new efforts and discouraging the long-term vision essential for sustainability. 

3. Holistic business approach

Successful sustainable fashion hinges on adopting a holistic approach that considers the entire ecosystem, including supporting industries and sectors across fashion’s broader value chain like real estate, chemical manufacturing and agri-food. It includes the development of building infrastructure designed for sustainable manufacturing ideally located near the sources of regenerative feedstocks. For instance, the untapped potential of agricultural waste—such as cacao and pineapple byproducts—can be harnessed to create innovative textile materials; however, this requires local infrastructure to support the commercialization of these efforts. Product design strategies also need to be interdisciplinary, fostering collaboration between designers, departments and even value chain partners. Lastly, a holistic view of potential solutions, including blending technology, innovation and principles of circularity is needed to catalyze meaningful change in the fashion industry.

4. Addressing customer expectations

The fashion industry has long understood that clothing is not just about utility; it’s a vital form of self-expression and enjoyment for many. While consumers increasingly prioritize sustainability, expecting them to stop consuming fashion altogether is unrealistic given that this ignores the joy that fashion brings to consumers. To reconcile the two, brands need to embrace both values, which means designing clothing that captivates consumers through color, high-quality materials, and innovative textures. When sustainability is integrated as an added value rather than a compromise, it becomes an appealing aspect of the overall experience. Ultimately, leading with compelling design will resonate more deeply with consumers, encouraging them to adopt a more responsible approach to fashion consumption. By keeping the human element of enjoyment at the forefront, brands can create a positive relationship with their customers, fostering a culture where sustainability and self-expression are not mutually exclusive.

Read our industry outlook for more insight into the fashion sector and consumer goods. In addition, learn more about sustainability trends in our special report.

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