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

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, some brands are at a standstill, while digital channels are developing, and new models are emerging. On the other hand, we also see the evolution of sustainable development laws and regulations to address environmental responsibility and the growing demand of consumers for transparency (especially young people, who pay more attention to organic fabrics in the purchase process).

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.

In 2023 Frankfurt Techtextil held& At the Texprocess exhibition, the concept of ecological economy was first introduced into the broader fashion value chain. It combines economy and ecology, and puts forward a perspective that economy and ecology are interrelated, emphasizing 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 for sustainable economic growth

In this case, technology is the key driver, which can improve the performance of the entire value chain. We are experiencing a mode change, that is, the company is changing from a resource based development mode to a technology based development mode. Fashion industry needs industry 4.0 solution, which provides comprehensive connectivity and visibility for the entire value chain, helps enterprises make wise decisions quickly and has a positive impact on the world.

Cloud, Internet of Things, big data, artificial intelligence and other technologies can optimize processes, improve performance (with obvious economic benefits), improve the use of energy and natural resources, and limit the carbon footprint (which also has a positive impact on the environment of the company's operations).

In the fashion industry, ecological economy can be implemented from the early stage of garment production. in consideration of raw material About accounting for production cost 60-70%, intelligent interconnection technology (such as tailoring house solutions developed according to ecological design principles) can significantly reduce material waste and improve 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 product family planning.

　 New sustainable business model: creating growth through goals

However, 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.

Investing in advanced platforms that can track and monitor fabric sources from fibers to consumers, especially when dealing with sustainable, certified and recyclable materials, can ensure compliance with increasingly stringent regulatory requirements, while also providing brands with the necessary information to make informed decisions. In addition to cost optimization, the introduction of standardized sustainable development assessment tools and regulations (e.g The EU digital product passport adopted by the end of 2025 also promoted this change. Although it is required to be implemented in two years, that is, 2027, we expect many European brands as early as 2025 It will be actively adopted in, 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.). In short, 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.

Various brands are taking different strategies to realize the concept of "ecological economy". Some of these brands focus on domestic production and product series, while others make large-scale investment in omni channel sales strategy, and some brands are exploring how to adopt industry based 4.0 new methods and solutions to meet their own needs.

In the fashion field, many companies are still in the initial stage of transformation to sustainable development, so the support of experts and suppliers 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.

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 define new value propositions for consumers, find new organizational and operational methods, 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. The transformative factor will be the ability to accept the transformation of the entire ecosystem involving organizations, personnel, skills and technology.

　　 About Rick

As a major player in the fashion, automotive and furniture industries, Lectra has moved forward and passionately promoted the Industry 4.0 revolution, and fully integrated corporate social responsibility (CSR) into its global strategy.

Lectra provides industrial intelligent solutions covering software, equipment, data and related services to help customers achieve digital transformation. We help customers break through the boundaries of industrial innovation and unleash their potential. The core values of Lectra always inspire our 3000 employees: to be open-minded thinkers, trustworthy collaborators and passionate innovators.

Like was founded in 1973, with an operating income of 478 million euros in 2023. The company's shares are listed on Euronext (code: LSS) and included in the following indexes: SBF 120, CAC Mid 60, CAC Mid&Small, CAC All Shares, CAC All-Tradable, CAC Technology, EN Tech Leaders and ENT PEA-PME 150。

Author: Maximilien Abadie, Chief Strategy Officer and Chief Product Officer of LIKE