Fashion in Change, Part 1: A paradigm shift with many possibilities
What do you see in front of you when you think about a sustainable transformation of the fashion and textile industry?
- A sustainable restructuring of the fashion and textile industry requires solutions that address problems related to climate, social conditions and not least the economic demands of the industry from owners and other economically driven actors. There must be an economic motivation for industry players in order for the restructuring to be sustainable. The most pressing goal as I see it is to reduce CO2 emissions related to the entire value chain in the fashion and textile industries.
How will the industry cope with the change?
- Other industries have been regulated for a long time, and I think an interesting example from the US is when regulations on emissions in the automotive industry led to a fundamental change in engine technology in the 80s and 90s. Then, for example, Porsche had to move from its iconic air-cooled engines to water-cooled engines. Although Porsche received a lot of negative criticism, Porsche has managed to remain relevant in its time, even after the introduction of electric vehicles. My point is that change happens all the time and industries adapt to the external regulatory frameworks and where those that survive can increase their competitiveness.
- The fashion and textile industries have not had consistent regulations, and over the past 10 years it has been revealed how lack of regulation has led to deep social inequality and terrible working conditions, as well as major damage to nature and climate. A light has now come to light for the EU.
How to achieve a restructuring of the industry?
- A sustainable restructuring of the fashion and textile industries requires political regulation that affects and is supported by the financial industry's conditions in order to finance the industry's activities. Restructuring doesn't come because we consumers are changing ourselves. With the EU and several other countries coming in and requiring restructuring in a number of areas during this decade, it will be interesting to see if brands and value chains are adaptable and survive.
Are there any concrete examples of what needs to be restructured?
- Today, the overproduction in the fashion and textile industry stands at 30-40%, it represents the amount of garments that are never sold. In addition, 60% of products sold in 12 months are discarded and only 1% of garments are recycled and converted into fiber used in new production. 60-80% of the CO2 footprint of a garment comes from actual production. Today, the fashion and textile industries are not held financially responsible for the consequences of this for the climate and the environment, and a sustainable transition must respond positively to this.
- Those who believe that the answer to CO2 reductions lies solely in new textiles and recycling support a status quo in which fast fashion is still produced and that quickly goes from consumer to waste. I think it is a derailment that does not take into account the costs of climate and the environment and does not burden the companies responsible for the pollution. A sustainable restructuring of the fashion and textile industries means that fewer garments must be produced, and that each garment must live longer. For this to happen, the value chain needs to change and new earning models invented so that it is profitable to produce and sell fewer garments. This is what we work for in the Fashion Innovation Center.
- The industry itself is not able to implement changes effectively and government regulation as well as other conditions from the financial industry as well as with the support of other industries are needed, and I also believe that education through schools and universities as well as through the media is necessary. There are many aspects of sustainable restructuring, and there is no one solution that is right for all situations.
You have experience of change in many industries — what parallels can be drawn between changes in completely different industries?
- There is something universal in all industries associated with change, and that is about motivation, meaning and communication. Change can lead to doubt and uncertainty. Affected workers are asking themselves whether they will still have a job, and whether it will make sense. In all types of organizations, there is a tug-of-war over the narrative of change, and it is crucial that the organization's management has a clear understanding of why restructuring is important, and what the consequences of not changing can mean for jobs, the local environment and the economy.
So you mean the key might be how to communicate?
- Many consultants say that the future belongs to storytellers, and this is especially true in industries that have not been subject to profound changes. There can never be enough communication! And when it comes to the fashion and textile industries, I sincerely believe that what we are going through now is the opportunity of the century to create new jobs with meaning and a good economy. It must be communicated loud and clear!
What more changes need to come with it?
- For the change to be truly successful, efforts are needed in a number of areas, such as higher education. What will the future Bachelor's and Master's programmes look like? It will require new infrastructure for production and logistics when it again becomes interesting for brands to move production back home to Europe, such as on-demand production where the number of products actually ordered and bought by the consumer is produced. In sales and marketing, there will be a need to look at new business models and how to create new and meaningful collaborations, preferably across industries, for example along with the gaming industry. Managers and owners must dare to think outside their comfort zone, and employees must dare to accept that the future is unclear, albeit positive.
More articles: In our mini-series about changes in the textile and fashion industry, there will be a total of three articles in which Kurt Svegård from the Fashion Innovation Center gives his views. In the second part he talks about the impact of Green's taxonomy on the industry and in the third about the importance of new business models.