Sustainable Fashion in Slovenia: Circular Economy Strategies, Design Processes, and Regional Innovation

Abstract

This study investigates sustainability-oriented design and production practices in Slovenia, focusing on brand-led approaches grounded in local innovation, cultural heritage and community engagement. Through mapping of Slovenian fashion enterprises, the research identifies and analyzes core sustainability and circularity strategies including zero- and low-waste design, recycling, upcycling and the development of adaptable, long-lasting garments. Further attention is given to participatory design methods involving consumers, the strategic social media use for community building and service-based circular economy models such as lifetime garment repair. Technological and production innovations, localized supply chains and small-scale production models are assessed for their role in reducing environmental impact and advancing sustainable supply chain management. The study also analyzes initiatives to shorten the fashion loop, including dematerialization and production minimization, as pathways to reduce resource consumption. Methodologically, the study combines empirical fieldwork, participant observation and literature review to deliver a comprehensive analysis of Slovenia’s sustainable fashion sector. The findings contribute to the global discourse on regional and place-based sustainability in fashion demonstrating how design-driven, small- and medium-sized enterprises can integrate circular economy principles, cultural continuity and collaborative innovation to foster environmentally responsible and socially embedded fashion.

1. Introduction

Sustainable fashion design extends beyond the technical parameters of a garment’s lifecycle—production, use and end-of-life—to encompass socio-cultural dimensions such as consumer behavior, participatory engagement and place-based environmental stewardship [1]. Aligned with the United Nations Sustainable Development Goals [2], it requires balancing social responsibility, economic viability and ecological and cultural integrity. Fashion thus operates not only as a commodity, but also as a medium of cultural expression, where ownership, care and maintenance practices foster an emotional attachment and extend the clothing lifespan [3].

Globally, the fashion industry faces pressure to transform due to its severe environmental footprint and complex social impacts. In response, strategies such as circular production, zero-waste design and digital traceability tools are increasingly being developed and adopted. However, these approaches are often shaped by the priorities of large-scale industrial players, while their transition into smaller cultural and geographic context remains underexplored. In post-socialist transitional countries such as Slovenia, sustainability trajectories differ markedly from those in established fashion economies. With limited institutional support, sustainability has frequently developed through grassroots initiatives, community engagement or necessity-driven innovation, rather than through coordinated industrial or policy frameworks. This pathway has generated distinctive practices characterized by cultural heritage, socio-economic transformation and adoptive small-scale design systems.

Therefore, the various sustainability approaches have several critical limitations that lead to significant gaps in our understanding of how sustainability in fashion can be effectively implemented in different contexts and scales. In reviewing the literature, the following gaps in global sustainability approaches were identified:

• Scale and contextual biases persist as sustainability solutions developed for multinational companies are poorly tested in SMEs within transitional economies.
• Post-socialist sustainability trajectories remain underexplored compared to established fashion economies, leaving critical gaps in comparative analysis.
• Cultural heritage is insufficiently integrated into sustainability frameworks, limiting the potential of traditional knowledge for innovative solutions.
• Community engagement in small-scale fashion contexts is insufficiently addressed despite its increasing recognition as a key sustainability strategy.

The study addresses these gaps by shifting the analytical focus toward brand-led, design-centered sustainability in Slovenia. Through a historical mapping, an enterprise evaluation and a strategy analysis, the study examines how fashion operates as a generator of place-based innovation rooted in cultural heritage, social engagement and environmental responsibility. Slovenian sustainable fashion initiatives have primarily emerged through bottom-up innovation rather than top-down policy implementation, which provides a basis for exploring alternative routes to sustainability.

Therefore, the primary research objective is to investigate how Slovenian fashion brands integrate sustainability principles into design and production processes, comparing approaches from the socialist and post-socialist periods. The specific research objectives are to analyze the implementation of the circular economy principles of the contemporary Slovenian fashion brands in their design and production processes; to examine the role of the cultural heritage in shaping sustainable fashion practices in Slovenia; and to evaluate the contribution of the participatory design approaches to sustainability outcomes in small-scale fashion enterprises.

The study evaluates:

• Design innovations (zero-/low-waste techniques, modularity, upcycling),
• Production sustainability (energy and water efficiency, local/regional sourcing),
• Dematerialization approaches (leasing, repair, co-creation models),
• Digital engagement (transparency, traceability, advocacy),
• Cultural engagement (revival of traditional craftsmanship, DIY culture).

By applying Fletcher & Grose’s [4] sustainability framework—products, fashion systems and design practices—the study develops a model linking environmental integrity, heritage preservation and market viability in small-scale fashion systems. Positioning Slovenian fashion as a ‘living laboratory’ [5], it demonstrates how locally embedded innovation can be strategically amplified to strengthen the global resilience in the fashion industry. The contribution lies in advancing contextualized models of sustainability within post-socialist economies while offering practical insights for small-scale fashion enterprises navigating transitional environments.

The study introduces a novel approach by integrating historical analysis, cultural heritage and contemporary sustainability assessment into a theoretically grounded overview that challenges prevailing assumptions about sustainable fashion. In contrast to previous work that has largely focused on technical or economic aspects, this work emphasizes how cultural embeddedness, community engagement and place-based innovation foster distinctive and potentially more resilient forms of sustainable fashion practice.

2. Research Design

This research received no external funding. A qualitative, exploratory approach was adopted to examine how Slovenian fashion enterprises embed sustainability into their practices. Slovenia was selected as a case context due to its micro-scale apparel market, strong traditions in clothing craftsmanship and the ongoing challenges of textile import dependence. Unlike larger fashion economies, Slovenia offers a distinctive setting where small, locally oriented enterprises operate as laboratories for sustainability, experimenting with circular design, craft preservation and community-driven business models.

