The profit margins in the slow fashion industry are often lower compared to conventional fashion due to the higher costs associated with procuring and processing eco-friendly materials and pertaining to ethical production practices. The aim of the present study is to explore sustainable business models for economic profitability and techniques to work on pricing and consumer alignment- overcoming the attitude-behavior gap and cost barriers for consumers – time, effort, money and psychological. The study also explores a brand’s role in consumer education and appropriately utilizing market research and consumer profile analysis to trap consumer behavior and offer a USP which could sell, even at a higher price. Techniques to induce motivation for making a buying decision have also been discussed. Case studies of business models of Patagonia, Ecoalf, Mud Jeans etc. utilizing sustainable business models profitably have been discussed. The paper also covers how brand collaborations play an important role in adopting circular economy at a larger scale and building profitable financial revenue models for high-priced products and usage of impact-per-wear data for consumer motivation. The study will help to identify profit drivers related to product construction and design, collection size or quantity, lifespan, production and supply chain practices to cut down on costs, product services to diversify and drive more revenue.

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Exploring Business Models, Marketing Strategies and Financial Viability in Sustainable Fashion Brands

  • Anusha Verma,
  • Oinam Roselyn Devi,
  • Bhawana Chanana

摘要

The profit margins in the slow fashion industry are often lower compared to conventional fashion due to the higher costs associated with procuring and processing eco-friendly materials and pertaining to ethical production practices. The aim of the present study is to explore sustainable business models for economic profitability and techniques to work on pricing and consumer alignment- overcoming the attitude-behavior gap and cost barriers for consumers – time, effort, money and psychological. The study also explores a brand’s role in consumer education and appropriately utilizing market research and consumer profile analysis to trap consumer behavior and offer a USP which could sell, even at a higher price. Techniques to induce motivation for making a buying decision have also been discussed. Case studies of business models of Patagonia, Ecoalf, Mud Jeans etc. utilizing sustainable business models profitably have been discussed. The paper also covers how brand collaborations play an important role in adopting circular economy at a larger scale and building profitable financial revenue models for high-priced products and usage of impact-per-wear data for consumer motivation. The study will help to identify profit drivers related to product construction and design, collection size or quantity, lifespan, production and supply chain practices to cut down on costs, product services to diversify and drive more revenue.