Sustainable apparel? Is the innovation in the business model?-The case of IOU Project

Abstract

Since sustainability approaches to the apparel industry are based on incremental rather than transformative solutions, the prevailing business models need to be changed.This paper will introduce the IOU Project as an example about disruptive business model in the apparel and fashion sectors. This case was selected since disruptive innovation requires an entrepreneurial mindset and spirit with close coordination and cooperation among all participants (JAMA 352:24-28, 2004). The analysis - which is based on the Clark, Osterwalder, and Pigneur’s (2012) business model (personal) ‘canvas’ - puts special emphasis on the supply chain development and on the relationship developed between the initiative and its customers, as well as on whether or not it fostered a relationship between the customer and the artisans who were part of the supply chain.To develop this case, the authors collected background and …