Making sustainable fashion a sustainable business

Imagine it is the early 1900s. Women go to tailors and small boutiques to buy their clothes — a luxury afforded only once in a while. Clothes and fashion items such as shoes, bags, clothes and jewellery are handmade, with good quality materials; and most people only have enough to fit their wardrobes in a suitcase or two. But then things change. With access to foreign labour and easier shipping, companies started outsourcing manufacturing processes, using cheaper resources and propelling consumerism to grow their bottom line — more importantly, to cater to the larger, more price-sensitive segment of the market. That’s when the sustainable practice of fashion died down.

Jumping a few decades later, sustainable fashion is making a comeback, thanks to the light being shed on the poor labour conditions and ecological impact of clothes and accessories made from plastic and other harmful materials. The ethical and environmental concerns voiced by Millennials and Generation Z are being heard across the world with the advent of social media.

This has led to a number of fashion designers, such as Justine Lecount, advocating slow fashion, and set up shop to cater to the small but growing market for ethical and sustainable fashion.

However, Millennials and Gen Z, who are the largest segment of this market, are price sensitive by many standards due to economic and job instability. So, while they do have concerns for the environment, many simply cannot afford the price tags that come with sustainable fashion pieces.

This is not to say sustainable fashion is overpriced. Quite the opposite, as Araceli Gallego, owner of Goshopia, an e-marketplace for slow and sustainable fashion, explains, “higher quality materials and fair wages in developed countries simply increase the manufacturing cost of these pieces,”

This is where the challenge lies. In theory, they are able to cater and appeal to the larger segment of the market; but in practical terms, the higher prices, scarce availability and slow production, will take time to change consumer behaviour. Without gaining a large market share, sustainable fashion simply cannot make a significant social or environmental impact.

One answer to this problem is proposed through the recently popularised “capsule wardrobe” concept. Araceli says, “When people buy fewer items of higher quality and timeless design, which will last them longer, they could effectively save money.”

For brands, however, this poses another problem. Capsule wardrobe by definition counters consumerism. So, without people buying as often, the only way for sustainable brands to financially survive is through catering to a larger market — leading back to the root of the problem — price-sensitive middle-class consumers.

The brands then need to rely upon educating the masses to drive the change in consumer behaviour, which is a slow process.

Availability is another answer. If more sustainable brands set up in cities, it makes it easier for people to shop from them. The more people try it out and experience the quality and classy designs, the more likely they are to change their shopping habits and advocate the brands, leading to a larger footfall. However, too many of these in a geographical area will lead to price wars (depending upon the target segment), making it more difficult for the business to be profitable or sustainable.

Media too plays an important role in educating and increasing demand. Social media has been at the forefront of this since the past few years. And when high-profile delegates or celebrities endorse sustainable fashion, we see the demand rise significantly. For example, the first lady of Finland wore an evening gown made from Finnish birch trees at the country’s independence day reception. That one story rippling across media has the power to generate conversations and demand for environmentally friendly, sustainable fashion.

Bloggers such as Justine Leconte, Angie, Eco Warrior Princess, Dana Frost, and hundreds of others are talking about the impact of fast fashion and how we can and need to embrace slow, sustainable and ethical fashion.

On that note, there is one aspect of this business prospect that entrepreneurs need to keep in mind — although slow fashion, by many regards, is the next big thing in the industry, those who are truly passionate about the environment and are making their voices heard, and transparently showcasing their business practices to the world, are likely to lead the industry, as they will have the support of the community behind them.

As the slow fashion industry is born out of the demand from eco-conscious generations, and is led by fashion designers from same generations, there are two business aspects that need attention: adoption of the circular economy business model and recycling plastic.

Landfilling or burning inventory worth millions of dollars is the "dirtiest open secret" of the fashion industry, as described by activist group Fashion Revolution. As in order to reduce the environmental impact and live up to slow fashion's promise of a better world, brands and ethical fashion businesses need to adopt the circular economy business model. Whether that is by using biodegradable materials, giving new life to preloved items, or simply recycling, is a matter of feasibility and preference.

Recycling plastic, however, is a matter that needs attention. Melting down plastic to create solid pieces of accessories, for example, may be a great idea. But the use of recycled plastic in clothes can do more harm by releasing plastic microfibers into the ocean, than good by removing plastic from the landfills. Many environmental agencies are also concerned about melting arctic ice than could release tones of micro-plastic that are currently trapped in frozen sea waters.

Businesses can also turn these problems into new revenue streams while addressing the price-sensitive segment. Sustainability is about reducing the negative environmental impacts and having positive ones. Reducing landfilling through buy-back schemes, refurbishing pre-loved items, selling used or extra inventory at discounted rates are just some examples of what slow fashion brands or businesses could do. They could even sell or repurpose excess inventory of bigger fashion brands through their channels, or allow people to rent products that are more upscale or for special occasions, such as shoes, handbags and evening gowns.

Today, sustainable and slow fashion is reserved for the affluent. This isn't a bad thing, as most often change in consumption starts with the early adopters who can afford the higher prices. However, that doesn't discount the fact that there is a growing gap in the market for the slow fashion sector to cater to the larger, less affluent population — especially the Millennials and Gen Z — who share the ethos and morals of the industry.

There is no denying that slow and sustainable fashion is better than mass market fast fashion. It provides better quality, longer lasting items with classy timeless designs, and can be cost effective. The challenge is to change consumer behaviour, which can be achieved by educating people, while finding a better solution to stay economically viable during this period. Creative business models are the answer. Those who figure out a way to marry fashion sustainability with long term economic feasibility, in order to cater to the majority of the population, will emerge stronger in the years to come.