Official statistics show that in 2023 there were around 654 enterprises active in Slovenia’s apparel industry [6], including both manufacturers and design studios. The first step of the research was to map fashion practices. This included defining legal forms of business such as companies, sole proprietors, independent cultural workers registered with the Ministry of Culture, non-governmental organizations, co-operatives and public sector employees. A total of 52 Slovenian fashion brands and initiatives were mapped using purposive sampling. The inclusion criteria required that the entities:

• Explicitly reference or demonstrate sustainability in design, production, communication or community engagement; and
• Present collections at fashion events consistently over a number of years to ensure sustained activity rather than short-term initiatives.

This strategy balanced between representativeness and relevance, although it may have excluded emerging actors not yet visible at formal fashion events:

• Participant observation at 15 industry events (fashion shows, exhibitions, stakeholder meetings and talks, and sustainability workshops) which allowed for first-hand documentation of sustainability practices and discursive trends.
• Semi-structured interviews with 24 participants (18 designers and brand representatives, 1 producer and 5 media actors). Interviews were recorded where permitted (n = 20) and otherwise documented through detailed notes and immediate post-conversation write ups (n = 24).
• Archival and literature review encompassed materials spanning from 1954 to 2024, including trade reports, policy documents and historical analyses of the Slovenian textile and apparel sector.

The mapping of the 52 brands drew on publicly available information (websites, social media, press coverage), supplemented by data from the Center for Creativity study [7], industry reports, and previous academic literature.

Analysis proceeded in two stages:

1.

Qualitative thematic analysis:

• Interview transcripts, observation notes, and archival materials were coded following Braun & Clarke’s [8] reflexive thematic analysis approach.
• Codes were developed inductively and then refined into categories such as waste reduction, supply chain localization, design innovation, cultural engagement and digital transparency.
• The intersection of three approaches—interviews, observation and media sources—ensures validity and reduces reliance on self-reporting.

2.

Quantitative description mapping:

• Practices were recorded for each of the 52 brands.
• The results showed that 69% employed some form of upcycling, 87% offered repair or alteration services, 41% integrated zero- or less-waste tailoring and 40% actively revived traditional craft techniques.
• These statistics provided a baseline for assessing the prevalence and diversity of sustainability strategies in Slovenia’s fashion sector.

3. Sustainability Concepts of Slovenian Fashion Brands in the Socialist and Post-Socialist Periods

The research is structured into two sections, each addressing one of two historically and contextually different periods, which are characterized by considerable differences in their temporal, economic, political and production frameworks. Despite these differences, the two periods are linked by the concept of sustainability, which in the socialist period was already clearly expressed in the field of fashion and fashion brands, even if it was not recognized in other economic sectors and was not seen in the same way as it is today.

3.1. Historical Sustainability-Oriented Foundations of Slovenian Fashion: A Legacy for Contemporary Practices

Historically, Slovenian clothing industry companies demonstrated a form of social responsibility akin to contemporary understanding, emphasizing care for both their employees and the surrounding environment. Between 1945 and the period of significant political, economic and social transformations, the clothing industry in Slovenia was distinctive not only as a site of production but also as a potential social space [9]. Employees maintained strong connections to their workplace, with professional and private lives closely intertwined.

The sector actively supported a wide range of community initiatives. The companies sponsored sports clubs, managed holiday homes, financed the construction and operation of cultural institutions, and supported local fire brigades. For example, in its years of operation, Industrija usnja Vrhnika not only amassed a significant collection of Slovenian art, but also invested in the community’s infrastructure, including a gym, a swimming pool, a boules court and a ski slope. The company also supported the local library, initially by providing premises in 1958 and later by funding the construction of new facilities in 1976 [10].

Workplace well-being was also a priority. Modni salon Velenje, for instance, introduced recreational breaks to reduce workplace injuries and abolished productivity quotas for female workers over 40 in order to prioritize quality of work over speed [11]. Many companies operated in-house medical clinics that provided care not only to employees and retirees but also to their families; Pletenina established one such clinic with a general practitioner in 1964 [12] (p. 63). Until the completion of ownership transformations in 1997, the clothing industry combined its economic success with active contributions to the social welfare of the community in which it operated.

The economic policy frameworks of the period further influenced the sector’s development. The medium-term economic development plan, which was adopted for the period up to 1980, played a pivotal role in shaping the textile industry trajectory. One of its strategic objectives was to enhance self-sufficiency in raw materials and reduce dependence on imports. The country relied extensively on imports from international markets and other former Yugoslav republics. The strategic plans at the time aimed to achieve a 34% share of domestic textile production by 1980, while the remaining 66% was to be imported, reflecting the early recognition of the strategic importance of textile autonomy [13].

Trade patterns changed significantly during this period. In 1965, Slovenia’s textile exports covered 76% of its imports, by 1970 this figure had dropped to 53% and by 1974 it fell further to just 34% [13]. To secure the sector’s sustainability and competitiveness, the 1970s policy priorities emphasized two key areas: improving the quality of the textile industry’s products and steering production towards what was described as a ‘high culture of clothing’.

