A Taxonomy of Sustainable and Circular Apparel Business Models

The apparel industry is characterized by an increasing overconsumption and a prevalent environmental linear production system that employs nonrenewable resources and intensive water use. To address this challenge, the concept of circular economy (CE) has recently gained considerable attention in order to facilitate the transition toward more sustainable fashion systems. New circular business models have been launched in the fashion industry often requiring a paradigm shift in how fashion garments are produced, consumed, and disposed. This study describes the main circular business models related to the consumption field that are spreading in the apparel market. Presenting an academic taxonomy of circular consumption business models in the apparel sector with the example of the most widespread models and successful business cases is the aim.