Economy Business Models in the Textile and ClothingIndustry: An Exploratory Study

Textile and clothing are among the world's most polluting industries. The introduction of the fast fashion concept in the early 1990s and the adoption of these practices by the main players in the market led some companies to change their strategy and adopt circular practices. However, the transition from fast fashion to a more sustainable way of production by introducing circular economy practices requires that companies restructure their existing business models or even design new ones. The aim of this article is to illustrate the business models adopted by different companies in the textile and clothing sector in the context of the circular economy practices and the extent to which they are striving to ensure sustainability. To this end, the dimensions and components proposed in the Triple Layered Business Model Canvas are used as a reference for collecting evidence from different companies. The exploratory research is based on a qualitative methodology, relying on semi-structured interviews with managers of six companies in the textile and clothing sector in Portugal that use circular practices. The primary data collection took place between 20 July and 30 September 2022. The results obtained show that companies have adapted their internal practices and market relationships to the specificities of circular business models. In addition, the research shows the existence of the integration of economic, environmental and social dimensions in the business model of textile and clothing companies.