Based on the authors’ original research across Slovenia’s fashion sector, this study uncovers how the contemporary sustainability framework is deeply rooted in historical social and economic practices that manifest themselves through three interrelated dimensions. First, social responsibility, which is evident in Slovenia’s longstanding tradition of collaborative, participatory socio-economic models in which workers actively engage in decision-making processes, and equitable resource allocation, particularly during periods of economic constraint [14]. Second, resource efficiency achieved through adaptive production strategies that maximized value under limited material conditions, a legacy that continues to influence sustainable supply chain practices today. Third, cultural preservation supported by community-centered craft ecosystems such as the Rokodelski center (Artisanal Center) in Škofja Loka, which sustain intangible heritage, hand-on skill transmission and place-based design practices. These research-based findings under-score how socio-economic adaptations have organically fostered the resilience within Slovenia’s fashion industry. The findings provide a critical insight into the historical underpinnings of current sustainable fashion strategies. They illustrate how local heritage, collaborative practices and efficient resource use converge to support the circular economy [15] and chart future pathways for environmentally responsible and culturally embedded fashion development.

3.2. Current Practices: Analysis of Contemporary Sustainability-Oriented Slovenian Fashion

According to Statista [16], Slovenia’s apparel market is rather modest in scale, with an estimated revenue of €1.19 billion and an annual growth rate of 2.7%. Compared to Italy, Slovenia’s apparel market is roughly 50 times smaller, more import-oriented and has a substantially smaller domestic manufacturing footprint. In 2025, the market is expected to generate approximately €564 per capita, with average clothing consumption estimated at just under 51 items per person [16], implying an average expenditure of €11 per item. Although consumer demand for sustainable and locally produced clothing is rising—driven by environmental and cultural awareness and support for local fashion businesses—Slovenian brands face significant challenges: limited product diversity, dependence on textile imports, weaker financial capacity and constrained manufacturing infrastructure. Addressing this challenge requires coordinated strategies to strengthen local supply chains, enhancing productive capacities and supporting differentiation through verified sustainability credentials.

According to a study by the Center for Creativity [7], Slovenian fashion brands exhibit considerable diversity in their legal forms: the majority operate as self-employed in the culture cultural sector (40%), followed by independent entrepreneurs (23%), business enterprises (20%), employees of public institutions such as educational or museum organizations (10%) and private non-profit institutions (7%). These brands are geographically dispersed across Slovenia, reflecting the decentralized nature of the country’s creative industries. In terms of their field of activity, Slovenian fashion designers only partially integrate their expertise in alignment with the principles of sustainable fashion—an approach in which designers are expected to operate across multiple economic domains, including the public sector, the non-profit sector and research [4] (p. 156).

The mapped business entities were analyzed through the lens of waste reduction, both in production processes and post-consumer practices. The analysis focused on a set of sustainability-oriented activities (Figure 1), including:

• Zero-waste or reduced-waste tailoring, emphasizing pattern efficiency and material optimization;
• Recycling and upcycling, with a particular focus on how existing garments are reintroduced into circulation;
• Design for adaptability and longevity, involving modularity, repairability, and continuous product improvement;
• Consumer participation in the design process, highlighting co-creation as a means of extending product value;
• Digital engagement through social media, used both as an educational tool for sustainable fashion and as a platform for sharing brand narratives;
• Community-building practices where brands initiate and foster fashion communities around sustainability values;
• Repair services, offered as lifelong product support to slow down fashion consumption and counteract the prevailing ‘clothing metabolism’ [4] (p. 89).

Figure 1. Graphical representation of approximate values in percentages from 0% to 100% for the inclusion of waste reduction strategies in Slovenian fashion in the analyzed period between 2020 and 2024 (data derive from the authors’ primary research survey).

Figure 1. Graphical representation of approximate values in percentages from 0% to 100% for the inclusion of waste reduction strategies in Slovenian fashion in the analyzed period between 2020 and 2024 (data derive from the authors’ primary research survey).

The review also accounted for local recycling and reuse traditions. In Slovenia, recycling practices appeared early on, typically involving the repurpose of already designed garments with minor alternations and repairs by individual brands. Reuse was also observed in the presence of thrift shops and vintage clothing stores selling Slovenian fashion brands with varying degrees of creativity and commercial success.

Given the micro-scale nature of most Slovenian fashion brands, the original fieldwork indicates that some sustainability-oriented practices are embedded at the level of everyday operations. A substantial share of the surveyed brands provide lifelong repair services—offering maintenance throughout the entire product lifecycle to extend usability and reduce waste (87%). Similarly, 80% actively encourage consumer participation by involving them in co-creation or customization, fostering user attachment and reducing premature disposal. This small-scale organizational structure represents a potential competitive advantage, as such practices can be promoted as core elements of sustainable fashion and brand management. The reduction strategy criteria presented (Figure 1) were derived from a mixed empirical dataset compiled between 2020 and 2024. Specifically, the values reflect semi-structured interviews with Slovenian fashion designers and brand representatives, capturing self-reported adaptation of waste reduction strategies, systematic monitoring of operational practices across a representative set of domestic brands and participant observation during industry events, workshops and on-site studio visits.

However, the original research indicates that fewer brands have adopted the zero-waste or reduced-waste design approaches—i.e., tailoring and cutting techniques that minimize or eliminate fabric waste (47%). Recycling practices are present in various brands that utilize pre- or post-consumer textiles (42%). The findings from participant observation and interviews indicate that some designers—such as Pletilni studio Draž (Knitting studio Draž)—adopt design strategies that emphasize longevity and adaptability, producing garments intended to be repaired, modified, or enhanced over time.

The analysis of fashion brands focused on technological and production innovations aimed at reducing energy and water consumption. These innovations include garments engineered for minimal cleaning, the application of technical coatings to decrease washing frequency and the adoption of innovative, informative labeling systems that increase consumer awareness.

