Companies operating in the apparel industry could be missing out on new opportunities for growth by not digitizing data on leftovers from garment factories, says a new report by H&M Foundation Global Change Award winner Reverse Resources.
Creating a Digitally Enhanced Circular Economy shows that manufacturers producing textiles and clothes for many of the world’s major fashion brands are spilling an average 25 percent of resources during fabric and garment production. In some cases, the volume was as high as 47 percent, much higher than usually perceived by brands. The issue, however, is not derived from a lack of brand responsibility nor waste at the factory level, but rather the result of a systemic conflict of business interests and lack of data and transparency between stakeholders at various levels of the global supply chain. According to Reverse Resources, digitization and the application of circular design principles could bridge this gap and unlock a major business opportunity for both brands and factories.