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Fashion Opens The Door Of Ecological Economy: Sustainable Development Leads To Economic Benefits

2025/3/20 23:06:00 171

　　 The current challenging economic environment and the growing concern of society for sustainable development are driving the transformation of fashion companies. On the one hand, we see that the inflation level of the market is still fluctuating, while digital channels are developing and new models are emerging. On the other hand, we also see the evolution of sustainable development regulations to respond to the growing demand for environmental responsibility and transparency from consumers.

　　 People no longer regard the economic level and environmental footprint of the fashion supply chain as the opposite, but as complementary priorities, which also contribute to the success of enterprises in terms of brand image and income. Today, companies are willing to combine corporate social responsibility with the economy, so that a new term has emerged: ecological economy, which combines economy with ecology, believes that economy and ecology are interrelated, and emphasizes that brands no longer need to choose between sustainable development and profitability.

　　 Ecological economy has multiple advantages: in addition to directly influencing sustainable development, it can also improve process efficiency and save costs, helping brands maintain long-term competitiveness in the rapidly developing fashion field.

　　 This method can also meet the needs of current consumers, because they increasingly want to buy products that have little impact on the environment but are affordable.

　　 How is this achieved? Technology is the key.

　　 Industry 4.0 solutions promote sustainable economic growth

　　 The fashion industry needs Industry 4.0 solutions to provide comprehensive connectivity and visibility for the entire value chain, help enterprises make wise decisions quickly, and have a positive impact on the world.

　　 Cloud, Internet of Things, big data, artificial intelligence and other technologies can optimize processes, improve performance, improve the use of energy and natural resources, and limit the carbon footprint.

　　 In the fashion industry, ecological economy can be implemented from the early stage of garment production. Considering that raw materials account for about 60-70% of the production cost, intelligent interconnection technology (such as the tailoring house solution developed according to the ecological design principle) can significantly reduce material waste and improve the overall profitability.

　　 In addition, advanced technology solutions that support on-demand production can also improve warehouse management, limit excessive fabric consumption, and reduce the risk of unsold goods. Moreover, advanced software can also help design processes and optimize the product series planning stage.

　　 New sustainable business model: creating growth through goals

　　 The optimization process focusing on economic and environmental protection is not limited to the production stage, but focuses on a broader range of actions, usually involving corporate social responsibility (CSR) practices.

　　 In addition to cost optimization, the introduction of standardized sustainable development assessment tools and regulations (such as the EU digital product passport expected to be adopted by the end of 2025) also contributed to this change. Although it is required to be implemented two years later, that is, in 2027, we expect that many European brands will actively adopt it as early as 2025, which requires tracking the entire life cycle of products and materials to provide more transparent information for companies and consumers. In this case, the company needs to be aware of the potential impact of new regulations and adjust its business model accordingly to maintain compliance and take the lead in sustainable development. With various laws and regulations calling for a model transformation to circular economy practice, sustainable materials, carbon neutrality, social responsibility, consumer awareness, policies and compliance, this has brought challenges as well as opportunities to the fashion industry.

　　 Today, companies need to be flexible and must be able to use horizontal skills to help them cope with complex situations (including the changing regulatory environment), and be able to seize the opportunities brought about by technological development (including promoting traceability and sustainability, etc.). Technology can maximize the value of data, thus truly subverting the industry. Solutions that support centralized and real-time data, as well as tools that can analyze these data sets, can effectively help companies make informed decisions quickly.

　　 Ecological economy is the long-term principle of fashion industry

　　 Companies adopting eco economy will be able to benefit from new competitive advantages. In fact, although short-term investment is needed, it will help companies to define new value propositions for consumers, find new ways of organization and operation, better manage resources, and finally stand out from the competition.

　　 The continuous transformation can also lead people to think about how the society will develop in the coming decades. Whether it can promote the transformation of the whole ecosystem organization, personnel, skills and technology will become the key factor of the change.

　　 In the fashion field, many companies are still in the initial stage of transformation to sustainable development, so the support of suppliers with professional knowledge will still be the key to the success of these new strategies. The brand should regard sustainable development practice as an opportunity to pave the way for innovation, cost saving, productivity improvement and other competitive advantages.