An assessment based on original research of local and regional supply and production chains in Slovenia reveals that less than 6% of fashion brands use locally produced textiles, while clothing manufacturing remains largely domestic, accounting for 96% of total production (Figure 2). This disparity underscores the persistent challenges in achieving full supply chain localization, both for textiles and apparel. The historical context from the 1970s continues to hold relevance for contemporary efforts toward sustainable development, emphasizing the vital importance of resilient, localized production systems, particularly in advancing textile self-sufficiency.

Beyond supply chain consideration, a further analysis examined the development of advanced materials, wearable technologies as well as smart manufacturing and material recovery. In terms of material innovation, Slovenian fashion remains underdeveloped, with relatively few brands pursuing cutting-edge technological approaches. In an era where rapid technological changes enable the creation of novel materials through advanced manufacturing techniques, clothing is evolving into a data medium—one that interacts with and responds to the wearer rather than altering their physical form. Current wearable technology encompasses diverse forms of smart clothing, including swimwear equipped with ultraviolet sensors to signal sunscreen reapplication, clothing with integrated wearable electronic devices, printed electronics, luminous or luminescent textiles, and seamless clothing produced by living microorganisms through the biological fermentation of wine [17].

Despite these international advancements, Slovenian fashion continues to lag in the integration of such technologies. One notable exception is the work of designer Petra Jerič for the sustainable brand Vivre, which has developed biomaterials. These materials, derived from natural algae, which are recyclable and biodegradable, exemplify how innovations in material science can align environmental sustainability and high-quality fashion design [18].

The issue of self-sufficiency in textile production has been acknowledged since the 1970s, a period when Slovenia was heavily dependent on textile imports from foreign markets and other former Yugoslav republics. The strategic planning at the time highlighted the strategic importance of textile self-reliance [19].

To address the need for reducing the fashion loop size, this study examined the presence of concepts that contribute to lower production volumes and dematerialization. The selection of monitored criteria was one of the options for slowing down fashion consumption and overcoming the current clothing metabolism (Figure 3). These strategies include service-based models—such as leasing, sharing, and repair services—that extend the life cycle of existing products. They also promote the creation of multi-purpose items, such as modular clothing, which serve various functions and thereby reduce resource demand.

Within this framework, the establishment of a transparent supply and production chain is critical, supported by the development of local, regional or online communities that actively participate in and sustain these systems. Equally important is the strategic use of digital communication tools that enable traceability and transparency across the entire design and production process for all stakeholders. In the context of sustainable fashion, these tools are crucial not only for operational accountability, but also for fostering the democratization of information within the industry. Furthermore, they provide a platform for strengthening brand-consumer relationship while disseminating activist-oriented messages about the importance of sustainability.

In Slovenia, the adoption of service-based concepts is uneven. Leasing and sharing models remain underdeveloped, with the notable exception of platform shirting, a collaborative initiative led by Elena Fajt and supported by Lucija Jankovec, Dejan Krajnik and Neja Kaligaro. The project aims to establish a new ‘clothing metabolism’ by promoting the sharing and collective creation of wardrobe. At its core is a single garment—a shirt—designed by both domestic and international designers and passed on from one user to another. This concept addresses principles of responsible and slow consumerism, fosters networking among participants and uses fashion as a medium for communicating socially responsible values. The first shirt was unveiled at the Slovenian Designers’ Association exhibition in 2014. As an ongoing international project, platform shirting exemplifies a conceptual approaches in Slovenian fashion that raises questions about the relevance of well-known and established business models in fashion that challenges conventional business models while strengthening connections between designers and consumers [20].

In contrast, the data gathered through the original research shows that repair services are more widespread, forming a core activity by nearly three quarters of the surveyed brands. However, despite the relatively broad use of digital communication channels, production transparency remains low: only 31% of brands provide publicly verifiable data on their supply and production chains. While most of them maintain an active presence on social media platforms such as Instagram and Facebook and operate their own websites, these channels rarely provide access to detailed information regarding production processes or supply chain practices.

Sustainable fashion design requires a conscientious engagement with the cultural and historical particularities embedded within distinct geographical contexts. The phenomenon of fashion colonialism systematically suppresses local fashion identities by promoting an ‘universal‘ fashion paradigm that enforces a global homogenization of diverse communities and individuals. Decolonizing fashion therefore involves not only the geographical dismantling of dominant fashion centers and their hegemonic authority, but also a fundamental shift in the way indigenous fashion practices are recognized and validated within their communities of origin [21]. This process extends beyond addressing the exploitation of natural resources and labor. It also entails the establishment of a democratic and assertive fashion identity that is firmly rooted in the unique cultural and geographic origins of fashion, rather than mere replication of universal trends dictated by established fashion capitals.

In advancing a more sustainable fashion industry, the integration of traditional handicraft techniques is essential. These artisanal practices are revitalized through the incorporation of contemporary technological innovations by designers, thereby merging design and craftsmanship into an inseparable creative process. While handicrafts hold a significant place in Slovenian fashion, their presence remains limited. Notably, analyzing the work of Almira Sadar reveals how the brand consistently integrates traditional hand techniques into each collection. The valorization of handicrafts represents a crucial step to preserve both collective and individual cultural identities, while simultaneously fostering local production and contributing to waste reduction. The European Commission has launched initiatives in 2022 to strengthen artisanal skills, including weaving, as part of a broader effort to promote durable, repairable and recyclable textiles and move away from dependence on textile imports [22].

