Sustainable apparel? Is the innovation in the business model? - The case of IOU Project

Abstract

Since sustainability approaches to the apparel industry are based on incremental rather than transformative solutions, the prevailing business models need to be changed. This paper will introduce the IOU Project as an example about disruptive business model in the apparel and fashion sectors. This case was selected since disruptive innovation requires an entrepreneurial mindset and spirit with close coordination and cooperation among all participants (JAMA 352:24-28, 2004). The analysis -which is based on the Clark, Osterwalder, and Pigneur's (2012) business model (personal) 'canvas' -puts special emphasis on the supply chain development and on the relationship developed between the initiative and its customers, as well as on whether or not it fostered a relationship between the customer and the artisans who were part of the supply chain. To develop this case, the authors collected background and qualitative and quantitative information of the company from its participation in the Best Performance in Sustainable Luxury in Latin America Award, getting this award in the category 'Best Fashion and Accessories Enterprise of Sustainable Luxury' in the 2011 edition. This source was supplemented with the chapter written by Kavita Parmar (2014) in the book entitled Sustainable Luxury and Social Entrepreneurship -Stories from the Pioneers, whose editors were Miguel Angel Gardetti and María Eugenia Girón (2014). Moreover, the authors considered the e-mails exchanged with Ms. Parmar within the framework of the above award. Using a disruptive business model, the IOU Project manages to develop a value chain based on craftsmanship. Craftsmanship breathes humanity into objects, allowing the individual to create for the individual. In doing so, it translates the principles of knowledge, purpose, and timelessness into products that represent unique achievements (Ricca and Robins, 2012:53). Within this framework, supply chain management became a strong driver of value, for the IOU but for artisans and customers as well (Kell, 2010). Finally, the IOU business model helps develop a strong relationship with consumers and artisans which dignifies the latter and appreciates their work.

The Role of Human Resource Management (HRM) for the Implementation of Sustainable Product-Service Systems (PSS)—An Analysis of Fashion Retailers

“…Furthermore, this article contributes to research on sustainability in the fashion industry which is mainly focused on sustainable supply chains [1,11,[46][47][48] and consumer behavior [9,27,49,50]. Little attention has so far been paid to investigating sustainable fashion business models [51] with most articles limited to case studies [14,15,26,[120][121][122]. Finally, this paper has managerial implications by providing a framework of HR components that are critical for PSS implementation.…”

Sustainable Textile Industry: An Overview

“…Bangladesh sacrificed its second-place ranking as a garment exporter to Vietnam in 2020, earning $27.47 billion versus $29.80 billion. Because of the magnitude of the market, the textile sector is one of the most significant polluters of the environment, using chemical ingredients and processes [10] . Toxic chemical wastes from textile manufacturing are discharged into water sources, generally untreated, causing long-term damage to the soil, water, and ecology (Geotextiles N.D.).…”

Mapping the interactions between the stakeholders of the circular economy ecosystem applied to the textile and apparel sector in Romania

“…Worldwide the textile and apparel sector is one of the most polluting industries, with a lengthy supply chain, subject to mass environmental and social impacts (Gardetti and Muthu, 2015). Without a fundamental shift in the way goods and resources are consumed, the world faces the prospect of multiple, interlocking global crises for the environment, prosperity and security (World Economic Forum, 2010).…”