The fashion industry is experiencing a shift in its approach to sustainability. While it remains a crucial aspect of responsible business practices, its prominence as a consumer-facing selling point is diminishing. Economic uncertainties and global events have refocused consumer priorities on fundamental needs like financial security and emotional well-being. This shift is reflected in decreased consumer searches for “sustainability” and a growing skepticism towards brands’ sustainability claims. Consumers now expect sustainability to be an inherent quality of products, rather than a premium feature. This necessitates a change in how brands communicate their sustainability efforts, moving away from placing the burden of choice on consumers and towards taking greater corporate responsibility.
The changing economic landscape presents a challenging environment for both consumers and brands. Rising living costs, political instability, and global conflicts have created a sense of insecurity, pushing consumers towards seeking basic needs and stability. This impacts their buying behavior, with a focus on trustworthy brands that offer value and reliability. Fashion executives share this pessimistic outlook, anticipating worsening industry conditions in the coming year. This challenging context contributes to the decreased emphasis on sustainability as a primary consumer concern, as individuals prioritize immediate needs over long-term ethical considerations.
Despite the waning consumer focus, experts caution against neglecting sustainability. Upcoming legislation, such as the Corporate Sustainability Due Diligence Directive and the Ecodesign for Sustainable Products Directive in the EU, mandates continued progress in sustainable practices. Failing to adapt risks costly catch-up efforts and a loss of competitiveness. The long-term costs of climate change and increasing government scrutiny necessitate a continued commitment to sustainability. While consumers might not be willing to pay a premium for sustainable products, businesses that adopt a long-term sustainability strategy will gain operational efficiencies and a competitive edge.
Sustainability is evolving into a “hygiene factor” in the fashion industry, similar to reliable online delivery. Consumers expect brands to meet basic sustainability standards, but it’s no longer a primary differentiator. While this may seem like a setback for brands that have built their identity around ethical values, it signifies a significant shift: sustainability is becoming ingrained in industry operations. Complacency, however, remains a significant risk. Brands must avoid treating sustainability as a mere checklist item and instead drive meaningful, transformative action. This shift requires genuine integration of sustainability into core business practices, rather than superficial marketing campaigns.
Looking ahead to 2025, a key focus area will be funding the sustainable transition. Brands need to develop financial mechanisms to support suppliers in adopting sustainable practices and invest in innovation. Initiatives like H&M Group’s Green Fashion Initiative and PVH Corp’s investments in supplier innovation exemplify good practice. Collaboration with suppliers to address Scope 3 emissions, the indirect emissions from a company’s value chain, will be crucial. Developing robust financial plans for climate action is essential for credible climate transition strategies. This requires C-suite level commitment and integration of sustainability into financial planning, demonstrating a genuine dedication to long-term environmental responsibility.
The evolving perception of sustainability requires brands to adapt their communication strategies. Transparency and accountability are key. While sustainability is no longer a unique selling proposition, consumers still expect information to make informed choices. Digital product passports, for instance, can enhance brand trustworthiness without overwhelming consumers with information. Brands must focus on delivering high-quality products and seamlessly integrating sustainability into their operations. This shift demands a more nuanced approach to communicating sustainability, emphasizing transparency and demonstrating tangible actions rather than relying on broad claims. Building trust and fostering a sense of security among consumers will be paramount in navigating the challenging economic climate of 2025 and beyond.
