Environmental assessment of the rental business model: a case study for formal wear

Abstract

The apparel industry and above all the business model on which it relies (fast fashion) are recognized as the source of marked environmental impacts. An alternative business model such as one of those promoted by the circular economy could be the solution to improve resource productivity and value creation, without damaging the environment. The rental model, or more in general the product-as-a-service, is often linked to multiple benefits such as reduction in environmental impact, increase in competitiveness and user value. However, to be sure of the environmental sustainability of this model, it is necessary to conduct an objective assessment of its application to the context of the apparel industry. The goal of this work was to carry out an analysis of the environmental impacts related to the life cycle of formal dresses. In detail, the analysis focused on the comparison between a business model based on rental of garments and an online purchase model. The results show that by extending the life of a product, in terms of the number of uses, it is possible to limit the environmental impacts associated with the fashion sector. In fact for the case under consideration, the rental business model makes it possible to extend the number of uses of a single dress, with a consequent reduction in the environmental impacts associated with its entire life cycle.

Business strategy and innovative models in the fashion industry: Clothing leasing as a driver of sustainability

“…Clothing leasing represents a new vision that goes beyond the traditional idea of ownership. Instead of buying clothing to wear only occasionally, leasing offers the opportunity to rent high‐quality clothing for a specific period, helping to reduce waste and the accumulation of unused clothing (Gray et al, 2022; Monticelli & Costamagna, 2023).…”

Sustainability and Circular Economy Business Development

“…These practices decrease the environmental impact of traditional ownership models and improve community engagement. Closed-loop supply chains are another critical aspect of business model transformation [47]. These supply chains integrate forward and reverse logistics to ensure that products and materials are reused, refurbished, remanufactured, or recycled at the end of their lifecycle.…”

Sustainability trends and gaps in the textile, apparel and fashion industries

“…Improving resource efficiency by extending the useful life of products or services is one way to promote sustainable development through a more circular economy (Rainville, 2021). In this context, the product-asa-service model, or rental model, is often associated with a number of advantages, including a decrease in the environmental impact, an improvement in competitiveness, and an increase in user value (Monticelli & Costamagna, 2022). Further, companies operating in TAF industries are looking for creative and innovative ways to keep their carbon emissions low and minimise waste (Kozlowski et al, 2018), an example is the use of biodegradable and recycled raw materials (Wang et al, 2019).…”