Analyzing Value Dimensional Marketing in the Textile Industry

This report provides a comprehensive analysis of value dimensional marketing and its application within the Ready-Made Garment (RMG) industry, with a particular focus on the adoption of circular economy models. The paper begins by highlighting the environmental challenges associated with linear economies and emphasizes the benefits of circular models in promoting sustainability and resource optimization. It examines how various RMG companies, including Nike, H&M, Adidas, M&S, Arvind, and Aditya Birla Fashion & Retail Ltd (ABFRL), have embraced circular economy principles to reduce their environmental impact and improve efficiency. The report then delves into the strategies employed to transition from linear to circular models, differentiating between narrowing, slowing, and closing loops. Furthermore, it explores the value proposition in a circular model, focusing on environmental sustainability, resource optimization, and the benefits to customers, shareholders, and the organization. Key activities, resources, and partners involved in creating value within this framework are also discussed. The report concludes by emphasizing the importance of embracing circular economy and closed-loop design for long-term success in the RMG industry, particularly given the short lifespan of textile products. The paper also references several sources to support the arguments.

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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.,

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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.

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The company recycles 100% of its waste and hence helping to reduce the cost of waste
disposal as well as helping to ensure environmental sustainability (Saric et al., 2019).
Sustainability impacts all section of the supply chain in production of clothing.
Arvind has put plans to place to find an environmentally sustainable alternative to cotton as
its main raw material. The company has designed Denim jeans called “ZERO” (Earley and
Goldsworthy,2015). The jeans is made of sustainable fibre such as TENCEL Lyocell and
sheep wool. The company also engages in recycling polyester and uses it as one of its raw
materials. By resulting to cotton alternative, Arvind is able to save million of litre of water
per day. This is because, manufacturing of cotton is very unsustainable since production of
1Kg consumes 20,000 litre of water.
Aditya Birla Fashion & Retail Ltd (ABFRL)the largest pure play fashion company in
India (Fischer and Pascucci, 2017). The company has many iconic brands such as Louis
Phillippe and Van Heusen. ABFRL began its sustainability journey in the year 2014 when it
launched a sustainability program called “ReEarth”. the program focuses on using production
methods aiming towards conserving the environment and reducing wastage along its value
chain. The company has is one of the leading advocate for circular economy in the Textile
Industry and it has had a significant impact on environmental and social sustainability
through the country.
Q2
In order to transform from linear to circular model. There are steps that are followed
by organizations in order to achieve this transformation. In order to distinguish between a
linear model and a circular model, the strategies are categorized depending on the design by
which resources flow through the system. Moorhouse and Moorhouse,(2017) indicates that
when doing a comparison of the linear and circled models of product development, it is
important to differentiate the “cradle to grave” flow of ,materials and resources as well as

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‘cradle to cradle’ flow. One of the strategies that is used towards cycling of resources is that
of narrowing loops. This strategy works by the company reducing the amount of materials
required to produce a product. This strategy aims at encouraging business to adopt measures
that will ensure efficiency in resource utilization. This means using fewer resource to achieve
the same product as before. This strategy is not focused in cyclic use of materials but
ensuring materials that are available are used for a long time. Slowing loops strategy is used
by coming up with products that last for a long period of time. This works through life
extension. For example, the life of a product can be prolonged by repairing or re-
manufacturing. By doing this, wastage is reduced and hence resulting to sustainability.
The closing loop strategy is where resources are recycled. When goods are recycled,
the loop that exists between production and post-use is closed and hence resulting in circular
flow of resources. This strategy ensures that there is zero wastage since everything that
comes out at the post-use stage is recycled and taken back to the initial stages of production.
What value is proposed and to who
In a circular loop model, the value that is proposed is environmental sustainability and
resource optimization. The value that will be proposed to the customer is that the model
ensures sustainability in the use of raw materials and hence ensuring that the customers are
able to enjoy the resources for a longer time(Hvass,2016). Environmental sustainability is
delivered to the customers when they experience lees environmental pollution which
improves their health and well-being.Additionally, this model will ensure that customers get
higher quality products at a more affordable price.The value proposition to the shareholders
and managers is that the company will optimize resource yield. The value is created by
minimizing cost of production and its delivered by reduction in price of commodities. By
using this model, an organization will be able to improve the yield by using fewer resources

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and hence reducing costs for the business. The other value proposition for the organization is
that the model will foster effectiveness of the system.
The key activities involved in creating value include research and development to
improve the product design and manufacturing (Mont and Heiskanen, 2015). The other
activities include collection of all the previous waste for recycling. The key resources for
creating value are financial resources, human resources and natural resources. The key
partners are the organizations that promote sustainability, final consumers as well as the
government (Mont, et al., 2015). The value is captured through reduction in costs as well as
improving customer loyalty.
Conclusion
Embracing circular economy and closed-loop design is the only way organizations
can achieve success in business while at the same time safeguarding the environment.
Circular economy is particularly important for RMG companies since the textile products
produced by these companies are disposed slightly over a year after being purchased. Textile
materials from these companies mostly end up in the landfill despite the fact that they can be
reused. This paper analyzes six RMG companies and discusses how application of the
circular economy model has impacted on resource use and management. The article also
discusses the three strategies of narrowing loop, slowing loop and closing loop. The final
section of the paper discusses the value proposition to the customer that results from the use
of this model.

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References
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Hvass, K.K., 2016. Weaving a path from waste to value: Exploring fashion industry business
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Lacy, P. and Rutqvist, J., 2016. Waste to wealth: The circular economy advantage. Springer.
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Marques, A.D., Moreira, B., Cunha, J. and Moreira, S., 2019. From waste to fashion–a
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