Optimal strategies for a multi-channel recycling supply chain in the clothing industry: considering consumer types

Abstract

PurposeThis study aims to focus on the clothing recycling supply chain and aims to provide optimal decisions and managerial insights into supply chain strategies, thereby facilitating the sustainable development of the clothing industry.Design/methodology/approachBased on previous single- and dual-channel studies, game theory was employed to analyze multiple recycling channels. Concurrently, clothing consumer types were integrated into the analytical models to observe their impact on supply chain strategies. Three market scenarios were modeled for comparative analysis, and numerical experiments were conducted.FindingsThe intervention of fashion retailers in the clothing recycling market has intensified competition across the entire market. The proportions of various consumer types, their preferences for online platforms and their preference for the retailer’s channel influence the optimal decisions and profits of supply chain members. The diversity of recycling channels may enhance the recycling volume of clothes; however, it should meet certain conditions.Originality/valueThis study extends the existing theory from a channel dimension by exploring multiple channels. Furthermore, by investigating the classifications of clothing consumers and their influence on supply chain strategies, the theory is enhanced from the consumer perspective.