A Case Study on Socially Responsible Consumption with Opportunities for Australian Clothing Retailers

Situation faced: While it may be useful to have a comprehensive wardrobe given the desire to wear different outfits in a variety of situations, it is possible that there is a point where one can simply have too many clothes. This case study sheds light on how consumers in Australia make choices to dispose of and recycle clothing and how big retailers can effectively create value by facilitating clothing recycling instead of relying on notions of passive corporate social responsibility evolving over time. Actions taken: A sample of 455 responses predominantly from female participants in Australia invited via LinkedIn platform provided the key evidence on clothing consumption pattern and disposal preferences in Australia. The results from this clothing consumption behaviour survey have then been linked to the recent recycling leveraging strategy and actions of a large clothing retailer operating in Australia which mainly includes recycling, upcycling and value co-creation with strategic partners to advance sustainability innovation. Results Achieved: Result from the regression analysis of the survey data indicates that ‘no longer fits’ is the key determinant of a decision to donate to clothing recycling outlets followed by ‘wear and tear’ and then ‘out of fashion’. It is suggested that strategies could be formulated that would incentivise and encourage a better flow of quality garments to the recycled clothing outlets and create a stream of customers to the branded fashion suppliers. Survey result also shows that consumers may consider sourcing more of their apparel from recycled clothing outlets if they are guided towards models of shared ownership, fashion libraries or rental options. In line with our findings, the selected clothing retailer is leveraging recycling, reuse, rewear and upcyling in Australia using SMEs, non-profits and consumers as closed-loop supply chain partners. Lessons learned: Big clothing retailers, small- and medium-sized enterprises and non-profit organisations may take advantage of this growing interest in clothing recycling through co-creation of values. Consumers can be an active partner in this integrated model of responsible clothing consumption and conscientious capitalism by attaching redeemable credits at the point of purchase for higher quality slow fashion garments. Larger retailers may consider facilitating clothing swaps in a variety of venues and methods by using smaller regional businesses or non-profit organisations. This would create a closed-loop in a move towards circular economy. Implications have been drawn for the managers of clothing retailers, SMEs, and non-profit organisations in Australia.