Value Dimensional Marketing Assignment 2022

VALUE DIMENSIONAL MARKETING 1
VALUE DIMENSIONAL MARKETING
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VALUE DIMENSIONAL MARKETING 2
VALUE DIMENSIONAL MARKETING
Introduction
Linear economies like the one that exists in the textile industry have major negative
effect on the ecosystem (Franco, 2017). This is because liners economies concentrate on
exploitation of resources and use of energy and hence damaging the earth’s natural system.
The linear economy system also does not provide for recycling or reuse of products and
hence further resulting to environmental damage. Research shows that most the fashion items
produced using linear economy are disposed in less than a year and hence they end up in
landfills and hence damaging the environment. Some challenges of linear economy include; it
puts pressure on natural resources, results into untapped opportunities and results to pollution
and degradation of the environment (Linder and Williander, 2017). This paper aims at
addressing the challenges and opportunities of value dimension marketing and decision
making in the RMG industry. The paper also discusses how circular economy helps in the use
of resources and management of resources in a business context. The paper also explains
value dimension and proposition in the circular economy.
Q1.
Lately, most companies in the textile industry have embraced the importance of
circular economy. This is because the companies have realized that use of circular economies
helps in preservation of the environment as well as enabling the company to optimally use
resources. Nike is one of the RMG companies that have embraced sustainability in their
production. Nike has made many innovation efforts in order to move towards a closed loop
economy. Adoption of closed loop economy has allowed Nike to reduce its carbon emissions
by 18% per unit of footwear manufactured in its factories (Pal and Gander,2018). The
circular economy model has also enabled Nike to become efficient in water usage across its
factories. Water efficiency improved by a remarkable 15% during the year 2015(Pal et al.,

VALUE DIMENSIONAL MARKETING 3
2018). Additionally, adoption of circular economy enabled Nike to reduce its wastage by 6%
and hence resulting to massive savings (Lieder and Rashid, 2016). Reduction in wastage also
means that there is less environmental pollution and hence contributing immensely to its
sustainability goals.
H&M group is committed to achieving 100% circular economy by the year 2030
(Stahel, 2016) the company is approaching this target in holistic manner by building
circularity in every stage of its value chain. The company also ensures that the design of the
products, the materials used and the processes adhere to the principles of circular model.
Circular model has enable the company to improve its efficiency since it has resulted to
reduction in wastage. H&M also focuses on using 100% sustainable or renewable raw
materials in all its production processes by the year 2030(Stahel et al., 2016).The company
optimizes use of resources by increasing the volume of waste it collects to 25,000 tonnes by
2020 (Todeschini et al.,2017).
Adidas is one of the RMG companies that have spearheaded efforts to transform from
a linear business model to a circular model. Recently, Adidas have created a shoe that is
entirely made from plastics collected from the ocean (Lacy and Rutqvist, 2016). The
company has also made swimwear and apparel line out of ocean plastic in partnership with
Parley for the oceans. By the end of the year 2017, the company had already manufactured a
million copies of these shoes(Marques. Et al., 2019) The company has therefore been able to
maximize use of resources by recycling. The efforts by Adidas have also been critical in
achieving environmental sustainability.
In a sustainable circular economy, waste does not exist and there are no landfills.
M&S works across the value chain to ensure that it avoids waste in such areas as used
clothing, packaging bags and carriers (Saric and Nellström, 2019). M&S works with
suppliers and trade associations and it has helped in reducing waste by 10,000 tones per year.