The paper aims to open a new field of research applicable to small and medium enterprises in the clothing industry, namely, the focus on new product design by increasing the efficiency of fabric use and recycling and a value chain perspective that concentrates on downstream in the chain. The main objective of this paper is to present how small and medium-sized enterprises (SMEs) in the clothing industry can achieve a competitive advantage by using a sustainable approach. This study provides useful solutions for understanding the product development processes for fashion to rethink, reuse or upcycle the waste in the production stage. We propose a better connection between different links of the value chain: design, production, marketing to create fashion items so when possible, this waste to be used to make new products and highlights the advantages of implementing this solution. Sustainable production can be a way of gaining a competitive advantage. This strategy can be successful by integrating the vertical value chain by strengthening the creative department, fashion design, and involvement in marketing and sales. In the clothing industry, the strategy of integrating design and retail can lead to a more flexible design process and, therefore, to an increased product performance.

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With the constant availability of new designs at extremely low prices, the production and disposal of clothing have increased significantly, leading to the need for the sustainable management of processes. The implementation of established craft practices in modern sustainable mass production requires the development and application of software and hardware computer tools as well as production machinery. Although the management of textile waste for interior design articles is addressed in the scientific literature by various techniques, there is still limited data and strategies based on the use of specific algorithms. Therefore, in this research, an algorithm is proposed, with the help of which textile waste resulting from upholstery production can be reused in the creation of interior decoration parts. The algorithm is implemented in the GNU Octave 6.4 programming environment, which makes it easily redistributable and accessible. The algorithm consists of a total of six stages, offering an option for arranging the textile elements and analyzing their color characteristics. The arrangement is performed with a Voronoi diagram, and the colors are represented by a four-color circle. Moreover, data on waste textile fabrics are presented, as well as their application in the conception of interior design elements. The proposed algorithm allows designers to focus on the visual design rather than compatibility checks and constraints. The present paper provides an algorithm for reusing textile wastes, which come in a variety of shapes and colors and are produced throughout the fabric cutting phase of upholstery manufacturing, in order to identify the most optimal combinations in matching irregular waste shapes and combinations of colors, create a suitable pattern for new interior design items, and contribute to improving the sustainable management of textile waste that is produced in considerable amounts.

Pattern cutting, sizing and fit are major issues for the clothing brands. All fashion companies are interested on how the product will fit their target customers and this involves making samples that eventually will not look or fit as per the desired design. 3D technology solutions are truly the best to deal with the existing needs of clothing manufacturers in order to diminish the costs and time of the sampling process, to improve the quality and reduce the rejects. In this study, the authors used automation techniques like computer pattern design, computer aided fabric production and 3D Simulation software. Two different fabrics (woven and knitted) were designed and produced. Then their material properties which have to be known by the 3D simulation were determined by official and in-house standards. Finally, 3D visualizations of dresses were created by using pattern and material data of the fabrics. By this study we were able to explain the product development route, from fabric design to garment prototype by using computers, for the companies willing to benefit from the advantages of computer aided design and manufacture.

This paper presents an analysis of Balkans countries' relative competitiveness of the clothing industry