The divide between the production and consumption of clothing can be mitigated through the do-it-yourself (DIY) approach, in which the individual is both producer and consumer. In this framework, the agency shifts to the wearer, fostering localized knowledge, skill development and material use. DIY culture, which is closely linked to crafts or handicrafts, has a longstanding tradition in Slovenian clothing culture, dating back to the 1950s. At that time, industrial clothing production in Slovenia was underdeveloped and the majority of garments were made by tailors and seamstresses or by individuals themselves. Non-industrial production accounted for approximately 70% of total clothing output [23] positioning consumers as active co-creators who can independently shape their own appearance through a personalized, authorial approach. Rather than passively accepting standardized, industrially produced clothing, they re-mix, alter and personalize clothing [24].

Historically, Slovenian fashion print media regularly featured DIY-related content, often authored by prominent local fashion designers. Moreover, industrial manufacturers such as the Almira knitting factory [25] and the Tekstilindus textile factory [26] actively promoted DIY culture through public competitions and prize initiatives.

Today, the DIY tradition persists and evolves through brands such as Almira Sadar, Anselma [27], Paul Maline and Sewest’s Appetite, which continue to embody and innovate this culturally embedded practice. Beyond its creative dimension, DIY culture plays a vital role in fostering local craftsmanship, supporting artisanal skills and preserving traditional textile techniques. These practices contribute to sustainability by encouraging circularity, reducing dependence on mass production and extending the lifespan of garments through repairs, customization and slow fashion principles.

By nurturing DIY culture, Slovenian brands not only uphold cultural heritage but also promote resilient, community-centered production models that align with social responsibility and, in some cases, ecological integrity.

A sustainable fashion approach in Slovenia also fosters diverse business models and platforms. Reflecting the ongoing evolution of the Slovenian fashion landscape, several innovative initiatives have emerged that promote long-term sustainability and social responsibility.

The multifaceted project shirting challenges conventional fashion business models by emphasizing collaboration between designers and users. As such, it stands as a pioneering Slovenian initiative contributing to the formation of fashion communities and questioning traditional consumption paradigms.

Similarly, the Things I Miss brand, led by designer Tina Princ, integrates interdisciplinary sustainable fashion practices with architecture, sound, movement and installation art. In addition, her work explores the use of non-standard materials, such as gauze produced by a local company, for clothing purposes and strives for technical innovation [28]. Actively engaged in global platforms such as Fashion Revolution, Fashion Changers and the Ethical Fashion Platform, Princ’s work embodies zero-waste principles through conceptual, interdisciplinary collaboration with other creators.

Vili Van Style, a pilot project by Julia Kaja Horvat, operated as a boutique pop-up mobile store from 2021 to 2023 [29]. It aimed to cultivate decentralized retail, connect emerging designers and foster fashion communities.

Hishka, an interdisciplinary brand led by Nataša Peršuh [30], is founded on three pillars: Re_Made, Re_Touch, and Re_Vived, emphasizing digital tools and circular fashion practices.

Sewist’s Appetite by Nastja Sagadin Grmek [31] encourages user involvement in garment creation by sharing expertise on complex cuts and finishing techniques. This approach fosters individual creativity and promotes a do-it-together ethos.

Collectively, these platforms and projects demonstrate how sustainable fashion in Slovenia is shaped by innovative business models that emphasize community, collaboration and creative reuse—core strategies for long-term ecological and social resilience. They exemplify how localized, design-driven initiatives can challenge dominant linear consumption patterns and contribute to the emergence of more circular, inclusive and contextually embedded fashion systems aligned with global sustainability goals [32].

4. Contemporary Sustainability-Oriented Fashion Identity in Slovenia

The research examines Slovenia’s emerging sustainable fashion identity through the lens of local production systems, traditional craftsmanship integration and cultural heritage preservation. By analyzing the sustainable practices of Slovenian fashion brands, a paradoxical landscape is revealed in which local garment production achieves very high adoption rates, yet the localization of the textile supply chain remains critically underdeveloped. The research highlights strategic opportunities for strengthening regional supply chains and leverage Slovenia’s rich craft heritage, which is currently underutilized. It contributes to sustainability science by providing empirical evidence on how small-scale fashion enterprises can manage the transition to sustainability while preserving cultural authenticity and competitive advantage in global markets.

4.1. Sustainable Fashion Practices in Slovenia

Contemporary Slovenian fashion demonstrates strong potential to cultivate a distinctive, sustainable fashion identity based on creativity, sophisticated design and cultural specificity. These qualities provide the necessary foundations for long-term, future-oriented solutions in the national fashion landscape. A defining strength lies in the predominance of short production chains, in which most garments are produced locally or regionally. The designers often know the garment makers personally and maintain close involvement in the production processes, fostering transparency, accountability and high-quality craftsmanship.

However, this system faces structural challenges. Many fashion enterprises operate on a micro scale—frequently as sole-proprietor ventures [7]—leading to extensive outsourcing of manufacturing. Strengthening local and regional supply chains is therefore essential. In such a context, collaborative strategies, such as the creation of shared production hubs with pooled investment in specialized machinery, would improve production conditions, expand access to international markets and enhance recognition in domestic and global fashion discourse.

The micro-scale size of Slovenian fashion businesses facilitates highly personalized services—such as repairs and customization—that function as a distinctive brand differentiator. However, there is a significant gap in the adoption of zero-waste design. This imbalance reflects divergent strategic orientations. Repair services were introduced primarily in response to economic pressures supporting revenue retention and fostering brand loyal communities. In contrast, zero-waste design demands a proactive, exploratory mindset that requires advanced knowledge of garment construction and production system modifications. Consequently, uptake lags behind repair-oriented strategies. From a broader sustainability perspective, the low use of locally produced textiles (6%) and limited supply chain transparency (31%) represent a strategic weakness. These figures signal a dependance on external inputs and opaque practices that undermine resilience. Collectively, the uneven adoption of practices—where repair is prioritized over transformative design innovation—suggests that current strategies favor short-term economic stability over long-term structural sustainability (

Table 1. A comparative analysis of sustainable practices in Slovenian fashion; the practices are ranked according to the level of their adoption; the key advantages are user participation, upcycling, zero-waste design, local production and the possibility of a lifelong repair service (data derive from the authors’ primary research survey).

