Better World Fashion: Circular Economy and Competitive Advantage

In 2015, in Aalborg, Denmark, the two co-founders of Better World Fashion formed their company as a social enterprise, aiming to highlight all that was wrong with the fashion industry and offer 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 specialize in garments made from re-purposed leather, as leather had a long lifespan, and could be reused repeatedly without its qualities diminishing. Leather was also the most resource-consuming garment material to produce, and therefore was both the most environmentally damaging material and the material that was most in need of recycling. The company’s business model aimed to gain a competitive advantage through its image as a sustainable brand and its premium-quality products, which incorporated an emotional connection through the use of unique serial numbers and storytelling. However, in 2018, the co-founders wondered whether the company should continue as it had been originally positioned or whether it should change its strategies for growth and competitive advantage in international marketing.