Full paper: Leah Marsh and Sheng Lu (2024). Importing clothing made from recycled textile materials? A study of retailers’ sourcing strategies in five European countries. Sustainability, 16(2), 825.
Summary & Key Findings:
With consumers’ growing awareness of the environmental impacts of clothing production and consumption, retailers in Europe (EU) have expressed a heightened interest in selling clothing using recycled textile materials (referred to as “recycled clothing” in this study). For example, fast fashion giants like H&M and Zara and luxury brands such as Hugo Boss have started carrying recycled clothing, aiming to integrate circularity into their product designs and business models.
In the study, we examined retailers’ sourcing strategies for clothing made from recycled textile materials in five European countries, including the United Kingdom (UK), Italy, France, Germany, and Spain. These five countries represent the EU’s largest clothing retail markets, consistently accounting for over 60% of the region’s total apparel sales.
Through an industry source using web crawling techniques and manual verification, 5,000 Stock Keeping Units (SKUs) of clothing items made from recycled textile materials were randomly selected and analyzed. These items were sold by retailers in the UK, Germany, Italy, France, and Spain between January 2021 and May 2023.
The results show that Firist, EU retailers sourced clothing using recycled textile materials from diverse sources, including over 40 developing and developed countries across Asia, America, Europe, and Africa. Second, other than assortment diversity (i.e., the number of color or sizing options for a clothing item), no statistical evidence shows that developing countries had advantages over developed ones regarding product sophistication, replenishment frequency, and pricing for recycled clothing in the five EU markets. Third, a supplying country’s geographic location statistically affects the type of recycled clothing EU retailers import. For example, retailers in the five EU countries typically adopt the following sourcing portfolio by region:
- Asia: relatively sophisticated clothing items (e.g., dresses and outerwear) targeting the mass and value market.
- America (North, South, and Central): relatively simple clothing categories (e.g., T-shirts and socks) targeting the mass and value market.
- Europe: sophisticated clothing categories primarily for the luxury or premium market
- Africa: relatively simple clothing categories targeting the premium market
The findings offered new insights into the business aspects of recycled clothing, particularly regarding its intricate supply chains and leading suppliers. The study’s results have several additional important implications.
First, while existing studies often suggest “local for local” textile recycling, the study’s findings revealed promising global sourcing opportunities for clothing using recycled textile materials. Particularly, leveraging a diverse sourcing base would allow EU retailers to take advantage of each supplying country’s unique production strength regarding product categories and assortment features and more efficiently balance various sourcing factors ranging from costs and flexibility to speed to market. Meanwhile, the study’s findings indicate that many countries worldwide have begun producing and exporting clothing using recycled textile materials, and the sourcing options and capacities will hopefully continue to grow.
Second, according to the study’s findings, unlike the patterns of making regular garments using virgin fiber, low-wage developing countries demonstrated no noticeable competitive edges over developed economies regarding producing and exporting clothing using recycled textile materials. Instead, developed economies, including many high-wage Western EU countries, emerged as top suppliers and leading sourcing destinations for recycled clothing. Thus, expanding clothing production using recycled textile materials presents an exciting economic opportunity with a promising future in developed countries, where many have plans to revitalize the domestic manufacturing sector and establish a sustainable circular economy.
Third, building on the previous point, the sustained commitment of fashion brands and retailers to carry more clothing made from recycled textile materials in their product assortment could hold significant implications for the future landscape of global apparel trade and sourcing patterns. For example, whereas apparel products are predominantly exported from developing to developed countries today, more trade flows could occur between developed economies in the future, attributed to their increasing production capacity and growing demand for clothing using recycled textile materials. Similarly, major apparel exporters in Asia, such as China and Bangladesh, might assume a less dominant role as a sourcing base for recycled clothing due to their insufficient infrastructure for efficiently sorting used clothing and generating high-quality recycled textile materials.
By Leah Marsh and Sheng Lu
Discussion questions proposed by FASH455:
#1 How might EU fashion companies’ sourcing strategies change as they increase carrying clothing made from recycled textile materials?
#2 Could the US emerge as a leading sourcing destination for clothing made from recycled textile materials? What are the potential advantages and disadvantages?
#3 Is expanding clothing made from recycled textile materials the right approach to achieve fashion sustainability? What is your thought?
FASH455 Global Apparel & Textile Trade and Sourcing 
As stated in the article America is know for their production of relatively simple mass market good, but as we’ve learned in class our supply chain isn’t very fleshed out beyond the fiber stage. Assuming that the textile industry is looking to diversify would you recommend the US to invest in the recycled fiber industry? I personally support the investment of the recycled because of my commitment to sustainability, and as you mentioned, low-wage developing countries demonstrated no noticeable competitive edges over developed economies which would lead to the US being able to compete in the textile market even though we lack the competitive labor advantage. In addition because of the US being a huge retail market and throws a lot of those clothes away the goods wouldn’t need to be shipped in, more collected.
#1
With consumers’ growing awareness of the environmental impacts of clothing production and consumption, EU fashion companies’ sourcing strategies will integrate circularity into their production and design models. EU fashion companies may need to diversify their supply chains because no statistical evidence shows that developed countries have an advantage regarding product sophistication, replenishment frequency, and pricing for recycled clothes, compared to developing countries. Global sourcing will allow these companies to take advantage of each country’s unique and best abilities, ultimately optimizing product quality and price. As more countries in the EU continue to import or export clothing made from recycled materials, it will hopefully trigger a chain, encouraging other countries to do so as well. The article explains how major apparel exporters like China do not have the capabilities to sort clothing and produce high-quality recycled textile materials, providing the EU with a competitive advantage and an economic opportunity. This will also be beneficial to US brands and retailers who want to move their sourcing away from China and into other regions. EU fashion companies will also need to become a lot more transparent about their sourcing efforts, so customers are aware of the company’s supply chain process and know the company is holding to its word about increasing carrying clothes from recycled materials.