Sustainable Practice	Adoption Rate	Notes
Product life-long repairs	87%	Strong alignment with circular economy principles.
Consumer participation and repair/upcycling	80%	Builds community engagement.
Zero- or low-waste design	47%	Move closer to sustainable fashion production.
Use of locally produced textiles	6%	Major supply chain gap.
Local garment production	96%	Strong asset for transparency and traceability.
Publicly verifiable accurate production data	31%	Indicates low transparency adoption.

).

The data on Slovenian brands reveal a nuanced picture of sustainable practices adoption:

The recommendations emphasize the strategic integration of sustainability practices across multiple dimensions. First, garment repair and active consumer participation, which are key aspects of brand identity, should be embedded as core elements in both the domestic and international markets. Secondly, the adoption of zero- and less-waste design processes—which currently stands at 47%—must be gradually expanded in the coming years to move beyond incremental change to systematic transformation. Thirdly, strengthening local textile manufacturing capacities is essential to reduce dependence on imports, improve traceability of materials and additionally support the resilience of the regional supply chain. Addressing these gaps requires targeted capacity building, effective knowledge transfer mechanisms and the adoption of business models to the circular economy.

4.2. Strategic Opportunities for Local Production

Further analysis of the selected fashion brands revealed data on technological and production innovations designed to minimize energy and water consumption—such as garments requiring minimal cleaning, technical coatings that reduce the washing frequency, and innovative, informative clothing labeling. Data was also collected on localization practices and the use of natural energy systems, as well as a review of local and/or regional supply and production chains.

In Slovenia, the fashion sector demonstrates a pronounced asymmetry between material sourcing and garment manufacturing. While 96% of brands produce their garments domestically, only around 6% rely on locally sourced textiles (Figure 4). The limited self-sufficiency in textile production has been acknowledged for decades. Back in the 1970s, Slovenia was almost entirely dependent on imported textiles, either from abroad or from the republics of the former Yugoslavia. Strategic development plans of that period envisaged meeting national textile demand by 1980 through a mix of 34% domestic production and 66% imports, underscoring the recognition of textiles as a source of strategic importance.

In the last three decades, however, domestic textile capacity has contracted sharply. Employment in the textile industry declined by approximately 81.5% between 1995 and 2000 [33], mirroring a corresponding reduction in production volume. As a result, designers face persistent obstacles in sourcing Slovenian textiles and are forced to look for alternatives, mostly within the regional supply chain—particularly in neighboring Italy. The reliance on external material inputs highlights the structural vulnerability of the Slovenia’s fashion system and signals the urgent need for targeted policies to strengthen local textile production as part of a broader transition to sustainability. Promoting fiber cultivation, urban small-scale custom-made weaving manufacturers and strengthening textile recycling initiatives could reduce dependence on imports, shorten supply chains and foster resilience of the Slovenian fashion ecosystem.

Today, technological and production innovations that directly reduce consumption remain under-represented. Only about a third of Slovenian fashion brands incorporate such innovations, and even then they rarely aim to reduce the energy footprint associated with garment maintenance. This underlines the underdeveloped state of Slovenia’s textile production and positions it a priority for research and technological progress.

One promising direction lies in the development of boutique, made-to-order manufacturing, which could diversify supply, strengthen the artisanal economy and support high-value customization for the challenging global fashion economy. Slovenian fashion brands are well positioned to embed transparent communication about production and sourcing into their brand strategies due to their small size, flexibility and close-knit supply chains. This openness can engage consumers, build trust and foster community-oriented models of fashion consumption. Targeted policy measures are essential to achieve these objectives. Government subsidies should be designed and awarded through public tenders, with a focus on supporting innovative start-ups and cross-border textile consortia. Priority should be given to initiatives that draw on Slovenian textile heritage and/or leverage advanced technical innovations, thereby enhancing both cultural and industrial competitiveness.

To maximize the advantages of Slovenia’s short supply chains, close designer-maker relationships and authentic heritage foundations, the creation of collaborative production hubs is recommended. Shared investment in specialized machinery could boost competitiveness, improve manufacturing conditions and enhance Slovenia’s visibility and reputation on the global fashion market.

4.3. The Role of Craftsmanship and Cultural Heritage

One of the key findings of the study on the role of handicrafts is that the integration of heritage craft techniques is low. Only up to 26% of Slovenian fashion brands integrate handicrafts into their collections. The primary techniques are knitting (13%), handmade screen printing (up to 13%) and embroidery (up to 5%). This puts the cultural capital at risk, as many brands avoid highlighting their Slovenian origins on international markets. This indicates a missed opportunity to leverage Made in Slovenia as a cultural and sustainable value proposition.

The integration of traditional techniques is limited to roughly one in four brands, and even within this segment, activities are concentrated on a narrow set of methods (knitting and screen printing). More complex or historically rich techniques—such as embroidery, weaving or lace-making—remain marginal (

Table 2. Comparative overview of the adoption of craft techniques in Slovenian fashion based on research conducted between 2020 and 2024 (data derive from the authors’ primary research survey).

Technique	Share of Brands (%)	Notes
Knitting	13	Associated with historical use, but underexploited in volume and export.
Handmade Screen Printing	13	Used in small batches, in artisanal environments.
Embroidery	5	Historically significant but currently rare.
Other Crafts (e.g., weaving, felting)	Minimal	Initiatives aimed at promoting local flax cultivation and small-scale production of woven textiles.

