Blending Sustainability and Profitability: How Brands are Balancing Both

Learn how fashion brands are innovating to balance sustainability and profitability, including circular business models and sustainable materials.


In recent years, sustainability has become a key concern for fashion brands, driven by changing consumer demand and increasing awareness of the environmental and social impact of the industry. However, the need for profitability can sometimes seem at odds with sustainability goals, creating a challenge for brands to balance both. In this article, we'll explore how brands are tackling this challenge, and how they're innovating to achieve both sustainability and profitability.

One approach that many brands are taking is the use of innovative technologies to reduce waste and increase efficiency in production. For example, Adidas has developed a 3D knitting technology that produces seamless garments, reducing waste and improving the fit of the garment. H&M has invested in water-saving technologies, such as using recycled water and air-drying instead of tumble drying, to reduce water usage in production. These technologies not only reduce waste and environmental impact but can also reduce production costs and improve efficiency, benefiting the bottom line.

Sustainable fashionAnother approach is the adoption of circular business models, which prioritise reuse and recycling over linear models of take-make-dispose. Brands like Allbirds, Finisterre, and Stella McCartney have implemented take-back programs that allow customers to return used garments for recycling or resale, extending the life of the garment and reducing waste. Other brands, like Komodo and Thought Clothing, use sustainable materials like organic cotton and bamboo to create their products, reducing their environmental footprint. These innovative approaches not only reduce waste and environmental impact but can also improve brand reputation and drive customer loyalty.

>> Watch our related video: What Loyalty Leaders Have to Say about the Future of Digital Loyalty <<

Sustainable technology is also becoming a key aspect of brand strategy, with many brands communicating their sustainability initiatives to customers and stakeholders. For example, Levi's has created a Water<Less campaign to communicate its efforts to reduce water usage in production, while Stella McCartney has adopted a "Green Carpet Challenge" to highlight sustainable fashion on the red carpet. By communicating their sustainability initiatives, brands can build brand loyalty and drive customer engagement, as consumers increasingly seek out sustainable and ethical products.

The success of brands that prioritise sustainability shows that it's possible to blend sustainability and profitability. For example, Patagonia has seen double-digit growth in recent years, while Eileen Fisher has reported record sales despite the pandemic. These brands have shown that sustainability can drive growth and profitability, as well as social and environmental impact.

However, there are also challenges to balancing sustainability and profitability. For example, sustainable materials can be more expensive than conventional materials, making it challenging to achieve profitability. Brands also need to ensure that their sustainability initiatives are credible and transparent, to avoid accusations of "greenwashing" and to build trust with customers.

Sustainability and profitability are not mutually exclusive for fashion brands. By using innovative technologies, adopting circular business models, and integrating sustainability into brand strategy, brands can achieve both sustainability and profitability. The success of brands that have prioritised sustainability shows that it's possible to achieve financial success while also creating positive social and environmental impact.

Join us to discover what the fashion industry landscape looks like today, and what it might become in the future at our upcoming breakfast event in London on 18th May 2023.
We're on a mission to build a more sustainable fashion industry that satisfies consumer demand and drives profits. Don't miss this opportunity to connect with fellow fashion leaders and gain valuable insights into sustainability in the fashion industry. 

Apply for tickets here

Sustainable Fashion Event Link

Similar posts

Add a Comment:

Are you looking to build a digital capability?