By Pamela Vanessa Meixueiro Aguilar

Circularity is the process of returning to the same point, whereas in a linear system, there is a clear beginning and end to the lifecycle of a product. In fashion, circularity can be divided into two general ideas. The first one is circular fashion, which refers to products being used for as long as possible, promoting their repair for reuse or recycling. Circular economy in fashion, on the other hand, is a more complex concept that takes into consideration not only the product but also the whole process of its manufacturing, sale, and repurposing. Essentially, the objective is to change the narrative to retain value, minimize waste, and restore ecosystems.

Why the Fashion Industry Needs Circularity

The term “fast fashion” emerged in the late 1980s, when retail stores like Zara became known for producing and selling new garment collections within 15 days of the design process. This model quickly attracted consumers through lower prices and frequent trend changes. However, it also accelerated overconsumption and overproduction, generating massive textile waste that often ends up in landfills or is incinerated.

Nowadays, the industry consumes over 98 million tons of non-renewable resources annually, including oil, chemicals for dyes, and fertilizers for plantations, making it one of the highest contributors to global pollution. The majority of this impact is caused by linear systems that work around the philosophy of: take raw material, make a product, and dispose of waste. According to recent research on circularity in fashion, globally, this type of model accounts for 20% of water consumption and 10% of carbon emissions. Furthermore, less than 1% of the total textile waste is recycled back into new apparel.

This is where circularity emerges as an essential approach to extending product lifecycles, reducing waste, and rethinking garment design and production. Nevertheless, implementing this method at an industrial scale is challenging, with the biggest obstacle being the high initial investment required to transform and adapt existing systems.

Technology and Circularity

To address scalability challenges, companies are implementing technology to support asmoother transition to a regenerative strategy where materials can be reused, and processesdo not generate excess waste.

• Technologies such as the Internet of Things (IoT), sensors, and big data are a few enablers for collecting, monitoring, and transmitting real-time information throughout the fashion supply chain. They also allow tracking and optimizing inventory and material usage.
• Artificial intelligence (AI) and machine learning (ML) are primarily used to analyze data, automate processes, and improve predictive capabilities. These are essential for forecasting demand and detecting inefficiencies in the line of work with minimal delay.
• For on-demand manufacturing, customization, repair, and the use of recycled materials, 3D printing and advanced manufacturing technologies are considered best as they reduce surplus inventory and minimize material waste.
• The incorporation of blockchain technology focuses on improving transparency, accountability, and traceability. It ensures greater visibility into sourcing, recycling, and material reuse practices, which is incredibly important for consumer awareness.
• Finally, SaaS (Software as a Service) and cloud-based platforms help optimize business operations, logistics, production monitoring, customer management, and sustainability reporting. They improve communication and data synchronization across departments.

Although these technologies support more circular systems, their use does not automatically make a brand sustainable and will have a significant impact on how they are integrated into production and consumption processes. For instance, Cotopaxi, Ralph Lauren, and SHEIN are three fashion companies that have incorporated technologies into their business model. Cotopaxi implements AI, IoT, SaaS, and data analytics to monitor product usage and promotes repair, refurbishment, recycling, and reuse to extend product lifecycles. Ralph Lauren works with SaaS, blockchain-supported traceability systems, and digital supply chain monitoring to improve transparency, material tracking, supply chain visibility, and identify and reuse materials. Lastly, SHEIN, the fast-fashion giant, uses AI, SaaS, and Machine Learning algorithms mainly to forecast demand and optimize stock levels within its large-scale production.

Can Fashion Truly be Circular?

Fashion may not yet be fully circular, but the industry is slowly transitioning toward models that prioritize material reuse, transparency, and long-term sustainability. The companies mentioned earlier are moving in the right direction, with a few obstacles, mainly because they are large corporations with a competitive position and significant market share. However, that is not the reality of every brand. Major barriers include the high investment required for these technologies, the complexity of restructuring global supply chains, and the low consumer awareness regarding sustainable consumption. In addition, scalability is still a critical challenge for smaller brands that may lack the infrastructure, technical expertise, and financial resources to adopt the systems.

Ultimately, true circularity will take time and require collaboration between companies, consumers, governments, and technology to actually transform production systems, consumption patterns, and industry values.

Sources & Data

All environmental data are linked directly to their original reports within the article.