The Fashion Industry: Can it Really be Green?

Submitted to: Dale Miller Helen Perkins

By: Max Blackburn (s2692462) Brian Immel (s2714187) Kimberlee Godwin (s2619853) Tutorial: Tuesday 8:00am Word Count (1930)

Executive Summary
The purpose of this report is to discuss that the fashion industry can be green. Covered in this report are topics concerning the fashion industry and ways that it can reduce its environmental footprint. The first topic relates to cutting back on imports and exports to reduce carbon emissions by a large amount. Reusing and recycling parts, scraps, and whole products is a key factor in choosing to be a sustainable company. By being efficient in this way, companies will not only save money by not having to get rid of the extras, but they will also gain revenue by not having to spend money on those parts. With these incentives many companies are starting to convert to become greener in their processes. This in turn creates a much more competitive market and will help a domino effect in companies becoming green. A few companies that have taken steps towards becoming green are Simple Shoes, Patagonia, The Salvation Army, Wal-Mart, and Nike. Each one of these companies has done something to reduce their environmental footprint by taking innovative ideas and applying them to their companies methods. With such large name companies leading the way in becoming green, many other companies will see their progress and take on these challenges as well.

Table of Contents
1. Introduction..................................................................1 2. Discussion..................................................................... 1
2.1 Sustainable Scales and Impacts in the Fashion Industry......1 2.2 Recycling and the Prevention of Landfill.............................2 2.3 Fast Fashion and the Financial Aspect................................3

3. Key Observations..........................................................4 4. Conclusion....................................................................5 5. References.....................................................................I

1. Introduction
The fashion industry is continuously subject to changes in fashion trends and fads. An ongoing trend is for companies to slowly incorporate a greener approach. Is this a fad or can this approach be applied for a more sustainable future? In the past, companies have responded to these changes in different ways, some with mass production without much product distinction, others by creating product to the current demand, working on a very short product life cycle. Being successful in this industry is becoming more difficult, with increasing influences of the world market and heavier competition, one factor that will never change is that there will always be demand for clothing and fashion. The scope of the report is to explore if it is possible for the fashion industry to ever be Green. The report will focus on specific aspects of fashion retail including textiles, supply chain management, packaging, and recycling. In order to understand if the fashion industry could ever be Green, the components of Green Fashion must be properly defined and identified. Fashion is defined as a popular trend in a style of dress, garments or ornaments (Apple Inc., 2007). The green marketing trend is a movement increasing in popularity, which emerged in the 60s (Stilwell, Canty, Kopf, & Montrone, 1991). It calls for people and companies to be responsible for their impact on the environment in every way possible. Some examples include recycling, reusing, reducing waste of materials and chemicals during production, etc. (Stilwell, Canty, Kopf, & Montrone, 1991). Green in the fashion industry can then be defined as the integration of environmentally friendly processes in the design, production, transportation, sale and consumption of fashion articles and an overall responsibility for the environment.

2. Discussion
2.1 Sustainable Scales and Impacts in the Fashion Industry
An issue that often surfaces when dealing with the fashion industry being green is the supply chain and distribution. Is it really possible to be green when shipping products extremely long distances? In 2005 the U.S. was the second largest importer of textile and clothing products globally, and assumed 10.5 and 27.5 percent of the global textile and clothing imports (Tsang, 2007, p. 3). According to www.otexa.ita.doc.gov and the Journal of Fashion Marketing and Management, there was a major increase in imports from January to July 2004 to 2005 into the US marketplace from China. The select categories included were yarn (57.88%), fabric (38.85%), nonwovens (225.74%), and apparel (75.15%) (Parrish,

Cassill, Oxenham, 2006, pp 2). If a local Australian clothing company imported and exported less they would be reducing their carbon emissions drastically. Pacific Brands, a leading Australian corporation in the manufacturing and distributing of clothing, could follow in Wal-Marts footsteps and adopt sustainability standards for their supply chain. The reason they adopted the standards is because 92% of Wal-Marts footprint isnt directly controlled by them, rather by their supply chain (Allen, 2008, topic 3). The chart Wal-Mart sustainability scorecard standards (Allen, 2008, topic 3) looks like this: Wal-Mart sustainability scorecard standards 15% will be based on Greenhouse Gas (GHG)/CO2 per ton of Production 15% will be based on Material Value 15% will be based on Product/Package Ratio 15% will be based on Cube Utilization 10% will be based on Transportation 10% will be based on Recycled Content 10% will be based on Recovery Value 5% will be based on Renewable Energy 5% will be based on Innovation Manufacturing plant location is another touchy subject when it comes to green marketing and fashion. The sustainable choice for companies is to choose a location that will be the least harmful to the environment (Shrivastava, 2007). During the manufacturing process of shoes at Nike there is a lot of footwear waste. They came up with an innovative and sustainable way to reuse waste from the factory floor, scrap ground foam from the factory production, and material from footwear outsole manufacturing waste to create the first performance basketball shoe made from manufacturing waste. The Nike Trashtalk is now a fashion statement saying that not only can you be stylish, but you can look and feel good while helping the environment at the same time (Nike, 2008, pp 5).

