A review of sustainable business models among Italian fashion business ventures

Abstract

Sustainability has become the mainstream argument in public debates and its principles are increasingly incorporated at the basis of any business planning. Since the 2000’s, the private sector has sporadically developed mitigation and compensation approaches to address social and environmental externalities. Those practices, identified as Corporate Social Responsibility, needed radical improvements as the challenge of sustainability is calling for further efforts of the private sectors. The fashion industry, one of the most impacting on the planet, seems to have acknowledged the challenge by adopting innovative business models that provides positive impacts on society and the environment. Sustainability principles are taken as strategic drivers to improve their “value proposition” and to raise their “brand awareness”. The spreading of sustainable business models in the fashion industry is an increasing trend, especially among start-ups and innovative ventures. As emerging businesses, it appears necessary to provide a better understanding of main trends among the diversity of sustainable business models. Grounded on real business cases across the Italian fashion industry, the aim of this research is to investigate how the design of innovative business models enables the creation of eco-friendly products, and at the same time, how the latter are perceived as added value by their customers, thus opening new market opportunities.