). Furthermore, the integration of crafts is rarely associated with measurable sustainability innovations, such as zero-waste pattering, natural dyeing processes or locally sourced raw materials. This represents a significant discrepancy between cultural heritage and sustainability in the current Slovenian fashion landscape.

Integrating cultural heritage into contemporary design could preserve intangible cultural heritage and support cultural diversity within the Slovenian fashion sector, differentiate Slovenian brands on the global market and mitigate the risk of fashion colonialism that erases local identities in favor of a standardized global aesthetics.

The recommendation is to merge traditional techniques with modern, sustainable technologies in order to create high-value, export-based products. In addition, it is essential to adopt collaborative, craft-based production models aligned to the realities of Slovenia’s small-scale industry by creating innovative business forms. Digital transparency must be strengthened by using digital media tools to make design and production processes traceable and transparent. There is a need to adapt narrative-based marketing with the strategic integration of craft heritage narratives into the brand storytelling to strengthen cultural recognition, differentiate market positioning and reinforce sustainability credentials through an authentic, place-based identity.

5. Discussion

Fashion occupies an intermediate position between culture and economy, which makes it a critical place for the sustainability integration, heritage preservation and economic innovation. The Slovenian fashion sector possesses unique strengths, including local craftsmanship, short production chains, high creative autonomy and close networks between designers and producers. However, the sector also faces challenges: micro-scale business models, reliance on outsourced manufacturing and an underdeveloped domestic textile industry. A comparison with neighboring Croatia highlights the remarkable differences in the development of sustainable fashion between two small economies that share the transition from a socialist to a post-socialist system. Croatian brands have increasingly aligned their practices to contemporary sustainability trends by integrating circular business models, the establishment of innovative supply chains based on local material producers (e.g., textile initiatives such as Sabant) and the adoption of digital platforms to expand their market reach. Despite similar structural constraints—including consumer purchasing power, resource availability and overall market size—Slovenian fashion has not developed at the same pace. In particular, Slovenia lags behind regional benchmarks in the implementation of some circular business strategies and the expansion of the in-house micro-production units. Through contracts, Croatian sustainable brands are demonstrating a competitive advantage, as illustrated by the case of the Krié brand, which employed up to ten people in 2024, proving the sector’s ability to grow locally and create jobs.

Compared to other post-socialist and small-scale economies, the three Baltic states exhibit stronger momentum in developing a circular economy for textiles, particularly in the domains of reuse and collection systems. Within the region, Estonia ranks first with 30% of new textiles collected separately, followed by Lithuania (11%) and Latvia (5%), although reuse performance remains modest across all three countries [34]. A defining strength of the Baltic approach lies in its emphasis on cross-border cooperation, which plays a crucial role in transforming collection gains into genuine sustainable outcomes. By contrast, Slovenia demonstrates weaker regional connectivity, which limits its potential to scale up circular textile practices. The Baltic model therefore illustrates how regional collaboration and shared systems can accelerate the transition toward circular fashion practices. For Slovenia, adopting similar cooperative mechanisms—supported by targeted policy frameworks and financial incentives—could significantly reinforce national efforts to advance sustainability in the textile sector. One example of cross-regional collaboration is the ongoing Green-tex project, which strengthens cooperation in the Danube region by fostering innovative solutions for sustainable textiles and clothing, and by bringing together initiatives from across multiple countries.

Existing research on sustainability in the Slovenian fashion sector has largely focused on the quantification of textile waste streams and the analysis of consumer behavior [35], while systematic research on the operational strategies of Slovenian fashion brands remains scarce. This study represents a scientific novelty by empirically demonstrating how traditional craft techniques can be used to simultaneously preserve cultural identity, enhance sustainability and differentiate Slovenian brands in global markets. The findings are in line with similar work [36], even though the latter is not tied to the analysis of specific national fashion environments. They show that localized, craft-based approaches promote sustainability, user engagement, strengthening of local fashion communities and waste reduction. Sustainability in Slovenian fashion, particularly in relation to the development of circular supply chains, is primarily reflected in two main design approaches: (1) material-centered design, which prioritizes textiles with high sustainability performance characteristics, and (2) durability-centered design, which emphasizes the longevity of products through strategies such as recyclability, upcyclability, and refurbishment [34] (p. 8). Within the Slovenian context, these approaches are further enriched by their integration with circular economy theory, insights from the post-socialist economic transition, and heritage-based practices that emphasize preservation and cultural continuity. By combining these segments, the study develops a conceptual framework for understanding how small-scale fashion systems can leverage circular design strategies and heritage-based practices to be sustainably competitive in a global market.

5.1. Strategic Vision for Slovenian Sustainable Fashion

In order to realize its sustainable potential, the Slovenian fashion sector needs a long-term, structured vision with clearly defined objectives. The key elements include:

• Institutional leadership: Establishment of a professional chamber, or governing body to serve as the custodian of the sector’s vision in fulfilling sustainability strategies. This organization should foster cross-sectoral collaboration across policy makers, educational institutions, designers and entrepreneurs.
• Digital platforms: Developing a comprehensive platform for Slovenian fashion brands with clear sustainability strategies, intended for presentations, promotion and education.
• Promotion and market positioning: Strengthening both domestic and international promotion of Slovenian sustainability-oriented fashion brands. The emphasis should be on niche, sustainably focused production to increase market differentiation. The label ‘Made in Slovenia’ could include a segment dedicated to sustainable fashion, thereby reinforcing cultural authenticity and sustainable value.
• Sustainability and heritage integration: Preservation and innovation in traditional handicrafts, linking heritage techniques with sustainable practices such as zero-waste design, natural dyeing and the use of locally sourced materials. A hybrid integration of craft and modern technology can create high-value, export-oriented products.

