PROPOSED CIRCULAR ECONOMY IN SMES FASHION INDUSTRY, CASE STUDY: BOOCHET

• Main Author: Alifa Anwari, Addini
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/70666
• Institution: Institut Teknologi Bandung

When looking at the fashion industry, the limitations of the current linear economy model (take-make-waste) become apparent. It is expected that this system will no longer be able to support business in the future. SME, which accounts for 99% of total business in Indonesia, are regarded as key players in steering our economy toward a more circular model. Furthermore, SMEs have complete power and control over all business processes, making it easier for them to implement circular systems that necessitate decentralization. Boochet is an Indonesian fashion SME specializing in handmade crochet goods and incorporates slow fashion practices into its operations. Boochet is aware of the fashion industry's impact, which has led them to focus on producing its products ethically and minimizing waste from the beginning. However, since Boochet was too focused on maximizing its sales, it overlooked the importance of after-sales activity, which ultimately led to adopting a linear system. This study aims to examine the adoption of the circular economy in fashion SMEs (Boochet) and its impact on sustainability and business performance. This research was conducted by understanding the external with PESTLE and Linear economy framework for internal analysis with a focus on sustainability, which includes the environmental, social, and economic aspects. Primary data was gathered through interviews with Boochet members and customers, while secondary data was gathered from journals, books, and other academic references. The outcome of this research is a triple-layered business model canvas. Its primary goal is to reshape Boochet's business and economic systems so that resources are kept in the loop. By decoupling revenue from production and resource use, circular business models could provide Boochet with a significant opportunity for new and improved growth.