Environmental problems at the global level have become a critical issue in today’s fashion industry. However, small-and medium-sized fashion business (SMFBs) encounter barriers in promoting green business owing to finances, professional expertise, knowledge, and technology. Therefore, innovative ideas are vital for SMFBs to effectively address constraints to compliance. The purpose of this research is to analyze how SMFBs develop the interactive nature of value propositions based on the case studies of the Onomichi Denim Project and the REKROW and addresses what elements are associated with value propositions based on the human-centered perspectives. This study collected data through face-to-face and remote interviews, and a review of the previous literature, including magazines, websites, and videos. This study identified four value elements contributing to value propositions: environmental value, embedded social value, synergetic value, and educational value. These elements developed through various forms of interaction, such as a unique co-production system embedding social ties and the establishment of a production-oriented circular economy. The study proposed value creation through value proposition as a strategy crucial to managing SMFBs.
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