This study includes an examination of Slovenian fashion based on an analysis of the use of sustainable strategies by brands in the period between 2020 and 2024. The data collected provides evidence for further discussion:

Theoretical implications:

• Circular economy theory: Craft-based micro-production supports circularity with local sources, minimal waste and short supply chains.
• Post-socialist transition insights: Fashion, whose development has been influenced by economic, political and social changes, struggles with small-scale production, restrictions on the global market and structural obstacles in transition economies.
• Cultural heritage preservation theory: It emphasizes the importance of incorporating and developing handicraft skills in the preservation of intangible cultural assets while also linking heritage preservation with economic and environmental sustainability outcomes.

Practical implications:

• Policy recommendations: Priority should be placed on supporting cooperative production hubs and providing targeted grants to strengthen small-scale textile manufacturing. Financial support for sustainable artisanal innovation needs to be further developed and sustainability certification schemes should be developed to ensure cultural sustainability and authenticity.
• Industry guidelines: Hybrid integration of craft and technology, collaborative production models and transparency through the use of digital tools should be promoted to increase efficiency and competitiveness in the market.
• Impact on education: Curricula that combine traditional craft skills with sustainable design principles should be developed for the education of future fashion designers.

5.2. Limitations and Future Research

This study is limited by the size of the sample, which, due to the specific business dynamics of Slovenian fashion, does not cover all fashion brands, particularly not the emerging or informal ones, or the designers who only occasionally design collections. Data availability was uneven, with inconsistent documentation of sustainability metrics. The cross-sectional design constrains the ability to capture temporal changes in the adoption of sustainability.

Methodologically, the reliance on qualitative and self-reported data introduced potential bias, and the absence of comprehensive metrics (e.g., life-cycle analysis, circularity indicators) limits the accuracy of environmental impact assessments.

Future research should:

• Conduct studies to monitor changes in the implementation of sustainable practices or strategies over time.
• Undertake cross-national comparisons with other post-socialist transitional and small-scale fashion systems.
• Explore digital platforms to preserve artisanal heritage, increase transparency and develop a sustainable fashion identity.

6. Conclusions

This study investigated how Slovenian fashion brands integrate sustainability principles into design and production, highlighting continuities and transformations between the socialist and post-socialist periods. In particular, the research aimed to (1) analyze the implementation of circular economy principles in contemporary Slovenian fashion and production processes; (2) examine the role of cultural heritage in shaping sustainable fashion practices; and (3) evaluate the contribution of participatory design approaches to sustainability outcomes in small-scale enterprises. The findings demonstrate that the Slovenia’s fashion sector operates predominantly through closely networked micro-scale production systems. These systems, characterized by a high degree of creative autonomy and strong cultural references, represent a model for sustainable heritage-driven fashion development. While micro-scale structures foster experimentation, authenticity and close collaboration between designers and producers, they also encounter scalability. In contrast, large-scale systems offer efficiency but often compromise local identity and cultural specificity. Slovenian fashion navigates this tension through a hybrid approach that combines traditional craft techniques with more modern sustainable technologies to generate distinctive market value while safeguarding cultural heritage.

Preserving and innovating within traditional handicrafts is not merely a matter of cultural pride: it is a strategic pathway to maintain design diversity and achieve competitive differentiation in the global market. Embedding heritage into contemporary design—supported by sustainable production practices such as zero-waste pattern cutting, natural dyeing processes and locally sourced materials—reinforces both environmental and social responsibility. The results show that Slovenian fashion is linked to the relevant United Nations Sustainable Development Goals (SDGs) and the specific targets, in particular by: (1) ensuring responsible consumption and production patterns (SDG 12) by adopting circular design and minimizing the use of resources, (2) building sustainable cities and communities (SDG 11) by preserving traditional craft and heritage techniques in urban environments, and (3) promoting decent work and sustainable economic growth (SDG 8) through a micro-scale production system and supporting local artisans. In this way, it demonstrates that micro-scale heritage-driven systems can meaningfully advance global sustainability goals. By institutionalizing these strategies through sector-wide coordination, targeted policy support, digital infrastructure, and cross-sectoral collaboration, Slovenian fashion can consolidate its position as a leader in small-scale, sustainability-oriented fashion systems. The ‘Made in Slovenia’ label, underpinned by authenticity, quality, and responsibility, holds the potential to become an internationally recognized mark of excellence, demonstrating that sustainability, cultural heritage, and market competitiveness are mutually reinforcing rather than mutually exclusive.

The strategic integration of institutional leadership, digital tools, heritage preservation and sustainability practices will enable the Slovenian fashion sector to achieve environmental, social and economic sustainability while establishing the ‘Made in Slovenia’ label for fashion products as a global benchmark. In order to achieve the latter, appropriate policy measures must be taken. These include targeted funding for the craft preservation, tax incentives for production, the introduction of a national fashion certificate for sustainability standards and the promotion of public–private partnerships to spread proven circular fashion business initiatives. In addition, fashion design curricula need to highlight circular fashion as a systematic reversal of the fashion process as well as the preservation of cultural heritage. Strengthening connections between design schools, artisans and businesses can ensure that new generations of designers are able to balance creativity with environmental stewardship and social equity. This framework offers a transferable structural model for other small-scale, post-socialist transitional fashion systems seeking to preserve their national identity while thriving in a globalized industry.