Fashion Circularity: Potential of Reusing and Recycling Remnant Fabric to Create Sustainable Products

The textile and fashion industry produce a significant amount of solid waste annually. Most of this waste is either disposed of or burned; very little is reused. This research investigates the potential of reusing and recycling remnant fabric to create sustainable luxury fashion products in a circular economy. Focusing on three factories namely Factory A, Factory B, and Factory C, this study analyzes product diversification, capacity, capital investment, supply chain dynamics, and manufacturing operations. A qualitative approach with semi-structured interviews with industry practitioners from the case factories was employed. Data from purchasing orders, production reports, inventory reports, and monthly invoices were analyzed. The factories manufactured a range of sustainable products, emphasizing floor mats, ladies’ handbags, and bedding items (pillow covers). The analysis revealed that each factory achieved a 30–40% profit margin on their monthly sales. Notably, approximately 95% of the remnant fabric was recycled in the production process, with merely 5% being discarded and resold for further use. These findings indicate local employment opportunities and substantial contributions to socio-economic advancement. This study recommends adopting a circular economy model to generate new business opportunities and income streams from remnant fabric. It encourages new financial investment and technical innovations to promote growth in this sector and benefit wider stakeholders.