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Building a circular apparel economy in India

The Idea in Brief: The Circular Apparel Innovation Factory

Intellecap, supported by the DOEN Foundation launched the Circular Apparel Innovation Factory (CAIF) in 2018. CAIF is an initiative that brings together a variety of stakeholders in the apparel industry in India to shift the industry from its current ‘take-make-dispose’ approach, to one that is more circular across the lifecycle. At CAIF, we are building the industry’s innovation infrastructure by bringing together key stakeholders to collaborate and work together on achieving the four key circular goals:

THE

GO

ALS

Increasing the use of sustainable inputs and material

Maximizing the utilization of textile & clothing

Increasing the recycling of clothing

Boosting production through renewable inputs

The Problem Our Approach Partner with Us Our Offering

THE PROBLEM India’s apparel market is predicted to be the world’s largest. A burgeoning middle-class with increased purchasing power and a growing market indicate that the transition to a circular economy could unlock not only economic, but also social, and environmental impacts

In addition, a growing number of startups with innovative digital solutions and business models for brands and consumers are cropping up. Their solutions range from the more common digital marketplaces for rental & retail to

the more complex use of blockchain based models to improve production efficiencies & more

Growing production & consumption trends in the textile and apparel industry highlight the opportunity in transitioning to a circular economy

Amed, Imran & Achim Berg. The State of Fashion 2019. London: Business of Fashion and McKinsey & Co., 2018.; Lehmann, Morten et al. Pulse of the Fashion Industry 2018. Copenhagen: Global Fashion Agenda and The Boston Consulting Group, 2018.; India Brand & Equity Foundation. Indian Textiles & Apparel Industry Analysis. IBEF. Web. 2018.

Projections estimate the Indian middle-class to grow at 19.4%

annually. Along with this demographic growth – their

purchasing power, and household incomes are also set to increase

manifold

India is a key manufacturing hub for textiles & apparel globally, while the apparel market is estimated to reach

USD 59.3 billion by 2022; the domestic textile market is expected to

grow to USD 223 billion by 2021

Reports indicate that brands and manufacturers that take action

towards enabling sustainability and circularity could see improved EBIT

margins by as much as 6% in the medium term

INCREASED CONSUMPTION INCREASED PRODUCTION INCREASED PROFITABILITY


However, numerous issues point to an increased need to make systemic shifts in India’s textile & apparel industry to enable this transition

Fashion is one of the major contributors to pollution in our air and oceans, and is also harming the health of those [who] produce it. …[T]he textile industry will add 22 million tonnes of microfibers in the ocean by 2050, and will also increase its share of the carbon budget from two per cent to 26 per cent. Vogue, 2018

Ellen MacArthur Foundation. A New Textiles Economy: Redesigning Fashion’s Future. 2017.; Szokan, Nancy. “The fashion industry tries to take responsibility for its pollution.” The Washington Post. Washington Post. 30 Jun. 2016. Web.; Stand.earth. Too Deadly To Wear: Levi’s Pollution, the Booming Fashion Industry, and its Role in Deaths from Air Pollution and Climate Change. April. 2018.; Quantis. Measuring fashion: Environmental impact of the global apparel and footwear industries study. 2018.; “Encourage Textile Manufacturers to Reduce Pollution.” NRDC. 2019. Web.; Remy, Nathalie et al. “Style that’s sustainable: A new fast-fashion formula.” McKinsey & Co. 2016. Web.

8.1% of global climate pollution can be attributed to the textile & apparel

industry

20% of industrial

water pollution is due to garment manufacturing

globally

80% of the textile

waste generated is not recycled

and often sent to landfulls or incinerated

60% more clothing with shorter

lifecycles is being purchased today when compared

to 2000


Circular innovations at critical points across the value chain are increasingly available and accessible yet not adopted by the industry

YARN & FIBER

ALTERNATE FABRIC

DYEING & PRINTING

UPCYCLING/RECYCLING

RETAIL

ENABLERS PACKAGING

Apparel Value Chain

Maturing markets Unwilling consumers Low risk appetites Lack of organisation

There are a range of solutions across the value chain, with differing scales and service offerings

