Supporting Circular Value Chain Systems in the Fashion and Textile Industry

The need for a sustainable, circular, and resilient future in the fashion and textile industry has never been more pressing. With the industry’s linear and fast-paced business models driving environmental and social crises, a new approach is necessary – one that prioritizes circularity, collaboration, and systemic change across value chains. To address these challenges, DDC  – Danish Design Center and In futurum have developed insights and principles to guide companies in rethinking their relationships within the fashion value chain and embracing circular economy practices. Additionally, a dialog tool Start Talking has been developed in close cooperation with companies and organizations from the industry, to help initiate and facilitate conversations between value chain stakeholders.

Why Focus on Resilient Value Chains?

The fashion industry faces significant challenges:

• Overproduction contributes to vast amounts of waste, with millions of items discarded annually after minimal use.
• Fast-fashion business models, reliant on low costs and rapid turnover, lead to resource depletion and social inequities.
• Supply chains are increasingly vulnerable to global crises, exposing companies to risks like unsold inventory and unpaid workers.

To tackle these issues, businesses must shift from linear “produce-and-discard” models to circular ecosystems that create shared value across all stages of a product’s lifecycle.

The Four Principles for Resilient Value Chains

To guide the transition, DDC and In futurum developed four principles that help companies reorient toward a circular value chain:

1. A product’s sustainability potential must be assessed through a full lifecycle perspective, with equal attention to all phases of the product’s life.
2. The biggest reduction of negative environmental impact comes from a long lifespan of the product. High economic, material and cultural value through the entire lifecycle ensures a long lifespan of the product.
3. No single actor is stronger than the entire chain: A product’s sustainability potential can only be achieved if all actors live up to their responsibility for the product and its value. 
4. Increased dependency in the value chain reduces individual risk and distributes responsibility and benefits along the entire chain.

How Companies and Value Chains Stakeholder Can Start

Transitioning to a circular model is a complex process, but every journey begins with the first steps. These initial conversations are vital for fostering new collaborations and shared values across stakeholders who aspire to embrace circular practices:

• What challenges and opportunities have we identified in developing our business towards a circular approach?
• Who needs to be involved in this conversation? Are there specific stakeholders, colleagues, or external partners whose input and participation are essential to driving circularity?
• How can we invite the relevant stakeholders into a shared development space to ensure our collaboration promotes circularity?

By addressing these questions, you will be well-prepared to initiate a new dialogue using the Start Talking tool as your foundation.

The Path Forward

A fundamental cultural and systemic shift is needed for the fashion industry to move towards sustainability. This requires technological innovations and new ways of working, thinking, and collaborating. Companies that embrace these principles and prioritize circular value chains will be better equipped to navigate the challenges of regulation, market shifts, and environmental imperatives.

The journey toward a circular economy is ambitious but essential. The industry can create value for businesses, consumers, and the planet by fostering shared responsibility and building resilient ecosystems.

Are you ready to take the first steps toward a resilient future?