Sustainable circular economy value propositions in clothing as a service -model

Due to the environmental challenges, we need a radical change towards sustainable circular economy (CE), which is based on resource efficiency, minimisation of waste and optimisation of the length and utilisation of the material loops. CE requires a collaboration between companies, and thus stakeholders play a significant role in CE-based business models.
To move towards circularity, companies have started to develop novel business models based on offering services instead of selling products. In this study we aim to understand what kind of value companies are creating with a clothing as a service model (Caas) for their main stakeholders: a) consumers, b) environment, c) society, d) other key stakeholders. Our data derives from three Finnish case companies. This study creates a framework for sustainable circular value proposition in the textile industry, extends the perceived value by the larger group of stakeholders and includes the consideration of sacrifices into the same discussion.