The Impact of Circular Economy on the Fashion Industry: A Research on Clothing Share Services

The Impact of Circular Economy on the Fashion Industry: A Research on Clothing Share Services

Tugce Aslan (Duzce University, Turkey) and Adem Akbiyik (Sakarya University, Turkey)
Copyright: © 2020 |Pages: 19
DOI: 10.4018/978-1-7998-2728-3.ch012

Abstract

The fundamental changes in technology and globalization have changed consumer preferences along with the way people buy and consume. This change has profoundly affected new business models and consumption systems in all commercial markets, including the fashion industry in particular. Moreover, fashion businesses have begun to shift from traditional proprietary access business models to the sharing economy. The effect of the sharing economy or circular economy on the fashion industry is increasing day by day. Clothing sharing services, recycling, and re-use of used garments contribute to environmental sustainability and contribute to economic and social sustainability through sales revenue and employment. However, there is limited academic research on clothing sharing models. This research focuses on Dolap application, a clothing sharing service. It examines the role of trust in clothing sharing services from a consumer perspective. As a result of the analysis, it was found that trust in the platform positively and significantly affected the trust given to the service provider.
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Introduction

Although the amount of sharing varies from generation to generation, sharing has always been a part of society. However, Sharing Economy(SE) or the Circular Economy(CE) is the phenomena of the internet age. The sharing economy is expressed in many different ways as circular economy, collaborative consumption, and access-oriented consumption. The sharing services sector has had a direct and indirect impact on individuals' consumption habits and traditional business models, leading to drastic changes in consumption patterns. The change in consumer behaviors and habits of individuals starting with eBay, which is called the pioneer of this sector, has caused global impact and spread to all segments. With the rapidly developing information and communication technologies, the sharing economy sector, which arises against the asset-weighted lifestyle, is getting more and more attention in the world.

In essence, sharing economy is an essential part of a circular economy(Korhonen, Nuur, Feldmann, & Birkie, 2018). Sharing and collaborative models can only form part of the big picture of the circular economy(Egerton-Read, 2016). The circular economy (CE) is a process in which resources are used for as long as possible and reused with recycling after reaching maximum value from them(Brussels, 2015). CE is an approach that promotes effective and re-use of resources. CE is an economic model aimed at minimizing the sustainable use of natural resources, the use of raw materials, and the production of waste(Lahti, Wincent, & Parida, 2018). The sharing economy is the activity of donating or sharing goods and services coordinated among peers through online services. In this context, more efficient use of resources provides a more sustainable and innovative use of natural resources(Botsman & Rogers, 2010). In this respect, it can be considered as a kind of circular economy because it serves the same purpose as the circular economy.

Renting and redistribution of unused or underused goods in the hands of consumers ensures an effective reduction of environmental footprints. For example, several people offer the opportunity to meet new people, as well as traveling together, reducing driving costs and adverse environmental consequences. Besides, vehicle sharing can reduce the congestion of roads and parking lots and reduce energy consumption. This is an indication that the sharing economy can be a solution to ecological damage. In another example, instead of buying a new dress for a day's activity, renting a dress enables a person to reach their goal without increasing their closet or maintenance expenses. Also, it reduces storage or maintenance costs for individuals that are only temporary and less necessary and eliminates the numerous items that they rarely use as household waste(Mun, 2013).

The reflections of the new economic system on society have been an increasingly important research area for scientists and practitioners. At this point, it is crucial to clarify the trust factors that affect consumers' decision to adopt and participate in clothing sharing services. This study aims to investigate the role of trust in clothing sharing services in the sharing economy from the point of view of consumers. In this article, we focus on Dolap, one of the most prominent examples of clothing sharing services in the sharing economy. Dolap app is a collaborative clothing consumption application. Here, rare or never used clothing products are sold. A research model was proposed based on the literature review. The research model was tested using questionnaire data collected from 180 samples.

The findings show that the most important determinant for consumers' trust in the clothing sharing service platform is the platform reputation. Also, increasing consumer trust in the platform that offers clothing sharing services positively affects consumers' trust in clothing on the platform. This study reveals that the companies that will make clothing sharing services should do different studies in order to gain trust to service providers. Moreover, this study may reveal that firms providing sharing services should focus on consumer groups with high trust tendencies in order to capture the right markets. This study will contribute to the current literature about the relationship between sharing economy and the fashion industry in terms of the trust. Besides, the study is expected to fill the scientific deficiencies in collaborative clothing consumption.

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