Can truly sustainable fashion be economically viable?

Article written by Sihem DEKHILI, Professor of Sustainable Marketing, Research Director, Head of the MECE Institute - ESSCA & Mohamed Akli ACHABOU (MECE)

Can good deeds be cheap? While the appeal of sustainable fashion is often expressed, the move to action is often hampered by price or lack of information. The development of a sustainable offer cannot do without communication aimed at consumers.

February 2025, the C&A Group announced the closure of its sustainable jeans factory " Factory for innovation in textiles ", launched in 2021, in Germany, in collaboration with start-up 140Fahrenheit. The factory was supposed to bring the brand, which is not known for its sustainable footprint, into the green world. This closure joins a long list of sustainable fashion brands that have failed to survive on the market. Brands such as Hopaal (recycled materials and local production) and Atelier Unes (eco-responsible pre-order clothing) did not survive long, despite promising beginnings.

In addition to the Covid crisis, which has severely weakened the sector, the economic context in recent years has been marked by high inflation and a decline in consumer purchasing power. This context has largely favored fast fashion andultra-fast fashion players, who are little concerned by the environmental and social consequences of their business model, to the detriment of sustainable fashion brands, which are unable to match the very low market prices due to their high production costs.

A spreading logic

Even the long-established names in conventional fashion have been unable to resist the onslaught of low-priced items. Several iconic brands have seen their adventures come to an end, one of the latest being Esprit. The year 2023 has been heralded as a black year for ready-to-wear brands.

This logic of volume and low price is so widespread that it is now even taking over the second-hand market. Digital platforms in this field, which are supposed to promote sustainability through a business model built on the principles of the circular economy, have aligned themselves with the practices of conventional distribution. Recent research has highlighted the dark side of the second-hand market due to rebound effects, consequences of the commercial practices used by platforms like Vinted (price reductions proportional to the size of the lot purchased, notifications to encourage purchase, etc.).

A host of challenges

In the light of the above, it would seem that developing a sustainable offer in the fashion sector is a real challenge. But does this mean that the future of the sustainable fashion market is in jeopardy? Is sustainable fashion a myth to be discarded? The answer is clearly no: the fashion industry, responsible for major environmental and social consequences, needs to make sustainability a priority pillar in order to relaunch itself. To achieve this, several levers can be activated.

Innovation is a prerequisite for the promotion of any sustainable offering. Today, fashion's transition to greater sustainability will require a revolution in production processes and working conditions, as well as in the choice of raw materials (oil-based polyester, cotton cultivation which is a champion of pesticide and insecticide use and water consumption, animal-derived materials which cause animal abuse, etc.). Major innovations have been launched to meet these challenges. For example, several biosourced fibers have been developed (milk, pineapple, algae and eucalyptus fibers), as well as nanofibers and thermoregulating textiles (e.g. phase-change fibers). Start-ups play a central role in this drive to design sustainable textile materials. In Brittany, for example, Bysco has developed a textile fiber from byssus, the filaments that bind mussels to rocks.

But the development of these new materials represents a significant cost. The Stella McCartney brand, for example, which has made material innovation its main battle-horse and has consequently teamed up with several start-ups, such as Bolt Threads for vegan leather, Soktas for regenerative cotton and Evrnu for reconstituted textile materials, has declared that it has suffered from strong inflationary pressure on raw material and labor costs. The company has addressed this constraint by streamlining its cost structure and reinforcing communication to increase brand desirability.

Words, words... but where are the deeds?

Increasing desirability is another lever to be used. It is well known in the academic literature on responsible consumption that there is a gap between what consumers say and what they actually do. This gap is particularly significant in the case of fashion products. For example, Generation Z consumers (aged 15 to 24) with a strong ecological commitment are frequent buyers of theultra-fashion brand Shein. This ambivalence between ecological awareness and over-consumption has been described as " cognitive polyphasia ".

This concept, introduced by Serge Moscovici in 1961, highlights the coexistence of different, contradictory knowledge systems within the same individual. Even if young consumers project themselves into sustainable choices, they are paradoxically looking for new, cheap and trendy clothes. They are under pressure to look good, not least through social media such as Instagram and TikTok. For example, " outfit of the day " (#OOTD) is a trend that pushes consumers to buy clothes just so they can show them off to others online.

Consumer ignorance

Beyond this gap observed among younger consumers, sustainable fashion brands have to take into account two other obstacles to promoting their products. On the one hand, there is a lack of understanding on the part of consumers as to what a sustainable fashion product actually means.

An American study has shown that, although the majority of respondents show a predisposition to integrate sustainability into their practices, almost half of them indicate that they do not understand what makes a garment truly sustainable. The results of a recent barometer on ethical fashion revealed that the French associate fast fashion brands above all with offering sustainable products. They cite Kiabi, Zara, H&M, Nike, Vinted and Decathlon. Most people are unaware of brands that are committed to sustainable development.

On the other hand, the proliferation of environmental claims, some of them misleading, undermines the credibility of sustainable offerings, leading to growing skepticism among consumers.

It therefore seems obvious that promoting sustainable fashion will involve raising awareness. For example, brands can use digital platforms to disseminate information about their commitments and raise customer awareness of environmentally and socially responsible consumption practices. They can also accompany consumers towards more virtuous practices by developing imaginations consistent with sustainability issues. For example, new narratives on desirable and aspirational lifestyles can be envisaged. In addition, relying on green influencers can be a solution, but brands should ensure congruence between the values they convey and those embodied by the personalities solicited, at the risk of being accused of greenwashing.

Need laws?

Beyond these dimensions lies the role of politics. Several initiatives have been taken in recent years in the European Union to help transform the fashion sector. Some are aimed at raising consumer awareness of the impacts of over-consumption of clothing. The most recent example in France is Ademe's " Devendeur " campaign, which calls for sobriety.

Other initiatives aim to limit the development of fast fashion, to leave more room for more sustainable fashion. In France, for example, a law was passed in March 2024 to curb the development of fast fashion, thanks in particular to a bonus-malus system. At European level, in its strategy for a sustainable and circular textile industry, the European Commission states that, by 2030, textile products placed on the European market will have an extended lifespan and be recyclable, largely composed of recycled fibers, free from hazardous substances and produced with respect for environmental and social rights.

The effectiveness of such actions undoubtedly depends on consumer support.

According to a recent survey, the French as a whole underestimate the environmental impact of clothing. Only 21% consider it "very important", and 12% "catastrophic". Conversely, 18% consider it to be very low or moderate. Lack of knowledge, due to information gaps (lack of explanations, multiplication of messages, confusion) is a major brake on the consumption of sustainable fashion products.

Thus, cognitive awareness of the consequences of behavior is crucial to the development of self-awareness and a sense of responsibility. When an individual feels responsible for the consequences of their actions, they develop stronger internal moral obligations to act sustainably. Training programs focusing on sustainability values can help raise awareness.