2.2 Recycling and the Prevention of Landfill

For the fashion industry to become Green, businesses are to focus on the whole cycle of the product (Stilwell, Canty, Kopf, & Montrone, 1991). Once fashion product (including its packaging) has been bought and utilised, most items are thrown out. Depending what recycling facilities are available to the general public, most products reach local landfill or incineration (Stilwell, Canty, Kopf, & Montrone, 1991). Actions can be taken to slow this process of consistent increase of waste and pollutants. Retailers and Manufacturers are two of the seven key players that have a high impact on changing the way society deals with pollution and waste (Stilwell, Canty, Kopf, &

Montrone, 1991). When Fashion Retailers and Manufacturers use combined educational strategies that include Governments, Legislators, Environmentalists, Educators and Consumers, it is possible to reach awareness of processes. This can help the end result of fashion items and prevent high landfill and pollution (Stilwell, Canty, Kopf, & Montrone, 1991). Pacific Brands sells an average of 250 million units per year. That is 250 million units that are bought, used and highly likely disposed into landfills (Alec) (Stilwell, Canty, Kopf, & Montrone, 1991). Extending the lifecycle of materials and products is an approach that can be incorporated in businesses like Pacific Brands in order to be more environmentally friendly. Simple Shoes a Green Fashion Leader have proved this is possible (Simple Shoes). Their shoes are made from reused materials such as carpet, car tyres, plastic bottles and post recycled consumer recycled paper (Simple Shoes) . Simple Shoes are continously evaluating their methods and aim to be greener with every new product and this has lead to a trusting and reliable brand (Lane,2001)(Simple Shoes). Another company leading by example is outdoors apparel Patagonia. Patagonia has created systems for their consumers to easily return old products to be recycled, which has been proven succesful. Not for profit organisation, The Salvation Army also incorporates reusing parts of their goods, once a donated product cannot be resold, it is sent to factories where material is shredded into fibres for new products (The Good Human, 2008, pp2). The Fashion Industry can be successfully greener when having an innovative approach on incorporating reused products and continuing to educate closing the gap on consumer behaviour towards the lifecycle of the product.

2.3 Fast Fashion and the Financial Aspect

In a direct response to consumer demand becoming increasingly diverse and ever changing, companies of the fashion industry have begun using techniques in order to minimize waste in both overstock and delivery time (Doyle, Moore, & Morgan, 2006, p. 272). Without taking a stance in environmental issues, they have taken an approach for integrating green marketing processes in the fashion industry. This industry is referred to as fast fashion (Bruce, & Daly, 2006, p. 329). Fast fashion is characterized by a very lean supply chain management aimed at producing fashion items to current demand in the shortest, financially sustainable, amount of time (Bruce, & Daly, 2006, p. 332). This trend is particularly important for the integration of Green Marketing in the industry. The process of creating a quicker and leaner supply chain inadvertently makes its Green. An area involved in this improvement include, the use of suppliers closer to home,

thus reducing the amount of time and distance a product is traveling, as well as the gas produced from transportation (Bruce, & Daly, 2006, p. 330). The use of new technologies such as CAD drawings and automated cutting machines, creating increased efficiencies and reducing waste (Hayes, & Jones, 2006, p. 339). Production to customers current demand, reduces the waste and discounting of unsold finished goods (Hayes, & Jones, 2006, p. 283). Although the primary motivation for the adoption of fast fashion may be financial stability, it is as well a long-term approach to being Green. Historically, many currently established Green markets and industries have been pushed by the initial financial benefits of the products, rather than the environmental upsides. Examples such as the compact fluorescent light bulb and energy efficient appliances have also demonstrated that little initial financial benefit lead to greater gains on a long-term basis. This is important to note as the rule to basic human behaviour in the Capitalist environment prioritises the financial benefits over the environmental ones (Greater than llc, 2009). When relating to the fashion industry, the small steps taken by Fast Fashion retailers could eventually lead to an industry wide overall Green approach to the supply chain. On the consumer perspective, it has been showed by studies that consumers will prioritise their own needs in fashion above ethical and environmental issues (Joergens, 2006, p. 363), making it difficult to grow the current green fashion niche market into a mass market.

3. Key Observations
The gathered information leads to the conclusion that on a long and short-term basis, it is achievable for the fashion industry to become environmentally responsible through education, influence of major corporations, and profit driven efficiencies. As the world market becomes more balanced, larger companies should steer towards a domestically loyal approach and frown upon importing and exporting large quantities at a time. This will create a much more competitive market for smaller companies, due to an increased number of local distributors. Staying domestic will drive local economies and in turn decrease their environmental footprint by creating less pollution, using both the benefits of less transportation and manufacturing in countries with higher environmental standards. Another way companies can cut back on their footprint is to reuse its excess material to create new innovative products. This, in turn, cuts back on pollution; the company will not have to dispose of its waste. Environmental responsibility in the fashion industry is also feasible when action for communications to all publics is applied, educating the importance of the Green cycle (Stilwell, Canty, Kopf, & Montrone, 1991). This has been successfully achieved from

