The Circular Economy and the Role of Technology in the Fashion Industry: A Comparison of Empirical Evidence

The present article analyses the theme of circularity in the fashion industry, with particular attention to the role of technology in favoring the adoption of circular economic models. The article explores the role of technology in supporting the circular economy in the fashion industry, focusing on the implementation of circular business models by three companies: SHEIN, Ralph Lauren, and Cotopaxi. The aim is to investigate the challenges and opportunities associated with the adoption of circular economy practices in an industry known for its environmental impact. The research highlights how technology, particularly software such as Materia MX, can facilitate streamlined supply chains, reduced waste, and optimized resource efficiency, thus, overcoming obstacles such as high investment costs and supply chain complexities. The case studies demonstrate how each company has integrated circular practices, such as recycling, reusing materials, and improving transparency through technologies such as AI, blockchain, and IoT, to promote sustainability. Thus, the study emphasizes the importance of technological innovation in enabling a more sustainable and circular future for the fashion industry while addressing challenges related to consumer awareness, regulatory pressures, and infrastructure. The results suggest that technology is a key factor in the fashion industry’s transition to a circular economy, offering a competitive advantage and facilitating the achievement of environmental objectives.