Better World Fashion: Circular Economy and Competitive Advantage

Better World Fashion (BWF) was formed in 2015 in Aalborg, Denmark, by Reimer Ivang and Karsten Lund. It was modelled as a social enterprise that aimed to highlight all that was wrong with the fashion industry and present a cleaner and more ethical solution. The business was designed to focus not only on profit, but also on minimizing the environmental impact of the supply chain. The founders chose to specialise in leather garments, as the material has a long lifespan and can be re-used repeatedly without diminishing the quality. It is also the most resource consuming garment material to produce, and therefore the most environmentally damaging. The business model aimed to gain competitive advantage through its sustainable brand image and premium quality products, which incorporated emotional connection through the use of unique product ID’s and storytelling.

From its origin in Denmark the business was born global, selling internationally through its E-commerce platform. By 2018, it was selling to a number of countries across the world, and had received endorsements from notable sources such as B-Corporation for its environmental friendly business design. However, one of its key sources of value, which is sustainability, was inhibiting its international expansion, and this is due to varying attitudes of consumers towards sustainable products in different countries. Another shortcoming of its growth is rooted in its structure that it is a social enterprise (i.e. not-for-profit enterprise) competing with large for-profit companies while entrepreneurs, who are by the way top managers, do not have full-time commitment because they are otherwise busy with their works.
To be successful in a highly competitive industry, BWF needs to ensure competitive advantage through its value creation, making sure their message is communicated effectively through its marketing strategies in order to adapt to diverse market conditions.