Abstract
The objective of this work is to explore convergence and divergence between business models of circular and collaborative economies in fashion industry and the benefits to sustainable development. The methodological approach is exploratory through bibliographic review and case study of two business models. The first, Rent the Runway, makes use of the Services and Products System (PSS), being a circular model using eco-efficient services with the potential to replicate and to compete with the ‘fast-fashion’ industry. The case study was done using data from Rent the Runway website. The second, Wardrobe, a P2P platform whose study was conducted with personal information with the company co-founder Germanno Teles. Wardrobe business models have a high potential for scalability, as they can be replicated anywhere, have no physical inventory, as users own their clothes. Thus, circular economy is considered to be holistic and adaptive, representing an evolution of the linear economy through the perception and need of a new sustainable strategy in response to the environmental degradation caused by the traditional linear economy. Collaborative economy can be considered an environmentally sustainable socio-economic system, built through the use of digital networks to connect and share goods and products, as well as human, financial and physical capital.
Highlights
This represents one million tons of pollutants annually that flood and pollute the oceans. All of these problems were further aggravated by the 2000s, when appeared the fast fashion chains, with a fast pace of production and consumption. This is due to the reduction of production and distribution time, which allows the manufacture of fashion products with shorter life cycles
The transformation of the textile and clothing industry requires changes all over its system through greater collaboration and innovation, so the focus should be on greater efficiency of existing activities in partnership with new business models for optimization and reuse of products, which should be incorporated into the overall approach
Parallel to the circular economy is the collaborative economy, called shared economy, that even when dealing with different concepts, the first focusing on the extension of the life cycle and the second on collaboration, the two approaches complement each other and together accelerate the sustainable development
Summary
The Circular Economy is pragmatic, grounded and contextualized in the current reality of our planet, its objective is to preserve the natural resources, optimize the existing ones at our disposal and guarantee the essential resources for our future. The aim is to achieve greater efficiency in the consumption of raw materials and energy, as well as to facilitate the recycling and reuse of all utilized materials. This provides coherent solutions for creating a sustainable environment. The circular economy proposes that the resources extracted from nature for production be kept in circulation, avoiding generation of waste. These must return as raw materials for the production process, through biological and technical cyclical flows that enable a product-to-product trajectory. Braungart and Mcdonough (2014) call it design from cradle to cradle: Create and recycle, unlimitedly, "cradle to cradle" (C2C)
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