businesses building a strong rapport to the main publics, having an active relationship with the media and keeping updated with the latest government/environmentalist concerns and legislations. In the long term, this will create more awareness for the consumer on how to utilise the product in a greener fashion. This can be an attractive strategy for companies as this has been proven to cut costs and strengthen the brand when the correct strategy is applied. The natural forces of the world economy, and the ongoing efforts from companies to reduce cost and increase efficiencies, will also drive the fashion industry to become more environmentally responsible, whether not it was the original intent. All companies in the fashion industry should take example from their competition and gradually adopt the leaner supply chain, focusing on materials and labour closer to home. Such companies should also make it a habit to often review their company and supply chain structure in order to find efficiencies. As more companies adopt this technique, more local suppliers will then be available; a driving market force to give priorities to local providers.

4. Conclusion
It is possible to be innovative and successful in the fashion industry while being sustainable through green marketing. Becoming more aware of the effects in the future, with consistent research, helps businesses in the long run. As mentioned earlier in the report, reusing materials cannot only save businesses money by not having to dispose of products, but can create more revenue. Very profitable companies like Wal-Mart have been taking strides to become more sustainable by reducing their footprint. They have proven this successful by recycling materials and continuing to develop product awareness towards their target market. This strategy strengthens the company consumer relationship and brand simply by openly communicating their eco friendly course of action. These market drivers will create a much more competitive market and past environmental issues will be unfeasible to ignore. Australian companies like Pacific Brands that dont incorporate these methods should follow Wal-Marts Greener example by taking on their sustainability standards. This would improve revenue and a much more ethical brand by setting higher standards. Environmental innovations can also be found in the supply chains strategies of the fast fashion industry, where they are fed mainly by financial motives. Companies in the future will realise the advantages of this approach in supply chains and apply them across the width of the fashion industry. All these factors combined prove that the fashion industry can be Green when

logical strategies to increase efficiencies are applied properly to the business practices over time.

5. References
Allen, C. (2008). Sustainable packaging process in 2008. pp 10. Retrieved online on March 22, 2009 from http://www.californiagreensolutions.com/cgi-bin/gt/tpl.h,content=1987 Apple Inc. (2007). New Oxford American Dictionary 2.0.2. [Computer Software]. Retrieved March 29, 2009 from http://www.apple.com Bruce, M., & Daly, L. (2006). Buyer behaviour for fast fashion. The Journal of Fashion Marketing and Management, 10-3, 329-344. Retrieved March 19, 2009, from the Emerald database. Doyle, S. A., Moore, C. M., & Morgan, L. (2006). Supplier management in fast moving fashion retailing. The Journal of Fashion Marketing and Management, 10-3, 272-281. Retrieved March 19, 2009, from the Emerald database. Greater than llc. (2009). Mainstream your green value proposition: make it more than a planet play. Greater than a green marketing blog. Retrieved April 10, 2009 from http://blog.greaterthan.net/?m=200901 Hayes, S.G., & Jones, N. (2006). Fast fashion: a financial snapshot. The Journal of Fashion Marketing and Management, 10-3, 282-300. Retrieved March 19, 2009 from the Emerald database. Joergens, C. (2006). Ethical fashion: myth or future trend?. The Journal of Fashion Marketing and Management, 10-3, 360-371. Retrieved March 19, 2009 from the Emerald database. Lane, K. K. (2001). Building Customer Based Brand Equity: A Blueprint for Creating Strong Brands . Marketing Science Institute , 3-38. Nike. (2008). Steve Nash and Nike Turn Garbage into Trash Talk. pp 5. Retrieved online on March 22, 2009 at http://www.nikebiz.com/media/pr/2008/02/13_Nash.html

Shrivastava, P. (2007). Environmental technologies and competitive advantage. Strategic

Management Journal, 16-1, 183-200. Retrieved April 4, 2009 from http://www3.interscience.wiley.com/journal/114124271/abstract?CRETRY=1&SRETRY=0 Simple Shoes. (n.d.). Retrieved March 30, 2009, from Simple Shoes - Our Materials are Sustainable : http://www.simpleshoes.com/info/materials.aspx?g=info Stilwell, E., Canty, R., Kopf, P., & Montrone, A. (1991). Packaging for the Environment A Partnership for Progress. New York, NY: Arthur D. Little, Inc. The Good Human. (2008, April 6). Retrieved March 30, 2009, from E/The Environmental Magazine: http://www.thegoodhuman.com/2008/04/06/earthtalk-recycling-worn-out-clothing/ Apple Inc. (2007). New Oxford American Dictionary 2.0.2. [Computer Software]. Retrieved March 29, 2009 from http://www.apple.com Tsang, W.Y. (2007). Textile and clothing exports of selected South and Southeast Asian countries. 567. The Journal of Fashion Marketing and Management. Retrieved March 22, 2009, from the Emerald database. Parrish, E.D., Cassill, N.L., Oxenham, W. (2006). Niche market strategy in the textile and apparel industry. 421. The Journal of Fashion Marketing and Management. Retrieved March 22, 2009, from the Emerald database.

II