This Executive Brief compiles the key results obtained from some ongoing research and innovation studies conducted with the scope of two ongoing projects: (i) CLOSeD (Circular clothing dichotomies in global-local supply chain dispersion) funded by Ikea Family Research Foundation; ongoing since January 2021, and (ii) Circular Logistics (Exploring the role of logistics in the circular textile ecosystem) funded by Formas (Swedish research council for sustainable development); ongoing since May 2022. 

[More about the 2 projects here: CLOSeD↗  Circular Logistics↗]

This Executive Brief is one-of-its-kind, given that it synthesizes the results of multiple ongoing studies, and draws connection among them by presenting an overarching purpose of creating science-based logical reasoning and understanding of how circular clothing supply chains and ecosystems, and the organizations embedded within, can maximise their valorisation potential amid the changing landscape led by, for example, the European Union (EU)-wide planning and adoption of “EU Strategy for textiles”. 

A common thread of our argument, as put forward in this Executive Brief is while the textile circular economy is largely influenced in practice by recent technological advancements, related to circular material development, innovative products and processes, or digitalization of circular business models and operations, the motivation in driving them forward has been largely from an efficiency-gain perspective, both in terms of economics and ecology, that is address whether and how circular economy would minimise costs, enhance profitability, and render economies of scale. A novelty-centred perspective has been largely implicit in this regard; however critical to generate a top-line on how circular supply chains and ecosystems should generate sustainable value, beyond cost/profit dimensions.

To address this our Executive Brief presents the 5 distinct studies’ results. Each study is enriched by empirically-driven dataset, analytical framing and scientific methodology, while at the same time are aligned by a common objective: to explore and provide explanation of the main challenges to value generation in circular clothing supply chains and ecosystems, and what concrete strategic solutions are/can be devised.  

Ø  STUDY 1 explores the values currently uncaptured, new opportunities and strategies to capture them, from a multi-dimensional and multi-stakeholder perspective, in context to European used clothing circular supply chain from multiple countries.

Ø  STUDY 2 checks the triple-bottom line sustainability credential of distributed Global North-South used clothing circular supply chain, by weighing the pros and cons against each other and finally proposing what needs further attention for future valorization.

Ø  STUDY 3 highlights the underlying supply chain capabilities prerequisite to design textile-to-textile recycling value chain for handling post-consumer waste in Global North.

Ø  STUDY 4 presents the case of a multi-national Swedish fashion retailer to pen down what capabilities are essential of an ecosystem leader or captain in orchestrating circular supply chains of post-consumer used clothes.

Ø  STUDY 5 initiates a mapping of multi-tiered textile recycling value chain in Global South by presenting the case of Panipat in India - world’s largest mechanical recycling hub.

Purpose – Used clothes supply chains are becoming increasingly complex, fragmented and less transparentdue to rising volumes of discarded clothes and its dispersed reverse logistics operations across the Global North(GN) and Global South (GS). While it has a promising impact on circular economy and international tradegrowth, increasing exports of used clothes and overflowing landfills raise some negative concerns on its overallsustainability. This paper addresses the dichotomy that exists in terms of interpreting the sustainabilitycredentials of used clothes supply chains.

Design/methodology/approach – A systematic literature review was carried out and 55 articles wereexamined to identify the triple bottom line (TBL) sustainability impacts of used clothes supply chains. TBLsustainability issues were identified, reflected through the lens of natural resource-based view and interpretedin the form of propositions.

Findings – The paper pinpoints sevenTBLsustainability concerns and prescribes three sets of strategic resourcesrequired in glocal used clothes supply chains for mitigating these.These are (1) slowing the supply chain by tacklingpoor quality, overproduction and oversupply issues, (2) improving logistics/supply chain infrastructure andecosystem collaboration and (2) embedding transparent environmental, social and governance (ESG) measurestaken by both value chain actors and regulatory bodies, for embracing system-level sustainable development.

Originality/value – This is one of the first studies to analyse TBL sustainability of glocal north–south usedclothes supply chains. The study is unique in terms of its scope and contribution to the sustainable supplychain literature.

Global trade of used clothing, which comprises a series of activities that connect the Global North to the Global South, has grown substantially over the years. This paper analyses the trade data of the export/import trade of used clothing to provide an overview of global trade statistics and explores the sustainability impact of the used clothing trade. Both qualitative and quantitative secondary data were employed in the study. Analysis of export data revealed a declining trend, which may be attributed to the import bans of used clothing and new cheap imports from Asia. While the United States is constantly being the top exporter, and Pakistan is the top importer, the value of exports grew the fastest in China during the last decade. Analysis of sustainability impacts revealed both positive and negative facts. Used clothing markets support thousands of livelihoods and provide affordable clothing for those who live in poverty; however, the fast fashion phenomenon is threatening this important trade. Therefore, this study urges an investigation of alternative business models to reutilize clothing waste. Remanufacturing and recycling-based business models, when implemented in the Global South, could provide viable solutions to reutilize excess clothing while enhancing the sustainability benefits. Developing collaborative relationships among the stakeholders of the used clothing supply chain is immensely necessary to implement such disruptive business models and to capture values along the supply chain.