How short-term thinking, lack of R&D are hindering progress towards circularity

In an era when consumers are experiencing sustainability fatigue, the fashion sector finds itself at a critical juncture.

Roger Lee, CEO of TAL Apparel, told Inside Retail the current level of investment in sustainability appears to be suboptimal and the primary factor contributing to this low investment is the absence of significant market demand. 

The manufacturing company works with major brands, including Hugo Boss, Brooks Brothers, and Banana Republic, so it has an intimate understanding of the drivers of waste in the fashion industry.  

“The principle of supply and demand is fundamental in this context,” said Lee. “When brands do not prioritise sustainability, there is little impetus for substantial investment in this area.

“Approximately a decade ago, brands began requiring proper wastewater treatment. As a result, there was widespread investment in wastewater treatment facilities. Our company had implemented these practices three decades earlier, but industry-wide adoption only occurred when it became a brand requirement.”

Lee said a similar shift needs to occur in the realm of sustainability and brands should communicate a clear preference for sustainable fabrics and initiatives. 

“Right now, circularity is seen as a ‘nice-to-have.’ There’s no pressing need to educate people about it. But if regulations can change that, it will help the industry excel and get more people to learn about circularity.”

A complex equation

While it’s crucial to raise investment in sustainability, some factors need to be taken into consideration for businesses to balance their financial performance in the profit-driven industry. 

“The challenge with allocating resources for R&D is that, effectively, the ROI on the investment is longer term and the KPIs are relatively hard to set from the get-go,” said Christina Dean, founder of Redress. “Too much business operates to short-term needs so allocation of longer-term R&D is challenging.”

The challenging current market conditions could also hinder some brands from increasing their R&D budgets, but Dean encouraged business leaders to do so.

“We think it’s the ‘right’ thing to do for long-term business success and we see more inclination in privately-owned businesses to do this,” she added. 

“​​It’s expensive to implement the necessary changes,” Lee said. “If brands were to push for everyone to align with sustainability goals to be considered for future orders, I believe we’d see more collaboration within the industry. This approach is crucial because it’s challenging for a single company to make these changes alone.” 

Industry collaborations

According to the Ellen MacArthur Foundation, decisions made at the design phase influence how long something lasts, what it is made of, if it can be repaired, and what happens to it at the end of life. About 80 per cent of a product’s environmental impact is influenced by decisions made at the design stage. 

Dean said there is a growing realisation from fashion businesses that they need to educate their in-house fashion designers, or rather re-educate them. Brands are now looking into collaborating with non-governmental organisations (NGOs) and manufacturers who have expertise in sustainable practices. 

“We see time and again that sustainability teams are calling on the businesses to put more time and resources into educating their designers because the reality is that the in-house sustainability teams can not achieve their KPIs – be they carbon or waste reduction – unless their in-house designers are educated,” she added.

Following Timberland, Tommy Hilfiger has partnered with the Redress Design Award to promote sustainability and nurture new talent. Last week, the sustainable fashion design competition Redress Design Award named Tiger Chung as this year’s winner, who will join the Tommy Hilfiger team to work on a sustainable retail design project. 

Chung out-designed nine other finalists, who all took part in the ‘TAL x Redress Low Waste Design Challenge’ at TAL Apparel’s factory in Northern Vietnam to explore commercial solutions for pre-consumer garment waste. 

These collaborative initiatives serve as incubators for innovation, providing platforms for emerging designers and established brands alike to experiment with sustainable materials and processes. 

“I believe the change has to start with the brands. They must be clear about what they want from the industry and how it will influence buyers’ decisions,” Lee said. 

“We love Redress and think what they are doing is great for the industry. We want to help however we can because you attract many designers at once. We aim to use that platform to educate new designers each year on how circularity works, as none of them truly grasp it until they visit a factory and see the process firsthand.”

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