Cascading of circular business models in the textile and clothing industry: Insights for operationalization through a systematic review

The circular economy seeks to preserve resource value by promoting circular business models (CBMs) such as repair, reuse, remanufacturing, and recycling. However, the practical operationalization of cascading - where resources are sequentially utilized across multiple CBMs to maximize their residual value - remains insufficiently explored, particularly in the textile and clothing (T&C) industry. This sector, marked by high resource consumption, short product lifespans, and significant environmental impacts, presents unique opportunities to slow resource loops and enhance value creation. This study systematically reviews 45 academic articles to examine how cascading is operationalized within the T&C sector. Seven archetypes of cascading are identified, encompassing interactions within and between inner loops (e.g., rental, repair, reuse), outer loops (e.g., remaking, recycling), and open-loop applications across value chains. Using cascade chain theory, these practices are mapped onto four guiding principles: appropriate fit, augmentation, consecutive relinking, and balancing resource metabolism. The analysis reveals key enabling factors for effective cascading, including advanced sorting technologies, digital and physical tracking systems, circular design, life extension strategies, supply chain coordination, supportive policies, eco-material substitution, and innovative recycling techniques. Despite these enablers, scaling cascading operations is hindered by infrastructural limitations, market and safety challenges, insufficient local processing capacity, and regulatory barriers. The findings highlight critical factors shaping cascading practices and emphasize the need for coordinated action among T&C stakeholders, policymakers, and intermediaries to establish robust cascade chains and advance the transition to circularity.