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The ready-to-wear fashion industry has started shifting from practices of linear economy to a more sustainable approach, i.e., circular economy. This new approach emphasizes resource efficiency, waste reduction, and material regeneration. This research applies a literature review to identify business models to facilitate the transition from a linear economy to a circular economy, to support the needs of the ready-to-wear industry in adopting sustainable practices. A narrative literature review is applied in this research, with 436 initial articles obtained from Scopus, resulting in 64 final articles. The literature review identifies the business models applicable to the transition, such as product as a service, reuse and redistribution, resource recovery, repair and maintenance, industrial symbiosis, resource efficiency, produce on-demand, product use extension, and circular inputs. It conveys the importance of business model innovation to promote a sustainable transition of the ready-to-wear industry and the potential to gain economic benefits and be environmentally friendly in the long run.

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Business Models for Sustainable Transition: Facilitating the Transition from Linear Economy to Circular Economy in the Ready-To-Wear Fashion Industry

  • 章节

  • 发表日期：

    2026年

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  • Rike Penta Sitio,
  • Siti Jahroh,
  • Harianto Harianto,
  • Suprehatin Suprehatin

摘要

The ready-to-wear fashion industry has started shifting from practices of linear economy to a more sustainable approach, i.e., circular economy. This new approach emphasizes resource efficiency, waste reduction, and material regeneration. This research applies a literature review to identify business models to facilitate the transition from a linear economy to a circular economy, to support the needs of the ready-to-wear industry in adopting sustainable practices. A narrative literature review is applied in this research, with 436 initial articles obtained from Scopus, resulting in 64 final articles. The literature review identifies the business models applicable to the transition, such as product as a service, reuse and redistribution, resource recovery, repair and maintenance, industrial symbiosis, resource efficiency, produce on-demand, product use extension, and circular inputs. It conveys the importance of business model innovation to promote a sustainable transition of the ready-to-wear industry and the potential to gain economic benefits and be environmentally friendly in the long run.