Traditional business models are vulnerable to rising input costs and particularly raw material costs. (p. 9) Consumer goods businesses have developed business models that are predicated on cheap raw materials and labour costs. Fashion businesses have globalized sourcing raw materials and labour from low-cost countries in order to make a profit. (p.10) Now new roads need to be explored in order to have a feasible and profitable business in the future.
When produced in low cost labour countries, the true costs of production have not been completely factored in. (p.11) In the report they mean costs like water use, which are rarely monitored in these countries, but I think they should also mean the low salary and poor conditions the factory workers are working in. These workers pay with their lives for your garment.
The business models that are explored in this report are models that extend the life of clothes and increase the proportion of garments that are re-used instead of being discarded prematurely. (p.3) These models are examined on commercial viability and scalability.
The following models are explored: