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Conestoga College *

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Business

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Apr 3, 2024

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3

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Fashion for Good Fashion for Good is launching ‘Sorting for Circularity Europe: Rewear Project’, an 18-month initiative which uses AI to sort and evaluate garments for their resale potential. The project will take place in Lithuania, Netherlands, Poland, and Spain. The aim is to respond to the growing textile waste issue, with the objective of preventing landfill dumping and increasing the value of textiles in the local, European, and export resale markets. The project aims to assist customers in understanding the different stages of garment production and identifying areas where waste can be salvaged, ultimately contributing to achieving true circularity in the fashion industry. Multiple brand partners like Adidas and Levi Strauss & Co. are supporting & funding the project. External Forces Driving Change: 1. Environmental Concerns: Increasing awareness and concern about the environmental impact of the fashion industry, especially the volume of textile waste going to landfills, is driving the need for sustainable practices. 2. Regulatory & Customer Pressures: Anticipation of potential future regulations (like Extended Producer Responsibility in EU) on waste management and recycling coupled with consumers demand for association with sustainable companies is pushing companies to proactively address and improve their practices. 3. Market Opportunity: The article also highlights that an additional $80 million can be generated annually by reintroducing sorted and recycled textiles back into the value chain. The resales market is anticipated to reach $350 Billion by 2027. This indicates untapped potential for a new business opportunity. Internal Forces Driving Change: 1. Innovation and Technology Adoption: Adoption of AI and automated sorting technologies showcases an internal push for innovation to streamline processes, enhance efficiency, and potentially reduce costs.
2. Corporate Social Responsibility (CSR): Companies like Adidas and Levi Strauss & Co. are most likely driven by their commitment to CSR, aiming to align their operations with sustainable and environmentally friendly practices. 3. Competitive advantage & brand image: The desire for a competitive edge within the fashion industry and need to establish itself as a leader in sustainable and circular practices to gain competitive advantage for increased market share and customer loyalty. Challenges to change: 1. Threat to One’s Self-Interest: Employees may resist change to protect their power, position, prestige, pay, and other benefits. Employees accustomed to traditional sorting methods may resist the shift towards automation, fearing job displacement or unfamiliarity with new technologies. 2. Lack of Conviction That Change Is Necessary: Resistance may arise when employees perceive that there is no genuine need for change. If they believe the current strategy is effective, they may resist altering automation. 3. Uncertainty : Changing consumer perception and behavior regarding secondhand clothing may present a challenge in fully realizing the potential of the resale market. 4. Supply Chain Complexity: Coordinating with multiple brand partners and industrial textile sorters across different countries brings in challenges in terms of supply chain logistics, communication, and standardization of processes. 5. Technological Barriers: Implementing AI and automated sorting technologies may face technical challenges, including system integration, employee training, and potential initial investment costs. The circularity project is not just a response to industry challenges; it is an initiative which signals a shift towards sustainability and circularity in fashion. With strategic partnerships, technological innovation, and a commitment to environmental responsibility, the project shows that with the industry's collective and collaborative effort we can move towards a more
sustainable & circular future in fashion (Fashion for Good, 2024; Leimbach, 2024; Lussier & Achua, 2000, pp. 415). References: Fashion for Good. (2024, January 18). Focus areas - Fashion for good. https://fashionfor good.com/innovation-platform/focus-areas/ Leimbach, S. (2024, January 19). Environment+Energy Leader. https://www.environmentenergyleader.com/2024/01/fashion-for-good-project-tests-ai- sorting-technologies-for-textile-circularity/ Lussier, R. N., & Achua, C. F. (2000). Leadership: theory, application, skill development (pp.415) . https://reader.texidium.com/dist/#/book/5441
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