Circular Business Strategies in the Portuguese Textile and Clothing Industry

The transition from a linear to a more circular economy has pressured companies from different sectors to implement circular business strategies and redesign their existing business models or even create new ones. The aim of this investigation is to identify the different circular business strategies adopted by Portuguese companies in the textile and clothing industry and evaluate their impact on the sustainability of the business. This article presents a framework of strategies to guide managers in addressing the challenges of moving from fast to more sustainable fashion. This exploratory research is based on a qualitative methodology, relying on semi-structured interviews with the managers of six companies in the textile and clothing sector in Portugal that have implemented circular practices. The primary data collection took place between 20 July and 30 September 2022. The results show that companies have supported their circular economy practices mainly through product life extension strategies (mostly based on durable product design) and resource use reduction strategies, with resource recovery being the most common. The use of personalized product design and clothing repair strategies is still largely unexplored by companies. The findings also suggest that companies have to adapt their way of production and market relationships with consumers in order to accommodate the practices of a circular economy in their businesses. In the future, a quantitative approach could also provide new insights, as well as longitudinal and cross-country comparison studies.