An Exploratory Study of the Mechanism of Sustainable Value Creation in the Luxury Fashion Industry
Abstract
:1. Introduction
2. Literature Review and Framework Development
2.1. Sustainability in the Luxury Fashion Industry
2.2. Sustainable Value and Value Co-Creation Models
3. Sustainable Value Creation Mechanism Development
3.1. The Operational Characteristics of Luxury Manufacturing
3.2. Sustainable Value Co-Creation Model
4. The Cases to Elaborate the Sustainable Value Co-Creation Mechanism
4.1. The Case Study Approach
4.2. The Case Study Firms
4.3. Data Collection
4.4. Findings and Discussion
4.4.1. Information Access—Establishing the Co-Creation Platform
“In 2014, we helped launch the Clevercare initiative. The Clevercare initiative links customers to the clevercare. info website which provides tips on how to extend the life of their clothing through using more environmentally friendly cleaning practices. From Spring 2015, all of our collections will feature the Clevercare logo—a simple reminder to consider the environment when washing and caring for your garments.”
“In 2015, Stella McCartney collaborated with Adidas and outlined a commitment to what it calls ‘open source’. This is essentially co-creation with customers, athletes and other partners.”
4.4.2. Multi-Stakeholder Cooperation
“The only reason I’m doing this is because I personally feel that for women what’s out there at the moment is kind of insulting; it’s really not good enough on all levels. To be honest I knew Michael Michalsky [Adidas’s global creative director] anyway. But I always felt they had integrity, and you have to be careful who you partner with, who you lie in bed with, when you work in my industry. I felt Adidas has a good reputation, are a solid company and have a good value system…”
“We did that collaboration a long time ago before it became the thing to do. We were one of the first to do it. It was great. It was a one-off explosion of craziness. We sold out in 30 min or something. I remember the footage of women grabbing everything. It was exciting”[65].
“What we are seeing emerging is that you can get cotton that is grown in Arusha, an area in Tanzania, turned into fabric in Arusha, then dyed and stitched and shipped out of Arusha as a local garment” commented Conall O’Caoimh, director of Value Added in Africa, a charity that built relationships between local producers and European retailers.
“We continue our partnership with the United Nations’ International Trade Centre Ethical Fashion Initiative. The Initiative connects some of the world’s most marginalized people with the top of fashion’s value chain, for mutual benefit.”
“In 2012 we joined the Ethical Trading Initiative (ETI), an alliance of companies, voluntary organizations and trade unions, all working together to improve working conditions around the world. These collaborative projects were setting a trend and inspiring local producers and entrepreneurs to reproduce similar initiatives, gain training from E.T.I., get a job and grow their skills. “To have the work in Kenya is important,” declared McCartney, “not only to support women and give them a much-needed income, but also to encourage this line of industry for small communities... [It’s] a two-way street—everyone feels valid.”
4.4.3. Supply Chain Transparency
“Environmental Profit and Loss (E P&L) allows a company to measure in monetary value measure the costs and benefits it generates for the environment and in turn make more sustainable business decisions. It facilitates a new way of thinking by providing us with a high level of visibility taking into account carbon emissions, water use and pollution, land use, air pollution and waste levels… It values the environmental impacts of business across the entire supply chain… Conducting an E P&L will unlock new insights into the supply chain and help you discover the efficiency, innovations and improvements… it opened a dialogue with stakeholders allowing us to share learning and develop understanding on priorities and helps our suppliers identify opportunities for improvement and innovation.”
“Organic cotton farming uses water efficiently, does not involve harmful chemicals, restores and maintains soil health and promotes high social and working standards for farmers” In 2014, we increased our use of certified organic cotton; 72% of our denim collection was made from organic cotton and 54% of our cotton jersey was made from organic cotton. Additionally, in 2014, 74% of the cotton used in our kidswear collection was organic cotton.”
“In 2014, we began our partnership with the NGO Canopy, and we made a commitment to ensure that all of our viscose and other cellulose fabrics (fabrics that come from wood pulp) are sustainably certified by 2017. In 2014, we increased our use of certified organic cotton; 72% of our denim collection was made from organic cotton and 54% of our cotton jersey was made from organic cotton. An increase from 2013. In 2013, 51% of our denim and 25% of our jersey for ready-to-wear was made from organic cotton. Additionally, in 2014, 74% of the cotton used in our kidswear collection was organic cotton. Organic cotton farming uses water efficiently, does not involve harmful chemicals, restores and maintains soil health and promotes high social and working standards for farmers.”
“Modern fake fur looks so much like real fur, that the moment it leaves the atelier no one can tell it’s not the real thing and I’ve struggled with that. But I’ve been speaking to younger women about it recently and they don’t even want real fur. So I feel like maybe things have moved on, and it’s time, and we can do fabrics which look like fur, if we take them somewhere else.”
4.4.4. Benefit and Cost Associated with Environmental Impact—Environmental Profit and Loss (E P&L) Reporting System
“The Environmental Profit and Loss (E P&L) reporting system offers a greater understanding of risks and opportunities, because it helps to discover some potential efficiency and challenges. Understanding risks and opportunities means that our business is fully prepared to respond to challenges. We have produced guidelines, polices and measurable targets to make progress across a wide range of raw materials.”
5. Conclusions and Discussion
5.1. Theoretical Implications
5.2. Managerial Implications
5.3. Limitation and Future Study
Acknowledgments
Author Contributions
Conflicts of Interest
References
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Yang, Y.; Han, H.; Lee, P.K.C. An Exploratory Study of the Mechanism of Sustainable Value Creation in the Luxury Fashion Industry. Sustainability 2017, 9, 483. https://doi.org/10.3390/su9040483
Yang Y, Han H, Lee PKC. An Exploratory Study of the Mechanism of Sustainable Value Creation in the Luxury Fashion Industry. Sustainability. 2017; 9(4):483. https://doi.org/10.3390/su9040483
Chicago/Turabian StyleYang, Yefei, Han Han, and Peter K. C. Lee. 2017. "An Exploratory Study of the Mechanism of Sustainable Value Creation in the Luxury Fashion Industry" Sustainability 9, no. 4: 483. https://doi.org/10.3390/su9040483