Achieving sustainability and circular economy in the luxury fashion industry through lean practices: A systematic literature review

• Circular economy is unexplored in Lean-related literature despite its use in fashion. • Application of Lean techniques in luxury fashion production process is limited. • Integrating Lean with Industry 4.0 would boost sustainability in luxury fashion. The luxury fashion industry is resource-intensive and faces challenges such as overproduction, waste generation, and resource depletion. Characterized by exclusivity, and high-quality craftsmanship, the sector struggles with issues like destroying unsold goods to maintain brand exclusivity, which has become increasingly problematic, particularly with upcoming EU environmental regulations. As a result, the need for sustainable solutions has become more urgent. Lean management practices, recognized for their waste reduction and resource efficiency benefits, offer potential solutions. However, research on lean in luxury fashion remains scarce, with most studies focusing on mass-market fashion. This study addresses this gap by conducting a systematic literature review to examine the integration of lean management practices in luxury fashion production, particularly their contributions to sustainability and circular economy principles. The review identifies the current state of knowledge, emerging trends, and challenges in implementing lean practices in luxury fashion. Findings indicate that lean methods improve efficiency and process quality in the textile industry while promoting sustainable performance. However, the sector’s unique characteristics create barriers to adoption. The study highlights Industry 4.0 technologies as an enabler for enhancing lean’s sustainable impact. It offers valuable contributions to both scholars and practitioners by expanding knowledge on lean’s applicability in luxury fashion and demonstrating its potential to enhance competitive advantage, quality, and cost efficiency. Additionally, it emphasizes the need for tailored methodologies to implement lean effectively, fostering greater sustainability and circularity in the industry.