Background: The current fashion industry is characterised by its fast-moving nature. Its change over the past decades from two to numerous collections per year has contributed to a take-make-dispose society. This largely contributes to environmental and social sustainability issues as well as the use of non-renewable materials waste. Simultaneously, it is one of the largest employers worldwide. Due to the global dispersion of supply chains actors, sustainable fashion brands need to tackle country specific regulations and overall differences in conceptions of e.g. sustainability. Sustainable fashion brands find themselves in numerous conflicts such as profit and growth versus environmental and social sustainability, trendiness versus consciousness, or linear business models versus circular business models.

Purpose: This thesis provides a systematic literature review of a selection among peer-reviewed articles on sustainable fashion brands. The main focus is on the paradox of sustainable fashion brands in academic research. This study aims at gaining a basis for research in the perspective of sustainable retail brands to explore manners in which they can deal with the paradox between being financially viable and acting sustainably.

Method: To support the objective of this study, the articles selected for data analysis were collected by using a systematic literature review as research and analytical method. Within the thesis, a narrative analysis was applied to examine the chosen articles.

Results: The results gathered through the systematic review show a significant influence on sustainable fashion brands from two major stakeholders: supplier and consumer. Especially the consumers are regarded as most influential since their demand determines whether sustainable fashion is being adopted more widely into the market. Currently consumers lack knowledge of environmental and social concerns related with fashion. Simultaneously, the suppliers lack understanding of such concerns due to cultural and economic differences. Therefore, retailers should educate both consumers and suppliers on relevant issues. This can further enhance transparency which in turn generates more trust between all parties. Moreover, innovative business models can help tackle consumption related sustainability issues in that they offer the extended use of clothing.

Conclusion: Sustainable fashion brands have to handle several conflicts related to their market position and existence. In order to create sustainable fashion offerings, they require viable financial means. Economic growth as it is known today contradicts the sustainability of the environment and society. Sustainable fashion brands need to find a proper balance between the two as it is the only way to tackle this paradox. In addition, there is a significant gap in the research on economic sustainability in relation to sustainable fashion brands.