Central European Business Review 2020, 9(1):1-19 | DOI: 10.18267/j.cebr.226

Circular Business Models in Textiles and Apparel Sector in Slovakia

Ferdinand Daňo1, Peter Drábik2, Eva Hanuláková3
1 University of Economics Bratislava, Faculty of Commerce, Slovak Republic, ferdinand.dano@euba.sk
2 University of Economics Bratislava, Faculty of Commerce, Slovak Republic, peter.drabik@euba.sk
3 University of Economics Bratislava, Faculty of Commerce, Slovak Republic, eva.hanulakova@euba.sk

The circular economy is characterized as regenerative economy that aims to preserve the greatest value of products and materials. Currently, the transition to the circular economy is not only a necessity, but it gradually becomes a social and economic paradigm. The implementation of the circular economy gradually changes and will change the nature and intensity of every sector regardless of its reproductive cycle. For producers, particularly in the rapidly growing sectors, the development of innovative business models will be essential to comply with the principles of the circular economy. The fastest growing sector includes the textiles and clothing industry. The implementation of innovative business models in the field of textile and clothing industry is thus a challenge that the sector is facing. Slovakia as EU member state is facing the same challenge. Bodies operating in the textile and clothing industries must be gradually prepared for changes that brings the legislation and get ready for the trends that determine the changes mentioned. The article presents the results of research that shows the potential of the Slovak textile and clothing producers, coupled with the transition to the aforementioned new economic model, with a focus on implementing new circular business models into their activities, benefits and disadvantages of this procedure and the limits of implementation new business models into the activities of entities operating in the textile clothing industry in Slovakia.
Implications for Central European audience: This paper aims to contribute to the development of a topical and beneficial subject-matter related to transition from a linear to a circular economy in Central Europe. This entails knowledge on the imminent obligations of producers in one of the fastest growing sectors of Central European economies, i.e. in the textile and clothing industry. Such knowledge enriches the existing business models with a new business paradigm. In theoretical terms, this knowledge creates a platform for further scientific research potential and economic, business, and management education at universities. In practical terms, this knowledge represents a proactive approach of producers to the creation and implementation of innovative business models.

Keywords: circular economy; circular business model; textiles and apparel sector
JEL classification: L26, Q56

Received: September 19, 2019; Revised: October 24, 2019; Accepted: November 11, 2019; Prepublished online: February 5, 2020; Published: March 31, 2020  Show citation

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Daňo, F., Drábik, P., & Hanuláková, E. (2020). Circular Business Models in Textiles and Apparel Sector in Slovakia. Central European Business Review9(1), 1-19. doi: 10.18267/j.cebr.226
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