Key reasons for the lack of industry adoption of solutions

•  Highly price sensitive markets

•  Globalised market adds pressure on price points

•  Very few sustainable business models

•  Consumers are unwilling to pay

•  Lack of consumer awareness

•  Low incentive for consumers to participate

•  Brands and manufacturers face high search costs and falsely perceive high cost implications

•  Need for greater patient capital to build market

•  Highly informal and unorganised supply chain

•  Prevalence of harsh working conditions

•  High involvement with labour unions

TRACEABILITY & DIGITISATION


OUR APPROACH & OFFERINGS The Circular Apparel Innovation Factory – a collaborative, co-creation platform for stakeholders in the apparel and textile industry to build solutions and drive innovations for a circular economy to prosper

To build a circular economy, Intellecap & the DOEN

Foundation launched

CAIF The Circular Apparel Innovation Factory


The DOEN foundation, a Dutch foundation funded by the national postcode lottery in the Netherlands, supports socially inclusive, creative, and green initiatives; and inspires pioneers to demonstrate that a new, circular economy can be put into practice.

Intellecap is the advisory arm of the Aavishkaar-Intellecap Group, which works to build enabling business ecosystems for social & environmental change across Asia and Africa.


Innovations in the apparel sector have often been created through unusual and collaborative alliances between various ecosystem actors Enabling the circular transition requires collaboration; world-over – disruptive collaborations have pushed the boundaries of the textile & apparel industry and resulted in innovations that are game changing

LONG LIVE FASHION

Launched by P&G, the ‘Long Live Fashion’ campaign is focused on changing consumer behaviour to increase the longevity of clothing and increase the life of clothes by as much as four times

ADIDAS x PARLEY

Adidas has planned to create 11 million pairs of shoes from recycled plastic waste. To achieve this, they are collaborating with Parley – a global environmental organisation to collect plastic waste from beaches

THE INDUS FORUM

Indus is an online and offline entrepreneurial network aiming to improve sustainable and inclusive innovations in both Indian and Dutch businesses and thus enhancing futureproof trade relations.

STELLA MCCARTNEY x THE REALREAL

Stella McCartney has enabled a partnership with The RealReal to prevent clothes from going into waste piles. Together, they have created a new business model to retail pre-owned luxury items

MAKE FASHION CIRCULAR

The Make Fashion Circular initiative, led by the Ellen McArthur Foundation, bringS together fashion giants such as Nike, GAP, and Burberry to adopt more resource-efficient business models and tackle waste

FILIPPA K x REPACK

Brands such as Filippa K, have collaborated with organisations such as Repack who provide alternative packaging to create incentives & encourage consumers to close the packaging loop


CAIF’s mission is to build unusual alliances and drive innovations for a circular apparel economy to prosper in India through six key work-streams

CAIF aims to create a circular economy in India’s textile & apparel industry by facilitating innovation and collaboration to build circular solutions

We aim to achieve this through

Our vision

BRAND CHALLENGES

COMMUNITY BUILDING

CAPACITY BUILDING

ENTERPRISE SHOWCASE

INNOVATION SOURCING

AN INDUSTRY PLATFORM

CAIF brings together key stakeholders in the textile & apparel industry to facilitate innovation and the co-creation of solutions

B u i l d i n g B l o c k s

DESIGN THINKING

DATA

COLLABORATIONS

BUSINESS MODELLING STAKEHOLDER FORUMS

INNOVATIVE FINANCING

INDUSTRY BODIES

PROTOTYPING

The initiative leverages enterprises and innovations across the apparel value chain to achieve its key objectives

OBJECTIVES:

Enterprise Level – Ensuring enterprises scale their solutions and sustain Sector Level – Ensuring adoption of circular practices across the industry Systems Level - Creating a system where circularity is the norm

BUILD & SCALE OPEN SOURCE TOOLKIT Develop and test open source toolkit for brands and enterprises to identify circular business opportunities