1#
This article sparked a keen interest in me. It is known that many companies, use greenwashing tactics to trick consumers into purchasing items. It is clear that, Zara doesn’t have any remorse for what they did to the environment. Zara, H&M and other retailers are positing themselves, to seen as a “leader” in sustainable fashion brands. European Union (EU) countries citizens do express more care when it comes to sustainability. The United Kingdom, Italy, France, Germany, and Spain retail markets account for 60% of the regions apparel sales. EU retailers have a diverse source of suppliers based on different needs and wants. By leveraging a diverse sourcing base, EU retailers can take advantage of other countries strengths based on product offerings and used textiles. Once EU fashion companies tap into more sustainable souring strategies, consumers demand will increase. This will case a domino effect and more countries will tap into souring recycled textiles. I also think that niche suppliers that upcycle these products will see exponential growth. In the future, textile suppliers might have to change their agenda if there is a massive rise in recycled textiles. I am interested to see what will happen in the next upcoming decades. Will a majority of our clothes stem from recycled materials? As someone who is dedicated to sustainably, it excites me to see that some sort of progress is being conducted. It is unclear what the real motives are behind the paradigm switch to using recycled textiles.
#1
EU fashion companies may become more inclined to being sourcing from more developed countries that have the technology to make recycled garments. This will most likely be rather costly, however it will greatly improve these companies publicities. This is because they will be sourcing from countries with ethical production processes and laws as well as creating garments that help reduce waste and are incredibly sustainable. Many consumers are becoming more conscious of their buying habits in terms of sustainability and greenwashing. Companies like Zara and H&M that frequently practice greenwashing are likely to see a change in demand for true transparency in terms of production and recycled materials actually used. This will force them to source less from developing countries that aren’t truly capable of producing fully recycled garments.
#3 Is expanding clothing made from recycled textile materials the right approach to achieve fashion sustainability? What is your thought?
I think that expanding clothing made from recycled textile materials is one of various “right” approaches to achieve fashion sustainability. Upcycling and repurposing are recommended to achieve a bit of fashion sustainability on an individual consumer level. This is an easy way for every day consumers to do their small part is lessening textile waste. Ramping this up to a national and/or global level is promising. A major environmental problem in the fashion industry is textile waste. Fast fashion companies are big culprits in this but we cannot overlook the overconsumption of fashion in general. In today’s world overconsumption is very normal, often encouraged with the high quantity and turnover of trends. Recycling fabric and clothing into new garments is definitely a step in the right direction towards lowering textile waste. I think this is the right approach, or at least one of them. Fashion sustainability is not a one solution problem, but this is a great step toward the solution.
#1- In the study conducted we learned that EU will not only get their recycled materials from their own country but also from countries such as Asia, America, and Africa. By gathering recycled materials from different countries there will end up being more diverse options of products and better quality products overall. This process refers to the term “Global Sourcing” which is taking advantage of each country’s best products and best product prices. For instance, China does not have the same abilities that EU has which leads to EU having both a competitive advantage and economic advantage. If the US keeps seeing that China does not have the same advantages as other countries, they will start to move away from sourcing from China. In the end, this will end up being very beneficial to the US and will help them continue to use recycled products. It is important that there is full transparency about the supply chain. By being transparent that the US is using more recycled materials, we are closer to having a better environment
#1
EU fashion companies’ sourcing strategies may change as they increase carrying clothing made from recycled textile materials because of the unique and complex supply chain recycled materials utilize. These fashion companies may need to diversify their suppliers to include those who specialized in the technology needed for processing recycled textiles. Additionally, EU fashion companies may need to increase their investments in countries that specialize in recycled textile materials and advanced machinery that are capable of this process. In article 12-3, research by Lu and Marsh explained that apparel sourcing teams use similar criteria to source apparel made from recycled material and original pieces. However, as companies begin to increase their focus on sustainability, these criteria may change to prioritize recycled materials over cost, speed to market, quality, and flexibility and agility.
This article is interesting to me, and has been since we discussed the topic briefly in class. With the growing awareness of poor practices among consumers, more brands are beginning to pay attention. With this newfound attention, it is hopeful that some will venture into the recycled textiles space. In my opinion, I believe this route is promising for reducing environmental impact, but I’m not sure it is feasible for many of our favorite fashion brands. With so many expensive supply chain adjustments to be made, I do not think these big brands will take the chance, although I wish they would.
3. I think expanding the usage of recycled textile materials in clothing is a great step and an initiative more companies should be involved in. However, I don’t believe any company should be awarded a “gold star” for doing this as it as somewhat of the bare minimum. There’s a huge issue with overconsumption that our generation faces, especially with the rise of accessibility of fast fashion through vats such as Temu, Shein, or TIkTok Shop. It’s amazing that companies want to use recycled materials, but if we’re just producing more clothing (recycled or not), it negates the principle of stopping overconsumption. How are we supposed to feel better about ourselves when we are constantly buying more?
#3 – I believe expanding the use of recycled textiles and materials in clothing is a positive and important step toward sustainability, but it is not the most critical one. Key issues must still be addressed, regardless of whether materials are recycled or not. These include the social problems surrounding how employees are treated, the conditions they work in, and ensuring fair labor practices. Additionally, the issue of overconsumption remains a significant challenge, as producing more—even sustainably—still contributes to waste. Finally, combating greenwashing is essential to ensure transparency and accountability, so consumers can trust the brands they support and recognize genuine efforts toward sustainability.