Circular Economy at the Core of Levis & Co.'s Success: The Circular Business of Denim

Circular Economy at the Core of Levis & Co.'s Success: The Circular Business of Denim

Riccardo De Lucia, Armando Iavazzi, Ilaria Combatti, Benedicta Quarcoo
Copyright: © 2022 |Pages: 21
DOI: 10.4018/978-1-6684-5001-7.ch005
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Abstract

The chapter aims to gather information and analyze the new business model developed by Levi Strauss and Co. First, it analyses the network that LS&Co. has set up and how the business works. Then, it will investigate the context in which LS&Co. operates by looking at values, drivers, stakeholders, barriers. Subsequently, a careful analysis of the performance indicators that LS&Co. has adopted including the GRIs material report will be conducted. The technologies and developments that LS&Co. has adopted in its business will be explained; particular attention will be given to emerging partners in the new business model and the value they bring. There will be space for an ambitious project based on blockchain technology as a tangible tool for their products and suppliers. Some recommendations on how LS&Co. could improve its circular economy in the context of the growing smart cities will be given in the last paragraph.
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Circular Economy Network

The fashion industry is the second-largest polluter in the world after the oil industry and its environmental damage is increasing as the industry grows. It has been shown that the average life span of a garment depends on the number of times it has been worn and can go up to ten times, creating a huge impact on natural resources (De Giovanni and Zaccour, 2022). Levi's, a giant in the apparel industry for over 168 years, has worked in recent years to move the apparel industry towards a circular future, where materials are used and reused safely. This allows making products with their next use in mind, using the “product for X” methodology.

LS&Co. has always taken direct action to protect the environment, from technology innovations for long-lasting products to new production processes such as Water-Less, that reduce the water consumption of jeans, or cottonized hemp. They have initiated and implemented great ideas that reduce the impact of products and help promote sustainable clothing (Maranesi and De Giovanni, 2020).

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