LON

G T

ERM

OBJ

ECTI

VES

SHO

RT T

ERM

OBJ

ECTI

VES

CREATE A PIPELINE OF SOLUTIONS & STAKEHOLDERS Identify, source, and engage enterprises, brands, and manufacturers in the

circular/sustainable textile & apparel space in India

CONVENE & CO-CREATE SOLUTIONS Design and develop pilot programs and innovation

corridors, identify key areas of interest to the sector to promote circularity

DISSEMINATE KNOWLEDGE Engage key stakeholders and influencers in the

sector to spur interest and disseminate knowledge at both consumer and producer levels

PROTOTYPE & PILOT Prototype & pilot enterprise innovations and solutions through co-creation workshops, technology transfer and stakeholder engagements

CREATE BUSINESS CASE Develop business cases for circularity to promote adoption of circular solutions

ADVOCATE & REGULATE Engage public sector stakeholders to advocate for

industry level integration of circular principles

STRENGTHEN VALUE CHAIN Create a robust & sustainable value chain


CAIF aims to engage stakeholders in the co-creation, ideation, and innovation process through workshops & convenings

CO-CREATION WORKSHOPS KNOWLEDGE & NETWORK CONVENINGS

To discover and understand opportunity areas, address gaps through ideation & high-level solutioning

Regular convenings to engage stakeholders, disseminate knowledge, transfer technology and spur innovation and collaboration

As ideas emerge from these convenings, we will engage in a prototyping process to build out pilots and scale solutions

•  Development of innovation corridors & technology transfer programs

•  Designing partnership & operating models

•  Development of prototype design hypothesis

The Prototyping & Piloting Process

Idea Validation

Prototype Development

Prototyping & Pilot Delivery

•  Contextual scan of innovation landscape

•  Primary & secondary research •  Rapid & lean testing •  Identification & convening of key

stakeholders through workshops and networking sessions

•  Identification, design, and development of prototype pillars/metrics

•  Prototype/pilot project management & delivery

•  Iteration of model to support scale-up


Our first co-creation workshop brought together 40+ pioneering change makers and resulted in the creation of 5 concepts that will now be taken to the next level

5 high-level concepts

40+ delegates

6 enterprise/brand

connections

3 deals struck

Click to access the Workshop Report


We are closely working with like-minded organizations that share the vision of a circular apparel industry in India


PARTNER WITH US Join us in building the ecosystem for a circular apparel economy in India

Get involved and partner with us to build a circular apparel economy in India

Anchor Partner

Strategic Partner

Support Partner

v  Co-design and steer the innovation factory

v  Define and diversify CAIF’s focus areas

v  Co-create and develop the innovation factory infrastructure

v  Own outcomes of the prototypes & pilots

v  Gain access to the Aavishkaar-Intellecap group’s network and services

v  Host or support stakeholder convenings & innovation exchanges

v  Commit financial resources

v  With inputs from the anchor partner, refine and co-create innovation factory infrastructure

v  With inputs from the anchor partner and CAIF define key focus areas

v  Work with CAIF to bring in anchor and other partners

v  Contribute to outcomes, pilots, and prototypes

v  Gain priority access to CAIF services

v  Support stakeholder convenings v  Commit non-financial resources

v  Empanelled service providers and resource partners for the innovation factory’s toolkit, pilots, and prototypes

v  Gain access to CAIF’s services v  Explore opportunities to

contribute to or join efforts led by Anchor and Strategic partners

Convening Partner

v  As a convening partner, you can host or co-host a series of events with us such as -

v  Ideation & Innovation Workshops

v  Hypothesis Validation & Testing Workshops

v  Opportunity Mapping Workshops

v  CAIF Happy Hours & Networking

v  Knowledge Sharing Sessions v  Status Updates & Progress

Briefs


To curate an innovation workshop specific to your organisation, or host an event in association with CAIF, write to us!

Thank you

For more information Reach out to us via

[email protected]

or call us directly on

+91 77690 40473

the idea in brief: the circular apparel innovation factory › uploads › 23e66e8...consulting...

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